MLM scam?You decide.

MLM scam!Many people are put off by MLM thinking that it is a scam.To them it is synonymous with pyramid schemes or a Ponzi scheme.The latter named after a an Italian who emigrated to the US and defrauded investors by using money from subsequent investors to pay returns rather from any investment.

You should be very clear that MLM is governed by law and is not a pyramid scheme.

Pyramid schemes require people to hand over a large joining fee and once in they are encouraged to have people join under them so that they move up the pyramid until they exit with a large amount of cash.When the scheme collapses as it surely will it is the people at the bottom who lose all their money.

It is true to say that all MLM schemes have an entry fee ranging from a few dollars to many thousands,but the point is no gets paid anything until product is sold.This is the big difference.You will earn nothing unless you or people in your down line sell something.

If you think about it buying a franchise requires a big up front capital investment but no one thinks there is anything wrong with that.As with any other business you will only make money by selling product.The beauty with MLM is that the entry cost is much lower than a franchise business.Read this article by Mike Klingler on the differences between the network marketing formula and the franchise business model.

Business costs

So MLM is no scam but there is something about that you should be vary of.It is thinking that you must devote yourself entirely to promoting the product and the opportunity.

This is a big mistake.

You will be encouraged to do this by your upline.Why?Because the more product you sell then bigger their commission cheques get.

You need to be doing two things.One is building you own profile and second developing other sources on income.

It is a cliche in MLM that people will buy a product from you if they know you like you and trust you.Whilst this line is pushed by MLM companies,all their coaching will be about perfecting scripts and promoting the product.

As the cliche is true then what you should be building in brand YOU to use a Tom Peters expression.

MLM companies can never guarantee you income so what happens if the opportunity you are in goes under?You are left with nothing.

If however you have built your profile on the internet through your own website and blog(does the company website that every distributor gets promote you?NO!) then you can go build another business with another company.

You will do it by learning the key marketing skills that by then you will have built up.

I'm sorry but talking to friends family and complete strangers is not marketing.This is the only method heavily promoted by MLM companies but is the least effective.

I hope by now you can see that MLM is not a scam,but it will drain you of your money if you don't do it the right way.

The training your upline won't give you

Ann tends to offer more step by step training than Mike so if you are put off by all the techie stuff start with her Seevn great lies of Network Marketing which is a free ebook you can download.This goes more into the things uplines don't tell you about how this business really works.If you are ready to dive straight into the training then go to Renegade Professional which Ann runs with Mike Klinger the most comprehensive guide to attraction marketin I know.

Mike Dillard has his Magnetic Sponsoring which talks more about the psychological side of attraction marketing.

If you have a limited budget then his Building on a Budget ebook shows you low cost or free ways on marketing online.

Begin building brand you and see that your opportunity is there to serve you not the other way round.

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