MLM is a business system
in which your investment is time and effort – not money. As you invest
your time, regularly, your return on investment (ROI) grows steadily until it reaches
the point where it passes your investment level. And your ROI is paid in cash.
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This graph shows how your
investment works in MLM. The vertical axis represents your income.
The horizontal axis represents time. The red line is your level
of investment each month (in time) and the yellow line represents your rate of income growth.
Figure 1
Let’s say you invest 10
hours per week, and we value your time at $25 per hour. In money terms, you’re
investing the equivalent of $250 per week, or around $1,000 per month (40+ hours),
in your MLM business.
If your income from your
business falls below that level – as it will in the start-up phase – we treat that
as your start-up investment in your business (orange area).
Figure 2
As you begin to retail some
products and earn reciprocal income in the form of retail commissions,
your income stream begins. At this stage, it’s still well below your level of investment,
but growing as you continue to invest your time and effort each week. As you add residual income in the form of bonuses earned as a result of sponsoring
others who do the same as you, your total income grows steadily. (The yellow
line represents your income growth, the green area represents your total income.)
Figure 3
Your income (ROI) continues
to grow each month until it reaches point B – your Break-even level,
where your ROI equals your investment each month.
Figure 4
Your growth continues –
but now your ROI exceeds your investment every month until, after a while, your profit
(bright green) has matched your start-up investment (orange). You’ve now reached
the point where you’ve recouped your initial investment of time and effort in
cash, and your ROI each month continues to grow.
This is the real power of
MLM, or Network Marketing. This is what makes it the unique opportunity it truly
is for anyone willing to invest the time and effort required for success.
And this is why you cannot
invest MONEY in your MLM business… there’s simply no way to obtain the same kind
of Return On Investment from investing cash as you can get from investing time and
effort.
If anyone — from your would-be sponsor to your would-be upline leaders — tries to
persuade you that it's a great idea to crank up your credit card limit and spend
up big on products, up front, so you can earn a higher bonus rate from Day One, you
can count on one thing to be true....
THEY expect to earn a LOT more than YOU will from YOUR initial purchase!
You should immediately stop and listen to the alarm bells. They should be deafening
to you. You ignore them — and your instincts — at your peril!
This is called "Front-end loading" and it's a key feature of illegal pyramid
selling schemes. These people are infected with pyramid selling mentality, even if the opportunity itself is legitimate.
Its real name is G-R-E-E-D!
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