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Why Do People Join MLM Anyway? |
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Why Look at MLM?
People join MLM companies for many different reasons. Here's a partial list.
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Join MLM as a social activity MLM is a great place to meet people and have fun.
There are business meetings, training meetings, cruises, cookouts and fireside chats where you can meet lots of new friends.
Conversation
topics are normally business and personal-growth related. I know many
people who have found their spouse in MLM because there are so many
people and so many events one can attend.
Every
12-18 months most MLM companies hold national or international
conventions where people meet from all over the world. This is a great
place to meet people. Personally I’ve made friends in over 20 different
countries. It’s rare to find an organization outside of MLM with as many
opportunities to meet people and socialize.
Another
aspect of social activities is working with friends and/or family
members. I’ve seen very often that couples would like to work together
in their own business - MLM offers that opportunity.
Join MLM to transition into business ownership.
I’ve met
professionals who have replaced their income through MLM, but love what
they do so much that they continue in their old profession - but without
the stress of having to make living with it. Personally, I’ve seen
doctors, artists, school teachers and architects do this.
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Join MLM to help people.
Suppose
the MLM company you join helps people with weight management. As you
get trained in how to sell products, you learn a lot about the subject
of weight management.
This knowledge allows
you to help other people with weight management issues. I have also
known very wealthy people to join MLM because they want to help people earn more money and achieve the lifestyle they’ve enjoyed.
Rarely
can a person who has become wealthy in a traditional business be able
to help their friends also become wealthy; MLM is the exception.
Join MLM to live where you want to live.
I’ve
met several people throughout my travels that joined MLM because they
fell in love with a particular part of the world and wanted to live
there, away from the “rat-race lifestyle.”
That
you can work from home in MLM is very enticing to many people. Not only
can you work from home with MLM, but you can work from ANY home. I have
met people who live on a boat and build their MLM business.
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Join MLM as a retirement alternative or addition.
Today
in the United States only 40% of people who work actually have a
retirement account. Of those who have a retirement account of some kind,
the average account balance is $29,000.00.
This
will not afford the average retiree the money to pay predictable
expenses (mortgage payments, utilities, food, auto expenses, etc.).
The
$29,000 certainly won’t afford any unpredictable, catastrophic expenses
such as medical costs. MLM offers a way for a person to create an
income as an alternative to standard retirement plans or to augment
their current retirement plan.
Join MLM to create wealth.
Yes,
wealth is available to people in MLM. It will require as much effort
(and results) as creating wealth using any other business method. You
cannot shortcut the effort in the creation of wealth.
But
with MLM it doesn’t require as much start-up capital expense as with
most other wealth-creation options. I did not write that it would
require NO start-up capital; just less. Incidentally, I have
accomplished all of the above through MLM. It is absolutely doable!
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Why Corporations Like MLM
As
Harvard-educated Professor Charles King and I discussed, all
businesses, churches, politicians, schools, etc. know that word-of-mouth
advertising is the most effective and efficient form of advertising.
It’s effective because the advertising is coming from a trusted source -
a friend, a family member, an acquaintance; it’s efficient because the
company does not have to pay for advertising that doesn’t reach the
customer.
If a company sends out 1,000 post cards telling people
where their store is located and only 1% of the 1,000 come into the
store, then 99% of the advertising was wasted. If a company spends 450
million dollars on an advertising campaign but only sells 100 million
worth of products, they have lost 350 million dollars. Corporations love
doing business with MLM companies because they only pay for results.
They pay no advertising expense until the product is sold.
The
other reason corporations like MLM is because they’re paying for
advertising that benefits the consumer. Let me explain: if a company
(such as T-Mobile) hires celebrity Catherine Zeta Jones and pays her 20
million dollars, that 20 million doesn’t benefit the consumer. As
charming as Catherine Zeta Jones may be, she adds no value to the
consumer. In network marketing, that same 20 million dollars goes to
distributors who have (hopefully) mastered the product and are able to
explain it to the consumer.
MLM companies pay for production, not for coming to work The
word production means “something produced.” If a non-MLM company hires a
sales representative to sell their products, they normally pay the
sales rep a salary plus commission on the sales of the products
sold.They do this prior to knowing if the sales rep will sell anything
at all. If the sales rep never sells anything, their salary is a wasted
expense. In multi-level marketing, the company ONLY pays a commission
when a product is actually sold. That’s paying for production instead of
paying people to come to work whether they produce a sale or not.
Conversely,
if you’re the type of person who seeks ways to hide from producing,
you’ll hate MLM if you continue that same non-productive activity.
Best possible use of your time If you are a productive person, you will want what MLM offers. You can
create a pay raise any time you want. In addition there is little or no limit to how much money you can make.
But most importantly,
you’re multiplying your time instead of expending it. There are three
things you can do with time: Expend it, invest it, and/or multiply it.
As an employee, you’re expending your time. Expend 8 hours, get paid for
8 hours. In MLM, you train another person to do what you do - that’s investing your time. You work 8 hours, the person you trained works 8
hours - you’re [theoretically] getting paid for 16 hours of work. If the
person you trained trains someone else, you’ve multiplied your time.
Don’t brush by this statement… IT IS THE REASON MLM IS SO POWERFUL. Most people don’t understand this part. |
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