There are a lot of critics of the network marketing industry. Many people believe that the business is illegal or at the very least unethical. But the problem most people have with it is that they don’t think they could make any money in it.
Rather than argue that they’re wrong, or initially throw out all of the positives of network marketing, I’d first like to ask these people a very honest question. What other choices do you have for attaining true wealth in this world?
Now, the common person might laugh at such a question, not because he or she is so down on network marketing and doesn’t believe a significant income is possible, but more so because in their mind, there are a lot of ways to make money and gain financial independence. Without thinking too much about it, you might assume that too. There’s a lot of different ways you can get rich, right?
Well, as it turns out, not really. Let’s take a quick stroll through your other options of acquiring wealth in this day and age. The most obvious one is to work a job and save. That’s what most people TRY to do. Besides the fact that it’s active income, which is very undesirable to many people, myself included, here’s the main problem with that strategy. You need to first have a job where you make a significant annual income, I’d say at least 80,000 per year. Now comes the hard part. You have to live way below your means on a monthly basis and save as much as possible, and even then, saving your way to wealth is very difficult. To make matters worse, because you’re an employee and you’re making active income, when you aren’t working or when you stop working, the cash stops flowing inward, meaning you better work many years and save everything you can, even at a 6 figure income, because when you stop, you don’t make any more money. You’re just living on a set amount that you saved up over the years. Is this possible to do? Sure, but as you might expect, there are many flaws with this method, the most problematic of which is that most people just won’t do it. Almost no one lives below their means these days, either because their income isn’t high enough to be able to save after necessary expenditures, or they just plain have that poisoned American mentality of spend, spend spend on crap you don’t need. So I think it’s safe to say, this option is out. Working for someone else sucks anyway, but I digress.
So where do you turn next? How about owning a traditional business? Well, if you’re one of the few people that has the necessary start-up capital, marketing budget and business knowledge to get a traditional brick and mortar business off the ground, I say go for it. But it’s very unlikely you’re going to achieve financial freedom through this method either. Why do I say that? First of all, 90% of all business fail within five years, meaning not only do you not get rich, but you might go broke and into debt. Not exactly the result you were looking for right? But let’s assume you’re one of the 10% that does make it past five years and establishes a pretty solid retail business of some kind. You are still making that unattractive active income just as an employee does, because you have to work the business to make sure it operates the way it needs to in order to make a profit. Don’t believe me? Just try hiring someone to run your traditional business for you and let me know how that works out. My guess is you’ll be out of business or on your way there really fast unless you go in and personally rescue it. No one cares about the success of your business more than you, and consequently, no one, especially employee-minded people, can run it like you can.
But beyond the active income negative, is it possible to acquire true wealth with a traditional business? Sure it is, but you have to apply almost the exact same strategy as your normal, everyday employee. Turn a significant profit each year that far exceeds your business expenses (very difficult to do) and then live way below your means in your personal life. Do this for a number of years, save up as much as possible, and you will get wealthy. But again, I think we can agree that the person that actually does this is an extreme exception, not the norm. Most business owners for this reason will not taste true wealth, and to make matters worse, they can’t retire until they’re sure they have enough saved up to live out their senior years. So this option is also not a good one.
How about the stock market? Now we’re getting into passive income, which I like, and you’re just using the money you already have and leveraging that into more money, but there’s two major problems, if not more, with this strategy. For starters, you need a pretty solid chunk of cash to make a dent in the stock market. I mean, if you don’t have thousands of dollars to invest, you’re not going to make hundreds of thousands back. Now you could start small and keep reinvesting small profits until you leverage yourself to hundreds of thousands or even millions of dollars, but that brings me to the second major problem. How do you know what to invest in? The stock market is a huge gamble no matter how intelligent and well versed you are in its operations. If you’re an average, everyday person who doesn’t have a clue what to invest in, except maybe what Jim Cramer tells you on Mad Money, then the chances of you acquiring great wealth are about as slim as hitting the lottery. Speaking of the lottery, it goes without saying that it’s definitely not a good strategy to rely on for wealth. If you didn’t know that, I feel sorry for you. But without the proper funds and knowledge, manipulating the stock market to make a significant income is highly unlikely. So that’s out too.
Right up there with the lottery is inheritance. If you are the beneficiary of a major inheritance, you’re not reading this article right now, so I don’t think I need to expand on this one any further. If it hasn’t happened already, it’s not going to.
So what’s left? That’s just about all of the ways you could make money in the old-school offline world, with the exception of franchising. But franchising falls under the same category as a traditional business in my opinion. You need all of the same things to succeed. Start up capital, marketing expenses in some cases, business acumen, and probably even a little luck, even though you are following a replicated plan for success. Actually, I’d say that franchising is your best bet for reaching financial independence and eventually making a passive income in the offline world right now. But still, I am not very confident in that strategy either for the average person.
No, the average person needs to start a home based, online business to have a chance at attaining wealth in 2010 and beyond. There are obviously many different ways that you can (supposedly) make money online these days, but here’s a news flash for you: MOST OF THEM ARE SCAMS! Get Paid To sites, survey sites, data entry, cash gifting, ponzi schemes, the list goes on and on. Greedy thieves and liars seem to literally make up new ways to take people’s money on the Internet every day, with no end in sight. As you probably know, many MLM companies, or at least MLM look-alike companies, are also fraudulent scams. But here’s the thing about MLM: From my experience, it’s one of only two legitimate ways to make a substantial passive income online in an Internet business, that is if it’s a real network marketing company and not a pyramid scheme dressed up as one.
I won’t go into the details here of how to determine a real MLM company from a pyramid scheme. There’s lots of articles on EzineArticles.com and all over the Internet that can clarify that for you. But the bottom line is this: A real MLM company, one with products and manufacturing and warehousing and a compensation plan that pays on sales, not recruitment, is one of only two realistic ways to acquire wealth in the world right now, online or offline, at least in my opinion.
Let me quickly describe what I feel is the second best route to financial independence. Affiliate marketing is great because it works in conjunction with any Internet business, especially network marketing. And make no mistake, you can make a significant passive income and eventually get wealthy from affiliate marketing. Is it easy? Certainly not, but then again what is? It’s one of the best two options you have so you might as well consider it. You see, I didn’t mention selling your own products online because that is almost as difficult as selling your own products or services in a traditional business sense. Yes you have the potential to reach many more people and interact with people quickly on a daily basis through email, instant messaging, social media, etc. But it’s still a very competitive landscape. It still requires a great deal of Internet marketing knowledge, or the money to pay an individual or company to do your Internet marketing for you. And it depends on the fact that you do indeed have a product or service that is valuable to people and that people will buy in droves. If not, you could have all the online exposure in the world and it won’t matter because the name of the game is conversions (sales, profits).
But affiliate marketing is different because you’re selling other people’s products. Why is that more advantageous than selling your own product you might ask? Well first of all, do you have a product or service of your own that you are confident you can sell online and make a full time income off of?…Didn’t think so…I shouldn’t say that, maybe you do, but still, you run into a lot of the same problems I mentioned above. Promoting other people’s products or services is great because you don’t have to deal with any of the annoyances of running your own business. The company your affiliated with takes care of production, shipping, customer service, etc. All you have to do is advertise it for them. When customers click on your affiliate link, which is most likely on your own personal website, you get a commission off each sale that you referred. It’s a very simple concept, but of course not so easy to do. But it is doable, no doubt about it. You first need to to find an affiliate partner that fits the content of your site. For example, you have a website about pro football and you put up affiliate links, or banners to a company that sells pro football jerseys. Every time one of your visitors clicks through to these affiliate links and buys a jersey, you make a cut of the sale. It might be 20%, it might be 50%. It all depends on the affiliate program’s guidelines. The second thing you need is traffic. If you want to reach financial freedom through affiliate marketing alone, then you need A LOT of traffic. After all, most people only have conversion rates of 2 or 3% if they’re lucky. So if you’re only bringing in 10 people to your site per day, you do the math. You’re not going to get rich like that, but you will make a little extra side cash each month. That’s the reason why I put affiliate marketing at number two for options of acquiring wealth. You need to write great content, hook up with two or three affiliate programs that really fit that content and the visitors of your site, and then market the hell out of your site using common strategies such as SEO, PPC etc. It’s doable, and a great way to make money, but network marketing is better. Here’s why:
Residual, passive income. That’s it. Nothing else in this world allows you the opportunity to make true residual, passive income like network marketing does. Sure you can outsource a lot of your duties with affiliate marketing, like content creation and marketing, and you may even be able to sign up sub-affiliates who you also make a commission from as they are doing the same thing that you’re doing, selling other companies’ products. But at the end of the day, MLM still reigns supreme…online MLM that is. With a good, legitimate network marketing company that actually sells real products and pays you based on the amount of product that is moved, you can have all the advantages of affiliate marketing, but on top of that, the compensation plans are more lucrative, the work decreases greatly over time, to a point where there is virtually none, and you have the ability to buy your MLM company’s products at wholesale price and then sell them at retail. Beyond these features, MLM products are, by and large, superior to similar products outside of the industry. This is especially true in the ever popular health and wellness niche. Plus, with affiliate marketing, you are generally left on your own to succeed unless you actively and consistently seek out the advice and mentorship of leaders in the industry. With network marketing, your upline has a vested interest in your success, because if you make a lot, they make a little off you. Your sponsor, and possibly even others in your upline, will usually offer you guidance, mentorship and training in order to ensure your success. It’s definitely a business where people have to help other people. If you want to build depth in an organization, which is the only true way to creating a stable passive income, then you can’t get around the fact that you will have to help other people get what they want, and your upline is going to have to help you get what you want as well.
If these were the only positive features of Internet network marketing, I would still feel that it was slightly ahead of affiliate marketing in the ways to reach financial independence. But the industry has evolved once again, and the new “pay it forward” method of business building is revolutionizing the way downlines are built. It works like this: An MLM distributor with a certain amount of power, credibility, knowledge, experience, and most importantly, skill to sponsor other distributors, promotes the fact that he or she is willing to help prospects by placing people underneath them in order to build their business. They also offer to train new downline members to be able to practice this method themselves, essentially keeping the chain of satisfied new distributors going. New people sign up, have people placed underneath them, are put into profit almost immediately, are taught how to do this for other new people, and they are thus able to seamlessly build a large organization that is extremely proficient in building other people’s downlines. This could work in any online network marketing business model, but it works best in a long term capacity with a solid, established MLM company that has the resources and legitimacy in place to stay in business for a long time, unlike so many start-ups and non-product based companies. This is a practice that is lifting this industry to new heights on the Internet and making it by far the most lucrative and simple business opportunity for making a significant passive income that exists today. This is surely a practice that will catch on and spread like wildfire among hundreds of online network marketing companies, but there is currently only one company and one system that operates in this manner that I know of.
The name of the network marketing company is Immunotec. The name of the system is the Downline Makers. It is led by seasoned Internet network marketers Karl Airey, Daniel Butts, James Cummaro and Jay Kanik. Immunotec is a company based out of Quebec, Canada that sells health and wellness supplements, such as the popular Immunocal, which they claim can significantly improve your body’s immune system through the increased production of the antioxidant glutathione. The network marketers I listed above have had great success building downlines in other companies but came together to create this new, improved method of downline building in order to help as many people as possible finally start to earn money in a home based business.
This method of downline building is bringing the network marketing industry to new heights and making it more appealing than ever. Soon, other companies and network marketing leaders will surely follow suit and this practice will be wide spread across the entire home based business arena, making it easier than ever for the average person to start up and succeed with an MLM business of their own.
So as you can see, as great as online network marketing has been for the past decade or so, it’s about to receive a shot in the arm that could vault it to unprecedented levels of popularity and worldwide appeal. This is one of the main reasons that I feel network marketing is the number one way to make money in the world today. It’s great right now and it’s only going to get better.
But to get back to the original premise of this article, what other options do you have for becoming wealthy today? Not many. Affiliate marketing is attractive and has its benefits, and if you’re one of the lucky few to run a successful franchise or hit it big in the stock market, than all the more power to you. But the reality for most of us is that in order to gain financial freedom, we’re going to have to start a home based business. It’s the best option for making money anyway because it eventually turns into passive, residual income, and that’s the best kind of income you can make. But within that home based business realm, I think it’s pretty clear that network marketing is your best option for true wealth. Hopefully you now see that the true risk is with all of these other options. Do your research on the many network marketing companies and products, seek out an effective upline, and get started on your path towards financial independence right now!
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