UNDERSTANDING MLM

                                                                   The History of MLM

The origin of multi-level marketing is often discussed heatedly. Many said multi-level marketing style businesses existed in the 1920s, 1930s with Nutrilite or California Perfume Company renamed as “Avon Products”, 1940s with the California Vitamin Company, 1960s, and even as late as the 1970s. Many people continue to change their life for the better by getting involved in network marketing. Although our industry has a pretty high failure rate, there are plenty of people who achieve financial independence by using this business model. If you have ever wanted to start your own business, but couldn’t afford to, you now have a chance. Thousands of people get involved in multi-level marketing every day. You should consider it too.

What is MLM?

Network marketing (MLM) is an opportunity. An opportunity to meet positive people. An opportunity to earn an extra income. An opportunity to re-ignite your personal enthusiasm for life. An opportunity to build a business. And, an opportunity to create wealth.
It is a marketing strategy in which the sales force is paid not only for sales they personally generate, but also for the sales of the other salespeople who engaged in the business or most commonly known as sponsored person. This sponsored sales force is referred to as the participant's "business partners", and can provide multiple levels of compensation.

MLM is known to be a legitimate business strategy and an inexpensive way to start your own business. It is a unique business model that enables you to multiply your personal income and earn a residual income too.

It’s a hybrid business model that combines all the benefits of franchising, without investing huge amount of capital. It’s a business model that gives the average guy the chance to have his own business, with a small amount of money as start-up capital with a little financial risk.

The MLM Business

Multi Level Marketing (MLM)  Business is one of the most profitable business opportunities in the world. Where else can someone find a business that use a small starting capital? As we know, nowadays when someone wants to have his own business like for example a restaurant or grocery store, he will be needing a very huge amount as capital. Whereas in MLM, you’ll only be needing an amount that ranges from P100 - P50K and have an opportunity to earn millions.

A lot of people said that MLM business is no guarantee of success. It could be true because normally we have a so called failure in business. But it doesn’t mean that MLM is no way to success. It depends on the person who engaged in the business. The question here is, “Did he ever tried to do his best to succeed?” We know in the very first place that there’s no magic in business. No matter what kind of business it is. What I’m trying to say here is, for example if you join and choose to become part of an MLM company, you pay the money as an investment and then you register then you get rich quickly without doing biggy. And then that’s it. Hey NO! It’s not like that. Of course you’ve got to do your part, be committed, and exert effort in order to achieve success. Why do a lot of people made it to the top in their respected MLM Company and become a top earner. Might as well, they did their best to be successful in their business.

The Failure Rate

Most people who get involved in this industry will quit before they even get started. In fact, most people quit within the first 90 days. They either expect immediate results or have the “get rich quick” mentality. If you want to “get rich quickly” don’t engage yourself in the MLM industry. Instead, you bet your money in a lottery or go to Las Vegas and find a game which you think you have a big chance of winning.

MLM industry has a high failure rate. In my opinion, that’s because everybody is welcome to invest even a mere employee who wants to make a transition from having a job to having their own home-based business, unemployed people or students. Considering that they are new network marketers who have zero entrepreneurial or marketing experience. MLM industry tends to attract these types of people but don’t get me wrong here I’m not knocking these folks. Instead, I am trying to explain that these people really aren’t qualified to become entrepreneurs or MLM distributors in the first place. Instead, they should look for a better paying job. But what do MLM companies do? They are widely opening chances to help these people earn more than what they usually do. Some succeed, some did not. What matters here is the person’s WILLINGNESS TO LEARN and a STRONG BURNING DESIRE. If they have these two things, they can eventually succeed in the MLM industry. If they don’t, they will fail.

I as a Network Marketer: The Benefits of Our Industry

If you’ve decided to join our industry, I think you made a wise choice. The benefits of owning your own MLM Business are endless. Listed below are some of my favorite things I like about owning a MLM Business. 

# 1 No Boss: I don’t know with you, but I hate having a boss. If you are independent, starting a MLM Business is a great idea.

# 2 No Storefront: Most entrepreneurs pay a small fortune for their storefront. In addition to the mortgage or lease, they also have to pay insurance and utilities. In many cases, this can add up to nearly 50% of their expenses. Companies with no storefront can generate larger profits with fewer sales than a company with a storefront.

# 3 No Employees: Employees are a headache. I don’t want to babysit adults. If you’ve ever managed employees, you understand how draining it can be. Employees are expensive too.

# 4 No Product to Inventory: In most MLM companies, the MLM Company handles the inventory and shipment of products. That means you won’t need a warehouse or need to stockpile your home with inventory. All you need to do is get orders and let the MLM Company process the orders.

# 5 Low Start-up Cost: Owning a Jollibee’s franchise can costs millions of pesos. Most other franchises cost in excess of P100K. And that’s just for the franchising fees. That doesn’t include your lease, mortgage, insurance, employees or anything else. With the MLM industry, you can get started for a capital ranges from P100 – P50K and have the capacity to earn millions.

# 6 Great Entrepreneurial Training: MLM industry teach everything about entrepreneurship. This includes sales, marketing techniques, finance, task management (some called it time management), ethics and good moral values, leadership skills, interpersonal skills, persuasion, and many more.

# 7 Ability to Duplicate Yourself: MLM allows you to duplicate yourself easily. With a traditional business, you have to spend hundreds of thousands of pesos to duplicate yourself. In other words, you need to buy another franchise, get another building, hire more employees, etc. In this industry, all you need to do is sponsor someone and teach them everything you know.

# 8 Unlimited Earnings Potential: When you have a job, you are paid what the job is worth. You aren’t paid what you are worth. In MLM, you can earn nothing if you don’t produce results. As an employee, you get paid to show up. As an entrepreneur, you get paid to produce. If you produce a lot, you can earn millions. If you produce nothing, you get nothing.

# 9 The People: I love the people in this industry. They are self-motivated, go-getters. They are people who are looking to better themselves. They are positive, optimistic and energetic. Those are the type of people I like to associate with.

# 10 Tax Benefits: When you start your own MLM business, you get all the tax advantages that any other entrepreneur has. In case you don’t know, entrepreneurs get to deduct their expenses before they pay taxes. Smart entrepreneurs can save large amounts of money on taxes by taking advantage of our country’s tax laws.

# 11 International Business: A network marketing business can be operated globally. This is made possible by the internet. Many network marketing companies allow their distributors to sponsor people in other countries around the world.

# 12 Team Support: There is a saying in network marketing circles which says "you are in business for yourself, but not by yourself." As soon as you join you become part of a team - your upline. Serious upline members become committed to your success because without it they will not succeed. As you start building your own business, you start a team of your own - your downline. This team will benefit from your personal support and those of your upline. The network marketing company you have partnered with will also be committed to helping you because you are their number one source of business.

# 13 Freedom: A major disadvantage of traditional business and slavery matrix (7 to 5 job) is that of lack of freedom -- time freedom for traditional businesses owners, financial and time freedom for employees.
In a 7 to 5 job you sell your time for a given income. You are not free to come as and when you want. Your employer determines when you shall work. Aside from the occasional one month time off that you can get, you have to be at work as and when your employer wants.
The traditional business model is no different. While you may enjoy the benefits of being your own boss, you are likely to end up working much longer than you would if you’re an employee. You become a slave to your customers.

Network marketing (MLM) on the other hand removes these barriers.
I like John Kalench's way of putting it. In his book, Being The Best You Can Be In MLM, he says...

"No other support system of which I am aware...so completely honors the freedom and responsibility of the individual.

From your very first day in Network Marketing you are free.

You choose with whom you want to work...

You choose when you want to work...

You choose where you work...

You choose your style of working: person-to-person, through the mail, over the phone, in small groups or huge gatherings of people. Every single aspect of your business is up to you. It's your choice because it's your business."

Yes, with network marketing you have this freedom.

Many Distributors Already Know Their 'Why'

Now They Need to Learn the 'How'

Questions like...

How do I sponsor?

How do I generate qualified leads for my business?

How do I train my new sponsors?

And many more are the concerns of many distributors.

Despite the ignorance of the ‘How”, training is still one of the major advantages of network marketing. Other business models rarely provide any form of training. You have to actively look out for training opportunities, which may come at a huge cost to you.

Final Thoughts

What is MLM? It’s a fantastic way to make money, to help others and have immediate access to some cutting edge products. It isn't a perfect business model, but it offers the average person a chance to start their own business for a low capital cost. And it's one of only few business models I know that lets people earn residual income. If you haven't checked it out yet, you should.

Owning your own MLM Business is a wonderful way to become an entrepreneur. As an MLM distributor, you control when and where you work. You aren’t limited to an office or storefront. You have no employees. You get paid to produce. You can duplicate your efforts through other people and earn a passive, residual income. In other words, you aren’t trading hours for peso. You can one day walk away from your business and still get paid each and every month.


Network Marketing is not about using people, but about getting other people involved in the business as your partners. Fortunes are being made everyday in network marketing. So, are you ready to step up and start making your own business?
click HERE to learn more TIPS and GUIDELINES how to start and succeed in your MLM journey.

Your Friend in Success,

      Ariel S. Rabaya