What is a Pyramid Scheme?

According to Wikipedia… A “pyramid scheme” is a non-sustainable business model that involves promising participants payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part, rather than supplying any real investment or sale of products or services to the public.

People often label MLM or Network Marketing, which is absolutely legal, as nothing but a pyramid scheme. However, a pyramid scheme is based solely on recruiting new people and no product or service is involved. That is illegal.

With a legitimate MLM or Network Marketing company the emphasis is on selling products or services, not on recruiting.

Where a lot of people get confused is, when you draw out the organization structure of any MLM or Network Marketing company it looks like a pyramid. So they conclude that the people at the top make all of the money and you have to get in early to even stand a chance of making any money at all.

That is not so.

Unlike with traditional businesses every person has an equal chance to make as much money as they desire in their network marketing business. How much that is depends on how much effort they put into it. If you put in more effort than the person above you, you can make more money than he or she does.

“According to the US Department of Labor and the Direct Selling Association with the same time and effort I’m five times more likely to earn over $100.000 in Network Marketing than in my life-sucking job.” (Quote from video below.)

How come traditional companies aren’t labeled a pyramid scheme. If you draw out the organization structure of a traditional company it looks much like a pyramid as well. It’s kind of not fair, is it?

Go ahead, draw out the organizational structure of the (traditional) company you work for and see what it looks like. And while you’re at it, go ahead and do the same for any other organization as well. What do they look like? Oh no, it’s a pyramid scheme!

Question: Would authorities like Robert Kiyosaki, New York Times Best-Selling Author of one of the top-selling financial books of all time; Donald Trump, and Warren Buffet, the most successful investor of all time be supporters of Network Marketing if it was illegal? I really don’t think so. Yet they are, because the see it as the brilliant business model that it really is.

If you have a MLM, Network Marketing business you’ll get a kick out of the video below. If you are thinking of joining this industry it will shed some light on the myth that multi-level marketing is a pyramid scheme. It definitely is NOT!

Enjoy!

To Your Success!

Ilka Flood
The Enlightened Networker

P.S. If you got a good laugh out of this please re-tweet and share it with your Facebook friends. Don’t forget to leave your comments below. Thank You!

No related posts.

Show me any network marketing leader who hasn’t struggled in his or her career. Most of them had to overcome tremendous obstacles on their way to the top.  There’s no such thing as overnight success. They usually have been years in the making.

“Beach Money” is such a story.  Jordan Adler’s very personal story of struggles and failure and overcoming obstacles until he finally reached success. It will grab hold of you and you won’t be able to put it down until you reach the last page.

Jordan’s honest, giving demeanor comes through in “Beach Money” where he shows you a step-by-step success formula.  The very same formula he used himself to grow an organization of thousands of people and generate a massive passive income. The kind of income you only work for once and get paid over and over again.

That is “Beach Money.” Money you get paid whether you get up in the morning or not; whether you’re out shopping at the mall, traveling across the country or just lying on the beach.

Once you start reading his book, you will find that Jordan is much like you. If fear of failure or doubt that you’ll ever have any success in network marketing has a grip on you, let Jordan’s words inspire and encourage you. He knows what you’re going through because he has lived it. He has been there and done it.

He will show you that you already have everything you need to succeed in network marketing. You just need a little push, a shift in your thinking and a roadmap to follow. That’s all!

“Beach Money” will show you how you can grow your network marketing business even if the only time you have available is your lunchtime. And it will show you how you can turn your yearly income into your monthly income.

Jordan Adler is the top income earner in one of today’s fastest-growing network marketing companies. But in spite of his tremendous success, he is very much down to earth.

So go ahead, grab a copy of “Beach Money.”  Let it inspire you. Let it encourage you to push on and to never, ever give up until you reach the lifestyle of your dreams.

To Your Success…

Ilka Flood
The Enlightened Networker

P.S. Have you read “Beach Money?” Please leave your feedback in the comments below.

P.P.S. Be sweet, re-tweet! It’s very much appreciated. Thank You!

No related posts.

Could Your MLM Home Based Business Be In Danger?

Think the MLM Home Based Business you are building is really yours? Think again?

Imagine this scenario…

You have been building your MLM Home Based Business for the past 10+ years and all of a sudden the company decides to make some radical changes one of which is changing the compensation plan.  You are scrambling to keep your organization but can’t prevent max exodus. The bottom is falling out of what you have been building for years. To top it all off, the company doesn’t like your comments of discontent, sees you as a threat and decides to put a hold on your commission check.  Worse yet, decides to terminate you.

Think it couldn’t happen to you? Think again!

Different scenario…

Very excited you joined a new startup company. It’s just what you were looking for. You put a lot of time and effort in building your team. You’ve got everyone else excited to follow your example and then from one day to the next the company decides to no longer use the network marketing business model. You’re left out in the cold.

News Flash …

You may have been told that you are your own boss building your own business, but if it’s a MLM Home Based Business it couldn’t be further from the truth.

Your business belongs to the company you are associated with and you can lose it at any time for any reason!

You are an independent contractor!

Nothing more. You don’t really own your MLM Home Based Business. And if you don’t comply with all of the terms and conditions of the agreement the company spelled out for you ….and may amend at its own sole discretion at any time… it’s “Game Over”.

Scared yet? You should be!

So how do you protect yourself?

Well, you start by reading your company’s Terms of Service, sometimes also called Policies and Procedures or Distributor Agreement. Go through it with a fine-toothed comb and if there’s anything in it you don’t agree with, don’t sign it.

Realize that you are an independent representative of the company which will pay you commissions for selling their products or services as long as you are in good standing with and comply with their rules.

Although you are your own boss you don’t own the MLM Home Based Business you are building.

Build yourself not your company.

Build yourself up as an authority. Develop your strengths. Learn new skills become more marketable. Make a name for yourself in the industry. Network with leaders, shadow them and learn from them.

It’s these skills that once learned you will have forever and which you can take from company to company and build on. So promote yourself not the company you represent.

Invest your income.

Many top income earners in the industry invest their income from their MLM Home Based Business in other markets, like the real estate market for example. Investing your earnings  is a very wise decision should something go wrong with your company. Tip: Always consult a trusted advisor to help you make sound investment decisions.

Yes, you are building a MLM Home Based Business, but the company you represent owns it. They provide you with the product or service, they ship it, they have the overhead, etc. and they pay your commissions. You only do the marketing part.

So, don’t be left in the cold if something should go wrong.

To Your Success…
Ilka Flood
The Enlightened Networker

P.S. Don’t be shy. Every network marketer should know about this so make sure you re-tweet and share this on Facebook. Thank you!

P.P.S. This is a DoFollow blog so make sure you leave your comments below for some link juice.

Related posts:

1. Are You Still Acting Like a Secret Agent in Your Network Marketing Business?

Overcoming Objections with Feel, Felt, Found

Overcoming objections is one of the top business skills you need to learn how to master in your mlm home based business.

I know I struggled with this issue when I first started.  But then someone introduced me to “Feel, Felt, Found” a really cool method to overcome objections.

It is only natural that people have objections when they are confronted with something new and unfamiliar. It is our job as their future sponsor to help them overcome these objections. Oftentimes the objections we hear from our prospects aren’t even real, but more of a way to say “hey, I’m not ready for this,” without actually coming out and saying it.

“Feel, felt, found” lets you empathize with your prospect. Most likely you were in their shoes at one time and you can relate to what they are going through.

Here are some examples of the most common objections we may hear….

“I don’t have the time to do this business.”

“I don’t have the money.”

“I have to think about it.”

“I don’t want to be locked into a monthly commitment (autoship.)”

“I don’t like MLM, Network Marketing.”

“I have to ask my husband.”

All of these objections can be overcome with “FEEL, FELT, FOUND”

For example…

“Mary, I totally understand how you feel about not having the time to do this business. I felt the same way. But then I found that it only takes a few hours a week to get things started…”

“I understand your concern about the monthly autoship, Bill, and know how you feel. I felt the same way. But then I found that I actually ran out of the product before it was time for the next autoship to come around … that I really needed to set a good example for the team I was building and therefore needed to be on autoship…“

“I appreciate how you feel about having to think about it, Sue. I felt the same way. But then I found the sooner I started the sooner I would reach my dream of … (fill in the blank.)”

See how this feel, felt, found approach works overcoming objections? You are actually relating to the prospect. Making them feel better about having these objections, because you let them know that you felt the same way at some point but you found a solution to overcome objections like the ones they may be having.

Overcoming objections is just something that comes with the territory of having a mlm home based business. But applying the method of feel, felt, found makes it a lot easier to handle.

To Your Success,

Ilka Flood
The Enlightened Networker

P.S. If you have used the feel felt found approach in your business let us know your experience in the comments below. By the way, this is a DOFOLLOW blog so you will get some link juice back

P.P.S. If you liked this information, make sure you re-tweet and also share it with your friends on Facebook. Thank you!

Related posts:

1. Are You Still Acting Like a Secret Agent in Your Network Marketing Business?

Building Your Network Marketing Business is Not a Sprint - It's a Marathon

Are you building your network marketing business going full speed like you would run a sprint?

I’m back in the saddle again after an enjoyable break. I cheated a little and did not totally keep away (from the computer) like I had planned originally but I did take it very easy. And I took a lot of time to think. I guess, I really needed that. Both, the break and the time to think. I was going full speed ahead, always afraid I’d miss something if I didn’t and I lost myself along the way.

I am a very competitive sort of person. I hate to be left behind and I hate to lose. I am also very driven which, I guess, goes right along with being competitive.

Take time to smell the daisies while building your network marketing business.

I used to keep insane hours, working from when I first got up until going to bed. Notice, I said “used to” because there will be some changes from here on forward.

“Working” didn’t mean 12 hours of income producing activities. A lot of the time was spent on learning new things, growing my list and driving traffic to this blog. While these activities eventually mean income, they will take time.

Building your network marketing business takes many different activities. There are a lot of pieces to the  puzzle. Each one of them important to make the picture complete. But it is not a sprint. It’s a marathon.

Before I went on break I had drawn out my goals for the rest of the year. Going over them again now, I realized that I have set my deadlines very tight. Too tight. On purpose, because I wanted to reach my goals faster. But why really? Just so I can prove to myself that I can do it? Nonsense. I’ve proven that many times over. The first time I was 10 years old. I think it’s time to “live a little.”

You can’t run a marathon from the start to the finish line like you would run a sprint, at your top speed. You would never get there. You will have to pace yourself through the 26 miles, taking in some water along the way to keep you hydrated.

I know that some of you reading this blog post are just like me, building your network marketing business going at it at full speed. I know, because  I read your blogs. If you can keep it up through the finish line good for you. But the likelihood is pretty slim. Most likely you will get burned out and maybe even quit.

Slowing down is perfectly okay. You don’t have to prove yourself to me or anyone else. The only person you are accountable to at the end is YOU. If you are reaching the goals you have set for yourself and you are happy with your accomplishments then that should be good enough. The important part is … to reach the finish line.

Are you pushing yourself too hard building your network marketing business just to prove to yourself (and maybe even someone else) that you can do it? That’s the way I am, but I am trying to change. When someone tells me I can’t do something, I am bound and determined to prove them wrong. Share your thoughts with us in the comments below.

To Your Success!

Ilka Flood
The EnlightenedNetworker

P.S. If you found value in this post, please share it with your friends. Be sweet – retweet!

Related posts:

1. Are You Still Acting Like a Secret Agent in Your Network Marketing Business?

Business of the 21st Century

I’m sure you are familiar with best-selling author Robert Kiyosaki of “Rich Dad – Poor Dad.” If you haven’t  read the book I highly recommend it. I also recommend his newest book “The Business of the 21^st Century.” (Read the First Chapter of “The Business of the 21^st Century here.)

Have your parents ever told you this …

“Go to school get good grades, get a high-paying job, live below your means and save money?”

Has it gotten you anywhere? Has it gotten you to where you want to be?

The sad truth is, that for a lot of us, this plan doesn’t work.

You’ll never get rich working for someone else. That’s a fact!

Instead you should be in business for yourself. I don’t mean being self-employed or a small business owner.

In the short video below, Robert Kiyosaki will explain what “The Business of the 21^st Century” is and why it makes perfect sense.

I love the way he said: “Always remember, it’s not money that makes you rich, it’s business skills.”

I totally believe that, because money comes and goes, but the skills you acquire (in network marketing or direct selling) will always stay with you. And that’s why network marketing is the perfect business.

“The number one asset a person can build is build a business. That’s the smartest thing you can do.” _Robert  Kiyosaki.

I truly believe this, as from my own experience I know that “Plan A” doesn’t work. Our family had to find out what it meant to go from a paycheck to zero from one day to the next. There is no such thing as “Job Security” and there hasn’t been for a very long time.

So, are you leaving your future and that of your family’s in the hands of someone else? Or is it time for a change? Is it time for you to take a closer look at “The Business of the 21^st Century? It’s your choice!

To your success,

Ilka Flood
The EnlightenedNetworker

No related posts.

Positive MLM Prospecting

We’ve all heard it that dreaded “NO” when we were out presenting our opportunity. Maybe our presenting skills where still a bit rough, maybe the timing wasn’t right, or maybe our prospect just wasn’t interested. Whatever the case might have been we heard that devastating “NO.”

Yes, it can really sting and it can really hurt and sometimes it really can let the air right out of your balloon.

However, if you know that it is coming then you are way ahead of the game.

And if you have been in the network marketing industry for a while, you know that it’s coming. You can prepare for it.

Network marketing professionals know, that it takes at least 8 NO’s before they hear a YES. They know, the more NO’s they hear, the closer they are to a YES. So it doesn’t bother them when they get those NO’s.

But, for someone that is just starting out in the network marketing industry, 8 NO’s can be devastating. Most of the time it doesn’t even take 8 NO’s before they throw the towel and quit.

They just signed up for their new home based buisness. All excited they run to their family and friends and they get shut down by NO after NO, after NO. They are disappointed, think network marketing doesn’t work and that’s the end of that. They haven’t learned to not take rejections personally yet.

So again, how do you get past that devastating NO?

Know that it’s coming. Know that it is just part of the game. Better yet, try to avoid it in the first place.

How do I do that you may ask.

There are two ways you may avoid a NO in the first place.

The first way is through “qualifying” your prospects. This business isn’t for everyone. Anyone can do it, but not everyone will. Chose wisely whom you want to work with. Joe Sixpack isn’t right for this business. Don’t sponsor people who need the money, but those who want it. Stay away from negative people. Always sponsor up, meaning sponsor people that are a level higher than you.

The second way is, never ask for a “YES”. By never asking for a yes, you’ll never get a NO. When you approach your contact with your opportunity, don’t firehose them with all the info and then ask if they’re interested. Instead, ask if you have their permission to “educate” them on something you are excited about. Most people like to be educated but hate to be sold. They’ll say, sure, send me some info. It’s a totally non-threatening way.

To your success,

Ilka Flood
The Enlightened Networker

P.S. Before you go, please share this article with your friends on Facebook or Twitter.

P.P.S. If you are on Facebook I would love to connect with you. Send me a friend request and let me know you’re  coming from my blog. This way I know you are a friend and not a stranger.

No related posts.

Don't Assume Anything About Your Propect

Have you ever totally ‘messed up’ a meeting or conversation with a prospect? I mean, it seemed so promising. And then you got into your car to drive home (or you hung up the phone) and you thought to yourself, “man, I totally messed this one up”. What the heck happened?”

Could it have been that you have been “assuming” things about your prospect?

Someone once gave me the definition of “assume” and it’s not the one found in the dictionary or Wikipedia.  It goes like this …

ASS-U-ME = When you assume something you are making an ASS out of U and ME.

Yes, it’s a bit strong language and I normally don’t talk that way but … it hits the point spot on. Don’t assume things about people. Especially those you don’t know or have just met.

When we assume something about our prospects we come to false conclusions which can lead to misunderstandings, non-understanding and mis-communication. And that messes everything up.

Also, how often do we say to people, “I know exactly what you’re thinking?”

How can we know what someone is thinking? We only know what we ourselves are thinking. We could assume (there’s that word again) what someone may be thinking based on certain circumstances or our own experiences, but then again, that would get us exactly to what I mentioned above.

So the best thing to do when meeting a prospect for the first time, either in person or on the phone is to ASK QUESTIONS. Ask lots of questions.

The more questions we ask the better we get to know our prospect and the better we can assess what his or her needs are.

That’s what we’re there for.  That’s our job. To find out what our prospects problems are and then find a solution to fix them. We can’t do that by assuming but only by asking questions.

So do yourself a favor, don’t assume anything.

To your success,

Ilka Flood
The Enlightened Networker

P.S. You don’t have to share this on Twitter, Facebook or Digg, but if you do, I surely appreciate it. Thank you!

No related posts.

What Advantages Do Women in Network Marketing Have?

Why are there so many women in network marketing?

Good question! According to the Direct Selling Association about 82% of network marketers are women.

Is that surprising? No, not really. When you really think about it then it actually makes a lot of sense.  Why is that?

Are women just better networkers?

Well, they do have some advantages over their male counterparts.

Here are just 7 advantages women have over men in network marketing. I’m sure there are quite a few more…

1) Women want to stay home with their kids

This is probably the number one reason why there are so many women in network marketing. Moms want to stay home with their kids. They don’t want them to be raised by nannies or grow up in day care. They don’t want to miss out on those all important ‘firsts’ in their children’s lives. At the same time, stay-at-home moms want to contribute to the family finances.

2) Nurturing instinct

Women are natural nurturers. They want the best for their families. They make the purchasing decisions in their household and know quality whey they see it. They are also very community oriented.

3) Better Networkers

Network marketing is a people business. It’s based on building strong customer relationships. Women know the importance of relationship building in business. They are great listeners and have a natural ability to relate to other women’s situations which helps them to understand and meet their customers’ needs.

4) Better Communicators

Women share information all the time. Think about it? What group of population talks more to each other. There are school get-togethers, kids sporting events, scout meetings, birthday parties, luncheons. There’s always an opportunity to talk and build new business relationships.

5) Equal Playing Field

Network marketing offers and equal playing field for men and women. Equal pay for equal work and no glass ceiling. It’s not like that in the corporate world. Women are still at a disadvantage in the corporate world. They are neither treated the same nor is there equal pay for men and women .

6) Multi-Tasking

Women are great multi-taskers. They have the ability to focus on more than one task which is a great skill to have running a busy network marketing business.

7) Security

Women want security for their families. There has been no such thing as job security for quite some time now and women are usually the first to lose their jobs. Network marketing offers a “Plan B”, a security blanket for if the unthinkable should happen. A home business can be started part-time while still being employed.

So, there you have them,  the 7 advantages women in network marketing have over men.

If you can think of any more, please share them with us below in the comment box.

To your success,

Ilka Flood
The Enlightened Networker

P.S. Go ahead, I dare you to share this post on Twitter, Facebook or Digg it! And if you do, I sure appreciate it. Thank you!

Related posts:

1. Are You Still Acting Like a Secret Agent in Your Network Marketing Business?

Patience is an essential business skill every network  marketer needs to be successful.

Unfortunately, it  is something I personally was not blessed with at birth. I do have to work very hard on it. The good news is, it can be learned.

Wouldn’t you agree with me that anglers would make great network marketers?

They definitely would have the patience for it. Just think about it. They sit there for hours on end with their fishing poles in the water and wait for a nibble. Sometimes they catch something. Sometimes they don’t. And sometimes they get lucky and catch “the big one”. But they never get upset if they don’t.

Network marketing – especially prospecting – is pretty much the same as fishing, isn’t it?

We sit there with our fishing poles in the water, that juicy bait attached to the hook and we wait for that nibble.

Some of us are not patient enough to wait for that nibble. So we keep checking the bait on the hook or even get so frustrated that we change the bait all together.

Sometimes we get a nibble and then JANK that fishing pole out of the water … and by doing so lose the fish on the hook.

(In other words … We had an interested prospect and then totally threw up on him or her. Or we bombarded them with phone calls and emails pushing our business opportunity on them.)

Sound familiar?

Fishing takes patience and so does prospecting.

Once our prospects take the bait we want to be really careful and gently reel them in.

That’s where ‘Follow Up’ comes  in to play.

Make sure you have a good follow up system in place …(give value)….so you can keep in touch with your prospects. Because, very seldom will your prospects buy or join with you on the first bite.

“All things being equal, people will do business with and refer business to those people they know, like and trust.” – Bob Burg

I would like to add one more … REMEMBER

People need to REMEMBER you.

And the only way they will is if you keep yourself on the top of their mind.

They say “the money is in the follow up”.

That is really true. Remember, I said earlier, very seldom will people buy or join with you on the first bite. (Or after the very first contact.) It can take weeks, months or sometimes even years before a prospect is ready to join you.

So, go ahead … put that fishing pole back into the water. And when you get that nibble, reel that fish in ever so carefully.

Happy fishing! …uhm prospecting!

Ilka Flood

P.S. Have any fish tales you would like to share with us in the comments below?

P.P.S. If you liked this post and would like your peers to reel in some big kahunas … tweet this post and/or share it on Twitter or Digg it. Thanks!

No related posts.