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Is MLM or Network Marketing A Scam?

This topic, I believe, has been debated countless number of times, through the last five decades since its conception.

So then, why do I want to discuss this? I’ll get to that in a minute…

First, let’s see why do people think that MLM is a scam. Could these be some possible reasons?

- it’s a pyramid and it’s illegal
- only the people at the top make all the money
- you have to make a financial investment
- there’s no guarantee to earn back
- very few people make money, only few succeed

Really, that’s just a handful that I remember hearing or reading about as I write this.

Now, instead of debunking the myths in a usual manner, let me tell you what caused you to be reading this right:

As I woke up to a brand new day this morning, I reflected upon life itself and realize that there’s absolutely NO guarantee!

I’m not saying this to scare you but the truth is that you might not be reading this if I had not awaken once again to live this day and…wrote this article. One day when I was teaching a computer class, we all had a good laugh when we realized that in life, there are ONLY four guarantees:

- life
- death
- taxes
- computer virus (that’s what we figured out that day!)

Thinking back many years, I was fortunate to attend school with many other fortunate children. (Why I said ‘fortunate’ as I realized that some children NEVER had the chance.) The point here really is: We all started the same.

But now, a few decades later, two of my closest friends have passed away in their twenties and thirties. One of them become a very successful businessman. A few held positions of CEO’s and top management positions. However, a few had become broke and even bankrupt though they were the one’s who excelled in school. And the majority merely held on to their jobs for as long as they can…

It is therefore clear that in life itself, we all take different paths and there’s really NO guarantee of our success and failure, not to mention we have absolutely no control of how long we’ll be on this planet.

Many people joined the same company but ended up at different rungs of the corporate ladder with few ever get promoted all the way to become CEO’s. Many people started their traditional small or big businesses but very few made it to be publicly listed or the Fortune 500. Many people got married with a lot of expectancy on their wedding day but things worked out totally different from what they expected…

So, the BIG question is: Is LIFE a scam?

You may or may not agree with me that MLM or network marketing is a brilliant system of distributing products and services with a powerful compensation plan to reward those who work hard at referring others to use them.

Thus, in my opinion, there’s absolutely no surprise that ONLY few, as in traditional business or even the corporate sector, will ever rise up to earn the highly coveted 6 or even 7-figure incomes that MLM or network marketing promises.

After all, if MLM is not a get-rich-quick scheme, why should everyone succeed - as in life - just by joining an MLM or network marketing business?

My friend, there are visually impaired, some hard of hearing, some still schooling, some who should have retired, some who couldn’t retire - all in my own network. At least I know that MLM or network marketing give them another chance - a second chance in life. To learn, to grow, to excel or even just to win in the game called ‘life’ that they have not given up.

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Are you doing prospecting for your network marketing business the right way?

Today, I’ll talk about a simple order of things that most network marketers got the other way round when they do their prospecting, whether online or offline.

Have you ever heard of the three-feet-rule? New distributors are told to share their network marketing opportunity by prospecting anyone within three feet! Talk about cold calling. This is what I call ‘cold calling in person’ or spamming since there is no permission from those people. It’s not much difference from sending out spam mails. More on this later.

Now, think about this…

- Do you run before you can walk?
- Does Summer come before Spring?
- Does the sun rise in the west?
- Can you have a harvest before sowing your seeds?

I recall this from “The greatest networker in the world” where John Milton Fogg advocates:

RELATIONSHIP -> FRIENDSHIP -> PARTNERSHIP -> LEADERSHIP

And as a young friend related to me how he made many friends during orientation in University recently, I encouraged him to continue doing that. Friends come first. Business, joint ventures, partnership can come later.

Then why is it that many network marketers got it the other way round. They keep spamming people with the three-feet-rule as well as spam mails hoping that they will join them in their network marketing business at first sight.

And worst still… when some of their prospects eventually joins, they would not bother to take care or support them but move on to spam others. Thus, before the first batch could stay on for long, the second batch comes in. Then the first batch drops, not knowing what to do. And now the third batch joins, the second batch drops… you get the picture, it’s like trying to stick quick sand on the wall.

All this gives a bad ring to network marketing…

Sad but true. Prospecting the wrong way through spamming, whether online or offline.

It is infinitely easier to follow the greatest network marketer’s advice. That is, to build relationships and make friends first. Business can come later… after you have established trust.

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Networking versus Network Marketing

What’s the difference between networking and network marketing?

Years ago when I first started in network marketing, I read a book by a lady from Malaysia who left corporate office to join the multi-level marketing industry. And I always remember what she wrote, though this may not be in her the exact words:

- Did you work hard enough?

- Did you network hard enough?

- Did you think hard enough?

What Is The Meaning Of ‘Network Marketer’?

I thought what she wrote was rather profound and in fact, I often ponder over the meaning of ‘network marketer’ which is made up of two root words: networking and marketing.

Today, let’s discuss the first root word: ‘networking’ which is totally different from network marketing. What’s the difference? More on this later.

I came across many network marketers who do not network due to a lack of knowledge of business networking which can be defined as a group of people having some kind of commercial relationship such as the relationships between boss and employee, buyer and supplier, and colleague and colleague.

Networking experts say that business networking functions best when individuals offer to help others to find connections, rather than just “cold-calling” on prospects.

On the other hand, network marketing in a nutshell refers to the ‘word-of-mouth’ method of marketing products and services through a network of customers or distributors.

If you’re wondering: What has networking got to do with network marketing?

My answer is: A lot.

That’s because each of us has only a limited number of contacts in our warm market which consists of our extended family, relatives, friends, neighbors, ex-classmates and ex-schoolmates, business associates and contacts and colleagues.
So, what can we do when we run out of prospects?

The short answer is: Go and network consistently!

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OFFICIAL LAUNCH Of My New Book: New! Network Marketing Secrets REVEALED

New! Network Marketing Secrets REVEALEDI’m about to release my first ebook online, a 145-page manual, on August 1st, 2007:

“New! Network Marketing Secrets REVEALED”

which will definitely benefit those who are:

- network marketers
- in direct selling
- financial advisors
- insurance advisors
- real estate agents

… And all those who are in the ‘people’ business as well.

At launch, it will be marketed at $17 and the price will go up to $27 after a 3 days, and then up to $47.

The web page is at:
==> http://www.NewNetworkMarketingSecrets.com

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Goal Setting Is A Must

Why must we set goals? Let me illustrate with this shiny example to you.

Let’s begin…

What does 20072007 mean to you?

On July 20th, 2007 and it’s almost midnight in Singapore… when I wrote this. My eyelids are really closing but I wanted to catch THAT MOMENT before it’s gone forever…

Earlier that day, I received a text message on my mobile from a good friend that reads:

“Years come and go…but today is a special day!

>>> 20072007 <<<

Double Match. It happens only once in a lifetime, so I wish you a wonderful day!”

It’s so nice to receive such a message…as 20th July is a very special date. Here’s what I mean:

On 20th July 1969 American astronaut Neil Armstrong, nearly 240,000 miles from Earth, speaks these words to millions listening and watching on television at home:

‘That’s one small step for man, one giant leap for mankind.’

A moment later, he stepped off the lunar landing module Eagle, and became the first human to walk on the surface of the moon.

Every year, on this special day, I would ponder this amazing event!

How was this possible?

???

Alright, here’s the juicy details:

In 1961 responding to the Soviet Union’s lead in the exploration of space, President Kennedy challenged the United States to keep up in the “Space Race” and not fall behind the Soviets.

He said: “We have a long way to go in the space race. We started late.

But this is the new ocean, and I believe the United States must sail on it and be in a position second to none”.

Kennedy set the goal of landing an American on the Moon before the end of the decade and initiated the programs to make it possible.

I can imagine that it’s an IMPOSSIBLE GOAL which President Kennedy set in 1961!

Who would really think at that time that it’s at all possible? And Armstrong landed on the moon on July 20th, 1969…just in time before the end of the decade!

Here’s an IMPORTANT lesson:

If we do not set our goals, we’re sure we’re not getting anywhere!

So, my friend, do set your goals.

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5 Reasons Why Having A Personal Development Plan Is Essential For Your Internet MLM Business

Here are 5 reasons why a personal development plan is absolutely necessary to bring your Internet MLM business to the next level.

Reason #1

The Internet is a super efficient medium for communication, business, work, gaming, play and many other applications that man can think of.

However, the Internet is still just a medium. It is the people that are behind the computer screens that we are working with. Thus, Internet MLM is still a people’s business and therefore it is essential to understand more about human psychology. That is where personal development can help an Internet network marketer.

Reason #2

As an Internet network marketer, you need to explain your home business opportunity to would be prospects effectively as well as know how to address concerns, follow up, follow through and so on.

Thus, it is essential to improve your communication and people skills through personal development in order to be a more effective communicator and marketer.

Reason #3

To achieving your fullest potential, you need personal development on a continuous basis.

That is because in this modern world, you are subject to all sorts of influence and conditioning every day. Thus, it is important to consciously put into place a personal development plan to help you succeed.

Reason #4

With a personal development plan, you would grow and achieve on a consistent basis, rather than on a haphazard basis.

You would be able to compound your knowledge that would take you to a higher level just as saving a small amount of money with compound interest would reap exponential interests after some time.

Reason #5

It is still easier to succeed in Internet MLM by working in a team that will provide the momentum, excitement, mutual encouragement, accountability to keep us going every day in our success journey.

As such, it is crucial to learn and develop many skills focusing on your personal development such as leadership and teamwork to make things happen.

Now that we established that it is absolutely important to have a personal development plan in place, you might want to find out more about personal development by visiting this link:

==> http://successuniversitysecret.com/go.php?c=internetmlmsecret&s=specialoffer

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7 Reasons Why Network Marketers Fail

Why do so many network marketers fail?

As complex as we humans are, there are possibly as many reasons why the high failure rate in network marketing as there are stars in the sky. Here, there are seven reasons which probably account for a lot of failures, without any order of importance:

Reason #1 – They do not network enough

Years ago when I first started, I read a book by a lady from Malaysia who left corporate office to multi-level marketing. And I always remember what she wrote, though this may not be in her the exact words:

“Did you work hard enough?
Did you network hard enough?
Did you think hard enough?”

I thought what she wrote was rather profound and in fact, I often ponder over the meaning of ‘network marketer’ which is made up of two root words: networking and marketing.

I came across many network marketers who do not network due to a lack of knowledge of business networking which is defined a

s a group of people having some kind of commercial relationship such as the relationships between boss and employee, buyer and supplier, and colleague and colleague.

Networking experts say that business networking functions best when individuals offer to help others to find connections, rather than just “cold-calling” on prospects.

Reason #2 – They do not understand marketing

Here’s the other root word of the term ‘network marketer’ – marketing.

Network marketers come from all walks of life and many of them are not from sales and marketing background. Thus, they totally do not understand how marketing works.

It is therefore not surprising that many network marketers end up ‘spamming’ others either offline or online.

Reason #3 – They do not take the business seriously

If network marketers take their business as a hobby, and only work on it as and when they like, the business will pay them like a hobby.

On the other hand, those network marketers who take their business seriously are paid handsomely.

Reason #4 – They have no faith

Network marketing is a faith business. In other words, a network marketer needs to believe in himself/herself in order to succeed.

In this case, conventional wisdom of ‘seeing is not believing’ does not apply. One needs to belief first in order to see things happening!

By seeing others who succeeded before them, a network marketer must believe that they can make it too and then start taking action consistently.

Reason #5 – They have no vision

Network marketers need vision to succeed. In other words, a network marketer needs to see the forest, not the trees.

Each activity whether it is prospecting, presenting, training, etc must be seen in the light of moving the business forward rather than disjointed events. Thus, a simple failure or obstacle will not be able to cause a network marketer to quit easily.

Reason #6 – They do not understand that it is a process

Success is a journey. It takes time. No one can become successful overnight.

Thus, network marketers must understand that the process takes time and therefore must invest time to learn, unlearn and relearn in order to become better and better at what they are doing.

Reason #7 – They don’t know enough of how things work

Network marketers do not know how things work and do all the wrong things. For example, they might lack people skills like interpersonal and communication skills and therefore do not know how to prospect and present their opportunities effectively.

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What has getting lost in Klang got to do with your Internet MLM business?

09062007bakkutteh.jpgRecently, I was in Klang, Malaysia for my Internet MLM business

Klang is famous for ‘Bak Kut Teh’.

‘Bak kut teh’ literally translates as “pork bone tea”
and consists of pork ribs in a broth of herbs and
spices boiled together with pork bones for hours.
Additional ingredients may include mushroom, lettuce,
and tofu.

Klang, widely believed to be the home of bak kut teh,
is famous for her many bak kut teh restaurants. What
I can say is that it’s delicious, tasty and mouth-
watering…even as I write about it now :-)

Yesterday morning, I drove to church supposedly 20
minutes away from the hotel I stayed in Klang.

Though I’m a Singaporean staying about 400 km away,
I’ve been to Klang on several previous trips and was
confident of driving around…

However, as I gunned down the highway, I took a left
turn to exit and after several minutes, found that
I’m into some place totally unfamiliar.

Then I quickly used my secret tactic:

I did a ‘U-turn’ :-)

… and head straight back to the highway, hoping to
find the right exit.

However, the road connected straight across and I ended
at the other side of the the highway. I kept driving
and after several minutes, it dawned on me that I’m
hopelessly and desperately lost.

The church service begins at 10.30 while my watch showed
10.40 already.

I had to pull over to a side road and used my 2nd secret
weapon:

No kidding this time. It’s a thick, tattered and torn
street directory of the entire Klang Valley I carry in
my car for emergencies such as this.

After several minutes of thumbing through the pages, I
found my way once again and got there in time to attend
most of the service.

And thank God I received an important lesson here…

When I was totally lost, I wanted to call my friend at
the church to give me directions but I realized one thing:

There’s no way he could help me.

Because I didn’t know where I was. In fact, I had to spend
several minutes just to locate where I was, flipping
through several pages of the street directory.

And then, I had to know where my destination is. Again,
I had to locate that in the directory.

Once I knew where I was and where I was going, I had to
figure out how to get there.

So, do you know where you are in your business? Meaning…
do you know what are your strengths and weaknesses? Are
you more efficient online or offline?

And, do you know what is your destination? What do you
want to achieve? Long term? This month?

Last but not least, do you know how to get there? Do you
have a strategy? A winning formula?

Click here for a winning formula you might want consider
to seriously.

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MLM Funded Proposal

Have you ever thought of setting up your own funded proposal to fuel your MLM?

In other words, once you have set up your system in place, you would essentially let your prospects pay for your expenses.
Isn’t that nice?

Is that possible?

Before I address this, let’s take a quick look at ‘Funded Proposal’ that solves the two major challenges faced by most network marketers:

1) Not enough money (to go on with the MLM business and has to terminate their business prematurely)

2) Not enough prospects (to share the MLM business opportunity with as they use up their warm market very quickly)

‘Funded Proposal’ is a CONCEPT based on charging your prospects a low-priced front end product or service. In the case of the health or beauty industry, this could be a product sample.

After trying out, some will join your MLM business.

However, even though they don’t, you would already have earned some pocket money to sustain your business.

Thus, instead of looking for people to join your MLM opportunity immediately, you look forprospects to try your product (now youhave enough prospects) which is a lot easier,at a low price (now you have money) instead.

Isn’t that brilliant?

Cheers to those who dreamed of this approach!

Following this ‘Funded Proposal’ approach, here is a suggestion that you can use to create your FUNDED PROPOSAL in two steps:

Step 1 - Look for prospects who want to make money online - not to join your MLM business yet - and offer them some coaching to help them make money online, such as how to set up a blog with affiliate links and banners. Do not charge them a high price but just a small fee.

Think about it. . .

You would already be in profit whether or not these prospects join your MLM opportunity.

** This will solve your MONEY challenge

Step 2 - Some time later, when your prospects become confident with computers and the Internet, that’s the time you can offer them to join your MLM business opportunity so that they have a multi-tier affiliate program to promote.

Of course, some of them will join you.

** This will solve your PROSPECTS challenge

If the above sounds like something you can work with, go ahead, do something with it today!

So, simply take ACTION now and let your prospects pay for your expenses!

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World Internet Mega Summit, Singapore

wims2007.jpgThe World Internet Mega Summit, the world’s BIGGEST Internet marketing seminar, just ended after 4 days of intensive contents, showmanship, marketing, pitching from 26th to 29th May 2007.

Created by Brett McFall and Tom Hua - both of whom are hugely successful Internet marketers - and organized by Success Resources of Singapore, the summit was the world’s most amazing line up of speakers:

  • Stephen Pierce
  • Mike Filsaime
  • Ewen Chia
  • Armand Morin
  • John Childers

Gracing the event are also two distinctive authority figures in their own right:

  • Jay Abraham - widely known as the 6-billion dollar man, a marketing wizard has consulted across hundreds of (not businesses) industries! His keynote address and closing Q & A session was absolutely amazing and mind blowing! At one stage, Brett McFall has to ask him, “What kind of brain do you have?” and even had to limit his answers by telling him, “Can you give short 20-word answers to our questions?” when Jay rumbled on and on, giving gem after gem, to every question Brett asked on behalf of the audience.
  • Mark Joyner - known as the “godfather of Internet marketing”, gave an inspiring presentation that was totally different from the other speakers. He talked of transforming us into ‘freedom agents’ and multiplying them to help the world to become a better place for all. The audience was fortunate to have this man spoke at a seminar in 5 years!

I picked lots of new knowledge, information and gems in this 4-day seminar and will apply this to my existing Internet MLM and Internet marketing and coaching businesses. In fact, I’ll put some of these gems together and compile them into a Special Report which you can receive (in the next few days) together with other Internet marketing updates by filling in your name and email address here:


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As this is what I call a ‘pitching seminar’, every speaker has a backend coaching program and/or products to offer. And I must say that they are so attractive and tempting!However, as I knew from firsthand experience, it would be very tough for many of the total beginners to Internet marketing (or newbies) to follow.

Personally, I’ve been through a good number of such courses. Click here to find out more.

It would be far better for them to build up a good, strong foundation of basic computer skills and the Internet in general to enjoy maximum benefits from these advanced courses.

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