Multi-Level Marketing / Networking

MLM or Network Marketing and some called it Networking is a business that some labeled it scam or unethical. But here in the Philippines that’s not the case. MLM or Network Marketing is gaining momentum in ordinary Filipino or Pinoys lives. More and more pinoys are opening their minds in a great possibility that this business can do to their lives. From my idea, I think it’s more than 1 million pinoys are actively doing MLM/Network Marketing. This is very good because they are learning priceless financial and personal development education which no elegant school could teach.

According to Robert Kiyosaki,  To be able to succeed in the MLM Industry you must not look at the income but what you will learn inside the MLM Industry.  Which is true,  because in MLM not all people earn a lot. And it’s very dangerous if you expect to earn BIG but you are not doing what you are supposed to do.  I think the priceless thing that you will be getting inside the MLM industry is the training and the connection of people from different walks of life.

The Basics of Multi-level Marketing


Multi-level marketing or simply MLM is one of the most popular ways to generate passive income.

It’s unfortunate to see that a lot of those who go into it fail to profit from their investment simply because they were merely disillusioned by the prospect of earning lots of money. At worst, they got scammed into a pyramid scheme, resulting to loss of their hard-earned income.

There are however, people who have successfully made money and enjoyed the benefits of network marketing. With time and dedication, they were able to get back their investments and earn several folds more.

If you’re planning to enter a multi-level marketing company, I suggest that you take into consideration these basic facts. These are some of the things I’ve learned personally during the time when I was still active in MLM.

Due diligence is required.

Learn everything about the company. Make sure that they have all the legal documents to show that they are recognized as a legitimate business.

I do not advise joining start-up companies, I firmly suggest that you join only those who have a good track record and has been visible in the industry for at least five years. Believe in the principle of abundance and you will see that your market is rarely saturated.

Lastly, before signing in, make sure that you understand the policies of the company specially their regulations on how you will earn. Look for those who have been members for quite some time and see if the company has been paying them regularly and on time and ask if it’s easy to get your earnings.

This will take up most, if not all of your free time.
Don’t join a multi-level marketing company if you’re not willing to give it time.

There will be regular meetings and marketing schedules to attend to. You will be spending a lot of time following up on prospects and attending seminars.

Don’t believe them when they say that this is something you can just do on your spare time, reality is, this will probably be the only thing which you’ll be able to do on your spare time.

Rejection will be your best friend.

When you join a multi-level marketing company, your family and friends immediately become your initial prospects. But you have to accept the fact that not everyone is interested in making money through MLM, so be prepared to be rejected.

When you’re best friend refuses to join in, don’t take it personally, be a good sport and accept his or her decision then continue down your list of potential clients.

No matter what they say, MLM really involves selling.

All legitimate multi-level marketing companies sell a tangible product or service. When you sign in to join the company, you instantly become its endorser.

So make sure that you believe in the product or service that they are selling and would actually use it yourself. This is important because again, no matter how many times you hear that this will not involve selling, the fact is, at the very least, you will be selling the idea of MLM profit to others.

If you feel that you are not a good salesman or you don’t feel comfortable talking to people you don’t know, then better stay away from multi-level marketing.

Have an exit strategy.

I personally believe that you should consider multi-level marketing as a short-term investment with medium risk and high yields. Although some people have been able to sustain their income for several years, most could only do this for a few months to a little over a year.

Reasons vary from waning interest in the recruitment and selling process to physical and emotional burnout. It is important to know beforehand the conditions when you will have to leave the company.

Is it when you’ve earned this much already or is it after a specific period of time? It’s really up to you when and for what particular reason. Just be sure to save your income and have good investment plans for your earnings.

Interesting view from Carlos Velasco.

Let’s educate ourselves on what Network Marketing really is -- because it is always easy to find someone that will say it is just another scam and you will just be listening to wrong person(s); who is bitter and gave up three feet away from the gold. It might be the vehicle to success you are missing.

Scam Detection Checklist

Pyramiding… Scam… These are two words that ill-informed and ignorant people normally associate with Network Marketing business. In fairness to them, the description is applicable to some Network Marketing businesses that existed in the past (and are probably dead by now) and some companies still in existence these days. To the companies that stood the test of time and have proven themselves legitimate against all kinds of negative publicity and criticisms, congratulations to you!

When the concept of franchising was first introduced to the public, the same words were also in the minds of people lacking proper grounding in business. Franchising is a business model that takes away the hassle of creating a business system from scratch. If you have been in business, you already realize that developing a business system is a big challenge and entails real hard work.

In reality, Network Marketing is just a business model and a distribution channel, nothing more and nothing less.

I feel sorry for those folks who have been victimized by scammers. They probably lack the common sense to detect what a scam is even when it is staring at them straight in the face. Until they learn the lessons, these are the very same people who will most likely be scammed again (and again) when scamming opportunities come knocking their way. Scamming, by the way, is ever present in all fields of endeavor: government service, religion, business, investments, and others.

This article gives you some tips on how to detect an MLM company and see to it that you are not joining a Network Marketing company that is a potential scammer.

1. Company Must Be Legally Registered.

In the Philippines, that should mean they get the necessary permits, licenses, clearances and other documents from the regulatory agencies of the government…. in relation to the conduct products and services being offered to the public. At minimum, you should check the following:

* SEC Registration – a corporation operating in the Philippines must be properly registered with the Securities and Exchange Commission
* DTI and Local Business Registration – the business name being used must appear at the DTI Registry and the company should have the necessary business to operate from the local government where it is conducting business
* BIR Registration – the stockist, supplier or business center should be able to issue Official Receipt to their distributors.

Note: it is not necessary for a distributor to issue an OR to the retail customers or to his fellow distributors.
* BFAD – if the company is selling products to be taken in internally like food supplements, medicines, injectables, nutritional products, and other similar products must have the approval of the Bureau of Food And Drugs.

2. Legitimate Products and Services.

First of all, there must be legitimate products or services offered to the market. If there are NO products or services rendered, you are in for a possible scam; get out immediately or report to the regulatory agencies. In an illegal pyramid, there are no products or services involved. When some people makes money solely from recruiting other people, you have an illegal Network known as Ponzi Scheme or simply Pyramiding.

When you join a network, you must be your own best customer. It is hypocrite for one to sell
a product or service that he himself would not patronize.

3. The People Behind the Company.

As in politics, the investors and business-people behind a failed Network Marketing company are simply recycled to form another company and repeat the scamming cycle instead of landing in jail. Worse, you also see the same set of leaders who jumped from one Network company to another, pitching their usual motivational words of wisdom, quoting famous authors and dancing to their favorite songs. Sounds familiar?

And where do you go looking for this information? That, my friend, can be seen from the articles of incorporation submitted to the SEC. If it is a revised one, look for the latest copy or better yet get a copy of the first document submitted. These must be presented to you during the business meeting with your sponsor.

4. Compensation Scheme.

You are entering a business; not a Boy Scout Jamboree. Treat it as you would any other small business. You must be properly compensated and rewarded for your efforts in moving the company’s products whether personally or through your own Network. There are many ways to earn in a Network Marketing company and check to see if the company is true to its compensation plan. The company who cheats on the commissions due to its distributor has no place in Network Marketing.

Moreover, the income potential must be realistic and achievable — not just some promises as those made during the election of public officials. The income comes from moving the product to the hands of the consumer or to other distributors in the Network. Your commission, royalties and any residual income should be paid by the company and not by anyone in your network or your sponsor.

Another thing to be aware of when it comes to Compensation Scheme is the so called “timing” of joining the company. Beware of companies that invites you to join the Network just because it is NEW and you can be on top of the Network. These companies are only after the short-term income they could squeeze from unsuspecting distributor. Never, ever waste your time joining that company.

There is no right and wrong time in becoming a distributor or consultant. A good compensation plan should provide an equal opportunity of being successful whether you join now or you decide to join 50 years from now. And their compensation plan should reflect that.

Furthermore, being at the top of the Network is the last place you ever want to be. It is very lonely up there and no one can coach you on how to do the business in the most effective manner. If you are a beginner, you need proper coaching from those who are already successful in doing it.

5. The Company’s Stability

Beware of companies that just sprout out on the scene. They are probably on the experimental stage with their products, marketing strategies and compensation plans. You can become a guinea pig of their experiment.

The company that has been there for a long time has invested a lot to make it a stable company through their products and innovations.

There you have it. Five Tips to help you detect a scam from the legitimate one. I hope this becomes an indispensible guide.

And remember: There is only one foolproof way to guard yourself from being victimized by scammers. And that is to educate yourself and load your brain with common sense.

Some reason why Filipinos are doing MLM / Network Marketing.

1. They now know that being a GOOD EMPLOYEE is not enough to become financially free. Almost all Filipino including me are conditioned to work for some one else or in short to become a good employee. Bot its nor working in Information Age that we are now in. Its not enough to study hard and work your but off for some one else. You have to mind your own business! and MLM can make that happen.

2. MLM/Network Marketing doesn’t require large capital. The number one problem also why Filipinos are afraid of starting their own business its because some businesses require a very large capital and they don’t have it. But thanks to the MLM Industry Filipino Business Enthusiast can now start their own MLM business for as low as P500-P3,000 some MLM companies require P20,000. It really depends on the marketing plan and the products.

3. Filipinos are tired of being poor and middle class. I think this is the biggest reason why most Filipino’s are doing MLM. Although each one of us has a different WHY of doing MLM the root cause of all of that is still to overcome poverty or become financially FREE. I think Filipinos are very passionate about doing this business, that’s why there many Filipino who become MLM Millionaires.

Advantages of Filipinos in the MLM/Network Marketing industry.

1.  We are very passionate in what we are doing.
2.  We are very serious.
3.  We are motivated
4.  We are creative.
5.  Our faith in GOD is very deep and we trust him in all our ways 100%.

Reason why most Filipinos fail in the MLM Industry.

1.  Mañaha Habit. Is not in English dictionary but can be found in Spanish dictionary, mañana means tomorrow, so it is a tomorrow habit.
2.  Kasi, Kasi or Creating Excuses.
3.  Procrastinator
4.  Natural Skeptics
5.  Narrow Minded
6.  Negative Thinkers

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