WARNING: what we are about to share less than 2% of business opportunity seekers are aware of. In fact, the reality is so damaging, few people are able to accept it. Especially if you think multilevel or network marketing is a good thing.
Listen closely, in business and in life… “Your decisions are only as good as your information. This means the best decision based upon bad information, is still a bad decision.” For some, this report will be one of the most important in the entire “Real Cash Secrets” home study course.
Because learning to avoid a bad opportunity (in some cases) can be just as important as picking a winning one. To most people what we are about to say will come as a shock. But please, take the time to analyze the FACTS. Everything I am presenting is based upon 20 YEARS of DATA and RESEARCH provided by the Consumer Awareness Institute.
Financial experts have scrutinized this information. If you wish to challenge any of the material, be our guest. We will list their website at the end (truth is often a brutal but effective teacher). For the sake of space and to make this report as concise as possible, we have broken the argument against MLM/Network Marketing into four parts.
Believe us, this is all it takes. Because a dollar saved is a dollar earned. Therefore avoiding a bad opportunity automatically EARNS YOU GUARANTEED INCOME. So let’s get started…
Millions of people desire to earn a second income working from home. The vast majority do NOT have the skills to create a business from scratch (nor do they want to take the time to develop these skills). This is understandable.
Therefore, multilevel or network marketing can SOUND attractive. Very attractive. After all, you don’t have to find a product, create a product, or even come up with a system to sell it, because the multilevel or network marketing company has done all that for you.
All you have to do is work “the system” right?
While this scenario sounds great, it presents many problems which negatively affect your odds of success. Almost no one understands these problems and even fewer ever discuss them. Why?
Because the excitement of Network Marketing has a phenomenal power of “blinding” people to facts and figures…
After all “if the dream is big enough the facts don’t count” right?
SECRET #1:
“Abysmal success rates.”
This is one of the biggest secrets of all. Ask anyone trying to recruit you into their multilevel or network marketing program to show you STATISTICAL DATA of what percentage of distributors are actually earning a profit. You will find your request likely lands on deaf ears.
In the event it doesn’t, you will find something just as disheartening. And that is, the dismal success rate of network marketing opportunities. In fact, analysis of the top 12 multilevel marketing companies in the United States shows the average success rate is just 0.3%.
Since the success rate of conventional business is about 50% based upon data from various sources (i.e. Small Business Administration, US Census, Bureau of Labor Statistics and Venture Capitalists).
This means by avoiding Network Marketing you instantly INCREASE your odds of success by over 50 times. Think about that. Just by avoiding network marketing and choosing a different business your odds of success increase over 50 TIMES!
And remember, this information is based upon data provided by the top 12 multilevel marketing companies in the United States. These are the FACTS based on THEIR OWN NUMBERS.
With this said, your chances of realizing a profit playing blackjack or poker are far better!
A great way to get this point across is using a hypothetical story if you got cancer.
Imagine you have cancer and statistics show you have a 50% chance of surviving by doing chemotherapy treatments? However, one of your neighbors pitches you a new “alternative” therapy which involves eating raw apricot pits three times a day.
And, this therapy has been researched at Bemidji State University in Minnesota.
But guess what?
While it may be “natural” compared to chemotherapy, the survival rate is only 0.3%.
So now the question is…
Which therapy would YOU choose?
SECRET #2:
“A non-exclusive product
with an unprotected territory
sold to an endless number of people
as an unlimited opportunity.”
One of the biggest secrets in business if you want to make a lot of money is this: have an exclusive product with a protected territory with limited competition and a large market. Even if you could only have two of these four things your odds of success are drastically increased.
For example, if you found yourself in New Orleans Louisiana after Hurricane Katrina, which would have more value? Thousands of dollars in gold? Or, hundreds of cases of ice cold beer? The answer is simple. The beer would be worth MORE in cash or barter.
And this is why having an exclusive product with limited competition can be so profitable.
Think about Microsoft every time you turn on your computer. Think about the gas, electric or cable company every time you pay the bill. Or, think about your favorite food products from the store. All these are examples of things you spend money on which have limited competition.
One of the biggest problems with network marketing is you’re entering a marketplace promoting a product which is 100% non-exclusive (meaning anyone anywhere can sign up to sell it and become your instant competitor).
Furthermore, you’re taking this product and attempting to sell it in an unprotected territory. This means even more competition. But it gets worse…
Because you’re recruiting others who are each allowed to recruit an endless number of reps to promote as well… each one of them outside of your down line or pay line becomes a direct competitor working against you.
This is a recipe for a lot of people working for free or next to nothing (the reality of most network marketing programs).
Imagine if every business in your town recruited its’ customers to get into the same business they’re in? Pretty soon there would be so much competition there would be no profit left (the law of competitive market theory.)
But what if the products were OVERPRICED to begin with?
SECRET #3:
“Overpriced products with over-hyped claims.”
One of the reasons success rates in network marketing are so low is because of the products. Specifically, the pricing of them. Studies have shown (on average) products sold via Network Marketing cost 500% to 600% MORE than their store-bought counterparts.
Add this to the non-exclusivity, an unprotected territory and you have a product which is extremely hard to sell. Even at the “wholesale” level.
This is why over 99% of all multilevel marketed product sales are driven by non-retail methods and internal consumption by distributors.
In other words, almost all the distributors are just “buying from themselves.”
If you’re looking to start a business and “be your own best customer” than network marketing is a great way to do it.
The problem is not so much distributors recruiting others to become distributors who buy from themselves, but the fact almost no one is buying the products at retail. In other words, 99% of people get recruited as distributors and purchase the overpriced products “wholesale”.
Again, nearly 99% of all sales generated by multilevel marketing companies are at the “wholesale” level.
Retail sales are almost non-existent.
Let’s face it.
In network marketing “wholesale” means retail.
This is why in recent years the term “PRODUCT BASED PYRAMID SCHEME” has been used to define network marketing opportunities.
Probably the most entertaining part of multilevel or network marketing is the fact 99% of the people who are pushing an opportunity are unable to explain the company’s compensation plan by which they are paid.
To compare, can you imagine walking into a restaurant where no one knows exactly how they are being paid?
Some feel network marketing companies have incredibly deceptive compensation plans for a reason: because it’s an effective way to steal from the distributor force. It’s almost like buying a five dollar bill for four dollars.
Let us explain…
Almost every multilevel or network marketing company in the United States does not pay commissions on actual dollars of products sold. Instead, they assign what’s known as a “Point Value” (PV) or “Commission Value” (CV) to each product.
In many cases, when someone orders $100 worth of products, the actual point value (PV) or commission value (CV) may only be $50 to $80 which you are paid commissions on.
In other words, you could build a giant down line which is purchasing $100,000 worth of products each month, but the company is only be paying you commissions on $75,000 or $80,000 AFTER your down lines purchases are converted to PV or CV (point value or commission value).
Again, this is just the tip of the iceberg as we are limited in space for this report.
One of the dirtiest parts of the network marketing industry is that which falls under the topic of “breakage”.
Breakage occurs a number of ways but the result is the same; you end up not being paid on volume generated within your down line because you did not “qualify” to earn commissions through deceptive means.
The topic of deception within multilevel or network marketing is one which an entire book could be done upon.
But we think you know enough at this point to avoid it like the plague.
In its current state, network marketing (a.k.a. Multi Level Marketing or MLM) is a flawed business model which (some feel) should be eradicated from
the face of the earth.
While we would not go that far… we would agree the model needs to evolve and could be “reignited” with such an effort.
In the 1990’s many companies created “compressed” compensation plans in order to allow distributors to earn income from a smaller down line. While this effort was well intentioned, unfortunately, it never gained significant traction among industry leaders.
Until then, American opportunity seekers will keep waiting for the next evolution in network marketing,
This report was taken from the complete “Real Cash Secrets” Home Study Course:
Special thanks to Dr. Jon M. Taylor of the Consumer Awareness Institute for donating content and time for this report. If you wish to research more or save a friend or family member from Multi Level/Network Marketing, you may visit his site at: http://mlm-thetruth.com
