"And The Truth Shall Set You Free!" by John MacFadden
Wednesday, Dec 17, 2008
How many times have you presented your program to someone only to have them say something like:
(Insert answer from below at this point.....)
"Oh I don't believe in "those" things, besides I have..."
1. ... a great job with all the security I need. I have a pension, stock options and best of all a job for life ... for as long as I want it.
2. ... an investment portfolio that will make me more money than anyone could ever earn in one of "those" things.
3. ... a stock tip from a friend of mine and it is a SURE BET to pay off big! You should probably drop that silly little MLM thing and get in with me on this stock.... it's going to be the bomb!
If nothing else, these past few weeks have taught us one thing FOR CERTAIN.
There is NO
1. Job security.
Companies are closing, restructuring and moving every day. The "BIG THREE" (no, not Toyota, Honda & Nissan the BIG THREE WORLDWIDE... no, the Big Three in North America) are on the brink of Bankruptcy or shutting down completely.
Case in Point:
People have LOST EVERYTHING they worked for INCLUDING their prized 401K, stock options and retirement savings when companies have closed their doors or greedy management or owners have taken HUGE bonuses (even in years when said company has LOST millions if not billions) and then shut the company down locking everyone out.
2. Safe Investments.
If you are rich enough to even HAVE some investments then you have seen the value of those investments plummet as the stock market seems to be in free fall.
Case in Point:
General Motors stock has fallen to the lowest levels seen by most people still living today. Also, that real estate you owned as a retirement nest egg or something of extreme value to "leave the kids" is now worth much less than it once was, and if you purchased it in the last five years, chances are it is worth even less than you are currently paying for it with your mortgage.
3. Sure Bets
If you hear the words "I got a guy who is a wizard in the stock market. He's going to make us all rich!"... RUN! Run as fast and as far away as you can!
Case in Point:
Recently it has been brought to light that a most trusted "investment guru" has swindled some of the brightest and wealthiest people in the country to the tune of $50 BILLION, and THAT number is only what he will admit to. It's a "SURE BET" that the number is likely higher.
Not only have the Spielberg's, Mort Zuckerman, the owner of the New York Mets and the chairman of GMAC been taken but members of the Palm Beach Country Club were "recruited" into this GIANT PONZI scheme. Even clients of Spanish Banking giant Banco Santander, clients with Swiss Bank accounts, have lost $3 BILLION alone!
Add to this misery the number of NON PROFIT Charitable organizations that have been wiped out by this scam. No doubt, when the dust settles people from every walk of life will have been hurt by this "guru" including innocent children who depend on the help these organizations have provided over the years.
Now, let's take a moment for the truth about lies you have been told about Network Marketing.
1. No one ever makes money in "those things".
TRUTH IS: EVERYONE who works hard in a legitimate MLM company makes money.
Please don't confuse a legitimate MLM company with the obvious scams PRESENTING themselves as MLM - I am talking about bonafide, honest companies - the kind with actual products of quality at fair market prices.
People who join a program and do absolutely nothing (or at least very little) can expect to get paid what they are worth. Some people, for some reason, think that MLM is some sort of magic dust that you sprinkle on yourself and then sit back and wait for those big fat checks to roll in. And then when they don't, the person who has done nothing then blames (insert excuse here) - the company - the product - the industry - their sponsor - the GURU 227 levels above them that didn't do a thing to build the business for them - .... of course, it couldn't be THEIR fault.
On the other hand if you "show up for work every day" and work "hard" you then increase the chances you will get paid well and for a long time. Doesn't this sound similar to what our parents told us about getting a job with "the company"?
2. That's one of those pyramid ponzi deals.
TRUTH IS: In a legitimate Network Marketing program, NO ONE gets paid simply because someone joined. That is how the Madoff scheme worked. Not MLM.
People get paid when SOMEONE buys products. There is NO OTHER mechanism which the company derives revenues from to pay you other than the movement of product. If you build a group that moves a lot of product then you can expect to be paid a lot of money. If you do nothing then you will get paid in direct proportion to your efforts (or lack thereof).
A PYRAMID scheme would be better described as putting money into a program with little or no expectation of return. Like Social Security for instance. Money from NEW people "joining" the program (those hired last) is used to pay off those who were there first and are no longer contributing to the program.
In a pyramid scheme the new guy or gal who JUST joined can NEVER get to the top of the pyramid. For example your job. If you work harder can you pass everyone and take over the CEO position whenever you choose to? Chances are if you work a little TOO hard you will be fired by your direct boss as he or she may take your hard work as a threat to their job security and have you transferred or fired just to save their own spot in the giant pyramid. Even the guys and gals at the top levels of the pyramid at your job can be hustled off to Siberia if the "big cheese" thinks they are planning a takeover.
3. You can lose your shirt in one of those "deals".
TRUTH IS: I have NEVER known anyone who didn't own a shirt still ... so this MUST be a myth.
Let's look at this realistically. Once again assuming that we are talking about legitimate MLM companies and not those that DEMAND you buy a truck load of product to bury in your backyard so you can get to the Starship Trooper Commander level of the program before the next commission checks.
MLM COMPANY that ALLOWS people to become INDEPENDENT DISTRIBUTORS - Most programs require you to sell a certain amount of product each month to maintain your status as an ACTIVE distributor. This amount is minimal and usually can be sold to a couple of people or consumed personally. This amount always remains constant. NEVER order more product than you KNOW you can sell or would reasonably expect to use yourself. NEVER order additional product JUST to make a promotion. THIS is how people end up with basements full of stuff. A good company (or upline) will NEVER ask you to "just buy X amount more and you will get your promotion". Promotions will ALWAYS be there if you want them, so if you don't make it THIS month, just work hard and you will make it NEXT month.
TYPICAL COMPANY that HIRES people to devote their LIVES to THE COMPANY - ALL companies expect their sales force to sell a certain amount of product each month or they are FIRED. If they are successful for an extended period of time in selling that amount of product, the company RAISES the amount of sales required by the representative each month. If they do not meet the new goals they are FIRED and the new person MUST start at the new expected sales levels, which if they are successful at producing this new higher number long enough, the company RAISES the amount of sales required and so on and so on....
Don't expect to get any sales tips from the sales leaders in your company. THEY want all the sales and they are not about to teach YOU how to get ahead of THEM.
If you are able to handle this crazy pace for enough years you MIGHT get a promotion. However it is more likely that they will keep you right where you are because the guys and gals at the top of the pyramid only get paid when product is moved and if you are one of their better sales reps then they need you to stay where you are so they can live the lifestyle you have provided them with. THEIR lifestyle is maintained as long as YOU don't get ahead of them. THEY WIN as long as YOU LOSE. And after 40 or more years of this you can expect (but you are not guaranteed) to get a $40 watch. You've heard it before. 40 hours a week for 40 years for a $40 watch.
An MLM company can not make you lose your shirt.
If you have little or no experience in marketing then you should walk before you run. As mentioned above, order ONLY what you KNOW you could sell, OR if you didn't sell it, then you could at least use it yourself. A good sponsor will guide you personally as you grow your business, and if they are unable to do this themselves then they will FIND someone in their upline who CAN help you grow to the level YOU CHOOSE to grow to. No one PUSHES you to do more than you want but they will ENCOURAGE you to achieve your potential and live the lifestyle YOU desire.
Speaking of lifestyles. Unlike the case above, your sponsor (and even your UPLINE) WANTS you to pass them if you so choose. They want to see YOU be the BIG KAHUNA someday... if YOU so desire. Their lifestyle is ENHANCED if they help YOU ENHANCE YOURS.
THEY win when YOU win.
MILLIONAIRE LIFESTYLE
People who invested or saved money over the years lived a comfortable lifestyle. Some even lived the life of a millionaire from the interest derived from savings or investments. Again with the recent Madoff scandal we were introduced to a humble couple from Florida who had SAVED over $1 Million from earnings as a Carpet Salesman only to LOSE EVERYTHING from investing with Mr Madoff (remind me to look into just HOW much carpet you have to sell to SAVE over a million dollars).
First of all it makes my heart ache to see this couple in their 80's who worked SO HARD all their lives only to lose it all in their golden years. They will have to sell the home they live in now just to make ends meet. Rumor has it that their son ALSO invested in this multi billion dollar PONZI Scheme.
And yet, MLM companies HAVE provided MANY people with MILLIONAIRE LIFESTYLES without asking them to do more than tell a few people how to tell a few people about their great products.
At present MANY reps in MANY companies earn more money each month on an on-going RESIDUAL basis than they would if they were earning interest on a MILLION DOLLARS saved in the bank. Stay with me here.
I am saying that in the case of the couple mentioned above who had a MILLION DOLLARS invested with this guy LOST their million dollars and now have NO monthly interest (residual) coming in. Not only is the principal cash gone but the monthly revenue (residual) derived from the investment is gone too.
Now, if an MLM rep is earning as little as $800 per month then that is the same amount he or she would earn if they had A HALF A MILLION DOLLARS in the bank in a basic savings account with no investments type risk however if the bank closes, the government only guarantees $100,000.00.
Many of you know people making $1700 per month in a legitimate MLM company. Remember, this is NOT even close to BIG MONEY yet.
To earn monthly interest of JUST $1700 you would have to have OVER ONE MILLION DOLLARS in the bank (earning 2% per month) ... and again, the government only guarantees $100,000.00.
RESIDUAL MILLIONAIRES
The industry of MLM has MANY people earning a mere $5000 per month in RESIDUALS which is the same as having OVER FOUR MILLION DOLLARS in the bank. AND, if the bank was to close their doors tomorrow in these crazy economic times then all you have to do is find another bank to deposit next month's check which will STILL be the same as though you had saved millions over your lifetime.
You have a good product, a great price and a fantastic company with the right management in place. The company WANTS you to get as far ahead in life as you can. They WANT you to retire healthy and wealthy. All they ask in return is you tell a few people how to tell a few people about their terrific products. If you do this again and again you WILL live a MILLIONAIRE lifestyle.
Now, I understand that you would lose your savings just like everyone else if the bank closed .... but you haven't lost your security, your ability to pay the monthly bills. You won't have to sell your house just so you can eat this month.
Isn't that what we all want at the end of the day?
And that's the truth.

