Are You Afraid of MLM?

Why are people afraid of MLM?They think it is illegal
They don't understand how it worksThere are some illegal rascals out there, and I have written other articles on how to avoid them. So let's start by accepting that there are some legitimate, legal MLM opportunities. And let's look at how MLM works.Most people do "network marketing" every day. They just don't get paid for it! Network marketing is nothing more than telling other people about a product or service you like. How often have you shared with someone else:A great restaurant
A good movie
Where to find a bargain on a product
A product that made you feel better
A contractor who did good work for you
A nice hotel with good serviceThe list goes on and on. While some businesses will give you a reward (like points toward a future product or service) for referring new business, most will not. And they definitely won't reward you for the person who was referred by the person you referred! In other words, if they do give rewards it is "one level" only.Traditional businesses also pay for advertising. Have you ever heard the price tag for a super bowl ad? A local company providing an advertising magazine recently wanted me to buy a quarter-page ad and it costs over $300. Advertising costs businesses lots of money.Most multi-level marketing companies use exclusively word-of-mouth advertising (network marketing) to sell their products, and the money they would have spent on traditional advertising is paid out in commissions to their distributors. It is called multi-level because you earn money not just on the sales you make personally, but also on the sales made by your team. For example, if you sponsor Sally as a distributor you will earn commissions on Sally's sales. If Sally sponsors Joe you will also earn commissions on Joe's sales.This concept seems somehow immoral to some people. They think they would be paid for something they didn't do. But think about it...Joe wouldn't be selling products for this company if it weren't for Sally, and you sponsored Sally, so you are responsible for Joe being in the company.It's simply leverage. Let's say you own several fast food franchises and never actually work behind the counter in any of them. You pay employees an hourly wage to prepare and sell the food. You take all of the risk (paying employees even if no customers come in, paying the rent and utilities, buying the food) and earn money from the work of ALL of those employees when customers do come in. If you are successful, you are out playing golf or sailing or whatever you enjoy doing while your employees are working.When you work for someone else or in a business where you get paid by the job (like a hair stylist, a massage therapist, or even a doctor) you are trading time for money. You are not taking advantage of leverage.A MLM business lets you take advantage of leverage. It just happens to be a whole lot cheaper and easier to start than a "brick and mortar" business. To me, the best part is that everyone who joins your team has the same opportunity. You are leveraging the efforts of team members as opposed to employees, and every team member can grow their own team.I love the concept!