Asked Questions About MLM
© 2007 Bonnie Ramsey
Why would I even bother with an MLM or Network
Marketing business that doesn't pay me an hourly rate for
the work that I do? Aren't they really hard to build? Won't
you chase your family and friends away?
These are just a few questions that I hear
in the MLM/NM business and I would like to address them,
as well as a few others, in order to help you to better
understand why we, as MLM/NM members choose to do what we
do and why we have learned the advantage of the "delayed
satisfaction" that you here spoken of in this type
First of all, you should understand that while
this side of the business does take time to build and your
income may not be recognizable for a while, the option for
immediate income is open through the sales of your products.
Therefore, you do have an option to earn as you build your
business. That being said, let's begin with the first question:
Q: Why would I even bother with an MLM
or Network Marketing business?
This answer is pretty simple. FREEDOM and
SECURITY. If you choose to build a team in your business,
you are working toward building your future in a way that
you will never have to worry about lay-offs, cut-backs,
illness, retirement and all of the other aspects of working
for someone else. While you may retain an hourly pay for
your current work, it is reasonable to assume that your
company is not going to pay you for hours you don't work.
For example, let's say that you have been with a company
for several years. They hire on some new workers and assign
you the task of training them. Your pay doesn't increase
due to this extra responsibility but you may possibly get
a few hours of overtime during their training period so
you take on the task.
Now, a few weeks later when this person is
fully trained, you go back to your normal work schedule
and work a few less hours. This is a pay cut since you are
no longer getting the extra hours in to train the new hire.
In a sense, they just cut your pay as a "thank you"
for the hours that you spent training this person. The only
way that you will get more income from training again is
to keep taking on new trainees and keep working the extra
hours to maintain the income. Does this sound familiar?
On the flip side, if you take on a new team
member in your MLM/NM business and train your new member,
you will begin to receive a check on the performance of
that member and continue to be paid for as long as the member
remains in the company. The more productive the member,
the more you earn. This is a continual payment or "residual"
for the time and effort you put forth to train that member.
So, I have to ask, which one would you prefer?
Q: Aren't these types of businesses hard
I won't lie to you and tell you that it is
easy because it does take time and effort to be successful
in this type of business. Yet, this is the case in many
"brick and mortar" type businesses as well. Ask
any financial institute who does business loans how much
time you should allow in a business plan to show a true
profit and many will tell you at least 2 to 5 years. Compared
to this scenario, with the right implementation on your
part, you could quite possibly tip this time scale far in
your favor. There are many MLM/NMers who have built to the
point of their retirement in this length of time. How fast
you build your business is strictly up to you. It is also
imperative that you have excellent training and support
from your upline and company so be sure to ask questions
about this when considering any business opportunity.
Q: Won't you chase your family and friends
away with this type of business?
This will depend solely on how you choose
to run your business. While you can let your family and
friends know about your business and ask them to help by
spreading the word and sending you prospects and customers,
you DO NOT have to hound them constantly to join your business
or buy your products. In many cases, friends and family
are your worst critics in the MLM/NM business. They may
choose to sit back and watch you to see how it turns out
for you before even wanting to talk to you about it. Don't
forget, they all know where you are at this point and that
you are treading new waters. Many won't want to hop in the
boat until they know for sure that the boat will hold water.
You can learn to make new contacts outside this realm and
your upline and company should be readily available to teach
you how to do that.
Q: Don't they take a large investment to get started?
This, also is one of those questions that
will depend on the company you choose to partner with. It
is very important that you do your research on the affordability
of your company. The advice that I try to pass on to others
is to try to keep the initial investment under $100 with
the monthly autoship of about half that. Also, make sure
that the monthly autoship has a resale value of at least
the monthly cost to insure that you can recover the cost
of your monthly investment. There are many companies that
charge far more than this and they certainly may be excellent
companies so please do not mistake me to say that anything
over these suggestions means they are in any way a scam.
The reasoning behind my suggestion is simply
the affordability of the business in the long run. Not only
for you as a new member but also to any prospects that may
be considering joining your team. There are many more prospects
out there that can afford these costs than if it were a
$500 initial investment and a $100-200 per month minimum
purchase. So, the more affordable it is to the vast majority,
the better your chances of success for both you and your
Q: Why would I pay someone else for the
privilege of making them money?
When you join an MLM/NM company, you are not
accepting a "job" from them. You are starting
your own business. If you start a "brick and mortar"
type business, you will have a huge initial investment in
getting your business started. Considering the cost of real
estate, insurance, bonding, utilities, inventory, payroll
and many other expenses that you would need up front in
those businesses, the cost for starting a home based business
is very nominal. It would not be in the best interest of
the company to take on members with no charge when it costs
the company to send out training materials, set up training
calls and conferences (the list goes on) just to find out
that the person is not interested in actually working a
business. It is also in the best interest of the team member
to have this investment because they will be more likely
to focus on the serious business at hand if they have a
stake in that business. It is very rare, if even impossible,
to find someone who will set you up in your own business,
furnish everything you need to get started at no charge
to you. That is just a common sense deduction.
Q: What if I sign up and my sponsor doesn't
give me the proper training that I need?
If you join a company and your sponsor does
not offer the training and support that you need, you should
contact their sponsor. Repeat this process throughout your
upline until you find someone who will train you properly.
There are good and bad sponsors in every business so you
should consider this before dropping out because of a "less
than attentive" sponsor. If you keep going up, you
will find the training that you need. It is in the best
interest of the upline to take the time necessary to properly
train new members so just keep trying.
Q: Is MLM/NM a pyramid scheme?
This would be an astounding NO. The difference
in MLM/NM and a pyramid scheme is, for one, pyramids are
illegal. This is due to the structure of the pay scale or
compensation plan. In a pyramid, the plan is structured
so that there is only one leader at the top of the pyramid.
On the proceeding levels, you are restricted as to how many
people can accomplish this level on each separate level.
For example, on the second level, you may only have 5 people
that can hold that level at any given time. People in the
downline can not reach this level until a member falls off.
This is what creates the "pyramid" shape to the
plan, thus the name pyramid schemes.
In MLM/NM, the top positions are unlimited
and is solely based on member and group performance. In
fact, due to this type of structure, it would be possible
for this to form an upside down pyramid, meaning that the
members enjoy even more benefits as they increase performance
in their team. Most people who have associated the MLM/NM
with a pyramid scheme simply aren't familiar with how it
works and the power of duplication technique.
These are just a few of the questions I have
been asked about the MLM/NM business and hopefully, I have
been able to address some of the questions many of you may
have been wondering about. If you have other questions that
I have not addressed, feel free to contact me through the
information listed in my biography and I will be happy to
assist you in any way that I can.
for Scent Sations, Inc.
About The Author
Bonnie resides in a small town in Mississippi, where she
is a recruiter in her business, coaching and teaching others
to build a home based business. She writes articles, short
stories, poetry and publishes a monthly newsletter. You
may view more of Bonnie's writings at http://hubpages.com/profile/Bonnie+Ramsey
- Email questions to email@example.com
Does It Really Take To Become Successful in any Business
& What If a Spouse Doesn't Give Their Support?
Copyright © 2008 by Sue Seward. All Rights
Network Marketing is a business just like any other business.
And its a serious business when you treat it as such.
Of course many people still do not understand this and it's
treated more like a hobby.
Just think if you started your own traditional business.
Youd work your butt off wouldnt you?
Youd spend a lot of money, hire employees in most
cases, deal with a lot of various taxes, a lease, stocking
store shelves depending on the type of business.
Or youd have a professional business like dentist,
doctor, chiropractor, attorney, CPA, etc. and work yourself
to death, having all of the above and if you dont
see patients or clients what happens?
Your income stops!
So whats the difference in owning a Network marketing
business? You have expenses just like ANY other business.
Only a Network Marketing business is more like a B
business where you are an entrepreneur. Entrepreneurs sometimes
work for years with none or not much pay. Once its
built though it pays you for a lifetime because it's passive
income. That's income that flows into your bank account
from something you did previously.
In fact, Robert Kiyosaki recommends it as the perfect B
business. That means it is on the RIGHT side of the quadrant.
The E & S (Employee & Self-Employee)
are both on the left side and there's nothing wrong with
those quadrants. We just choose to be on the right side
and there are many reasons for that.
(If you've read Rich Dad Poor Dad or listened
to The Perfect Business CD, you know what this
If you have not read it yet and you are planning to become
successful in ANY business I highly recommending reading
this book and all of his books and CDs to start the
educational process of increasing financial IQ.
The difference with a B business in Network
Marketing is - there are some advantages that a traditional
S and other B businesses do not
provide. One of those really crucial advantages is something
I'm going to give you a real life example and it's based
on my own experience so when your spouse - who may not understand
what you are doing or WHY you are working this type of business
or they think you are wasting your time working this kind
of business, questions you because perhaps they are coming
from the 'E' or 'S' side of the quadrant.
Remember, 'E' stands for Employee and 'S' stands for Self-Employed.
If your spouse is not on the same page and is against learning
about this - they could (usually it's not really intentional,
they just are not educated and many people who come into
Network Marketing are not either) they may not understand
and become frustrated with what you are doing and why. Many
people who get into Network Marketing become frustrated
too because they do not understand this concept and they
also are not very good with delayed gratification. Sound
Especially if they are coming from the 'E' and you are
spending money to run your business and perhaps there's
no money or not a lot of money coming in yet, so they are
questioning - why dont you just get a job? This also
happened with Robert & Kim as they started on their
journey to start a 'B' business so you are not alone!
Or perhaps you already have an S business so
your spouse is asking, why dont you just work
your S business harder or start another S
This is usually because again they do not understand the
concept of LEVERAGE and they usually do not understand Network
Marketing. Or perhaps you have been working in Network Marketing
for years and you have not seen much success or have had
very little success and they think here we go again, with
another deal that is not going to work and questioning constantly
why are you pouring more money into that MLM deal?
One of the very true reasonss for my success is because
I have always had the support of my spouse. Even though
he was frustrated in the beginning for several years with
the money going out - all the time I spent in my office
- on the phone and NOT with him or the kids and the frustrations
he saw me go through, he still believed in me and in what
I was doing for us.
I took him to events back in those early days so he was
around my mentors and saw the company and knew of the possibilities.
Having his support was the first step.
In fact, if you have any family members cutting you down
for what you do it will be tough to overcome. My immediate
family never supported me and they made fun of my Network
Marketing business for years. (a distant memory now of course
but I remember those days!) Listen to Kim Klavers
stuff on this! I used to listen to her stuff back then about
the family poking fun! Wasn't fun to go through then but
I just let it roll off my back at the time because I knew
I was on a mission and knew WHY!
Robert Kiyosaki also wrote an article on this called 'What
Will My Friends Think' and you can read that article on
a new MLM training website Im building at http://www.MLM-Online-Marketing-Coach.com
Its CRUCIAL to your success though that you do have
the support of your spouse in any business, so if you dont
have it, it could become a struggle. Because in reality
you live with your spouse day in and day out and not with
your immediate family so it's hard to shut out your spouse
and any negative comments they make.
On the other hand, if you happen to have a spouse that
is controlling and demands that you do what they say, you
most likely wont make it in ANY business. Thats
kind of like having a boss isnt it? This is just a
fact. Over the years though Ive seen it happen many
times. This is something that I cannot help you with because
Im not a marriage counselor.
In fact, this is exactly why when I speak with people about
starting their business I find out right up front - will
they be working their business with their spouse and if
not, do they have their spouses support? This is a very
important question to ask. Im also learning from Robert
& Kim on how important it is to work as a partnership
and putting your financial PLAN together as a team.
My husband has been supportive of my business and career
for eleven years. Actually more like 18 years since I started
dabbling in MLM back in 1988 so hes seen me fail and
make mistakes for many years while working on myself and
creating a business for our familys future! (our plan
has always been to bring him into the business and we have
no doubt that is going to happen soon and would be now if
not for some new opportunities that we decided to give our
son at this time so weve put our plans on hold some.
This is what happens when you wait until you are 40 to have
your second child!!!).
Now my husband dances a jig because here's what's happened
over the last eleven years as he has seen my development
over the years.
I have managed to create not only a credible career where
if something happened to him I would be ok and have become
independent not only FINANCIALLY also EMOTIONALLY
independent and confident and know that I can do anything!
If something happened to my company I know I have the skills
and experience to start a new business. I have connections
and I have leverage.
Eleven years ago I had NO income of my own and no career.
No connections, no leverage and NO confidence.
I was a stay at home mom and being a mom doesnt pay
to well, at least not monetarily! I could take a job now
because I do have skills that I learned in NETWORK MARKETING.
However I do NOT want a JOB! I do not want anyone telling
me what to do, when to do it, how much income I can make,
or how high to jump! Im not interested in building
someone elses business or their dreams! I did this
for freedom - not to have to end up working again for someone
else just because something was to happen to my spouse!
So let's discuss leverage -
Last year was a very tough year for us - We decided to
give our son the opportunity to come to Austin to play level
1 tennis which is a fantastic opportunity for him but its
also a very expensive endeavor that really threw a wrench
into our plans. My income had finally grown and we were
even able to buy an investment property at Lake Travis and
things were great! We had money to spare and invest and
our plans were set to retire my husband.
Then this opportunity came up and we decided to move me
and my son to Austin. So from March to summer, (July) I
was in transition mode moving us. I did not work on my business
much. I did however delegate a lot of leads and sign ups
to leaders. These are partners that I had brought into my
business from January through July.
Then in August I started getting sick. I became extremely
ill up until December and was barely able to work. There
was a five month period where I could hardly function at
all some days and sponsored only a few people myself personally.
All of my contacts and leads went to other leaders and
they sponsored them and my business continued to build because
of my ability to recognize that I was not able to do this
all myself and if I was not able to delegate to these leaders
that I had in place I could lose some of the momentum that
was starting to happen!
We made Director in our company in September so something
was done right. It was an all out team effort. Again leveraging
other peoples time and money!
I ended up making over 6 figures in passive income last
year when all I did was really work about half the year
with not to much effort at all. NOTHING like I did in those
first four years in late 1996 2001 where I worked
extremely hard online day in and day out, barely taking
a day off, in fact, never taking a day off! Then from 2001-2007
I was also working and making connections and networking
and developing myself and the business.
I went to every convention and was on every conference
call I could get on. I would even leave my son's band concert
in the middle of the concert to go on a conference call.
Now I never do that because I have paid the dues and have
earned that luxury! I had to learn to say NO to some fun
back then to get where I am now! Do what others won't do
so that you can do later what others won't be able to!
Now.....when I got sick....
What would have happened if I had a traditional JOB?
What would have happened if I had an 'S' business?
I would have most likely lost all of my clients; business
would be shut down, closed doors, bankrupt!
What would have happened if I was ONLY retailing products?
I would have been BROKE!
All of that income was earned because of work I did in
the years previous. It took hard work in those early years!
It took sacrifice, commitment, determination, courage, desire,
long hours, not spending time with my family and friends,
and it took putting time and MONEY into my business just
like ANY business does, took support from my husband and
kids and it took a never giving up attitude.
It also took getting through a lot of rejection, disappointment,
discouragement, walking on hot coals, through the refining
fire, people telling me one thing and doing another, failures,
mistakes, spending money we didnt have, taking risk,
losing money. Donald Trump lost millions and then made it
all back. Kioysaki was a million dollars in debt and he
never once filed bankruptcy. He pulled himself out of it.
Now I have not lost millions in Network Marketing thats
When people complain to me that they have to spend $100
for this or $500 to start a business or that they dont
have money for a website, and on and on and on with constant
complaining every time they have to put money into their
business, this tells me they are not thinking like a B
If they have the desire for more in their life and and
want to move to the right side of the quadrant and develop
a B business and become a part of the rich (the
2% club we call it) they have to DECIDE to change their
mind-set first and begin to think differently. This is where
it all starts with a shift in MIND-SET..
If someone is not willing to do this I would recommend
that they stay in the E quadrant which they
may have to settle for the rest of their life and do what
someone else tells them. This is also IF they don't get
laid off, downsized, or fired or become sick and lose their
Sometimes people take the victim mentality and settle for
whatever comes their way.
Being in business is not for everyone and not everyone
will have what it takes to become successful.
I also do not recommend they quit their E or
S job or business and instead incorporate a
B into that and eventually they can shift things.
This is what we are doing with my husband's 'E' job. His
job provides our family a very sizable paycheck that we
are NOT going to let go of so that we can leverage that
income a bit longer.
You can learn more about this in Roberts training.
Now I have the luxury of spending time when I want with
family and friends and do what I want. I had to give up
some things up front though to get here. Putting the cart
before the horse though isnt going to work to well.
Everyone wants their cake and eat it too and thats
not how things work.
Now that we have bigger dreams and goals to get to a million
dollar earner its taking a different mind-set shift
on my part of learning and growing. Its going to take
some more work, time and money and a bit more sacrifice
especially now that we've given our son this opportunity
and we are going to all grow together!
The thing is Ive developed myself into a solid leader
with leverage now so that I can work on some things and
leverage other peoples time and money at the same
time while moving onward to some new exciting goals helping
and training people on this same concept so that they achieve
their goals and dreams.
This is about long term delayed gratification - which is
what ultimately will determine your success! Its about
being patient and being able to conquer your fears and moving
through the fires by constantly developing yourself with
learning and growing and becoming a stronger person and
developing into a leader because leaders are the ones that
earn the big incomes.
Like I said you don't earn the big income FIRST and then
become the leader. It's the other way around.
It all boils down to how much do you really want it?
How important really is your freedom to you?
If you lost your job today what would happen?
If you got SICK and could not run your 'S' business what
would happen? Would it keep running without you?
Or if you got sick and could not sell your products what
would happen to your cash flow? The rich build passive income
What if something happened to your spouse or they lost
THEIR job or their business?
Think about those things for awhile and ask them of your
spouse? See if they are open to becoming educated on YOUR
business and what it is that you really do and what owning
a Network Marketing B business will really mean
for you and your familys future..
My husband is now listening to the Robert Kiyosaki CD's
that I just finished listening to called 'You Can Choose
To Be Rich'.
There are 12 CD's in that series on learning about business,
on improving your Financial IQ, real estate investment,
understanding the different quadrants and how to start various
businesses and which one is best to start such as
taking over a traditional business, buying a franchise,
starting a business from scratch or starting a Network Marketing
business and the pros and cons of all of those options.
He wants to be on the same page BECAUSE we are partners!
We are forming our PLAN as Robert and Kim Kiyosaki teach!
Whats your plan?
About The Author
Sue is an entrepreneur, Online Marketing Coach and
top income earner with her company, who has been creating
an income from home online since 1996. She encourages
self-growth and shows people how to develop valuable connections
online and turn them into lasting relationships for long
term business profits. She is also a public speaker and
published author of numerous print and electronic articles
as well as coauthor of the book 'Build It Big: 101 Insider
Secrets From Top Direct Selling Experts' and is a rich
woman coach. To find out more visit: http://www.SueSeward.com
Accidental Role Model
by Barbara J. Winter
During my daughter Jennie's last year in college,
she called me with a startling accusation. "You've ruined
me," she said.
"What do you mean?" I asked while
bracing myself for the worst.
"Well," she explained, "my friends
are all writing their resumes and going on job interviews.
I can't do that."
I breathed a sigh of relief and said, "I
know. I did that on purpose."
After years of working unhappily in traditional
jobs, I started my first homebased business the year that
Jennie went off to kindergarten. Right away, it became obvious
that my daughter was reaping the rewards of having a happier
mom. I was having such a good time in my new creative lifestyle
that I became a better parent. I also would find little business
projects for Jennie to help with, like putting stamps on a
mailing. She loved it. We were growing something together
and she was proud of her contribution.
Although I started my entrepreneurial life out
of a desire to find more joy in what I did, I also didn't
want Jennie to grow up with the negative messages I'd grown
up with about work. We can't really model what we haven't
learned ourselves, of course, but we can be conscious about
the messages we're passing on to our children. "Nothing
has a stronger influence psychologically on children than
the unlived lives of their parents," warned psychologist
So, naturally, I'm excited when I see a parent
make positive changes for themselves - like Rob McCarthy.
Rob and I knew each other for years before we met. Rob worked
for a large video and audio production company where I bought
my seminar tapes so he was the guy I'd call when I needed
to replenish my inventory. One day I called to place an order
and was told that Rob no longer worked there. A month later,
Rob called to tell me he'd moved to a smaller company and
wondered if I'd like to move my business there. I promptly
made the switch.
Then the same thing happened. I called to place
an order and was told that Rob had left. A few weeks later,
I got another call from Rob saying he'd decided to start his
own business. "Congratulations," I said. "Where's
your office?" He explained that he was running it from
home and planned to create a mobile studio. He sounded excited
and said it was a new experience for him to be home alone
"Do you have kids?" I asked. He told
me he had two. "You probably don't realize this, "
I said, "but your working from home is going to have
an impact on them."
"Besides being around to drive them places
"Most kids get a really negative message
about work" Iexplained. "They don't understand what
it is that their parents do. They just see them leave in the
morning and come home tired and crabby. By the time they get
ready to work themselves, they have a rather bleak picture
of what's in store for them. But if you're working at home,
love what you do, and involve your kids in it from time to
time, they're going to get an entirely different idea about
"Wow," Rob said. "I never thought
I cannot recall one single adult that I knew
as a child who was joyful about their work. Is it any wonder,
then, that many of us grow up thinking of work as a miserable
life sentence? I'm optimistic that many young people are going
to get a different message as more of us become committed
to doing work that we love, and doing it in front of our children.
Although some people decide to start a homebased business
in order to spend more time with their families, I suspect
that few realize that sending a positive message will be a
side benefit-one that will have a lasting impact.
When Jennie was about eight years old, she decided
that she wanted to go to Disneyland and decided to organize
a yard sale and sell her old toys in order to fund this adventure.
Her entrepreneurial spirit was already showing her how to
solve problems creatively. I wish I had learned that lesson
early in life.
Whether you know it or not, you may be more
of a role model than you realize. A few years ago, I spent
six weeks as a Junior Achievement volunteer teaching fourth
graders about the free enterprises system. On my first day
there, I confessed that I knew nothing about nine-year-olds.Then
I told the kids that I had my own business, but I didn't have
a store or an office. After I'd explained my one-person operation,
I asked the class if any of them knew someone who was self-employed.
At least two-thirds of them raised their hands. I suspect
that wouldn't have happened even a decade ago.
I was heartened by the number of my fourth graders
who had an entrepreneurial role model in their lives. It is
not a responsibility to take lightly. "There is no power
on earth," said Booker T. Washington, "that can
neutralize the influences of a useful life."