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Oh No! Not Another MLM Business!

May 14, 2008
Why is it that businesses which pay other people to sell their product to friends and family have such a bad reputation when marketing experts agree that the most powerful advertising out there is word-of-mouth?

Well, as I and others have observed in the last twenty years in the industry, there is a trend that very well may be causing this bad wrap, if not at least a major player in contributing to it.

I call it DEFAULT.

We've all experienced it. You get a program and fine tune it to your needs. What a joy it is. The sun is shining, the birds are singing. The blossoms are filling the air with fragrance. Then one day something happens and returns all your settings to DEFAULT. And there is no way to retrieve your former settings except by starting at the beginning again. Dark clouds gather. Hours are lost, appointments missed, decisions delayed, emotions run high, and many other things go wrong. All because of DEFAULT.

You might be surprised to realize that nearly every business on the planet has a pyramid as their business model. That's every business, not just network marketing ones. Let me explain. At the very tippy top of the company is the head honcho, Mr. President. Then, below him are his few trusted managers, those managers also each have a few trusted managers, on down to the plain old employees. The top guys get paid the most, the little workers, like the janitor, get paid the least. Sure looks like a pyramid to me!

So then a network marketing business starts up and changes how things workso it's advertised.

They sit down and draw circles all over a piece of paper while they croon to you. "If you just follow our easy plan, you'll be able to take vacations whenever you want to, live like a CEO, travel all over the place, and have tons of family time. We have the best business plan out there!"

And so you try it and everything goes incredibly wellfor a short time. Then suddenly, a dark day dawns and you find that everything you've worked so hard to set into motion is gone, all gone, and everything has turned back to DEFAULT. You find yourself again at the bottom of the pyramid just like if you worked at your local retail store stocking shelves.

Most people don't realize that nearly every network marketing plan is designed with a DEFUALT button. This causes it to go back to the old pyramid style of big CEO at the top racking in the cash and little guys on the bottom scrounging around for whatever little money they can make. This DEFAULT system works with various methods. They're called by a variety of names, but we'll list only four here. I think you'll recognize them.

1. Jump-start: knowing that many will never get beyond their initial "buy-in", they push you to "tell everyone" you can about the opportunity. This gives the company free advertising and some quick profits from the "introduction package" you just bought.

2. Breakage: if you don't meet your monthly quota then you have to forfeit your "bonuses" or "points" and then the company keeps the money.

3. Break Away: when you "graduate" to a new level, some of your earnings that you worked hard to get is left behind. The company gets to keep that money

4. Exhaustion: The company wears you out by requiring constant new "enrollees". They know you won't stay long because you'll get so tired of finding new people to sign on. When you leave, they keep all those enrollees and make money off them, without having to pay it to you!

This is a short description of some of the ways network marketing companies make the big profits. They are designed to cause your own businesses that had lots of earning potential to DEFAULT back to you being the little guy on the bottom of the conventional business pyramid.

The best news however is that not all network marketing opportunities do this. Find one that really specializes in helping the little guy rather than trying to make them fail.
About the Author
R.E. Bloom has studied network marketing companies for more than 20 years. He recommends checking out BioGenX as an industry first alternative to the bad rap of MLM's. Visit BioGenX today! http://www.biogenxreview.com
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