About MLM
What is MLM/Network Marketing?

Network Marketing Explained

The concept of Network Marketing or MLM (Multi Level Marketing) is probably one of the most misunderstood on the planet. Some people have confused it with pyramid schemes; get rich quick and more.

Actually, none of that applies to a legitimate network marketing program.

Did you know that in just a few hours a week, you can create a major second income that continues to increase over time? In fact, with persistence and commitment, this income could soon replace your current full time income. It could even create a lifestyle of the rich and famous.

What if it worked for you like it has worked for so many others?

When was the last time you recommended a good book, restaurant or movie to a friend? How often do you do that?

Probably pretty often, right?

But, when was the last time the publisher, restaurant or movie producer sent you a “royalty” check for the referral?

Probably, never.

Well, despite the way things usually are, the idea behind what is now the fastest growing home based business trend in America and around the world, Network Marketing, is that if you get paid for recommending things you like, use and believe in, you’ll do this more and more! And, you’ll probably find some others that want to do the same thing.

That’s it in a nutshell.

What if you found a great product or service and you loved it so much you decided to go into business marketing it?

You earn a small commission for the ongoing purchases of those you refer to this product or service, and you’re also paid a small commission when you introduce this concept to others, and they refer people.

Pretty ingenious, huh?

And, the best part is that this concept can create true, passive, residual income for you and your family. And, you can touch the lives of hundreds and even thousands of other people.

Many people just simply don’t understand the concept of Network Marketing.


MLM - Get Rich Quick or Consistent Hard Work

Is network marketing a get rich quick scheme or does it require consistent hard work to earn good money?

The answer is both are possible. However for most people the latter is more likely. Although it is possible to earn money quickly in the network marketing industry there are only a few members in the 'get rich quick' club. These people have been in the industry a long time and generally knew what they were doing. The majority of people who earn millions in the network marketing industry are those who have done so through consistent hard work. Just like the CEO of any big company you also need to work for your money in a network marketing business. The main difference is that when you retire as a CEO you stop getting paid. In network marketing however, your business continues to pay you regardless of whether you choose to retire, or not.

When people first join the network marketing industry they often do so with the belief that all they have to do is find some distributors and from then on in everything seems to happen automatically. They get rich quick and continue to earn millions of dollars and earn a lifetime of financial freedom. Although in theory it is possible to get rich quick, in reality it hardly ever happens.

The good news is that for most people, consistent part-time work will pay off. Is network marketing a get rich quick business? It depends how you define 'quick'. It won’t happen overnight, but from what we’ve seen, those network marketers who put in a consistent part-time effort are generally earning enough residual income to quit their full-time work after about 3-5 years.

Why do so many network markers give up within the first 6 months?

Think of network marketing just like any other investment, it takes time to grow. The reason why people give up after just 6 months is generally because they are impatient and were expecting to get rich quick and not have to work for the money. Again, this is possible and yes there are a few people in network marketing that do get rich quick, but just like any other investment portfolio, generally good things come to those who wait.

The way in which residual income works in the network marketing industry is that in the beginning you are seriously underpaid for the work you do. For example, initially it may take you 10hrs of work to make a $50 profit which works out to be only $5 per hour. This is not even minimum wage in most countries and this is the point where many people will give up. What you need to realize is that as your organization grows the opposite is also true. You become seriously overpaid. Not only are you earning a profit on the work you do, but also from the work of members in your organization, where now you could easily be earning $500/hr.

Let’s look at an example, if I offered you a lump sum of $16 000 today or 5c a year on the condition that it doubles each year for the next 25 years, what would be the best financial investment?

Most people would instantly start thinking about how good it would be to have an extra $16 000 and are happy to settle for the short-term gratification. What they fail to realize is that when you continue to double 5c each year, that 5c soon turns into $1.6 million. The table below helps to illustrate how this works.




1 $0.05 $0.05
2 $0.10 $0.15
3 $0.20 $0.35
4 $0.40 $0.75
5 $0.80 $1.55
6 $1.60 $3.15
7 $3.20 $6.35
8 $6.40 $12.75
9 $12.80 $25.55
10 $25.60 $51.15
11 $51.20 $102.35
12 $102.40 $204.75
13 $204.80 $409.55
14 $409.60 $819.15
15 $819.20 $1,638.35
16 $1,638.40 $3,276.75
17 $3,276.80 $6,553.55
18 $6,553.60 $13,107.15
19 $13,107.20 $26,214.35
20 $26,214.40 $52,428.75
21 $52,428.80 $104,857.55
22 $104,857.60 $209,715.15
23 $209,715.20 $419,430.35
24 $419,430.40 $838,860.75
25 $838,860.80 $1,677,721.55

Most people take the $16 000 option because they think short-term, they find the quick dollar or easy solution more appealing. Essentially the main difference between the wealthy and the working class is a wealthy mindset. The wealthy are willing to sacrifice short-term pain in return for long-term gain, whereas the working class settle for short-term gains that lead to long-term pain and debt.

The point we are trying to make is that when you first join a network marketing business, don’t fall into the trap of thinking you’ll get rich quick. Instead think of it as an investment where realistically for the first 3 months, you can probably expect to make little profit or barely break even. The good news is that through consistent part-time efforts, in the long-term you will earn this back many times over.

When you go to university it normally takes at least 3 years to get a degree, which costs a significant amount of money. Why do people do it? Because they see it as an investment for their future, not a cost. Network marketing is the same. Just like any other investment - real estate, shares, education - the reward is in the years that follow, not the first couple of months.

I remember the turning point of my network marketing career. I had been in the industry for about 6 months and wasn’t really treating it all that seriously as I had a full-time job that I really enjoyed. After going to one of the company’s social events I made a commitment to put in a little more effort the following week, working 1 hour a day on my network marketing business. Shortly after I received a cheque in the mail for $1990 for a week in which I worked 7 hours. I’ve never looked back. For people in the industry this is often referred to as the turning point, or the tipping point, where things start to grow exponentially.

I now fully understand and appreciate the concept of residual income and the power of leverage. If you are looking to join network marketing to get rich quick, there is a good chance it will not happen and I’d be cautious of anyone who is trying to tell you otherwise. However, if you see network marketing as a long-term investment, you see the whole picture and are willing to sacrifice some of your time in the short-term, so that in years to come you too can enjoy financial freedom.

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