In the past 10 years, more people have become millionaires
using Network Marketing than from any other occupation or
profession.
One of the most exciting aspects of network marketing is
how you can potentially gain a large network from
sponsoring a few people personally, with them in turn doing
the same thing, with the pattern repeating.
If it took 30 days for this pattern to duplicate (each
person sponsoring 2 others in their first 30 days), then
you will have gained a downline of over 8,000 men/women in
just one year. It is this potential of geometric growth
that gets people excited about Network Marketing. Just
think, if you were making $2.00 per person, then in one
year you would be making $16,000 per month ! Sounds great,
doesn't it ? It also sounds too good to be true. The
problem is............ It is too good to be true!
Despite the success stories, MLM has had more than its fair
share of problems and failures. Many people who have tried
it, have actually lost money, or failed to make enough
money to make it worth their while to continue their
efforts. Here are the facts that so many MLM promoters fail
to acknowledge or tell you:
Typically, 60% to 80% of the people who join, sponsor less
than 2 men/women each, in their first 30 days. Therefore,
the geometric progression never really occurs in this
manner.
The other factor is that most of the people that join a MLM
business quit and the majority of them do so within a few
months after joining.
Why do people quit?
1. They aren't making any money because they are unable to
sponsor enough people or gain enough customers to become
profitable.
2. Because the products cost too much they aren't saving
any money either.
3. It's too much of a hassle being involved, for the little
money that they may be making.
4. Any of the above combined with the fact that they are
actually losing money each month because of money spent on
product quotas, marketing materials, motivational tapes,
rallies, seminars and long distance functions requiring
travel, meal, lodging and ticket costs.
5. They lose hope that they can ever have the benefit of
the development of a big network.
What are the causes of these problems and failures? Can
they be eliminated? Is it possible that the leverage
created by Network Marketing could benefit everyone and not
just a few?
Sorry, MLM will only benefit a few. The entire program must
be different. It can't be based on a few hyped products or
"get rich quick" claims. It may not have MLM markup. It
must be based however on logic and common sense.
Some logic tips a program with common sense must have :
- The program must include a trainings program to help
people grow in their business.
- The less it cost to join, the easier it is to sponsor new
people.
- Being able to quickly gain a positive cash flow.
- The faster your network grows, the more motivated you are
to refer new people. A program build on a team effort
provides real support to get your network started and
develop.
- Attractively priced goods to be sold.
- Once you see your income grow, you want to do more.
There's no need to buy motivational tapes each week or go
to an endless amount of weekend functions.
- The program must have a plan to let your network continue
to grow.
- The program must enable you to develop a self sustaining
income as your network develops.
----------------------------------------------------
Ruud is a home business entrepreneur who connects
retailers and consumers online. With plans coming up in
2008 for World wide distribution of discount cards. He
likes to help people start up their own home based
business and Make Money Online. Hundreds of visitors profit
the free discounts or start their own internet business at
http://www.discountshopping.nu/money/
and
http://www.clubkorting.info/geld/
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