IS MY MLM A SCAM
OR 
MAINSTREAM BIG BUSINESS?

There are an abundance  of MLM Scams in existence these days and it is  prudent to do one’s due diligence before investing one’s time and money. This of course is true any time we are making an investment because the marketing arena is not the only place those “scam folks” lurk.

In my earlier article Hard Work can Destroy Your Business my point was that while hard work is important, leveraging ones efforts is the best way to go. Wealth can ONLY be created in one of two ways:
a) Put money to work
b) Put people to work

As required in any performance based activity skill is required and one must acquire either personally those needed skill sets or acquire people that have them. (Donald Trump in his recent best seller “Think Big” recommends you learn the skill sets needed in any endeavor you are planning to profit from but leverage yourself by employing the best people you can find and watch them to make sure they are performing to the level expected.)

I don’t believe there is anything wrong with having a job, however; people are compensated at a wholesale rate for their service and their employer retails their efforts to the market and keeps the profit.

The employer leverages his efforts through his employees while the employee gets paid a set salary, the employer endeavors to create wealth. If the employee gets sick or injured the employee is often left to live off of the State through some form of disability.
One of my coaches in MLM became ill a couple years ago and as luck would have it, she was involved in two auto accidents and was unable to actively work in her MLM, however; despite being laid up, her annual income actually grew. She had leveraged her efforts through her MLM business.

Robert Kiyosaki (Warner Books), in his Rich Dad Poor Dad series, speaks of a “cash Flow Quadrant”.

The first quadrant is “E:” which stands for Employee
The second is “S” which stands for Self Employed
The third is “B” which stands for Big Business (MLM is in this quadrant)
The fourth is “I” which stands for Investor

The first two income streams collapse when you cannot actively work your Job or Small Business. The fact that 95% of all businesses fail in their fiirst 5 years often leaves the person attempting to get their MLM off the ground and not succeeding, feel that the MLM industry is not credible. When one takes a step back and looks at the challenges and skill sets required to be successful in business, it is easy to understand why there is such a high mortality rate in business. Despite these daunting odds of ever being successful, North America was founded on free enterprise and it is what makes us strong.

Fact: 95% of the population holds 5% of the worlds wealth leaving only 5% of the wealth for 95% of the people. It has been said that if the wealth was redistributed equally that within a very short period of time, the same 5% of people would have 95% of the wealth again. Wealthy people think differently about money than the middle class and poor do. It doesn’t make them better as human beings or less caring. it simply means they understand how to attract wealth and they apply the principles consistently and their bank accounts reflect their actions and beliefs.

So the choice we are left with is whether we are satisfied being with the majority (95%) or leverage our time and/or money and be with the top 5%.

Tm Sales did a great job presenting this in his video “The Brilliant Compensation Plan” anyone that would like to watch it can send me their email and I would be happy to send them an Internet version to watch. No hype just the economic facts.