One Heads Up!

Donald Trump and Robert Kiyosaki (Rich Dad Poor Dad), both extremely successful businessmen, in a recent interview with Forbes Magazine  agreed that multi-level marketing is the preferred business model for the 21^st Century. And perhaps it is the only way that most ordinary people (without inheritances and powerful connections) could expect to amass very significant residual incomes.

Now as I’m sure most people are, or should be aware by now, multi-level marketing is a completelybona fide business method, not only totally legal but potentially very effective, as well.  As someone who has spent some serious time and energy working with them, I have learned a great deal about what is the reality for most participants.

When approached to join in our MLM ventures, many prospects will immediately reply with that “pyramid scheme” nonsense which drives us all a little crazy. The fact is, most people who use that as an excuse have absolutely no real knowledge what it is, or that being illegal it’s therefore not something we would be involved with. Nor do many  care to put in the ten seconds it might take to learn about it, either. These are not usually our best prospects, nor are they likely to have the kind of energy or personalities which usually succeed in the business, but it will be interesting to note, too, how they also represent a large group of people who remain a major stumbling block in the success of our multi-level marketing careers.

Basically, the expectation we are given that MLM as it has been will provide us all with “life long” residual income is pretty much killed for most people. It’s been shot dead by the very modern technology which originally helped it to rapidly develop to higher levels than ever before.  Working 3-5 years to build that self-perpetuating income you can will to your kids might have been true once upon a time, but not anymore.

The signs are everywhere. Isn’t your organization being constantly reduced by attrition? Is your organization filled with complainers and needy reps? Are you working like a crazy person and feel  you are worth more than you are actually getting? And how about those comp plans which could cut your check in half due to certain and unpredicted changes in company requirements?

People are quitting multi-level marketing companies almost as soon as they come in and the cost to replace them is only increasing.  You can work hard and long and spend money to compensate for it, but that can only last for a while, and then . . . .

I know people in MLMs who have been doing the work for over 20 years and they cut their teeth on the now “old” methods of making their lists, harassing their “warm” markets, cold calling, stopping people on the street, on lines in buses and on and on. And for the most part all we see, using those techniques today  is friends and family who  become “distant” when they see us, causing a feeling of distress and even despair which our up-line teaches us to deal with by using group support sessions and motivational training, adding “ NEVER give up” !  Well, that somehow doesn’t seem totally doable for most of us.

And to top all of this off there is something else, very basic, which we are not always dealing with when building our multi-level marketing businesses: the number of new people entering MLM is disproportional to the number of new MLM start-ups.  With that great technology I mentioned before, the internet, there are many thousand new companies coming up annually. It takes very little to start one.

For those who are committed to the MLM model (and don’t get me wrong, it has some excellent qualities which we do well to recognize) and have been around a while, we should notice that there is a competitiveness which exists between many of the companies and the prize is the ever diminishing number of warm bodies who work them.

The truth is, successful leaders quit their companies and join others all the time. Something happens which really upsets them and poof . . .they’re  gone. Haven’t we all seen that? I know I have. Distributors today have continual access to all the tools and information they need so as to be where the best money for them is found,  and they go.

This is also true for our newbies. How difficult is it must be for them to stay focused and committed to what we know is a hard road when their e-mail boxes are receiving offers every day for situations which they believe will “easily” fulfill their fantasies.

Put that with the fact that multi-level marketing businesses will  not, except only rarely, be able to provide even a living income for quite some time. Six months would be terrific, but it is usually much longer than that. And today, with people losing their jobs what they need is that living wage, and they need it NOW; a tough situation, for sure.

So what do we do? How do we make this system work for us? Is it even possible?

Well, in fact it is. It requires a hard look at the realities of our expected vs. our actual cash flow and a reasonable approach to making changes that will provide us with what we have come to expect.  First, we have to remember that it usually will take us considerable time to create an income in the 5 figure monthly range. Even a mid-four figure income which would be very helpful to most of us is not something we can expect to happen swiftly and will require cash outlays from us on a regular basis to get there.

So, for example, consider this: is it better to work like crazy to create a $3500/ month residual income for, let’s say, three years?  Or would it be better to have a business that provided you with $110,000 the first 12 months, even without any residuals . . . .let’s just say. Some say it is.

This is the argument of a rapidly growing alternate system  beside the multi-level marketing business we have all known for so long, and it represents that it can provide significant, immediate income and not ever require us to do the kinds of things we may well have become very timid about doing with our “warm” and cold markets.

The newer system, much like MLM, is called G.P.T. which means Get Paid Today and is very interesting to learn about. Some of these G.P.T.s even include residual compensation plans in their make up so they are certainly something to learn more about.

If you are interested in opening your eyes to the existence of MLM alternatives and especially this more recent system, then I would ask you to read my follow-up article entitled: Multi-Level Marketing vs. Get Paid Today: What’s Real and Not?

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