Lesson 4. More on Multi-Level Marketing

Human trust can often be abused by unsavory individuals falsely presenting pyramid schemes as multi-level marketing companies for their own purposes.

The difference between pyramid schemes and legitimate companies is evident. First, pyramids lack definite product distribution. Frequently, they involve joining a club or representing a product of dubious value. At the promotion and
start-up stages, pyramids pay out commissions exceeding payments for the valueless product. This means that for
a $100 turnover more than 100% of the money is paid into the pyramid network. Finally, the first individuals to join
the scheme receive payouts, unlike those that have built up the definite product turnover.

Pyramids are illegal. The main reason for this is because pyramids are unsuitable for product and service distribution.
If the product does not move, there is no marketing, to say nothing of multi-level marketing. Pyramids may be characterized by a Multi-Level Structure, but it is far from being a marketing tool.

Why do some people claim that multi-level marketing businesses are pyramid schemes? The answer is obvious.
The fear of pyramid schemes lies in the fear that things won't work out for participants in our business. People are afraid to venture into our business, and so they start looking for any excuse not to.

If someone asks you about this, say to the person, “If I can prove to you that this is a legal business, would you be prepared to agree to be a part of it right here and now?” You'll generally hear a “no” in response because the person
is focusing on pyramid schemes in order to conceal their lack of confidence in themselves and their abilities.

«While speaking to people I realize that they have no information. That is why the best way to change their minds regarding multi-level marketing is to tell them about the industry.»

Robert Kiosaki

  • The turnover of companies operating exclusively through the use of multi-level marketing exceeds hundreds
    of billions of dollars per year.
  • Multi-level marketing has been operating as a consumption and sales system for about 50 years.
  • The industry involves tens of billions of people serving as consumers and distributors of the products manufactured by tens of thousands of companies.
  • There are several of these companies whose annual revenue exceeds $1 billion.
  • For the last decade, a large number of companies have appreciated multi-level marketing advantages and initiated its use in their strategies.
  • Multi-level marketing is the most reliable way for an inventor or manufacturer, who wants to put a new product on the market, to do so without having to spend millions of dollars on marketing and without having “to sell off” the ownership of his product to someone else.

Internet marketing and Internet technologies have helped boost the process of building communities of “active” consumers and those who are involved in professional distribution in multi-level marketing. Actually, there is no field left without the presence of companies utilizing multi-level marketing as a basis for promotion and distribution of their product. Food, health care and cosmetic products, clothes, communication systems, Internet, finance, investments, transportation, education and many other products and services used in our day-to-day lives are moved using multi-level marketing.

The list of companies actively using multi-level marketing strategies is large and continually increasing, including business giants such as Coca-Cola, Citibank, Colgate, Gillette, IBM, General Motors, Visa, Ford, Lipton, Cannon, Toyota, Sharp, Xerox, Moneybookers and many others.

In multi-level marketing you can make a lot of money. It takes a little longer with some companies than it does with others, but making a lot of money comes from building an organization, not by just selling the product. It is based
on building up consumer and distributor groups, and it is never based on individual sales.

People get started in multi-level marketing with the idea of making $50, $100 or $200 per month. And suddenly they realize that if they want to get serious about their business they could be making $1,000, $2,000 or more per month.
And remember that a person does not consistently make that kind of money by just selling products. They make that kind of money by building an organization.

«In the future we will regard multi-level marketing in the same way that we treat traditional marketing nowadays. This business is sure to acquire acclamation
and enjoy universal respect. Several years ago manufacturers were stubborn and ignored the appeals to get ready for the Information Age, which is characterized
by competition between the Internet and multi-level marketing. The only answer we could get from them was “No. We aren't concerned about the Internet. Multi-level marketing cannot be taken seriously. Within a few quick years consumer sales through the Internet have more than doubled. Currently, as we look into the future to point out the most dangerous competitors for the next decade, we often refer
to networkers. Popcorn customers know that this promising and dynamic market
is really worth paying attention to.»

Popcorn

You've no doubt learned a lot of new information today, but this is just the beginning. Until our next lesson!