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Inc.com Digs Up The Truth About MLM Companies

Some people love it, many people don’t. But frankly, even from among the fans of the Network Marketing (NM) profession, many people lack a thorough understanding of what NM or Multi-level Marketing is all about.

That is why I appreciate discussions like this one between Inc.com’s Jordan Kasteler and Ray Higdon, a top MLM coach and trainer based in America, which brings to light the real story of the profession from someone who is not trying to sell you anything.

Sharing here some of the key excerpts that I particularly like my readers to note.

Kasteler: In regards to multi-level-marketing, should people be skeptical?

Ray: I used to be very skeptical about multi-level-marketing. I was a successful real estate investor and back in 2006 when my real estate partner came to me with a “juice” opportunity I seriously thought it was a pyramid scheme and had zero interest.

Two things happened that changed my mind though. First, my partner gave me some of the product and I gave it to my mom and my then girlfriend and they both came back saying taking the product made them feel better in different ways. The second thing that happened is I attended a meeting and met the “upline” who at the time was making about $8,000 a month.

Back then my partner and I had 37 rental units in the very low-income areas of Southwest Florida and if we made $100 residual per door that was a good month. To acquire that much real estate took hundreds of thousands of dollars and a whole lot of man-hours to deal with that many tenants. With damages and vacancies it was rare for us to actually profit that targeted $100 per door or $3,700 per month yet here was this upline that had simply told other people about a juice, had started her entire business for about $1,000, had no risk of tenants suing her and was making $8,000 a month.

Do you need to invest a lot of money or resources to start a business as a network marketer?

Ever watch Shark Tank? You get a glimpse as to what it takes to run a business. You will hear things like trademark attorney, supply chain management, commercial overhead, outsourcing, research and development, etc. Well, you don’t need any of that to start a business as a network marketer.

Are network marketers spamming and pitchy?

The people out there pitching horribly, spamming Facebook or coming to business owners with bloated promises on “get paid lots to do little”?

Well, they are simply uneducated new entrepreneurs that have not had the type of training needed to properly represent the opportunity. If someone in multi-level-marketing has pitched you horribly, understand that they probably have a full time job and this is their first venture into being an entrepreneur. They may not be able to handle all of your objections or questions, and probably won’t explain it right if they do.

Is network marketing a pyramid scheme?

Network marketing is not a pyramid scheme.

Those that don’t understand how to explain it or hound their friends and family with the “next best opportunity” can definitely create some skeptics that instantly think “pyramid!” – No question. But again, this is just because of improper experience and training of the reps, not because of the actual model.

A Pyramid or Ponzi scheme operates off of the principle of “robbing Peter to pay Paul.” In other words – illegal and very short term. Network Marketing is perfectly legitimate, legal and in fact endorsed by some of the biggest names in finance. Most people wonder if network marketing is a pyramid scheme because of two things:

• Frankly, often times the structure is shaped like a pyramid, or

• They’ve just heard the term used and don’t actually know what it means.

Let’s tackle No. 1 for a minute, that the structure is shaped like a pyramid. Can you think of one corporate structure or org chart that isn’t shaped like a pyramid? It’s a common misconception that people have because of the stigma that salesy, untrained network marketers have given the profession with their approach. Almost anything out there that has a company structure is shaped like a pyramid in some way, shape or form, and it has absolutely NOTHING to do with the legitimacy of the model.

As far as No. 2 goes, the term “pyramid” was thrown around pretty loosely, when in actuality network marketing is one of the most regulated industries around “pyramid or Ponzi” type activity. Network marketing companies have some of the strictest laws and therefore are extremely careful with how they incentivize the reps building their teams.

Is it true that network marketing is low work and large payout?

If you are being hyped about low work, large payout, it isn’t true but know that they aren’t being taught that by their company, they are just saying what they think they should say because they don’t have real experience as an entrepreneur or like all professions there are people in network marketing that do stretch the truth and don’t run their business with integrity.

Business owners with credibility with others, and an understanding that network marketing is all about introducing people to the tools of the company and allowing those tools to do the work to determine if the product, service, or opportunity is a right fit for them or not can create an additional income. If you approach it this way and without hyping the opportunity and you understand it is a long-term approach, it may be a great additional income to the small business owner or entrepreneur.

We believe most business owners would benefit from being in a network marketing company if only to experience the culture and witness how to build your tribe or following and you just may find out that once you get past some of the nuances you may actually like it. Whether you become a full time network marketer or not is up to you for many, network marketing is the gateway to being an entrepreneur and for that, we are very proud to represent the profession.

You can read the full article here:


Hope you found this post useful,

Love to Hear from You!


Dear Tired, Frustrated, Burnt-Out Network Marketer (or Freelancer, or Solopreneur)

So, you’ve been doing the business for quite some time (2 years? 1 year? 6 months? 3 months? 2 weeks?) — but you still have not gotten the results that you wanted.  Kainis no?

You see people moving into new homes, driving their shiny new cars, toting their designer bags, traveling the world, rising to the top of the ranks.  And you?  Barely getting by, unsure of where your business is going, unable to get the breakthrough you have always prayed for.

Perhaps you have just started your business, and already, you’re discovering how hard it can be to hear someone say NO.  Or when someone criticizes your business, especially people you care about.  How sharp, straight to the gut.  And how tiring it is to think of all the NOs and criticisms you need to endure to get to where the success stories are.  Ilan pa ba ang kakayanin mo?

Or perhaps you have been in the business for a year or two now.  You already had some wins, earned a few thousands and even have a team you have already been taking care of.  But it seems like you have reached a plateau that is hard to overcome.  Your team is getting burnt out and less active, and despite your achievements of the past years, you find yourself getting burnt out along with them.

Do you see how, no matter how long you have been in this business, there will always be challenges (at varying degrees) to fight and get frustrated about?

It’s like my favorite Nintendo game ever, Super Mario (the original 2D version, not the fancy 3D one).  World 1-1, you’re up against the Goombas — a little fickle, but nothing you can’t squish with a little stomp.  You rejoice for a bit when you get to each castle, only to find yourself against in a new level where you come face to face with Hammer Bros who jump between bricks and throw hammers at you (anong level nga ito?).  You know, I bet when you do get to World 8-4 and rescue Princess Toadstool, the next stage is marrying her which, as all married people know, comes with its own set of challenges.  Right?



So, is this post just about cynically telling you that nobody gets away unscathed in Network Marketing?

Well, I would go so far as to say, EVERYONE who has ever succeeded in Network Marketing bears the same battle scars.  Promise.

Rejected? Check.

Criticized and ridiculed?  Check, check.

Embarrassed? Check.

Stood up? Check.

Frustrated? Check.

Burnt out? Check.

Had difficulty motivating his team? Check.

Dealt with the pressure of producing results? Check.

Grown impatient? Check.

Had uplines who didn’t care, or downlines who cared even less? Check.


In fact, and I want you to remember this, the first 80% of your Network Marketing journey is all about overcoming these challenges, with your income coming in tiny trickles.  That is what many people are unaware of, and are surprised to learn, and that is also the reason why many people quit.  It will seem like forever, this 80% stage.  But this is also the stage where you are slowly being developed to be a formidable force, someone capable of leading a great organization. Something that does not happen overnight, but will eventually come about.

Think of it like an empty glass: the bottom 80% are the difficult days and the upper 20% are the glorious Lamborghini-riding, Chanel-toting days.  When you fill the glass with water, the bottom 80% gets filled first, and if it doesn’t, you will never reach the glorious 20%.  That is exactly how it is in Network Marketing.



Whatever you have, whatever is pulling you down right this moment, you are not alone.  Thousands others who are in this kind of business are dealing with that too.

But here’s the key to making it.  Resist the urge to join the 80% who fall away, and seek the guidance of the 20% who choose to overcome and stay.  These are the very same people you will later on find at the top with you.



In this with you,

Love to Hear from You!


The Surefire Way To Making Any Network Marketing Business Work

Are you at that time in your network marketing career when you badly need a magic potion, the simple solution that can ultimately unlock the massive success you dream of?  Do you feel like you have exhausted all possible solutions, and are met with nothing but dead ends left and right?

To network marketing practitioners, both newbies and even those who have been at it for quite some time, these moments come by very often.

My friend’s experience

Recently, I was talking to a friend who suddenly decided to work with me, and give network marketing a second try.  Naturally, I asked her what happened to her first shot at it, and this is what she told me:

“At first, I was doing fairly okay.  I was able to sell some products, managed to sponsor some friends into the business, got some commission checks.  But eventually, I got more Nos than Yeses.  Eventually, the people I sold products to stopped buying.  I became too busy at work to really spend time sponsoring people.  My downlines became very busy as well, and stopped responding to me.  My commissions stopped.  I guess I just got tired of looking for solutions, and just thought, ‘Oh what the heck.  I have a great job.  I do not need to bother with this.’  So I forgot all about it.”

I asked her what made her want to do it this time, and she said,

“Well, I saw you doing it, and thought maybe you have the right strategy that I didn’t have.  I believe in network marketing so much, and thought that with your strategy, it’s worth another shot.”

It happens to all of us.

Long story short, she thought I had the magic potion.  Little did she know I can very well relate to her story because the same things had happened to me.  From when I started my network marketing career years ago, UP TO NOW, the same things are happening over and over again to me.  I get a lot of NOs.  I get rejected, even by those who already are in my team.  I get busy and overwhelmed by life that doing the business becomes challenging.

One of the blackholes I usually fall into in my own network marketing business is getting frustrated when people do not attend the trainings I work hard to prepare for. How I deal? I just convince myself to get over it, or else it will haunt me until I give up. Thankfully, I followed that inner voice.
One of the blackholes I usually fall into in my own network marketing business is getting frustrated when people do not attend the trainings I work hard to prepare for. How I deal? I just convince myself to get over it, or else it will haunt me until I give up. Thankfully, I followed that inner voice.

Come to think of it, don’t all those things happen to all network marketing professionals the world over?

Sure, a very special few shoot to greatness almost from Day One.  I do not know how they do it, but let us just say they are the alien few.  For the rest of us (yes 99% of us), it is supposed to be a challenging, uphill climb.  The start of a network marketing career is ALWAYS (yes, ALWAYS) characterized by this:

There is that flame of excitement, hope and determination but it’s so small that it can easily be put out by raging confusion, fear,  impatience to see results, the trauma of rejection, the frustration at being laughed at by people who do not understand, and ultimately, the convincing power of that loud voice urging you to make the easiest decision to make: GIVE UP.

The “magic potion”

But somewhere along the road, the wise ones among us find strength in KNOWLEDGE, and that spells all the difference.  If you are wise enough to seek proper training on how to do the business properly, you will make it.  If you are wise enough to seek mentorship from people who have made it, you will make it.  If you are wise enough to realize and accept that it indeed is a hard, steep, uphill climb, and you will not exempt yourself from taking it, you will make it.

And finally, if you are wise enough to KNOW BETTER THAN TO GIVE UP, you will make it.  It will take some time.  It will take a few tumbles and falls.  But you will make it.

Stay the course.  That is the ultimate way to making ANY network marketing business work.

Love to Hear from You!