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Old 02-18-2007, 12:43 PM   #20 (permalink)
sunraybrett
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Join Date: Jan 2007
Location: Melbourne, Australia
Posts: 4
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Smile MLM v Business

I have been in several traditional business ventures in the last 20+ years and I am currently part of a MLM.

Some similarities are:

The more effort you put in the more return you get, training materials and seminars improve your motivation and performance and once established you can enjoy passive income. In both there is a lot of work upfront with little return. When the business is build there is a lot of return with little upfront work.

The differences are quiet pronounced:

Capital investment to start:

A franchise: $15,000+ (+ Stock & Equipment)
A business capable of passive income in 2-5 years $100,000+ (+ Stock, Equipment, Staff, Tax, Rent, Insurance, Legal, Advertising etc)
MLM: ~$5,500 including twelve months supply of product, seminars, CD's and books.

Training: Business Conferences +$1500 (+airfares USA) MLM +$125.
Subscriptions & Reference Books: +$7,500 (IT Industry) MLM +$50
Business Coaching: +$5,000 (IT Industry) MLM Free

Is MLM easy? No
Is MLM for everyone? No
Is MLM offer good training, low risk, business opportunity? Yes

If you have ever stepped out of the comfort zone of employment into the self-employer or employer roles then the risks are high: Less than 20% survive the first 5 years. MLM suffers from similar high attrition rates but with one big difference. The people that fail in business can easily lose the house when the business goes bankrupt. If you quit at MLM you lose the $100 or so dollars you initially invested.

MLM does require constant work, training and effort on the part of the person running the business. If you decide you want to watch TV, go play sport or take the kids on a holiday, you can. The business will still be there when you are ready to resume your work effort. Try disappearing from work for a month without notice, or tell your boss you can't be bothered working today, the football is on TV. Will you have a job when you return, not likely?

Put things in perspective, treat MLM as a business, and it will reward you. Unlike your job, it will reward you for years to come, even while you are on holiday, or watching the kid’s football game (you may even recruit some new prospects).

In my opinion why so many people fail in MLM or blame the system is they fail to acknowledge it as a business. The capital investment probably has a lot to do with it. If you had to invest the average $35,000 as in a franchise or the +$50,000 for a business, rather than the $100 for MLM, you would take it seriously.

The beauty of MLM is you can do it part-time while you continue your normal job. The rate you work, and consequently, your returns are up to you. When you build the business enough you can then give away the day job and enjoy financial freedom that comes from passive income.


If you prefer the security of a job, a mortgage, education you can afford for the children, and then consider this:

What is a secure job?
Doctor? No, look at medical tourism in Asia and South America.
IT Professional? No, India is rapidly moving IT jobs offshore.
Manager or Production worker? No, China is rapidly taking that work.
your job? Chances are someone in Asia will do it quicker, longer and cheaper.

Does the bank manager understand when you lose your job? No.

Do you want your children to get the best education they can to have a chance in this changing world? I would say so.

Before you criticize MLM, think for a moment, what else would give me that opportunity for such low risk? (Sorry, can't answer that one, can you?)

They say the same things about MLM’s today as they did about franchising 30 years ago. Who would want the own a McDonald’s franchise back then, no-one, franchising was thought of as a scam and almost outlawed. Today, a different story. Twenty years ago you could be part of the crowd who knew franchising was a scam or you could have taken the risk owned a McDonalds chain.

Same choice today but now it is MLM riding on the back of the internet and gaining speed. If it doesn’t work for you, in twenty years you can sit back with a beer, and tell everyone you never got scammed. But, what if it becomes bigger than franchising? You could be drinking a French burgundy on your yacht in the Riviera. Your choice, is it a scam or opportunity?

And now from the my dictionary: S.C.A.M. (Someone Can’t Always Motivate)
Meaning: If you can blame anyone else for your failure or laziness then do.

If you are successful in your job, or whatever you choose instead of MLM, then please feel free to tell me about it. We could meet for a coffee in Paris, Milan, Rome, New York, Tokyo or London; I am there several times a year. (See my site for images of my last trip, my number is there too).
__________________
Regards,
Brett Styles

http://www.dreambuilders.com.au

Last edited by sunraybrett; 02-18-2007 at 01:18 PM.
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