How come the concept of MLM is so simple…yet so difficult to make real money with at the same time?

In this article I will go through the basic concepts of MLM, how it works, and hopefully give you a good basic understanding of why MLM is so simple, yet so hard to make any real money with. This will hopefully make you see what you need in order to make it in MLM or Network Marketing.

The concept of MLM goes like this:

Find a great MLM company to promote.

The company must have good products that people want, products that will help people live better lives.

It needs to have a good and fair payplan that pays the beginner well, aswell as gives the seasoned pro who are able to build an organization of thousands of people and give them an outrageous income. It also needs to have a fairly linear income progression as your organization grows. Here’s an example of how this should be:

• 25 active people anywhere in your organization should pay you $200-$500 a month
• 50 active people anywhere in your organization should pay you $400-$1000 a month
• 100 active people anywhere in your organization should pay you $800-$2000 a month
• 200 active people anywhere in your organization should pay you $1600-$4000 a month
• 400 active people anywhere in your organization should pay you $3200-$10000 a month

When your organization grows to this size, you should be able to make a good living from you Network Marketing efforts. Somehwhere around this organization size, the lifestyle levels of the payplan should also kick in and secure a higher income progression than what has been the case so far.

The company needs to have a streamlined organization that keeps financial overhead to a minimum, since all the financial overhead has to be taken out of your paycheck which in the end will hurt people at the bottom of the payplan like the beginner.

Also the company should have several different systems in place to help you find people to talk to. Proven systems that has been used to build organizations in the past. The systems must not be too complicated and should give the beginner as well as the seasoned pro a great education on what to do to start getting results right away.

Now, here is perhaps the most important part: The company needs to be a privately held company and NOT be publically traded. The reason for that is once you get greedy investors somewhere near the company, their paycheck will usually be taken out of YOUR paycheck, and the payplan will change usually to the worse rather than the better for the average distributor.Also it should be run by people who has proven themselves as hugely successful Network Marketers in the past. The need to have built huge organizations in the past, so they know what it is like to show up for a hotel meeting where the presenter are the only person to attend. They need to have been there and done that themselves.

What it all boils down to…

After the things above is in place, here is what it all boils down to. Find a few people who would like to try a couple of the company’s products. Some of these people might like to make some money from recommending the products to others and become distributors. They sign up for a monthly autoship that will make them qualified for commissions. As your organization grows, you must take charge and teach them what you have already done to make the organization grow.

I will come back with more on this subject and on how to do the marketing part of this in a later posting. The marketing part, dropping the money aspect, and the taking charge part to become a leader of your organization is usually where most MLM careers come to a screaching halt.

Also more on this later…

Here is a link you can use to sign up for the best marketing forum on the internet. There are more marketing lessons for you there than any other place on the internet. One thing though: DO NOT MARKET YOUR OWN STUFF WITHOUT READING THE FORUM RULES.
In the meantime, sign up for the warriorforum here http://lindkjolen.com/recommends/MLMAbc_WarriorForum_Signup

~Olav

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Do you think that the Federal Reserve Bank is Federal?

Do you think that Barack Obama can save the USA from the worst depression in history?

Do you think that the USA is really a democracy and that the US government is really looking after your best interest?

You better have a look at this video now:

Now tell me, are YOU willing to do something about it?

If you are, you are not alone. I can help you OWN your life and become a FREE person, doing what YOU want to do, whenever YOU want to do it.

Send me a message if you want to know how…there is a contact link at the top…

~Olav

PS: Also get my ebook at the top right. It’s my gift to you, and I truly believe it can change you life…if you’re willing to let it…

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“‘WHAT THE #$*! DO WE KNOW?!’ is a radical departure from convention. It demands a freedom of view and greatness of thought so far unknown, indeed, not even dreamed of since Copernicus. It’s a documentary. It’s a story. It’s mind-blowing special effects. This film plunges you into a world where quantum uncertainty is demonstrated – where neurological processes, and perceptual shifts are engaged and lived by its protagonist – where everything is alive, and reality is changed by every thought.” -imdb.com

http://www.moviesfoundonline.com/what_the_bleep_do_we_know.php

Have Fun!
It’s a Great Movie!
And it’s Free!

~Olav

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Here are a couple of links that discuss this:

http://www.breakthechain.org/exclusives/imvirus.html
http://www.hoax-slayer.com/msn-contact-virus-hoax.html

To protect yourself from malicious code, viruses and other nasty stuff including the so called hackers that can figure out your IP address and get access to your computer, please install these software programs for protection:

http://free.grisoft.com (award winning antivirus and one of the best out there)

http://www.zonealarm.com (award winning firewall that protects your computer against hackers, viruses, and code that could harm your computer)

There are others, but I have found these to be the best and most user friendly solution for the average computer user.

http://www.mozilla.com/firefox (web browser that is one of the most secure ones out there. If you use Internet Exploder from Microsoft, that browser is slow, insecure and potentially dangerous because it starts scripts and programs in the background without even asking you. Thunderbird never does that and is a much better alternative).

http://www.mozilla.com/thunderbird (secure email client that works well with AVG antivirus from grisoft. This solution removes any malicious code, viruses, and other nasty things from your emails even before you get it).

Another thing you should notice, is if you get emails that look like they come from from Google, MSN, CNN, and other well known companies, they can be from people trying to gain access to your computer. You can find out if you use firefox (see above) by placing the mouse pointer over any links that appear in the email and look at the status bar in the browser. It will them tell you what internett address that the link points to. If it points to a place different than what it says when you read the link, it is a scam or a fraud email. Just delete it.

Any links in an email from google should point to a website saying google.com, not any other place ending with .cz, .ru or any other place.

Educate yourself on computer security. And NEVER open any .exe file sent over Skype, MSN, Google chat, Yahoo IM or in any email unless you KNOW the person that has sent it, and you KNOW they would never intentionally or accidentally do anything to hurt you or your computer.

Your computer can never get a virus unless there are some kind of file or code downloaded. Follow these guidelines and you will be safe.

~Olav

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Michael Dlouhy is my personal friend, mentor, and coach. He is the Founder of MentoringForFree. He is a living legend in Network Marketing and has made a full time living in MLM since 1991. He has also done coaching and training for many Network Marketing companies.

What Has This Got To Do With You?

Here is what: Michael has been mentoring, coaching and training people in any company for years. Now YOU have a chance to secure your seat in one of his live events where you will learn things like:

- Building a Big Income from home…without ever selling
- Create lifelong relationships in 2 minutes flat
- Spot and Connect with the 4 personality types
- Quickly Identify 61 Strenghts and Weaknesses
- Immediately Spot and Attract “Self Starters”
- Find Great Companies and Avoid Bad ones
- Avoid the Biggest Mistakes Everyone is Making

To find out if this living MLM legend is stopping in a city near you, click the “Contact me” link above and leave me a message saying “I want to attend the Freedom Tour 08-09″.

I will then send you the Freedom Tour 08-09 schedule where you can reserve your seat.

AND I will also arrange it so you get a seat at one of the events for FREE as my Personal Guest.

If you attend one of these events, I can promise you that you will take away things from that event that will change your life like it has with hundreds of people already.

Your Friend,
~Olav

PS: ONLY say you will attend this event if you Really Intend to do so. These events are filling up fast, and there are only a limited number of free seats.

PPS: Click the “Contact me” link above and send me a message with the following text:
“I want to attend the Freedom Tour 08-09″ and I will direct you to the reservation site and arrange for you to get in for free.

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Enjoy…

“There are two types of income in the world,” shared a millionaire friend of mine, “but only one will give you freedom. Only one will let you own your life.”

My friend smiled, leaned over and whispered, “Let me share a story with you.” A few minutes later, I’d learned “The secret income of Multi Millionaires” and knew exactly what had to happen for me to “Own My Life.”

You might be thinking, what was the story? Well, here’s what he shared.

The first type of income is linear income,” he shared, “It’s when you trade time for money. If you are like most people, you have to work for a living. It you don’t work, you don’t get paid.

When a school bus driver drives a schol bus, he gets paid. When his shift is over at 5pm, he stops getting paid.

When a surgeon performs surgery, she gets paid. When her shift is over at 5pm, she stops getting paid.”

What he told me next really opened my eyes

“Even though the surgeon gets paid a lot more, ultimately both the school bus driver  and the surgeon are in the exact same boat. They are both trading time for money.

That’s how linear income works. You receive income when you work. When you stop working, your income stops. Linear income continues only as long as you continue to work.”

The second type of income is a lot different. He called it royalty income. Some people know it as passive, recurring, residual income, or millionaire income.

Multi-Millionaires know the secret to creating true wealth is creating Royalty income. That’s when you do the work right one time and get paid over and over and over again for the work you did.

“Have you heard of Michael Jordan?” he asked?

“Of course!” I replied.

“Michael did the work right one time by winning six championships and inking a Nike conract. Today, Michael collects a ‘Royalty Check’ every month from Nike for all Air Jordan related sales. He never has to dunk another ball. Whether Michael’s flying in a private jet or playing a casual round of golf, he’s still making money! He makes money 24 hours a day, regardless of what he is doing. That’s Royalty Income.”

“Have you heard of Elvis Presley?”

“Sure!” I replied, “Who hasn’t!”

“Elvis did the work right one time by writing numerous hit albums. Today when his songs are played on the radio or get downloaded from iTunes, his daughter, Lisa Marie collects a ‘Royalty Check’ from the record company. She never has to write a hit album. While Lisa Marie shops in Beverly Hills or drinks a cool drink on South Beach, she’s still making money! That’s Royalty Income.”

“Are you familiar with Harry Potter?”

“Everybody’s heard of Harry Potter!” I exclaimed.

“Well, J.K. Rowling did the work right one time by writing the Harry Potter series, and today she collects a ‘Royalty Check’ from her publishing company every single month. She never has to write another book. Fact is, she even makes money while she sleeps. That’s Royalty Income.”

He then used me as an example.

“Imagine if you had a million dollars sitting in your savings account. And imagine you knew exactly how to invest the money without losing it all. You did the job right one time and today you’d collect a dividend check for $5,000 every month. Even after you quit your job, you’re still making money. That’s Royalty Income.”

I started getting really excited! I clearly saw why Royalty Income was “The Secret Income of Multi-Millionaires.” It was exactly the type of income I needed in my life.

If I had “Royalty Income”, I could wake up when I was done sleeping rather than to the buzz of an alarm clock. I could fire my boss. I could spend much more time with my children. I could do more charity work. I could travel without having to ask for time off at work. I could do what I wanted, when I wanted, with whom I wanted. I would own my life.

And just as I got excited, I got really depressed.

Royalty Income is great for the Jordans, Elvises and J.K. Rowlings of the world. But what about me? I can’t jump like Michael Jordan, shake my hips like Elvis Presley or write a best-seller like J.K. Rowling. And I sure didn’t have a few million dollars just sitting in my savings account.

All I had was linear income. And linear income wasn’t getting me any closer to “owning my life,” it was only getting me depressed, frustrated and angry.

And that’s when my friend turned to me and said, “There’s good news for people  with little or no talent like you. There is hope.”

“There is another way to develop Royalty Income. There’s a way to get monthly checks for thousands of dollars so you can do the things you want in life, so you can achieve your dreams. And best of all, almost anyone can develop this Royalty Income.”

He proceeded to show me, step-by-step, how thousands of people have created Royalty Income ranging from a few hundred dollars a month to over $100,000 a month. And the best part, after seeing the steps, I knew I could be one of them. I was on my way to “owning my life!”

If YOU want to own YOUR life, a good place to start is by downloading the ebook SuccessIn10Steps from a link in the upper right hand corner marked “Free Gift For You”.

It will save you years of failure and frustration in your life and business.

~Olav/Blogmaster

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The following is part of my notes that was taken from a seminar I attended a number of years  go, that I refer to from time to time as a reminder to myself, that no matter what circumstances  we face in life, we should continue to persist until we have crossed the finish line called “success”.

SEVEN D’S FOR WINNING

• DESTINATION: Know where you are going
• DREAM: This puts you in the destination lane
• DEADLINE: Set dates to realize your dreams
• DECISION: Make a decision to run the race to win
• DRIVE: Make it happen
• DISCIPLINE: Create habits to move forward
• DETERMINATION: Never give up

One of the keys associated with people who have become successful over time is DETERMINATION i.e. they have never allowed set-backs to stop them from realizing their dreams or goals.

-Arthur Rego

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Here is the answer they got in return. Let me just say that it is not very encouraging for people in these Gifting Programs. People who promote these programs keep telling you that “My program is approved”, “My program is different” and all that crap. Guys…go check out the website of the FTC and see for yourself.

Now, here is the answer they got from the canadian government:

I can provide you with some information that I hope will help you. The gifting program appears to be a straight exchange of money.

Although the money is called a “gift”, if your friend is entitled to a larger sum of money by participating (or “gifting”) in the program, then there may be an offense under the Competition Act and/or the Criminal Code.

Under the Competition Act, a scheme of pyramid selling is a multi-level marketing plan (”MLM”)
A MLM is defined under section 55 of the Competition Act to be a plan for the supply of a product in which a participant receives compensation for the supply of the product to another participant in the plan, who in turn, receives compensation for the supply of the same or another product to other participants in the plan.

In a nutshell, an MLM has A Product the definition of a product under the Competition Act includes money.

Three levels of Participants (usually one of the levels includes the operator) Compensation for the the supply of a product.

If a participant or the operator of an MLM makes representations relating to compensation under the plan there must be a disclosure of the compen sation that a typical participant in the plan actually or likely receives.

This disclosure must be made in a fair, reasonable and timely manner. If a marketing plan meets the definition of a MLM under the Competition Act it must NOT have any of the following features:

..The right to receive compensation for recruitment

..A required product purchase as a condition of participating Inventory loading

.. A Lack of a buy-back guarantee on reasonable commercial terms

If an MLM has any of the features described above it would be a scheme of pyramid selling as defined under section 55.1 of the Competition Act.

In this case, if your friend promotes, operates, advertises or establishes a scheme of pyramid selling s/he will have breached the Competition Act.

The MLM and scheme of pyramid selling provisions of the Competition Act are criminal provisions and an accused found guilty under the provisions could be subject to a fine and a prison term.

In the case of an MLM plan in which a prospective participant pays money to join and in doing so, s/he is entitled to a larger sum of money there must be recruitment into such a plan and there fore compensation for recruitment.

Also, the only way to join such a plan will be to pay money. In this case, there is the product which is the money you get as compensation under the plan and there is the product which is the membership.

As such there is a product purchase requirement as a condition of joining the plan.You should also be aware that the Criminal Code may also apply.

I have included the text of the relevant provision below. Section 206(1)(e) – Criminal Code 206.(1) Every one is guilty of an indictable offence and liable to imprisonment for a term not exceeding two years who …

(e) conducts, manages or is a party to any scheme, contrivance or operation of any kind by which any person, on payment of any sum of money, or the giving of any valuable security, or by obligating himself to pay any sum of money or give any valuable security, shall become entitled under the scheme, contrivance or operation to receive from the person conducting or managing the scheme, contrivance or operation, or any other person, a larger sum of money or amount of valuable security than the sum or amount paid or given, or to be paid or given, by
reason of the fact that other persons have paid or given, or obligated themselves to pay or give any sum of money or valuable security under the scheme, contrivance or operation In this case, if your friend participates in a scheme as defined by paragraph 206(1)

(e) above, they could also be in breach of the Criminal Code.

Regards,
Competition Bureau
Industry Canada

I rest my case. Do you get the picture? Illegal, People go to jail for being a part of gifting programs. RUN THE OTHER WAY!

If you want more info on this or any other subject of MLM, let me know so you can get all your questions answered on this topic or any other topic og MLM and Network Marketing by my good friend and mentor Michael Dlouhy.

Please leave a comment…

~Olav/Blogmaster

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