Why People Join An MLM?

Lots of people will run for the hills at the mention of an MLM opportunity. It’s not that they are afraid of the MLM; they are trying to get away from the individual pushing it. They don’t want to be drawn into one of “those pyramids”. I don’t blame them. I don’t want to be mixed up with one of those pyramids either. For a long time I worked for a couple of giant international corporate giants. You would be hard pressesd to find bigger pyramids. Look at any corporate organization chart – it’s a giant pyramid. 

Well, I know what those people actually meant. They don’t want to be a part of something where individuals at the top make fistfulls of money, and people at the bottom don’t have an opportunity to earn much of anything. Hold on a minute. That sounds like those international corporate behemoths again. Oh, well. But remember that people decide to join an MLM many times every day.

Join an MLM, Not A Pyramid Scheme

There is a differentiation in a true MLM/Network Marketing company and a pyramid scheme. And nobody should be mixed up in a pyramid scheme. If a company is put together like an MLM, but has no product or service to sell, then it is the definition of a pyramid scheme. And they are illegal. State and Federal regulators have started to take it a step further in recent years. If the product or service provided by the Network Marketing company is not something those not a part of the company would normally buy, or it is so overpriced that it imparts no actual value to someone outside the company, then it can be believed to be an illegal pyramid scheme. 

The other end of the spectrum is a legal, reliable MLM/Network Marketing company. Most MLM companies are legal. You just have to know how to distinguish them. These companies offer the type of opportunity entrepreneurs are looking for. But the guy who is constantly hammering friends and family, or is accosting people on the street, or thinks a marketing plan is leaving a DVD on top of a gas pump, gives himself, his company, and the industry a bad name. There are far superior ways to present yourself and your company, both online and off line. 

Join An MLM For Residual Income 

Genuine entrepreneurs will join an MLM for a couple of reasons. They are looking for time freedom, and they are also seeking residual income. Those are the two major reasons to become a part of an MLM. Residual income means receiving an income now and into the future for a transaction that took place in the past. And don’t go around thinking this is strange or illegal. Your insurance agent does very well due to residual income. Once you sell something today, and it is a product or service your customer will keep using in the future, you make money in the future without having to make the sale again. As a home business owner, this creates time freedom for you because you don’t need to constantly create an income. Time freedom permits you get better at a hobby, or participate in volunteer work, or get re-acquainted with your family, or be of assistance to other people to achieve the same thing you have acieved, or build a new income stream from another source. It’s a wonderful} place to be. 

The issue is that the majority of those who “join an MLM” set about it too casually. If you don’t understand you’re in a business – even if it is part time, you will in all probability have problems. Don’t be scared to join an MLM. Just be sure to avoid a pyramid scheme scam. And learn your business, your product, and your marketing. Neglect any of these three areas and you are setting yourself up for problems. Researching an MLM business and its products are the kinds of things you learn from the MLM company itself. Marketing and prospecting are important keys to success you will most likely need outside help with.

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