Wednesday, March 12, 2008



Of late, MLM BUSINESSES HAVE BEEN DECLARING BANKRUPTCY almost as fast as new companies emerge. Some people swear that MLM is the answer to their prayers- the American dream come true. Others, when talking about MLM, simply swear- What is this phenomenon that is sweeping the country? Is it the road to riches, or a get-rich-quick scheme? Is it an easy way to make money, or a frustrating time consuming fiasco? Most important- is there a place for you in MLM?

Let’s take a closer look at this innovative form of business and see how it differs from the more conventional ones. MLM is really, not an industry in the same way that steel, construction, computers or video are industries. Rather, it is a marketing concept which can be applied to almost any consumer product or service.

MLM takes advantage of what has been termed MULTI-PLEX INCOME. Everyone is familiar with LINEAR INCOME- you work one day ad get paid a day’s wages or one week for a week’s salary etc; you sew one dress and get paid for that one piece. Certain businesses and professions offer the opportunity to earn tremendous linear incomes including the FILM INDUSTRY and the legal and medical professions. But most linear income positions provide only limited opportunities for acquiring any great amount of wealth. RESIDUAL INCOME is another well known method of earning money. It is the prime income earning source in the INSURANCE INDUSTRY, where a sales person earns income this year from policies sold in the past years. If he/she has enough policies coming due annually, an insurance agent can build a substantial income base to add to current year commissions. Song writers, record artists, TV actors, and authors also earn residual incomes.

Multi-Plex Income, however, takes advantage of the efforts of others to make money for you; it is similar to the way many major corporations earn their income. They rely on the efforts of a network of independent distributors. The manufacturer has no investment in the distributor network other than paying the staff necessary to deal with the network. The MAJOR DIFFERENCE between Multi-Plex earning power, the way it is applied by corporations and the way it is applied by the MLM sponsors is that the corporation must usually back up its distributor network with a considerable number of advertising dollars/rupees.

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