RmpInfotec MLM

     The main characteristic of a pyramid scheme is that participants only make money by recruiting more members. There are many different kinds of pyramid schemes, but the two most basic are product-based and so-called naked pyramid schemes.

In a naked pyramid scheme, no product is sold. Here's how it works:
One person recruits 10 other people to participate in a "no-fail investment opportunity."
The 10 recruits each pay the recruiter $100.
The recruiter now tells them to go out and recruit 10 more people to do the same.
If each recruit is successful, they'll all end up with $900 in profit from a $100 investment.

Pyramid schemes quickly become unsustainable.

Sounds simple enough, but here's the problem: Let's say the initial 10 recruits each find 10 more people. Those 100 new recruits will have to find 10 recruits each to make $900. That means they have to find 1,000 people willing to sign up for the program. And if they somehow find 1,000 people, that next level of the pyramid will need to sign up 10,000 to make a profit. Eventually, there won't be enough recruits at the bottom of the pyramid to support the level above it. That's when the pyramid topples and everyone at the bottom loses their investment.

        Network Marketing is not a get rich quick scheme. As said for Network Marketing it's a Business not a scheme. There might be Scheme through anyone can get rich quick, but in the whole world there isn't any Business which can make you rich quickly. So beware of these kind of Get Rich Quick Scheme.
Today everyone wants to be get rich quicky that's why these schemes are growing rapidly. You go to any Industry there are Get Rich Quick Scheme so in Network Marketing Industry also. "A get rich quick scheme promises very high returns for little investment within a very short time".

        Network Marketing, 'MLM', and Multi Level Marketing are all terms that refer to the same type of business model. While many close-minded people outside the industry (and others who've tried it and failed), have biased or negative wrong impressions, and despite the fact that it is used and abused by many crooks and con-artists, this business model has exceptional performance potential.


There is an important lesson to be learned from traditional business that can be applied to Network Marketing.

I'd like to discuss 10 key benefits why Network Marketing Business MLM programs are great businesses.

1. Small amount of risk:
There is a certain amount of inherited risk involved when you become an entrepreneur.

We are confronted with losing money, wasting time, not being in profit right away, etc. In a traditional brick and mortal business, the startup cost associated with opening that business is what holds many people back from becoming the creators of their own destiny.

People do not like risk and try to avoid it by all means. We'd like a "guaranteed bet" and stay within "our safe zone". In business, you don't eliminate risks you learn to minimize them.

The advantage of starting an MLM Program is that there is a small risk to get started. With a couple of hundred dollars, it is possible to get started with a company of your choice, marketing products that you consume already. The amount of financial commitment is insignificant compared to that of traditional business.

2. A huge demand for good quality products:
There are a myriad of network marketing companies that promote very good products. If I were considering a company to get involved with, I would always ask myself:

* Would I still consume these products/services if there were no opportunity to market them?
* Do these products bring any benefits to a consumer besides the opportunity to make money?

* Would I bring "value" to my customers if they consume these products?

Every business needs repeat customers. Distributors only get paid when they have consumers for their products and when these customers continue that consumption, then that creates the money flow.

3. Residual income:
I am sure that you pay your gas, your electricity, and your phone bill every single month. These are the types of services that for the most part provide an ongoing stream of residual income for these companies.

The greatest advantage of an MLM Program is that it gives you an opportunity to enjoy residual income just like those companies do.

When the initial effort of getting a new customer is completed, you can enjoy the residual part of that business relationship.

4. The income potential:
There is no cap on how much money you can generate. In my corporate jobs, my big limitation was that regardless how hard I worked for these companies; my income was tied to a "market standard" for someone with my skills.

In an MLM Program, that's not the case. It is up to you to decide how much you want to earn. An MLM company doesn't hold you back in the same way the corporate environment does.

As long as you have the skills set of a trained network marketer, you make whatever income based on your stamina, dedication, and your willingness to help others.

The skills set is key. Once you trained yourself to become a marketer, you can market anything you choose and generate that income you seek.

5. No employees to hire:
By far, this is a clear advantage over traditional businesses. An mlm program is a business of people independently working together.

Without any employees, it's possible to build a business right from home. This industry gives you that added benefit, be in business without employees concerns, by having a network of independent business owners working together towards a common goal.

6. No inventory:
Traditionally Network Marketing companies would have distributors stack up on inventory. This concept alone has given the industry a bad wrap for years.

However, modern companies do capitalize on the technology and tools we have in place. We have:

· Internet Telephony
· The Internet
· Drop Shipping Ability
· Consumer Leads
· Conference Lines
· Web Conference
· High Speed Internet Access

Not having to inventory products will make your business more agile to any market condition.

7. Low operating Costs:
The network marketing model makes possible to run a business at low costs compared to any other business model.

This is where your upline's support should come in. A good upline mentor should allow you to piggyback on his expertise, on his knowledge, on his leads, and help you generate the funds to pay off your initial investment and get in profit early in the life of your business.

8. Leverage:
Your MLM Program is a:

· people business
· business of appointments
· business of helping consumers find what they have the need for
· business of helping others create businesses.

You reap the rewards by leveraging the efforts of those you help. This develops a collective mindset that promotes "win-win" relationships.

9. Portability:
With the advent of technology, we can do today what distributors 15 years ago could not do and that's to make our business portable.

We now have a phone technology that allows you to take your telephone and move it anywhere you like transparently to your customers.

As long as you have access to the Internet via DSL or Cable, you can take your computer, your phone, and continue doing business while you are on the road, on vacation, or visiting relatives whether that be in another city or another country!

10. The attainable freedom:
Imagine having a productive business in network marketing providing you with a lifestyle that only the rich and famous enjoy. When all the pieces are in place, the life of a marketer can be very fulfilling indeed.

That's the dream every new distributor chases and it is only attainable when there is a clear understanding of how to get there and when your marketing skills are sharp.

It is not just the money, but the fulfillment of a lifestyle that makes an MLM Affiliate Program the best business to get in and your skills is what make it happen, period!

    United State of America is the originating country for Network Business.

The number of salespeople in the United States began to grow rapidly starting in the late 1800s.

1861: 1000
1869: 50,000
1885: 100,000
1903: 300,000

1860 - Traveling salesmen were known as canvassers, peddlers, hawkers and drummers. Some of these former peddlers created trained sales organizations. Had it not been for their influence, many of the corporate names we’re all familiar with today might never have been.

-Henry Heinz, a former peddler, created an organization of 400 salesmen to sell various vegetable products, like ketchup and pickles, to people who didn’t grow their own.

-Asa Candler, another former peddler, built a sales force to sell Coca-Cola syrup to restaurants after buying the formula from pharmacist John Pemberton for $2300 in 1886.

Out of these organizations came companies that allowed their salespeople to have their “own” business.

1868 - J.R. Watkins founded the J.R. Watkins Medical Company, one of America’s first natural-remedies companies where associates marketed directly to consumers.

1890 - David McConnel started the California Perfume Company, based out of New York. In 1906 he had 10,000 sales representatives selling 117 different products. The California Perfume Company changed its name to Avon Products in 1937.

1905 - Alfred C. Fuller was another former peddler who greatly influenced future sales organizations. Fuller started the Fuller Brush Company and hired 270 dealers throughout the U.S. to follow his business plan on commission only. By 1919, the Fuller Brush Company had made $1 million in sales; by 1960, $109 million.

1931 - Frank Stanley Beveridge was the former vice president of sales for Fuller Brush Company. He and Catherine L. O’Brien founded Stanley Home Products. Influenced by the economic hardships of the Great Depression, Frank and Catherine envisioned an opportunity for people to start their own businesses with minimal investment, selling products that people use everyday. This vision was obviously taken from the Fuller Brush Company. Stanley Home Products sold household cleaners, brushes, and mops. Some Stanley dealers began giving demonstrations for clubs and organizations rather than for individuals to increase sales volume. Other Stanley dealers quickly embraced this idea as a way to maximize the selling presentation. These dealers took the “clubs and organizations” concept into homes by having the home owner invite friends and family over….and the “party plan” was born.

Stanley Home Products became the training ground for many well-known company leaders. Mary Kay Ash, founder of Mary Kay Cosmetics; Brownie Wise of Tupperware; Jan and Frank Day, founders of Jafra Cosmetics; and Mary Crowley, founder of Home Interiors all received early training as Stanley Home Products dealers - again spurred by the Fuller Brush company.

1934 - Carl Rehnborg started the California Vitamin Corporation selling what today are known as vitamin supplements. In 1939 the company changed its name to Nutrilite Products Company, Inc.

1945 - Nutrilite contracted with Mytinger & Casselberry to become the exclusive American distributor of Nutrilite products. Mytinger & Casselberry created the first documented MLM compensation plan. It worked like this: A Nutrilite distributor bought his supplies at a 35% discount. (Ex: A distributor bought a box of vitamins for $13 and then sold them for $20 = $7.00 profit.)

To encourage the distributor to sell more, Nutrilite paid an extra monthly bonus of 25% on the total sales. 20 customers x $13.00 (wholesale value) = $260 x 25% =$65.00 profit.

Once the distributor proved that he could get 25 customers he was allowed to become a DIRECT distributor - which meant that he could find others who wanted to sell the Nutrilite products and then they would buy their products from him. In essence, once he proved that he could get customers he was “promoted” and allowed to find other distributors and to train them to get customers. As an incentive to train his distributors well, once he and his distributors amassed 150 customers, he received an additional 2% of the total sales volume.

This is not a pyramid - it’s a quota-based system of management. Those who sold the most boxes of vitamins got a higher reward than those who sold little. The MLM compensation plan was simply an extension of the Fuller Brush Company rewarding production. With MLM (Network Marketing) , the company could motivate a sales person to not only sell more products, but to train others to sell more products as well.

1945 - Earl Tupper created a line of flexible, lightweight plastic containers with tight-sealing lids. He started selling his products through conventional retail outlets, but realized the products needed demonstration. Earl Tupper then teamed up with Brownie Wise (formerly with Stanley Home Products) and launched Tupperware Party Plan, now a world-wide billion-dollar company operating in 40 countries.

1949 - Rich DeVos and Jay Van Andel (high school buddies and business partners) returned from military service and became distributors for Nutrilite vitamin supplements in 1950. After a brief dilemma with Nutrilite in 1959, the two abandoned ship and formed the (American Way) Amway Corporation. In 1972 Amway Corporation acquired Nutrilite.

        Network marketing is commonly known as multi-level marketing or MLM. It is part of the direct selling industry and is run as a business-distribution model that allows a parent company to market its products directly to consumers through a large network of distributors and consumers, thereby bypassing the middleman.

Network marketing is also known as a relationship business. In order for a person to succeed in this business model, you have to first of all help the people in your organization succeed. Then only will you be able to succeed. It is basically a 'people helping people' business.

Mention network marketing or MLM and many people will think of pyramid schemes and scams. A company is considered as a pyramid if there are no products or services offered or the distributors make money just by recruiting more distributors. This is illegal.

Most network marketing companies allow you to start a home business for just a very low capital. This allows more people to get involved. What is great about this type of business model is that for those with good compensation plans, it allows you to build your organization successfully and leverage upon the time and effort of others, whilst generating residual income.

As network marketing is all about sales and distribution, it is important to continuously prospect and generate leads for your home business. Prospecting is the lifeblood of the MLM business. Rather than just approaching any Tom, Dick or Harry, you must be able to identify your target market and market to your target market.

It is imperative that you communicate with your target market and build a great relationship with your leads before you start selling your products, services or mlm business opportunity to them. Since mlm is also defined as a business of moving products, targeting your target market will help you to move more products. Remember to always listen to what they have to say and pitch your offer according to their needs and desires.

At the same time, as your success is determined by how successfully you grow your organization, training those in your organization to do what you are doing in order to succeed is of great importance. If you miss out on this aspect, or do not do it well, you will not be able to leverage on your organization. It will thus be difficult for you to build your residual income.

In network marketing, you are in the business for yourself, but not by yourself. You will have a team to help you out. Thus, you do not have to worry that you are working individually. Although you are building your own business, you are not alone and if done correctly, you will be able to make good money by leveraging on your organization and earning a solid residual income.

Above picture describe the difference between traditional product movement & product movement through the network business.

See what people saying about Network Marketing worldwide.

"Success in this industry is not in finding the right person, but in becoming the right person." -- Dr. Forrest Shaklee, Founder of Shaklee

“Downsizing trends and the changing global market require people to reinvent themselves and think like entrepreneurs.” -- Les Brown, Author and Motivational Speaker

“I would rather earn 1% off a 100 people's efforts than 100% of my own efforts.” -- John D. Rockefeller, Businessman

“Of all the entrepreneurial opportunities available today, one of the most important is direct selling, also called network marketing.” -- Paul Zane Pilzer, Nobel Prize Winning Economist and Author

“You can get everything in life you want if you will just help enough other people get what they want.” -- Zig Ziglar, Author and Motivational Speaker

“You must as a Leader have a plan, a step by step trail, and direct your people down the MLM Power Path.” -- Doug Firebaugh, Network Marketer and Trainer

“Network Marketing is an equal opportunity opportunity.” -- Michael S. Clouse, Network Marketer and Trainer

“We’re in the midst of a boom in home-based businesses, and it shows no sign of slowing.” -- Paul Zane Pilzer, Nobel Prize Winning Economist and Author

"If I had to do it all over again, rather than build an old style type of business, I would have started building a network marketing business." -- Robert T. Kiyosaki, Entrepreneur and Author

"If you are a person with big dreams and would love to support others in achieving their big dreams, then the network marketing business is definitely a business for you. You can start your business part-time at first and then as your business grows, you can help other people start their part-time business. This is a value worth having - a business and people who help others make their dreams come true." -- Robert T. Kiyosaki, Entrepreneur and Author

“Home-based businesses are one of the fastest-growing segments in our economy, and that trend will only continue, as the age of the corporation, which began barely a century ago, now gives way to the age of the entrepreneur.” -- Paul Zane Pilzer, Author and Nobel Prize Winning Economist

"What you sow, you reap. It's a law of nature. Network Marketing is perfectly aligned with that. You get truly, EXACTLY what you're worth! No nepotism, no favoritism. That's rare today." -- Bob Proctor, Speaker and Author

“When I read in Fortune magazine that Warren Buffet, the billionaire investor and one of the world’s richest men, was investing in a direct sales (network marketing) company, I decided I was missing something.” David Bach, Author and Financial Columnist

“The future of network marketing is unlimited. There's no end in sight. It will to continue to grow, because better people are getting into it. They are raising the entire standard of MLM to the point where soon, it will be one of the most respected business methods in the world.” -- Brian Tracy, Author and Motivational Speaker

“I am often asked if Network Marketing is a Pyramid Scheme. My reply is that corporations really are pyramid schemes. A corporation has only one person at the top, generally the CEO, and everyone else below.” -- Donald Trump, Entrepreneur and Author