Residual Income vs Linear Income

Make Money with Network Marketing

I consider this topic as a fundamental when it comes to talk about MLM network marketing. WHY? Because when you are looking for a different way of making your living, it does mean that you start to think about HOW to be free, not only of debts but also free of doing what you really don’t want to do, free of travel to places you always have been just dreaming about, free of buying  the kind of things that you know you and your family deserve but unfortunately you can’t afford. Well when you get to this point of life the first step that you must accomplish is look for the right information, and here is where this article fits in your life. Furthermore let me explain what is LINEAR INCOME and RESIDUAL INCOME: Linear Income is the kind of income that the vast majority of people depends on, it is when people trade their Knowledge, their physical effort or both for MONEY. This system has the biggest limiting issue in the world and it is that we, us a human beings are limited to a 24 hours a day and you should dedicate at least  6 h to rest, sadly nobody can alter this fact. As a result of this in the Lineal Income, if you get sick for a whole week you won’t be paid for that time and this not just happen to employees, if you are a small business entrepreneur, say something a mechanic and you work at  your own garage you will be in the same situation,if you get sick, you won’t be able of make any money during that time. On the other hand RESIDUAL INCOME is the one that allows you to gain MONEY even if you stop working; this is the kind of income that people who are doing MLM (multilevel) business are making every single day on and on. However it doesn’t mean that Network Marketing is an easy way of gain lots of money effortlessly, this is not an overnight way of getting rich (if you want this keep buying lottery). RESIDUAL INCOME is alike the Royalties that an artist and writers gain ever after they record a song or write a book. This is the power of Residual Income that after you get done your job well done once you will be getting those royalties forever. But as mentioned before this is not a  “get rich quick” formula. To become successful in the Network Marketing Industry you will need: a very strong WISH in life, determination, effort, knowledge and LOVE for what you do and for the PEOPLE who work with you in this Opportunity; and this last one is maybe the most important one because in this MLM business is not just about Money, is more about People and how we care about each other in order to reach our goals and accomplish our DREAMS. Take a look of the following chart:

Linear Income                                                      Residual Income

Working time 8 hours/day                                2 hours/day

Retirement after   30/40 years *                    2 to 5 years

Boss and schedule                                              No boss and freedom of time *This alone is the topic of future posting Let me just to mention that 6,000,000 new millionaires in the USA today, 20% who have reached affluence in the past two years have done so by leveraging their time… and they did it using something called referral marketing better known as NETWORK MARKETING. Residual Income in MLM that’s why famous and Rich people like Donald Trump and Robert Kiyosaki are such passionate advocates of referral marketing and developing residual income streams. “The richest people in the world build networks, everyone else looks for work.” Is one of the most known phrases from Robert Kiyosaki. So if after reading this article you feel motivated to go for this kind of income you can research for a good MLM company to work with but before do it, I advise you to go and read through my past postings to be aware of how to look for the right MLM company and not to be another victim of unscrupulous persons that will scam you. Otherwise I invite you to take a look on this blog of My Opportunity.

7 reasons why people don’t succeed in Network Marketing.

I like to write down just seven of the main reasons that I have found to be the cause of people fail at doing Network Marketing.

1. Lack of motivation

If you are happy in your comfort zone and you lack real motivation, that one which makes you wish with all your mind and heart, your entire body and soul must be asking you to change your life. If you don’t have a dream to fulfill in life you eventually will fail.

2. Not treating your MLM business like a real business Reasons of failure in Network Marketing

Many people believe that because MLM business is usually a Home Based Business and it doesn’t demand a big investment in money it is a not real and serious business. This mistake would kill your venture from the very beginning.

3. Not to have a business plan

When anybody starts a trip sure he/she knows what is the purpose of the trip, where he/she is heading to, when is the expected time to get over there and more or less how much it is going to cost. When people start the journey of being entrepreneur in an MLM business sometimes if not most of them they forget about planning and it just drives them to fail.

4. Not to invest in your business

When you start doing this business you require a very little amount of money but it doesn’t mean that you don’t need to invest on it. You should have a budget for ordering your business cards, have your own blog or website, put gas on your car to visit people or getting to meeting places, etc

Also you need to invest time, this is not a hobby neither a magical formula to get rich overnight, this is a serious matter and you must dedicate time to make it profitable.

5. Giving up so soon

People forget that not a single solid/valuable thing in life is made from one day to another. Good things and furthermore good business need time to grow, you need time to learn about this business, about your company, your product or service. You need time to improve your skills so don’t sell yourself cheap. Don’t give up, your time is coming.

6. Lack of knowledge

You don’t know or have not enough knowledge about how to address people (prospecting), how to sell your product (marketing), how to follow-up on your prospects, etc so all you need is a good sponsor and also a good team to work with and of course a company with a good education system that teaches you all these how to.

7. No people supporting you

Last but not least, when you don’t have optimistic people around you, including your spouse, siblings, parents, friends, etc, the task of become a prosperous MLMer will be harder but not impossible. Just remember, seek for people with the same or at least similar dreams to yours. Look for positive friends and never allow “loser” discourage you, keep in mind your WHY and go for it.

Welcome to my blog.

Welcome to this blog where I intend to introduce you into the greatest business of all, the Networkmarketing.

This is the only business that based in teamwork and solidarity allow us to grow up every single day in our relationships not only with people around us but with ourselves, the business where we can build strong and sincere friendship ties with those who alike us want to achieve the maximum grades in personal development, freedom and of course economics.

       Robert Kiyosaky recommends MLMNetwork Marketing.                

I pretend to show you how this kind of business can take us to the financial freedom that every one of us is looking for but in order to get there we have to know the true about networkmarketing, we have to dig into the history of this industry and we have to improve our knowledge because that is the only way we can separate what is true from what is just speculation.

Furthermore I invite you to be me companion in this journey and to discover the marvelous things that this industry can bring to our lives.

How to choose the right MLM company


Now that I taught you about how to differentiate a legitimate MLM company from one of those pyramids scams that unfortunately exist out there, (separate the wheat from the chaff). I think that you need to know how to look for a good one. Well with this posting I giving you a series of points that you should consider seriously before sinning for any.

How to choose the right Network Marketing Company

Consider also that besides scams there are well –intentioned ones but with a poor structure or with a lack of the good features that you should will looking for.

1. How many years the company has been around?

Statistic shows that 90% of all network marketing companies fail within their first 2 years of existence so this is really in my opinion the main factor you must account with because sure you don’t want to invest your time, money and resources in a business that will be off the business in the coming months.

You must do your research and look for a company that has proven that it had been in the market for at least 5 years and will be around for the long term.

2. What kind of products or services the company offers? Are the unique?

Second important thing to consider is the product or service that you will be working with. You have to look for one with especial characteristiques that made it unique, that means less competition and an wide an open market if not a virgin one, make sure the company has the patents y/or rights to resell and distribute it.

Other important point here is that the product or service should be in a section of the market that shows a continual growth not only locally but internationally; this meant a potential of selling measured in hundreds of thousands of dollars if not million

3. Is there a genuine need for the product or service? Is it trendy or not?

Research about the product, is this a really know need or interest for it? is it something that truly people will be beneficiated from, or just another one that eventually is going to fill up our garage in the future, (sure you have hear this kind of . about dealers that ends with their garages full of useless products).

Furthermore when you look for a product you need to consider also if the product is just a trendy one or if it will be in the market in the years for come. The price is indeed another thing to consider is it so expensive? Are the value and cost of it in a direct relation or the cost doesn’t represent its value?

4. Is the company well capitalized?

Does it have the cash that it will need to grow, to maintain a solid infrastructure, to attract talented personnel and, of course, to pay your commissions.

Again you will need to do some research about the company, look in the camera of commerce of the city where the head quarters of the company are located; consult the Direct Selling Association website, read what the magazines in the industry mention about it etc,etc.

5. Does the company a well proven education/training system?

Do you can access to a system that teaches you how to succeed in the company and how to duplicate what the leaders said you can accomplish? What are the resources and tools that the company offers to you as associated to become a successful mlm marketer?

6. Compensation Plan.

There are many different compensation plans running in the Network marketing Industry like Matrix, binary, unilevel hybrid etc please we aware of which one is your company offering so it will be the one that determines your commissions and how much money in the future you can make.

7What kind of person is introducing you to the opportunity?

There are two different kind of persons you are going to met in this business and there is a big difference between the two. One is a “sponsor” and the second is a “recruiter.” A sponsor is somebody committed to your success who are willing to coaches, motivates and trains you and for the contrary a recruiter just signs people up and in most cases, abandons them, because he/she only are thinking in his/her own benefit (SHORT TERM ONE TOO).

8. Is the business the right one for you?

Doing business doesn’t mean that you can’t have fun. When choosing your company and the product/service look for something that bring to your life new hopes, that will be able to fulfill your passion that enhances your life.

9. Last but not least.

Remember the Multilevel business is not like buying the lottery, in the business you have to work hard to succeed but with the RIGHT COMPANY and RIGHT PEOPLE not only it will be a funny road but also a very  productive one.

Now my final advice, if you are married makes sure of involving your partner in the business…

Learn how to differentiate MLM from a pyramid scheme.

As a part of the mission of this blog which is to educate people about the Network marketing industry, I like to invite you to read the following article that I found in the website

“The big difference between multi level marketing and a pyramid scheme is in the way the business operates. The entire purpose of a pyramid scheme is to get your money and then use you to recruit other suckers (distributors). Meanwhile the entire purpose of multi level marketing is to move product. The theory behind multi level marketing is that the larger the network of distributors, the more product the business will be able to sell.

pyramid scam


Use these questions as an acid test if you’re in the least doubt as to whether the opportunity you’re considering is multi level marketing or a pyramid scheme:

Is It a Pyramid Scheme?

1) Are you required to “invest” a large amount of money up front to become a distributor? This investment request may be disguised as an inventory charge. Legitimate multi level marketing businesses do not require large start up costs.

2) If you do have to pay for inventory, will the company buy back unsold inventory? Legitimate multi level marketing companies will offer and stick to inventory buy-backs for at least 80% of what you paid.

3) Is there any mention of or attention paid to a market for the product or service? Multi level marketing depends on establishing a market for the company’s products. If the company doesn’t seem to have any interest in consumer demand for its products, don’t sign up.

4) Is there more emphasis on recruitment than on selling the product or service? Remember, the difference between multi level marketing and a pyramid scheme is in the focus. The pyramid scheme focuses on fast profits from signing people up and getting their money. If recruitment seems to be the focus of the plan, run; it may well be a pyramid scheme.

These next two questions will help you determine what the focus of the company is:

5) Is the plan designed so that you make more money by recruiting new members rather than through sales that you make yourself? This is the signature of a pyramid scheme operation.

6) Are you offered commissions for recruiting new members? Another pyramid scheme trademark. It’s the number of people who are willing to sign up that matters in a pyramid scheme, not the products or services being offered.

How to Protect Yourself From Pyramid Schemes

As always, when you’re investigating a potential business opportunity, you’ll want to gather all the information you can about the multi level marketing company’s products and operations.

Get (and read) written copies of the company’s sales literature, business plan and/or marketing plan. Talk to other people who have experience with the multi level marketing company and the products, to determine whether the products are actually being sold and if they are of high quality. Check with the Better Business Bureau to see if there have been any complaints about the company. And listen carefully when you’re at that multi level marketing recruitment meeting. Inflated claims for the amazing amounts of money you’re going to make should set your alarm bells ringing.

Being part of a successful multi level marketing company can be both profitable and fun, but unfortunately, some purported multi level marketing opportunities are actually pyramid schemes designed to flatten both your wallet and your dream of running a business.”

Values of Network Marketing Part II

Value #5: Developing Your Most Important Business SkillValues of Network Marketing
To have any type of success in direct selling, you’re going to need to communicate with people. No matter what technique you use to help share your message, if you are to make any money, a product or service needs to be sold first. That’s what I really like about the direct selling industry – their commitment to helping others succeed. It just goes to show that the potential for greatness is in all of us, and the direct selling industry does a masterful job of tapping this potential.
Value #6: Leadership
To me, one of the biggest values of direct selling is training that gives you the education, the time, and the opportunities to develop one of your most important business skills: leadership.
Direct selling brings out a different type of leader. The military develops a type of leader that inspires men and women to defend their country. The world of business develops a type of leader that builds teams to beat the competition. In the direct selling world, the type of leader that is developed is a leader that influences others by being a great teacher – teaching others to fulfill their dreams. Instead of beating the enemy or beating the competition, most leaders in direct selling simply inspire and teach others to find their financial reward without harm to others.
Value #7: Not Working for Money
Thanks to our current educational system, most people have been trained to work for money when instead they should be working to build wealth. I’ve been able to meet some very successful direct selling business owners. For me, the pleasure was to find that the formula for success in direct selling is the same formula my rich dad taught me:
Build a business – it takes up to five years to get a business up and going before you’ll see a good level of success. It can take less time and it can take longer. A business needs time to grow.
Reinvest in the business – putting money and time back into your business, not taking it out for monetary items, such as nice clothes or vacations. Here’s the clincher question to ask yourself: How can you be happy if you have given control of your financial life away to someone else? Choose to work for wealth instead of working for money.
Value #8: Living Your Dreams
“Many people don’t have dreams,” my rich dad said. “Why?” I asked. “Because dreams cost money,” he said. Direct selling companies stress the importance of going for and living your dreams. My rich dad explained the importance of dreams this way, “Being rich and being able to afford a big house are not important. What’s important is striving, learning, doing your best to develop your personal power to afford the big house. People who live small dreams continue to live lives as small people.” As my rich dad said, it’s not the size of the home that’s most important; it’s the size of the dream that matters most. Many poor people are poor because they have given up on dreaming.
If you are a person with big dreams who would love to support others in acheiving their big dreams, then direct selling is definitely a business for you. And it doesn’t mean you have to quit your job. You can start part-time and then, as your business grows, you can help other people start their own part-time business.
This is value worth having – a business and people who help others make their dreams come true

The values of Network Marketing, Part I

Robert Kiyosaki and NetworkMarketing
Extracted from Rich Dad’s The Business School for People Who Like Helping People.

Value #1: True Equal Opportunity Most direct selling companies are very compassionate. If you are willing to stick it out and learn and study at your own pace, the business will continue to stick by your side. Many of these companies are truly equal opportunity businesses. If you will invest the time and effort, so will they. I support any business that values human compassion and true equal opportunity.

Value #2: Life-Changing Business Education. When I speak of life-changing business education, I speak of education powerful enough to change a caterpillar into a butterfly, a metamorphosis of sorts. In other words, for true life-changing education to be effective, it must affect all four points of the Learning Pyramid – mental, emotional, physical, and spiritual education.

Value #3: Friends Who Will Pull You Up – Not Push You Down For many people who are looking at starting a direct selling business and want to make a change with their financial lives, the main obstacle that prevents them from taking action is worrying about what their friends and family are going to say. Some say very negative and hurtful things that can have a lasting impact on those looking to make more out of their lives. The simple fact is most people don’t like change. If someone strays away from the normal way of doing things, they are looked at differently and can be targets for ridicule or resentment. It’s very important to shield oneself from this type of negative environment. One of the advantages of a direct selling business is that you’re able to meet new people who have dreams, aspirations, and core values similar to yours. Value

 #4: What is the Value of a Network? In order to harness the power, your job is to essentially duplicate your actions by teaching someone to do what you do. Building a network of people is simply looking for friends, new and old, who want to go in the same direction as you do.

History of Network Marketing

Believes or not the history of network marketing begun in the 1940’s where a company doing business under the name of “California Vitamins” discovered they could make more sales when they had a lot of sales representatives selling a small amount of product each, compared to the traditional business model, of trying to have a few sale representatives selling a lot. California Vitamins also found that most of their growing customer base was made up of the friends and family of their existing sales agents who had essentially referred them to the company as they were impressed with their product line.
Network Marketing
New sales representatives were then created from existing satisfied customers and a commission based system was developed. Both teams and individuals were rewarded according to their sales efforts and as a result network marketing was born. This company later changed their trading name to Nutrilite Food Supplement Corporation. In 1959 Jay Van Andel and Richard DeVos founded the company Amway which stands for “the American way”. Amway from day one was based on the same network marketing concept.Today 54 years later Amway is a well established network marketing company doing business in more than 80 countries around the world and with more than 3 million MLM entrepreneurs. Nowadays it is estimated that there are more than 50 million people worldwide involved in this industry of network marketing with almost 100 billion in annual wholesale revenue. The network marketing industry is recognized as one of the fastest growing industries in the world today. Networkv marketing is having a very significant growth well into thefuture because every year more and more companies are choosing to capitalise on this networking trend and choose to sell their products direct to the consumer. This emerging trend is also being driven by a wave of entrepreneurs who continue being attracted by the concept of improving quality of life and working from home. Network marketing is creating more millionaires today around the world than any other industry did before. The network marketing has stood the test of time and over the past half century has proven itself to be a successful distribution model and home-based business opportunity. The industry itself is now currently being endorsed by many business leaders as a proven system for anyone who wishes to achieve financial success. It is not surprising that network marketing is now one of the fastest growing industries of all time with an estimated 150 000 people just like you, joining the industry every single week. Furthermore I encourage you to take advantage of the momentum that network-marketing industry is going through right now and and look at this business opportunity seriously as it can be the vehicle that takes you and your family to the life style and freedom that until now you just had wished.