Some people will join an MLM at the drop of a hat; others will run for their lives at the mention of an MLM opportunity. It’s not that they are afraid of the MLM; they are trying to get away from the person pushing it. They don’t want to be involved with one of “those pyramids”. I don’t blame them. I don’t want to be involved with one of those pyramids either. For years I worked for a couple of huge international corporate giants. It would be hard to find bigger pyramids. Look at any corporate organization chart – it’s a huge pyramid.
Well, I know what those folks really meant. They don’t want to be involved in something where people at the top make mounds of money, and people at the bottom don’t have a chance to make much of anything. Wait a minute. That sounds like the international corporate giants again. Oh, well. But don’t forget that someone decides to join an MLM many times every day.
Join an MLM, Not A Pyramid Scheme
If you are considering whether to join an MLM, understand there is a difference in a real MLM/Network Marketing company and a real pyramid scheme. And no one should be involved in a pyramid scheme. If a company is structured like an MLM, but has no product or service to sell, then it is the definition of a pyramid scheme. And they are illegal. State and Federal regulators have begun to take it a step further in recent years. If the product or service provided by the Network Marketing company is not something people outside the company would normally buy, or it is so overpriced that it provides no real value to anyone outside the company, then it can be regarded as an illegal pyramid scheme.
This doesn’t mean that there is no such thing as a legal, reliable MLM/Network Marketing company. Most MLM companies are legitimate. If you want to join an MLM, this is where you go. You just have to know how to recognize them. These companies provide the kind of opportunity entrepreneurs are looking for. But the guy who is continually hammering friends and family, or is approaching strangers on the street, or thinks a marketing plan is leaving a DVD on top of a gas pump, gives himself, his company, and the industry a bad name. There are better ways to market yourself and your opportunity, both online and off line.
Join An MLM For Residual Income
Real entrepreneurs will join an MLM for a couple of reasons. They are looking for time freedom, and they are looking for residual income. Those are the two biggest reasons to join an MLM. Residual income means getting paid now and in the future for something you did in the past. And don’t go around thinking this is strange or illegal. Your insurance agent does very well through residual income. If you make a sale today, and it is something your customer will continue to use in the future, you get paid in the future without having to re-create the sale. As an entrepreneur, this creates time freedom for you because you don’t have to continually generate an income. Time freedom lets you get better at a hobby, or do volunteer work, or get re-acquainted with your family, or help other people to achieve the same thing you have, or build another income stream from another source. It’s a great place to be.
The problem is that most people who “join an MLM” approach it too casually. If you don’t understand you’re in a business – even if it is part time, you will probably struggle. Don’t be afraid to join an MLM. Just be sure to avoid a pyramid scheme scam. And learn your business, your product, and your marketing. Neglect any of these three areas and you are setting yourself up for problems. Learning about an MLM business and its products are things you learn from the MLM company. Marketing and prospecting are keys to success you will probably need outside help with.
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