MLM Companies: Scam or Opportunity?

After a business opportunity presentation, the most common concern of many people is related to the credibility of the MLM companies who sponsor the opportunities. Scam or Opportunity … this is the main question. MLM Opportunities 4U has prepared for you a section of hot topics that provide you with good reference points to support your business decision when choosing a network marketing opportunity.

Markets change. Current business models allow new entrepreneurs to save time and increase profits with low costs.

The most successful businesses in the world are based on franchised systems, and as we know, they usually do not offer the best products in the market. Nevertheless, their operative, financial, recruiting, advertising and administrative systems support their results and make them very successful.

The high costs of these franchised systems make them unattainable. The most popular range between 100,000 to 1.5 million used. If you rather investing in one of these famous franchises, your investment return will be visible in 12 or 36 months, if things go ok for you. It is very common that headquarters may charge you royalties for know-how or branding; moreover, management fees and regular administrative costs (property leasing, payroll, insurances, etc.) must be borne by you as well.

When choosing a new franchised opportunity, looking at the core of the system the mlm company offers is the clue. Despite the fact the franchise holder has to bear lots of risks and costs, statistics demonstrate that this kind of business is preferred than the traditional model, it is proven that one of three ends in bankruptcy whilst 90% of the traditional businesses go bankrupt at the fifth year whereas 90% of the remaining 10% declares bankruptcy at the tenth year.

Let’s get realistic, how many people do you know who hold 1,000,000 USD for investing in one of these giants of the franchise world?

One of the main advantages of network marking opportunity is that it offers a low cost and high profitability system as R. Kiyosaki.

“A Network Marketing system, known as a personal franchise, is a very democratic way of creating wealth”.

In other times, the network marketing activity was related solely for unemployed people or housewives. Today network marketing is an alternative for building a plan B or C for high executives and professionals. One of the advantages of network marketing is that the top mlm companies grant home based opportunities offering genuine businesses with low costs and high profitability for employees, self-employed professionals, entrepreneurs and high level business men. The key values for reaching success here are three: perseverance, determination and dynamics.

It is believed that since 1959 there have existed 27,000 multilevel companies. There are real state, telephone, cellular telecommunications, travel companies notwithstanding those companies famous for their distribution networks of products based on vitamins, supplements, therapies, legal services, catering services, health and beauty products, gold and silver, etc. But…the natural and obviously the most important question arises: when choosing a network marketing opportunity, which are the key aspects should I put my attention for planning my success?

Most of the mlm opportunities are based on a “wonder product” that promises “magic solutions”. The consumption of such product is triggered by an attractive discount to the distributor. The loyalty of the consumer to the product is followed by an impulse to recommend it to friends and family, who can become as well distributors for consuming at lower prices. This the main reason why mlm companies promise the product does not need any marketing effort but to recommend it by word of mouth in order to get magic sales results.

If these products were sold under traditional distribution schemes, their market penetration would require high expenditure budgets in marketing and advertising. The formula MLM companies use to substitute this mechanism and earn thousands of dollars is that they use your “natural way of recommending things” as their main leverage to promote their products and the way to make money by recommending, that is, a personal business or personal franchise.

Some of these MLM companies include in their compensation plans a residual income; however it is very common that distributors do not explain from the very beginning to their prospects how to earn this kind of passive income. Sometimes they don’t even tell you that, the same as with the royalties earned for marketing a book or the rents earned from leasing a property, you will need time and strategy for reaching success. Passive Income equal or surpasses your expenditures = Financial Freedom

The main focus when you evaluate a mlm opportunity is that the mlm company provides you with the capacity to earn passive income and that such stream equals or surpasses your current expenses, so that in the case that you currently work, you could continue doing what you do because you love it and not because that’s your only way to pay your monthly bills.

Passive income in network marketing is the result of generating multiple distribution or consumption centers. Many times people say you will win if you recruit people in your business. But, what is the use of recruiting people who don’t have a clear vision or commitment with the business?

What you need is a good strategy for building a network in a professional way, with proper tactics aligned to the global tendencies of the market. The best way to do it is to evaluate and pick one sole strategy.

When choosing an network marketing opportunity take your time for analyzing your proposals, delve on the compensation plans, measure the amount of time you will have to dedicate to seed and grow your business and evaluate the kind of business philosophy your sponsors plan to provide you with. Avoid never-ending efforts! Financial freedom is what you are looking for and not just discounts in your consumptions, right?

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