Are you one of those people who hear or read the words “network marketing” or “multi-level marketing” and immediately think “SCAM” or “pyramid scheme“, or maybe even turn and run?
Have you ever taken a few seconds to ask yourself WHY you have that reaction? Do you REALLY know what a “Ponzi scheme” is or how it works? AND… last but certainly not least, do you know the two things every legitimate network marketing company have in common?
Let’s start with everyone’s favorite… Ponzi scheme: “a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.”
The second one… pyramid scheme: “a form of investment (illegal in the US and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.”
Now let’s cover what a legitimate network marketing business looks like.
Network marketing is a serious business for serious people. It’s a proven system where the design, creation, and expense the corporate team has gone through becomes a road map for your own success. Just follow the simple, proven and duplicable system that the good companies provide.
The real key is this: Network marketing is all about leverage. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning a small income on their efforts. J. Paul Getty, who created one of the world’s greatest fortunes, said: “I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts.” This very basic concept is the cornerstone of network marketing.
For example, most successful people building a network marketing business do so in an organized method. They work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process.
By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business. You leverage your time by helping others be successful and earn an income from all their efforts.
So the next time someone approaches you and wants to discuss network marketing just ask yourself, “Does this company offer a legitimate service or product?” and “Do I make money by recruiting people or by becoming a product of the product?”
“The path to success is to take massive, determined action.” ~ Tony Robbins