Why Look at MLM?
People join MLM companies for many different reasons. Here’s a partial list:
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 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’ve 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. When you’re able to help someone overcome a weight management problem that they’ve struggled with, or help someone improve their skin condition, or help someone achieve financial freedom, it’s very rewarding because you know you’ve made their life better.
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 transition into business ownership
Most people work as hard as they can in whatever job they can find to keep up with expenses. They feel trapped because they HAVE to go to work to pay the bills. MLM offers a way out of the typical job trap because a person can work their MLM business part-time until they earn enough income to quit their full time job – if they desire to do so. 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.
Join MLM to achieve your dreams
Most people have dreams that are often hidden underneath “not enough time, money, or know-how.” Whether it be music, art, dance, benevolent causes, a horse ranch, cars, boats, flying, diving, traveling, golf – dream lists are endless unless one has quit dreaming. People often join MLM to build a business that allows them the freedom and flexibility to pursue their real dream.
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.
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!
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. See this diagram for a visual.
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.
Recommended next page: How to evaluate an MLM company.
About the Author
Tim’s experience in building his own downline of 56,000 network marketers helped him develop his signature training series. A public relations ambassador for the network marketing industry, Tim has also dedicated his time to debunking the false information spread about the network marketing industry.