Archive for February, 2009

The Best Personal Economic Stimulus

– It costs money – LOTS of money – to go into a conventional business, whether you buy an existing business, a franchise, or start up a new one.


– You still have a 90% chance of losing everything through ignorance.

– A business with a duplicable system is a much safer choice, because you can duplicate the system over and over again, at little or no cost. – A business system that offers both reciprocal and residual income is the best choice of all, because it allows you to earn reciprocal income quickly and predictably, while building die foundation of your long-term, residual income through the process of duplication.

– A business system that allows you to invest time and effort, rather than money, is the most desirable option because it allows you to turn that investment of time and effort into cash!

The chart included illustrates the vicious reality of our present career system – the Forty Year Plan that most of us become trapped in because we don’t know any better. We spend our first 20 or so years getting an education (geared to produce employees) and then we begin to climb the corporate ladder.

The income curve creates the illusion of financial security because of its steady rise. Once we reach our 40s and 50s the stress increases alarmingly. Mergers, acquisitions and other changes in the corporate environment increase the risk of “downsizing” (job shedding) and bringing in younger, better-educated replacements. Redundancy, retrenchment, early retirement (whatever we call it) means a nose-dive in income if we fall victim, or dramatic increases in our stress levels if we manage to survive.

If we go into business for ourselves, most of us end up working longer and harder – and for less money – than our employees. Eventually, though, we retire. Either way, it’s a steep drop to the kind of income level we had when we originally began – in our 20s! Any way you look at it, its hardly what you’d call “Iifestyle.” There’s a better way. And it takes only a fraction of the time, with no sudden drop in income.

Now Network Marketings’s Four Stage Plan creates true leverage and lucrative residual income

The whole point of residual income is to sever all connection between our time and our money, so that we can work less and earn more. We build an income stream and it continues to produce income for us, endlessly.

It’s like growing an orchard

1. We prepare our soil to make it fertile for the seedlings we intend to plant. We create a safe environment

2. We plant the seedlings in the soil we’ve prepared.

3. We nurture and protect the growing trees until they begin to bear fruit.

4. When the trees mature, produce seeds and spawn more trees, we enjoy more fruit than ever, with minimal time and effort required.

In other words, it’s a process in which we do lots of work for very little reward in the initial stages, then earn lots of income for very little work once were established. After the preparation stage, when we’re learning and improving our skills, we enjoy exponential growth in our income as our referral network expands rapidly.

As our people mature and become independent, we earn residual income in the form of royalties on. sales created by their organisations; (from the company’s share of the sales, not from our peoples’ share). And because it’s a business, the income continues, even after we’re gone. So our loved ones can continue to benefit from our achievements.

The residual income just keeps coming – and growing. And, because it’s tied to product prices, it’s protected against inflation and other economic forces that usually undermine the value of superannuation and other investment-based income.

Why is network marketing so much safer, better and smarter than other business systems?

CONVENTIONAL
Based on competition (Win-Lose*)
Relies in dependance
Values money and uses people
Creates financial and time bondage

BUSINESS NETWORK MARKETING
Based on cooperation (Win-Win)
Relies on independence and interdependence
Vales people and uses money
Creates time & financial freedom

(*A counterfeit – Win-Lose is really Lose-Lose posing as a win to fool you, until the loser wakes up to reality and ends the relationship.)

Network marketing is the ONLY fourth-generation system of business. Most others, including franchising, are first-generation systems. There are almost no second or third-generation systems.

This means that network marketing is based on very different principles to “conventional” business systems. There’s not enough room here to discuss the real differences in detail, but here’s a brief summary (see table above) of the major differences to help you recognise some of the reasons why it’s so much safer, better and smarter.

Network marketing is the most effective, enlightened, ethical, equitable and egalitarian form of free enterprise ever to evolve. But ONLY when it’s operated by people who are just as effective, enlightened, ethical, equitable and egalitarian.

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WHEN RECESSION HITS THE ECONOMY, NETWORK MARKETING BOOMS

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State of the Industry -

Hot  times ahead

By ROD COOK
If you’re in Network Marketing, there’s good news, and there’s bad news – and the great news is that, for you, they’re both good news.

In good economic times, people are less interested in career alternatives but they can easily afford to buy more consumer goods. In bad times, they crave new business opportunities. Today, we could soon be facing global recession – and tremendous worldwide opportunities for you.

The U.S. economy is cracking apart due to mortgage meltdowns and rising fuel costs (energy) that are causing great concern worldwide. Fears are that an American economic dive will hurt the entire world economy.

U.S. and worldwide, people are beginning to worry. Once they start worrying, they quit spending money. This “psychology of fear” fuels bigger recessions. I’m not saying there is going to be a depression, which is much worse than a recession. What I am predicting, based on surveys conducted by our company (which have proved exceedingly accurate over the past 20 years), is higher unemployment and underemployment – good people forced to work for less money than their qualifications would warrant. Translated: pushed to work for trashcan wages.

MLM A Countercyclical Business

General economic theory holds that there tends to be a recession about every eight years. The entire history of the modern United States reflects this boom-and-bust cycle. Consistently, Network Marketing has grown during the “down” periods.

The oldest Network Marketing company we can track is the marine-vegetable (seaweed) supplement company, Wachter’s, which started in 1937 near the bottom of the Great Depression. Nutrilite took off in 1945 during the economic decline immediately following World War II. Shaklee and Neolife fared well in the post-Korean War slump. Amway got a good start building with the slump in 1958. Mary Kay started with the downturn in the 1960s. This theory held true in 1992 when Alliance, Kaire, Life Plus, and a number of other companies started up and boomed (then later failed due to legal problems, partnership disputes, and  mismanagement after the recession). Others like Hearbalife (see chart below) went into hyper growth due to the same recession and became billion dollar companies.

In the chart below note that during the depth of the recession indicated by the blue dotted line retail sales by major retail outlets took a dive.  Direct sales (90% are MLM) shown by the solid yellow line jumped as store front retailing dropped like a rock! Today history repeats itself!
image002

Source: DSA and MLM Watchdog

When recession hits, those with any intelligence are going to scramble to find alternative sources of income. In their frantic searches, they are going to find that the best of all alternatives is Network Marketing.

Understanding the relationship between low-cost entrepreneurship and economics is important. During the past few years, the world economic boom has made people complacent. In the U.S., the jobless rate dropped to all-time lows of less than five percent. People had to be sick, lame, or lazy not to get a job. Hamburger flippers got higher-paying jobs, such as assembling computers, and their incomes rose. Rather than looking for an alternative to a job or seeking extra income, these folks sat around and watched television.

When recession hits, those with any intelligence are going to scramble to find alternative sources of income. In their frantic searches, they are going to find that the best alternative is MLM also known as Network Marketing.

We followed the increase in growth of several major Network Marketing companies operating during the recession of 1973-75. Companies that were not doing badly when the recession started, they had a fair amount of growth. However, when the recession came, they took off like rockets!

During the early 2000′s recession (officially starting in November 2001), MLM company growth rates jumped higher than they were before the recession. See the chart below (November 2001 was the benchmark) and look at the following growth.  This was due to two reasons: (1) Fear leads people to new income sources and they WORK the opportunity, not watch TV.  (2) The doubt of the recession lingers in the minds of people so there is an “aftereffect”. (3) During the recession the company grew a  “freverant” distributor base, recruiting more new people that lead to exponential growth.

Source: Alexa.com

PRESS RELEASE UPDATE 2008
Herbalife Experiencing Stellar Sales Despite Slumping Economy
3 November 2008 – Herbalife, the global multi-level/network marketing (MLM) giant reported its 19th consecutive quarter of double digit sales growth, according to a recent earnings report. The company grew sales 13.7% to $602 million in the third quarter.

The sales gains were attributed to the company’s global growth, including double digit sales gains globally. Profit margins were reported at 14.7%. Herbalife also has $33 million in capital expenditures, primarily in technology investments for distributors.

North American sales were up 23% over third quarter 2007, despite a worsening economy domestically. “In these turbulent economic times, we believe we’re in a fortunate position at the intersection of health and wealth,” said Chairman and Chief Executive Officer Michael Johnson. Herbalife’s products are sold in more than 69 countries with more than 1.9 million independent distributors.

Another factor that fueling the growth in Network Marketing is that many Baby Boomers have put their life savings into the stock market. With the market’s shaky up and down spirals, many Baby Boomers are slowing their high-flying, fast-spending ways due to meager savings except for shaky stocks. With the inevitable, cyclical decline of the stock market, they will see their retirement plan funds lose 25 to 50 percent in value. Will panic will follow?  We hope not!  But, Baby Boomers with good sense will be looking for secondary ways to build a secondary residual retirement income.  A common phrase today is, “multiple streams of income.”

Grab your hat and prepare for the next boom in Network Marketing. If you are a newcomer, study the industry closely (and quickly). If you are an old-timer, get out your contact lists for the last two to ten years. In a recession, they will be solid gold! All you have to do is get out there and help people out of their economic duress.

Now is the best time to grow your Network Marketing individual business or start your company! Whether you are a veteran or a beginning network marketer, the future is bright. Soon consumers will be looking for the best quality at the best prices. Where do they find it? In the quality products offered by your Network Marketing company .

Recession causes people to open their minds to gaining alternative sources of income. If they are still employed, they are worrying about the possibility of losing their jobs or having them downgraded. If they are unemployed, they are seeking ways to build their income without spending large amounts of money to start another business.

This writer has made millions in MLM – Network Marketing plus having owned  large franchises, done business opportunities plus done import of exotic cars like  DeThomaso Panteras, Lamborghinis and Ferraris.  His analysis is:

MLM – Network Marketing?  This field with careful selection (see MLM Detective at the MLM Watchdog) -  is the last chance for the little guy to make money in America!

Heaven bless you – driven to your financial knees? MLM – Network Marketing is the ultimate “recession-proofing” for your economic life.

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