For example, in the book, “The New Professionals” – The Rise of network marketing as the New Profession, See Amazon.com link here: http://www.amazon.com/New-Professionals-Network-Marketing-Profession/dp/0761519661
This book was written by a Harvard Economics Professor. Not an MLM distributor. Also, why does Robert Kyosaki, self made multi millionaire support MLM even though he is not involved with MLM?
So, answer the question as to why there are professionals such as CEO’s, surgeons, attorneys, CPA’s etc… leaving their regular jobs because of the success with the MLM company they’ve achieved?
My answer is time freedom. They didn’t want to be owned by their job… what’s your answer?
Don’t say that most people at the top make all the money and you have to get in at the beginning because my 12,000 dollars proves this to be a bunch of horse pucky.
I deleted the first question because it was not asked the way it sounded… I meant why so many professionals who are already six figure earners would choose Network Marketing as their vehicle of choice?
Also, I’d like to add that there is no infinite depth in pay to keep it going forever… so, it’s not a scheme. There is a cap on the depth in pay. Just no cap on how many income centers you can choose to open and grow.
{ 6 comments… read them below or add one }
It would seem the only people who seem to believe MLM is the “business choice of the 21st century” are are those in MLM themselves or those writing books about MLM looking to make money selling books. Robert Kyosaki is a perfect example of someone profiting off of selling books. Of course he praises MLM, he discovered the mere mention of something positive in regard to MLM in his books increased his sales dramatically because people in MLM ran to the shelves to buy a book that said something positive about MLM.
I am sure to the average person in MLM who goes to meetings and MLM gatherings its seems like everyone is doing MLM since their main network is comprised mostly of people in MLM, but the reality is if you discount the number of people who sign up and are not active within 3 months of being in an MLM business the amount of people doing MLM is actually far less than the millions those in MLM would like you to believe.
As far as the number of successful people in MLM, I would be curious as to exactly where you are getting your statistics? The realty is that you every single MLM company that has gone public has MLM earning averages less than a few hundred dollars a year per rep…hardly a symbol of success (unless you are a company founder).
My guess is that the countless successful people in MLM is due to the same reasoning there are so many countless rich people on the internet…becuase you don’t have to back it up.
I am sure there are people making money, but I am sure there are a lot more people making up false claims.
The companies in MLM that have had to report the success rates have shown very poor numbers, so a better question might be, “why there are so many UNsuccessful people in this field.”
While there may be the odd CPA or Attorney joining the ranks of those in MLM, that doesn’t mean they are smart business people. In addition, the appearance of a few “professionals” in MLM hardly proves anything. I see no evidence of any significant number of professionals leaving their jobs to join MLM other than in MLM propaganda.
Sorry to be a downer, but unless you are willing to accept mere words are evidence, the numbers on MLM just are not what you seem to be suggesting.
My parents are in MLM and I’ve learned a lot from them. I am a better communicator with people and have money because of the income they’ve made through MLM. They invested their money in Real Estate because of the money they’ve made in MLM. I am thankful because, they were able to pay my way through college and now I build homes for the homeless and have time to myself. I majored in French literature. I like to go to Europe and I’m thinking of becoming a linguistics teacher. So, my answer is that professional people utilize MLM as a business of choice because they are educated enough to know a legitimate business when they analyze it.
From a mathematical point of view, if you have a finite number of participants, then the people who start the scheme will get all of the money, and the late entrants will get none. Since the system is closed, the late entrants are “boxed in” with no where to go. The smaller the closed system, the quicker the scheme will end, and end in ruin. The reason that these systems have become popular since the rise of the internet is that the closed system of participants is orders of magnitude larger than was previously available. Imagine millions of potential participants as opposed to hundreds or thousands in your local community. Unfortunately, even though it is large, the system is still closed, and therefore finite. Although the scheme will be profitable for a larger number of people, you don’t know how ‘late’ you may be entering the scheme. A very large scheme may persist for a considerable time, however this results in a much larger pool of “late” entry’s that will end up being burned when the scheme inevitably fails. This may be profitable for the early entrants, but it is as unconscionable as theft.
Do not participate in MLM the model is doomed to failure. Imagine that you make money selling the scheme to ten people. Those ten people sell the scheme to ten more each etc. Now do this, for say, 10 “Levels” of the scheme. or 10^10 = 10 billion people. That is more than inhabit the earth. of course the scheme will end far before this can occur, but do you see now why the late entrants suffer?
More and more people around 40s and above are out of job/unemployed due to retrenchment or otherwise. It would be difficult for this group of people to find another job or to start all over again. What better way to earn a living and survive than starting a small business with MLM? Have a Merry Christmas!
Get into this industry right away and learn the ropes. Study the great players of this fabulous business and learn what they have done. I would rather have 1% of the efforts of a hundred people rather than 100% of my own effort. The concept of leverage is used in the business – leverage the efforts of lots of business builders to create residual income from all the people brought into the business.
The proliferation of junk mail from all of the MLM wannabes is a sign that the American Spirit is alive and well. MLM offers hope that, on a prayer and a song with determination and hard work with a dream in your pocket, you can become successful which is why early immigrants came to this country. It doesn’t matter that only 1 out of 100 succeed. It matters that they try.
The bankers and senators representing 1/6 of the world’s wealth who met on Jekyll Island in 1910 and formulated what would become the Federal Reserve Act literally taking over this country’s treasury in order to control the distribution of wealth did not take the American Spirit into consideration. American’s still find a way to succeed and get their share of the pie.
The people who landed here from the 1500s through the 1800s were, by nature, independent and fleeing serfdom with a dream in their pockets. It’s in the American genes. It’s why people still struggle to get here. Of course MLM would proliferate in a society made up of people like this.
It’s not time freedom. It’s freedom that drives the MLM industry. MLMers revolt against the concept of serfdom that corporate giants and the few wealthy families who own the Federal Reserve Bank would have us return to. Every piece of junk mail we get is a good sign.