Network Marketing is Not A Dirty Word - Five Things You Need To Know

Network Marketing is Not A Dirty Word - Five Things You Need To Know

http://www.articlemaniac.com/article/230083/network-marketing-is-not-dirty-word-five-things-you-need-to-know.html

For years, certain reputations have just tended to stay with us whether they are based on merit or not. American made cars compared to those that are manufactured overseas. The use of email, which has become an integral part of our personal and business lives, is under attack and has gotten a bad reputation because of SPAM.

OK, the purpose of this article is to at least question the misconceptions surrounding network marketing as perceived by others. No one can agree that there was an issue with network marketing such as pyramid schemes etc. Sure, many of the network marketing companies took advantage of the hard working marketers and only a few made a lot while many made very little. It was not uncommon for 90% or more of the marketers in a company to make almost nothing while the few at the top raked in huge incomes.

But to condemn an entire industry because of a few (or even a bunch) of bad companies years ago is just not smart. Some of these companies made multi-millionaires out of a lot of their marketers. There are tons of stories of people in Mary Kay, Nu Skin and Amway who did exceptionally well with these companies and many still do despite the bad reputation they have received.

When you are looking to become a marketer in a network marketing company there are certain things you absolutely need to take a look at become you become a partner in that network marketing company.

1. Who Is Involved? You need to do some research and check out the credentials of the chief players in the company. Who are they? Where did they come from? How long have they been in network marketing?

2. What Is The Support? There is no way you should ever join an company, let alone a network marketing company, if there is no or minimal support provided. Your chances of success are determined to a significant degree by those that have gone before you. If you are working hard to be make money for people higher up on your ladder (the people that may been instrumental in brining you into the company)they owe you their undivided attention. One way to find out the support available is to ask. Sounds simple but if the powers that be can't show you samples of the kind of support you will receive, it probably doesn't exist. Additionally, question other people in the company about their experiences.

3. Product. This goes without saying. If you personally do not believe in the product being sold, then you have no business trying to sell it. This is not a medicine show on wheels. Potentials customers will smell you out, if not immediately, certainly with time.

4. Compensation Plan. How deep and wide is the plan? On how many levels will you be paid? For how long? When and in what manner?

5. Start-up and Operating Costs. Since this will, for all intensive purposes, be your own business, what are the start-up and operating costs? Just like in any new business you need to know what kind of capitalization you will need to get your new business going. Nothing is for free. Remember, this will be a business and you will have operating costs. To expect less would be foolish and will only lead to dissatisfaction.

As our economy changes, from good to bad and then bad back to good, there will always be a wide range of people that will benefit from network marketing as a business. Just imagine being able to set your own hours, be your own boss, never look at a pay envelope hoping that the pink slip is not there etc.

Conclusion. For sure, over the years there have been scoundrels that have taken advantage of untold amounts of people hoping to find their entrepreneurial dream But you can't condemn an entire industry just because of a few rotten apples. Just like any other industry, there are the good and the bad. You need to find the good.


------------------------------

Cary Ganz is the developer of Network Marketers Alliance. Additional information and resources including a free report are available at http://www.networkmarketersalliance.com .

http://www.charlesprimas.com/
http://www.detroitbusinesstoday.net

http://www.charlesprimas.com/

http://www.detroitbusinesstoday.net

Smith Discusses Aspects Of Multilevel Marketing Law

Print | Front Page | Email this story | Email reporter

You have entered an invalid email address
To:
* Required
From:
* Required
Message:

REBEKAH HEARN | The Daily News

You have entered an invalid email address
From (email):* Required

Message:* Required

http://www.memphisdailynews.com/editorial/Article.aspx?id=43668

D. JACK SMITH
Firm: The Law Firm of D. Jack Smith
Basics: Smith recently celebrated the publication of his 100th nationally published legal article.

“I find (legal writing) comes to me fast and easily, and it is a real pleasure to help and teach those entrepreneurs who are actually founding and building businesses and pursuing the American Dream.”
– D. Jack Smith

Tap into millions of public records, notices and articles on The Daily News.

Titled “MLM Attorney Reminisces and Gives the ‘Bare Bones’ of MLM Legality,” it appeared in the Network Marketing Business Journal-The International Trade Publication for Network and Multi Level Marketing.

Smith is an international multilevel marketing and direct selling legal specialist who has been in marketing law for 25 years.

Smith received his undergraduate degree from Vanderbilt University and his juris doctorate from Harvard Law School.

He has experience in business law, although he represents only direct selling and multilevel marketing companies. His client list spans from locales ranging from Germany to Taiwan.

Smith is a former member of the National Congressional Advisory Committee, a former member of the Tennessee House of Representatives and the former chairman of the Tennessee House Committee on Business. He serves on the board for the Multi Level Marketing Association in Irvine, Calif., is a member of the Lawyer’s Council and Government Relations Committee of the Direct Selling Association in Washington, and is a monthly columnist for The Network Marketing Business Journal, a national sales industry magazine.

Q: How did you end up practicing in direct selling and multilevel marketing areas?

A: (It was) one of those miracles or breaks everyone prays for. My number came up one day in the Rolodex of the local Bar Lawyer Referral Service. They sent me a client, who had borrowed $5,000, who wanted to start something known as a multilevel marketing company. I had never even heard the term before, as it is not taught in any law school. It all grew out of that humble beginning.

Q: Can you define multilevel marketing, particularly in regards to law?

A: One can build a product sales or business organization by making a very modest investment – usually less than $200 – and recruit friends and neighbors and others into it who can, in turn, build their own product sales groups and so on. Amway and Mary Kay cosmetics are two well-known examples of this kind of marketing. There can be superficial resemblances to some unlawful entities such as pyramid schemes, chain letters and lotteries, and these companies can overlap into highly regulated areas of the law such as securities, consumer protection and franchises. It is the attorney’s job to make certain that there is no conflict with nine of these areas of the law in all 50 states (450 statutes with subsections) and the national government, or any conflicts with the governments and subdivisions of governments in each country in which the company wants to do business.

Q: You have been a very prolific writer. What do you like best about legal writing?

A: I find it comes to me fast and easily, and it is a real pleasure to help and teach those entrepreneurs who are actually founding and building businesses and pursuing the American Dream. It has also been a lawyer’s dream to have a chance through my writings and the legal precedents I have set through litigation to help shape the development of the law itself nationally in a relatively new and pioneering way of merchandising. Multilevel marketing really began only about 60 years ago, which led to the development of whole new bodies of laws in each state, nationally and internationally. It is still not taught in law schools anywhere and one must learn it through experience and individual effort.

Q: What do you think are the most difficult aspects of practicing in direct selling law?

A: It was extremely vague and confusing in the beginning because it was so new. Most authorities I dealt with really were unfamiliar with the developing principles, case law and statutes, and often made mistakes and sued legal and innocent companies. It is much more settled, defined and understood now and consequently much easier and (smoother to practice in this area).

Q: You were the former legislative attorney for the city of Memphis and Shelby County. In what capacity did you serve the local governments in that position?

A: The city or county attorney has an awesomely broad scope of responsibility. It covers everything. The legislative attorney only has to focus on and liaison with the state Legislature. It is his responsibility to monitor introduced and proposed legislation from all sources to alert the local governments of any bills that might have an adverse effect on their operations and to find sponsors for and guide to passage bills desired by the city and county governments to aid their operations.

Q: What are your interests outside law?

A: My primary interest and love outside of the practice is history – Southern, American and English history. I am active in local, state and national historical groups and societies here and in England. One of my very favorite avocations is giving talks to all kinds of groups here in West Tennessee that are kind enough to invite me – everything from historical societies to book clubs – on the Founding Fathers and generals and early American and Southern battles and constitutional and governmental development and history.

Network Marketing: What is it?

July 15, 2009 01:00 AM EDT

views: 767 | rating: 10/10 (1 vote)

http://www.gather.com/viewArticle.action?articleId=281474977737560

With the economy being what it is, many people are finding themselves looking at other ways to make money. Many are turning to network marketing either as a way to supplement their current income or replace it. Maybe they have been laid-off or their hours have been cut back due to the financial struggles of the company they work for. Maybe they have to work long hours or more than one job just to provide for their family. Network marketing can provide a solution to their financial struggles. It can offer freedom – financial freedom; freedom to leave the job where they are underpaid, underappreciated, and unsatisfied; freedom to spend time with their family or doing what they love most. But what exactly is network marketing?

Network marketing, more commonly referred to as Multi-level marketing (MLM), is a type of marketing structure. It is designed to create a marketing and sales force by compensating people who promote the company products not only for sales they personally generate, but also for the sales of other people that they introduce to the company. By introducing people to the company, they create a downline of distributors and a hierarchy of multiple levels of compensation, thus the name multi-level marketing. The products and company are marketed directly to consumers and potential business partners through relationship referrals and word of mouth marketing. All of us promote businesses through relationship referrals and word of mouth marketing every day. The only difference is that we don’t get paid for doing so. For example when a person goes to a restaurant and they have a good meal, they tell their friends about it; their friends then go to the restaurant. This is relationship referrals and word of mouth marketing. By promoting the business and products in this manner, the company does not have to pay for advertising such as TV, radio, or newspaper ads, which can be quite expensive. Instead, money that would otherwise have to go to pay for advertisement of the product can be given directly back to the people in the company.

The majority of multi-level marketing companies are made of independent, unsalaried salespeople, which are referred to as distributors or associates. They represent the company that produces the products or provides the services they sell. They are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of those they recruit. Independent distributors develop their business by either building an active customer base, who buy direct from the company, or by recruiting other independent distributors who also build a customer base. Distributors also earn a profit by retailing products that they purchased from a company at wholesale price. Wholesale price is the price at which an individual or company buys a product from a manufacturer. Retail price is the price at which the individual or company then sells the product to customers. The difference between the wholesale price and retail price is equal to the amount of profit that is made.

Network marketing is all about leverage. A person can leverage their time and increase the number of hours of work effort on which they can be paid by sponsoring other people and earning a small income on their efforts. The basis behind the idea of leverage is that a person makes 1 percent on the efforts of 100 people rather than 100 percent of their own efforts. Most network marketers work a few dedicated hours each work. They sponsor other people and teach those people how to sell the company product and sponsor others. This process is duplicated by those they sponsor. A person leverages their time by helping others be successful and earn an income from their efforts. As this process continues, compounded growth is created and can lead to hundreds or even thousands of people coming into the business.

Network marketing is a legitimate business. It is based on providing people with real, legitimate products they need and want at a fair price, but it is not a get-rich-quick scheme. For many, network marketing can be the solution to financial struggles. It can allow a person to obtain their dreams and goals, which previously seemed unattainable; however, the financial benefit is dependent upon a person’s dedicated efforts to build their business.

http://www.charlesprimas.com/
http://www.detroitbusinesstoday.net

July 12, 2009

Extra income sources popular in lean times

By Ari Cohn
Tribune

http://www.eastvalleytribune.com/story/141597

Hamilton High School teacher Mike Johnston earns extra income working from home where he poses with products he sells in Chandler. July 9, 2009. Tribune

With an impending wage freeze at Chandler schools and two young children at home, Hamilton High School teacher Michael Johnston, looking for extra income, turned to a name often associated with wheeling and dealing: Donald Trump.

Chandler unemployment highest in 20 years [http://www.eastvalleytribune.com/story/140695]

Or, more specifically, a vitamin supplement company that Trump recently acquired and renamed the “Trump Network.”

Johnston, a 14-year teaching veteran who works with “at-risk” students who are falling behind in school, has spent the last six weeks learning how to market and sell Trump’s product and trying to recruit other salesmen.

“I’ve never really gone out on a limb like this,” he said. “I’m learning quite a bit, never having sold anything before.”

He began looking for business opportunities to supplement his teacher’s wages when the Chandler Unified School District voted in April to freeze salaries for the upcoming school year, 2009-10, because of the state budget crunch.

The state is cutting millions in aid to the district for the next school year to help compensate for a potential $3.3 billion state revenue shortfall. Though the governor signed the education budget last week, district officials are still sorting out the final figures. District spokesman Terry Locke has said it could be October before a better picture is known.

Johnston said he and his wife Cindy, a physical therapist, were hoping for a little more spending money so the family could do things like take a vacation once in a while.

“We were just tired of where we were, finally,” he said.

Johnston was recruited into the Trump Network by friend Michele Rogers. Rogers said that after she gave birth to her now 18-month-old child, she wasn’t inclined to return to her business management position with Banner Desert Medical Center.

She described the Trump Network as a “network marketing” company. People who participate are tasked with selling a customized vitamin supplement program, and conducting their own individual marketing.

Essentially, the company, formerly called Ideal Health, conducts a urinalysis on each customer to gauge that person’s metabolism and vitamin deficiencies, and then creates a personalized supplement, she said.

“It’s trying to get your body, basically, back into balance,” Rogers said.

Product sellers make money in two ways: in commission on sales, and for recruiting other people to sell, she said. Rogers said she’s recruited about 30 people personally, and now has a total of about 200 people on her ladder.

“With the Donald Trump name, people are more open to it,” she said.

The company ships the products directly to the customers, Rogers said.

“You don’t store any products. You don’t have to have inventory,” she said.

According to a flyer billed as “A note from Donald Trump,” containing the mogul’s photo and purported signature, Trump argues that his network marketing concept is headed for substantial growth, and is a good opportunity in tough economic times.

“We’re in the midst of an economic meltdown created by Wall Street greed, financial industry ineptitude, and a multi-billion dollar government bail out of the financial system that isn’t working,” the flyer states. “The American dream has been hijacked by complacency and incompetence.”

Johnston said many of his apprehensions about the venture were allayed because of its association with Trump. He said he’s hoping to receive his first small check from the company by the end of the month.

“I think everybody right now is looking for a little extra income,” he said.

http://www.charlesprimas.com/
http://www.detroitbusinesstoday.net

Network Marketing Scam - Just Play the Lottery

July 6, 2009 by Eldon Beard

http://networkmarketingnow.com/building-your-business/prospecting-sponsoring/network-marketing-scam-play-the-lottery/

A guy named Tom decided to get involved with a network marketing scam - at least that’s what he called it after all was said and done. Here’s what happened to Tom. Do you think he really got cheated?

One of Tom’s friends was involved with a network marketing opportunity that sold a premier line of nutritional supplements, including some that were targeted toward bodybuilders. This was intriguing to Tom, because he enjoyed working out and taking care of himself, and had lots of friends at his gym.

Tom’s friend presented the opportunity and shared some very persuasive figures illustrating the income potential. When Tom saw the dollar signs, he didn’t hesitate. He signed up on the spot.

Tom had twenty people in mind as prospects, most of whom were workout buddies. He enthusiastically presented the business to them, and three of the twenty signed up.

Three months later, all three of Tom’s recruits had dropped out, and the other seventeen had long since decided it wasn’t for them.

Tom didn’t make a dime, and in fact had invested $350 in products and literature. Obviously, this is one of those network marketing scams, I was stupid to sign up for this….Tom thought.

In his mind, this network marketing opportunity was a total scam because:

• he talked to twenty people and only three signed up

• of the seventeen who didn’t join, five warned him that he was getting sucked in to a “pyramid deal”

• the three people who did sign didn’t make any money either, and decided to call it quits

What happened here? The truth is, Tom never understood that network marketing was a serious business that would take time and effort. He had what we can call the “lottery mentality”. He signed up believing he could get several people he knew to join, and presented the business to the twenty best contacts he had. At that point, he waited to see what the three who joined would do, and hoped some of the other seventeen would eventually come around.

Tom felt with this small effort that he should make some decent money. When he didn’t, he called a perfectly legitimate business opportunity a “network marketing scam”, and to this day believes that he did nothing wrong. In his mind, he did his part and the opportunity failed him.

Never mind that Tom never worked with his new associates…didn’t make an effort to learn the success system his upline had in place…all he did was sign up a few people and wait to see what happened.

Have you seen a similar situation in your world? Things like this give network marketing and MLM a bad name. No wonder some people think it’s a joke.

We as network marketing professionals always need to be on guard to make sure our prospects and new recruits understand that they aren’t buying lottery tickets, but investing in a business that (with proper work ethic and application of basic success principles) can make them lots of money and provide a true long-term residual income.

Hi, my name is Eldon Beard. I have created "Network Marketing Now" to present a balanced and professional approach to success in our industry. I hope you will find information and tips here that are helpful to you



http://www.charlesprimas.com/
http://www.detroitbusinesstoday.net

Nation's jobless rate hits 26-year high

July 2, 2009
Nation's jobless rate hits 26-year high

By JEANNINE AVERSAASSOCIATED PRESS
Updated at 10:30 a.m.

http://www.freep.com/article/20090702/BUSINESS07/90702019/Nation+s+jobless+rate+hits+26-year+high

WASHINGTON — Employers cut a larger-than-expected 467,000 jobs in June, driving the
unemployment rate up to a 26-year high of 9.5%, suggesting that the economy’s road to recovery will be bumpy.

The Labor Department report, released today, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.

June’s payroll reductions were deeper than the 363,000 that economists expected and average weekly earnings dropped to the lowest level in nearly a year.

However, the rise in the unemployment rate from 9.4% in May wasn’t as sharp as the expected 9.6%. Still, many economists predict the jobless rate will hit 10% this year, and keep rising into next year, before falling back.

All told, 14.7 million people were unemployed in June.

If laid-off workers who have given up looking for new jobs or have settled for part-time work are included, the unemployment rate would have been 16.5% in June, the highest on records dating to 1994.

“We were on the road of things getting less bad in the jobs market, and that has been temporarily waylaid,” said economist Ken Mayland, president of ClearView Economics. “But this doesn’t change my view that the recession will end later this year. We’re probably two months away.”

On Wall Street, the employment news pulled stocks lower. The Dow Jones industrials lost about 170 points in morning trading, and broader indices also fell.

Since the recession began in December 2007, the economy has lost a net total of 6.5 million jobs.
As the downturn bites into sales and profits, companies have turned to layoffs and other cost-cutting measures to survive. Those include holding down workers’ hours and freezing or cutting pay.

The average workweek in June fell to 33 hours, the lowest on records dating to 1964.
Layoffs in May turned out to smaller, 322,000, versus the 345,000 first reported. But job cuts in April were a bit deeper — 519,000 versus 504,000, according to government data.

Even with higher pace of job cuts in June, the report indicates that the worst of the layoffs have passed. The deepest job cuts of the recession came in January, when 741,000 jobs vanished, the most in any month since 1949.

And there was some other encouraging job news today.

In a separate report, the department said the number of newly laid-off workers filing applications for unemployment benefits fell last week to 614,000, in line with economists’ predictions. The number of people continuing to draw benefits unexpectedly dropped to 6.7 million.

Meanwhile, the Commerce Department said orders placed with U.S. factories rose 1.2% in May, the most in 11 months. The increase also was better than economists expected.
Still, job losses last month were widespread.

Professional and business services slashed 118,000 jobs, more than double the 48,000 cut in May. Manufacturers cut 136,000, down from 156,000. Construction companies got rid of 79,000 jobs, up from 48,000 the previous month. Retailers eliminated 21,000, up from 17,600. Financial activities cut 27,000, following 30,000 in May. The government cut 52,000 jobs, up from 10,000 the previous month. Leisure and hospitality cut 18,000 jobs, erasing a gain of the same size in May.

One of the few industries adding jobs: education and health services, which added 34,000 positions last month and 47,000 in May.

Mayland and other economists said a good chunk of June’s job losses likely were affected by shutdowns at General Motors Corp. and fallout from the troubled auto industry, which should let up later this summer. The government said employment at factories making autos and parts fell by 27,000 last month.

Payroll losses and the unemployment rate are derived from two separate statistical surveys. The jobless rate probably would have moved higher if not for people dropping out of the labor force.

With the weakness in the job market, workers didn’t see any wage gains in June. Average hourly earnings were flat at $18.53. Average weekly earnings fell from $613.34 in May, to $611.49 in June, the lowest level in nearly a year and the first drop since March. That raises fresh questions about consumers’ willingness to spend in the months ahead.

The worst crises in the housing, credit and financial markets since the 1930s have plunged the country into the longest recession since World War II.

Many think the jobless rate could rise as high as 10.7% by the second quarter of next year before it starts to make a slow descent. Some think the rate will top out at 11%. The post-World War II high was 10.8% at the end of 1982, when the country had suffered through a severe recession.
Federal Reserve Chairman Ben Bernanke predicts the recession will end this year, with many economists forecasting that the economy will start to grow again as soon as the current July-September quarter.

But recoveries after financial crises tend to be slow, which is why economists predict it will take years for the job market to return to normal. Some predict the nation’s unemployment rate won’t drop to 5% until 2013.

An elevated unemployment rate could become a political liability for President Barack Obama when congressional elections are held next year. The last time the unemployment rate topped 10%, the party of the president — then Ronald Reagan’s GOP — lost 26 House seats in midterm elections in 1982.

So far, many people are saving — rather than spending — the extra money in their paychecks from Obama’s tax cut, blunting its help in bracing the economy.

Much of the economic benefit of Obama’s increased government spending on big public works projects won’t kick in until 2010, analysts say.

The White House last week said federal money was being shoveled out of Washington quickly, but states aren’t steering the cash to counties that need jobs the most.

Large job cuts have continued this week. Newspaper publisher Gannett Co. said it plans to cut 1,400 jobs in the next few weeks, about 3% of the workforce, as it faces a prolonged slump in advertising revenue. Farm machinery company Deere & Co. said 800 salaried employees, or 3% of its salaried workforce, took a voluntary buyout offer.

http://www.charlesprimas.com/
http://www.detroitbusinesstoday.net

http://www.charlesprimas.com/
http://www.detroitbusinesstoday.net

Selecting A Work From Home Job

June 30, 9:19 PM · Carol Callahan - Sacramento Frugal Family Examiner

http://www.examiner.com/x-14361-Sacramento-Frugal-Family-Examiner~y2009m6d30-Selecting-A-Work-From-Home-Job

http://planetgreen.discovery.com/tech-transport/images/2009-01/work-at-home-550x359.jpg

Have you ever wanted to just drop the everyday, nine to five and pursue a career working from your home?

Many people don't even consider it; however, it is a very, valid option if the proper research is done. Recently, because of the freedom and benefits associated with it, people are choosing to work from home everyday. Even more are new mothers and fathers looking for a better way to balance their work life with their home life.

There are many ways to work from home. It can be as simple as creating an automated website that completes all sales and delivery of informational products like an e-book or an e-commerce website that generates retail sales of products. Generally speaking, most of the income generated from the Internet can be automated. This allows you to invest an initial time commitment to get the business started and then you can reap the benefits for the duration you own it. Basically, set it up once and forget about it, while collecting money generated everyday.

Working from home is also a great way to avoid the high cost associated with daycare services. The good news is that the Internet has allowed many people, both men and women, to find legitimate work from home opportunities. They are becoming successful everyday without the daily grind of a nine to five.

Now that you have decided to start your own work from home business, where do you start?

Begin by initializing a search through Google or any other search engine. You would see that the opportunities are nearly endless. Which options are legitimate and which ones are scams? It really is hard to tell. Many companies require some sort of financial commitment. These companies are valid options; however, there are many more opportunities that are available with no financial expense. These options do require a time commitment. A good way to think about it is, if you have the time then they have the dime.

Another approach is to pursue "multiple streams of income", often called "residual income". There are many companies that offer this type of opportunity. Most are affiliate programs that enlist your help to bring new clients to their service through a referral process. Granted, this is not a huge amount of money, but if you actively participate, it is possible to have a nice second income. If you do a few of these every month, a full time income is a possibility. When looking for a valid work from home opportunity look for companies that are recognized by the Better Business Bureau. This step will eliminate most of the scams.

In conclusion, working from home is an endeavor that should be embarked upon in a very cautious manner. Remember, generally speaking, a legitimate work from home opportunity should cost very little to start, if anything. You should not have to buy products for yourself or your family unless you want to. You should not have to force friends and family to attend long, time-consuming presentations like the companies of the past. You should treat it as a job and tend to it everyday. You should act as if you were at a nine to five job, although it could be the middle of the night. Doing these steps will allow you to be successful in your mission to find the ultimate work from home opportunity. Lastly, enjoy the freedoms and benefits of working from home while generating a handsome income.

Author

Carol Callahan is an Examiner from Sacramento. You can see Carol's articles at: "http://www.Examiner.com/x-14361-Sacramento-Frugal-Family-Examiner"