THE SHOCKING TRUTH!
If you are reading this book, let me first congratulate you if you are a newcomer to the
world of MLM and allowing me to impart my experiences on the industry to help you in
taking the first step into this fantastic industry.
My intentions of writing this book is to help and provide people generic information that
would apply to any company regardless on their marketing/compensation plan, product,
team, country or even offline or online!
It is indeed a shocking truth to find out that over 95% of network marketers or home
based business owners are operating their business at a LOSS!
How scary if you are reading this for the first time.
Well thankfully if we all worshiped statistics fanatically, most people today will be afraid to
drive cars or even go to school (e.g. the percentage of road accidents and how many
students in a class ‘make it’ in getting distinctions)
We all want to be smart people and rather be in the top 5% being the ones making the
money now, don’t we? Of course we do.
It is sad that countless of poor victims join the industry, uninformed, and when they run
into problems, they usually put the blame on the company, the team or even the industry
itself!
That is why we hope to avoid such unfortunate circumstances.
Even if you have been involved, this information is invaluable because it might teach you
things you have missed out or information to help your downline.
Let’s proceed…
. - 4 -
, Why Would You Be Choosing an MLM in The First Place
MLM survival. Let’s face it, the world out there is like a jungle. More particularly so in the
MLM world. It would be easy to say, since it is that difficult, let’s just forget about the
whole MLM or network marketing deal in the first place (then this book would not be
necessary at all). That action would be self-defeating.
There is good news for all of us. So let us instead start from a positive note.
The purpose of this book is not just about teaching you to choose the right MLM
Company but also how, by being properly educated about the industry, you will be able
to receive benefits from every opportunity you invest your time and money in. The
information here will be completely generic and neutral. I am not endorsing any company
over the other as there is no such thing as the perfect MLM but rather choosing an
MLM that is SUITABLE for YOU!
Whatever your reasons may be, let us make a few assumptions about it before we
proceed (or else you wouldn’t pay for this E-book in the first place)
(1) Making money
(2) Saving money on products
(3) Meeting new people
(4) Growth and development
Making Money
(a) Looking for fast money
(b) Building a long term business with money coming in long after you have ‘retired’
(c) Investing in the product itself
For people looking for fast money, there are pros and cons to this kind of thinking.
Some people are WELL TRAINED salesmen. They have built the relationship with their
clients, customers and all sorts of people. People trust what they say and will trust
whatever they are selling. They may sell the product itself (sometimes, in large
quantities), or they may sell the opportunity (the money making part of it) or both. Are
YOU this kind of person?
Fast money is not impossible, but it COULD be for the short term only. Consider the
facts that 80-90% of people in the world are NOT built for sales. If a salesman sponsors
a non-salesman, would the non-salesman be able to do the same thing as his upline?
Does that mean that I would spend most of my time looking for the 10-20% of sales
types?
. - 5 -
, The next type of money is the long term type.
When I define long term, it does not have to mean that you might not see money right
away. It differs from company to company. But as a general rule of thumb, it involves
BUILDING A NETWORK OR AN ORGANISATION.
The key to building a large organization as quoted by Zig Ziglar, “You will get whatever
you want in life if you will just help enough other people get what they want.” In other
words, if you will help enough downlines get enough downlines, you are on the road to
network marketing financial freedom. The key is to help others.
There is one more category of people who ‘invests’ in network marketing companies, not
to make money through retaining or networking, but rather investing in the product,
position, or depending on the company, appreciation of their ‘assets’. A few examples
would be investing in a product, so that in the future, its value will appreciate, so you
can sell it to other people at a very high margin (sort of like old comic books.) Others
might purchase the account or distributorship from you (depending on the
compensation plan of the company) while some Internet companies actually pay you to
‘invest’ in their company, sort of like buying a share of the company.
Saving Money on Products
Retailing of a product is very important to an MLM business. Lack of (or even non-
existing) retailing could be harmful to the distributor or the company as certain states
have outlawed ‘headhunting’ and have their own policies.
Nevertheless, saving money on an MLM product is one of the most wonderful key
features of joining an MLM company if recruiting is not your forte.
In certain compensation plans, repeat purchase of the products you buy from the
company gives you more rebates or bonuses. In essence, the more you buy, the
cheaper it becomes. This becomes an even greater pleasure if you are totally in love
with the products or you have already set aside a budget for those products (which
means you are now buying from the MLM company or your upline instead of buying from
the supermarket, pharmacy, grocery store, etc)
There are some important aspects to take note however, if the company requires you to
purchase the products in bulk (hence the term – frontloading), is there a DEMOTION in
your achieved position in the company, is there MAINTAINANCE required, or how much
are the renewal fees for membership. All these will be further discussed in the later
chapters.
. - 6 -
If you are reading this book, let me first congratulate you if you are a newcomer to the
world of MLM and allowing me to impart my experiences on the industry to help you in
taking the first step into this fantastic industry.
My intentions of writing this book is to help and provide people generic information that
would apply to any company regardless on their marketing/compensation plan, product,
team, country or even offline or online!
It is indeed a shocking truth to find out that over 95% of network marketers or home
based business owners are operating their business at a LOSS!
How scary if you are reading this for the first time.
Well thankfully if we all worshiped statistics fanatically, most people today will be afraid to
drive cars or even go to school (e.g. the percentage of road accidents and how many
students in a class ‘make it’ in getting distinctions)
We all want to be smart people and rather be in the top 5% being the ones making the
money now, don’t we? Of course we do.
It is sad that countless of poor victims join the industry, uninformed, and when they run
into problems, they usually put the blame on the company, the team or even the industry
itself!
That is why we hope to avoid such unfortunate circumstances.
Even if you have been involved, this information is invaluable because it might teach you
things you have missed out or information to help your downline.
Let’s proceed…
. - 4 -
, Why Would You Be Choosing an MLM in The First Place
MLM survival. Let’s face it, the world out there is like a jungle. More particularly so in the
MLM world. It would be easy to say, since it is that difficult, let’s just forget about the
whole MLM or network marketing deal in the first place (then this book would not be
necessary at all). That action would be self-defeating.
There is good news for all of us. So let us instead start from a positive note.
The purpose of this book is not just about teaching you to choose the right MLM
Company but also how, by being properly educated about the industry, you will be able
to receive benefits from every opportunity you invest your time and money in. The
information here will be completely generic and neutral. I am not endorsing any company
over the other as there is no such thing as the perfect MLM but rather choosing an
MLM that is SUITABLE for YOU!
Whatever your reasons may be, let us make a few assumptions about it before we
proceed (or else you wouldn’t pay for this E-book in the first place)
(1) Making money
(2) Saving money on products
(3) Meeting new people
(4) Growth and development
Making Money
(a) Looking for fast money
(b) Building a long term business with money coming in long after you have ‘retired’
(c) Investing in the product itself
For people looking for fast money, there are pros and cons to this kind of thinking.
Some people are WELL TRAINED salesmen. They have built the relationship with their
clients, customers and all sorts of people. People trust what they say and will trust
whatever they are selling. They may sell the product itself (sometimes, in large
quantities), or they may sell the opportunity (the money making part of it) or both. Are
YOU this kind of person?
Fast money is not impossible, but it COULD be for the short term only. Consider the
facts that 80-90% of people in the world are NOT built for sales. If a salesman sponsors
a non-salesman, would the non-salesman be able to do the same thing as his upline?
Does that mean that I would spend most of my time looking for the 10-20% of sales
types?
. - 5 -
, The next type of money is the long term type.
When I define long term, it does not have to mean that you might not see money right
away. It differs from company to company. But as a general rule of thumb, it involves
BUILDING A NETWORK OR AN ORGANISATION.
The key to building a large organization as quoted by Zig Ziglar, “You will get whatever
you want in life if you will just help enough other people get what they want.” In other
words, if you will help enough downlines get enough downlines, you are on the road to
network marketing financial freedom. The key is to help others.
There is one more category of people who ‘invests’ in network marketing companies, not
to make money through retaining or networking, but rather investing in the product,
position, or depending on the company, appreciation of their ‘assets’. A few examples
would be investing in a product, so that in the future, its value will appreciate, so you
can sell it to other people at a very high margin (sort of like old comic books.) Others
might purchase the account or distributorship from you (depending on the
compensation plan of the company) while some Internet companies actually pay you to
‘invest’ in their company, sort of like buying a share of the company.
Saving Money on Products
Retailing of a product is very important to an MLM business. Lack of (or even non-
existing) retailing could be harmful to the distributor or the company as certain states
have outlawed ‘headhunting’ and have their own policies.
Nevertheless, saving money on an MLM product is one of the most wonderful key
features of joining an MLM company if recruiting is not your forte.
In certain compensation plans, repeat purchase of the products you buy from the
company gives you more rebates or bonuses. In essence, the more you buy, the
cheaper it becomes. This becomes an even greater pleasure if you are totally in love
with the products or you have already set aside a budget for those products (which
means you are now buying from the MLM company or your upline instead of buying from
the supermarket, pharmacy, grocery store, etc)
There are some important aspects to take note however, if the company requires you to
purchase the products in bulk (hence the term – frontloading), is there a DEMOTION in
your achieved position in the company, is there MAINTAINANCE required, or how much
are the renewal fees for membership. All these will be further discussed in the later
chapters.
. - 6 -
