# Archive > Open content archive > MLM Industry Forum >  Make the Leap

## anthuwin

If you are going to build a successful Home Business,you need 3 intangibles:
First,you must have a strong WHY.
Why must you make a home business work?What's driving you?What is it that you CAN'T have in your life anymore and/or what is it that you absolutely MUST HAVE now?
For me,i couldn't stand working 12+ hours a day anymore and missing the experience of my children growing up.I also absolutely HAD TO HAVE the freedom of being able to control my life and finances.
Secontly,you must BELIEVE that it is possible.
For me,figuring out that it was possible was just a matter of realizing that many other people were ALREADY making great money with a home business online.If they could do it,i could it.Truth is,it's getting easier and easier to succeed in a home business.And the cost to start is very low.
Third,you must make THE LEAP.
Ready,fire,then aim...This is the operating philosophy you MUST adopt to succeed with an Internet home business.It may sound backwards.But the fact is,the internet is a moving target...the only thing constant about it is change.You need to stop analyzing the game and simply jump into it.You can't learn from the outside...You have to be IN THE RING to truly understand it.
The lesson here is that you will never really be READY to start a home based business.You simply have to start one.This is what i call "MAKING THE LEAP"
The good news is that the cost of failure on the internet is very very small.And you can often start a successful home business for less than $20.
A great example of this is a program called Be Motivated Today:http://www.bemotivatedtoday.com/82786
You simply need to get in the GAME...each moment that you stay out there,you're wasting valuable time that you could be learning and skills necessary to become a successful entrepreneur.

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## Dave A

I have to say I chewed hard before passing this one through moderation, but frankly the post does pose some interesting questions.

For starters:

Can an affiliate in an affiliate program be classified as an entrepreneur?
For that matter, can an Independant Business Operator (IBO) in more traditonal MLM's such as Amway, GNLD, Tupperware, Avon etc. be classified as entrepreneurs?

p.s. If you're considering trying Be Motivated Today - make sure you read this discussion first. (Sorry Anthuwin - consider it the price for overlooking your breach of the TFSA advertising policy).

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Blurock (30-Jan-13), Citizen X (31-Jan-13), Darkangelyaya (31-Jan-13)

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## adrianh

Interesting how some consider sitting on their a$$e$ waiting for other people to sign up to THEIR rung in an American pyramid scheme to be entreprenuership.

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Darkangelyaya (31-Jan-13)

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## Blurock

> Interesting how some consider sitting on their a$$e$ waiting for other people to sign up to THEIR rung in an American pyramid scheme to be entreprenuership.


I cannot agree more. If you are selling something, you show the PRODUCT to the customer who then decides to buy or not. Considerations will be the features and benefits of the product. In the case of these pyramid schemes, the product is kept a secret and is only revealed to you after you have attended a presentation and signed up to their scheme.

You will then get an "Introduction Pack", further training material and maybe a small stock of products. All this you pay for and keep paying for until you leave the scheme. You also have to attend meetings which is usually once a week where you will introduce your catch for the week. This is held at night, so there goes my family time! Your catch of the week will be handed over to an experienced sales manager/principal/co-ordinator what ever who can talk the socks off anyone. (You may also eventually be able to do the hard selling bit if you stick to the training programme and invest enough money).

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Darkangelyaya (31-Jan-13)

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## Citizen X

Selling an intangible product or service will always have it's critics and rightfully so. I will never endorse such a concept, I'll never recommend this concept as a bona fide business to anyone under any circumstance!

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## Blurock

> Interesting how some consider sitting on their a$$e$ waiting for other people to sign up to THEIR rung in an American pyramid scheme to be entreprenuership.


In the same vein; do you consider someone who buys a franchise as an entrepreneur? Considering that he has to conform to the strict rules of a franchise and can not use any initiative to make a different hamburger or pizza of his own design? :Confused:

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## Chrisjan B

Interesting question that, but when he bought the second franchise then he is an entrepreneur...

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## Blurock

> Interesting question that, but when he bought the second franchise then he is an entrepreneur...


What is different with the 2nd franchise? Is it not "paint by numbers" also?  :Confused:

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## Dave A

> In the same vein; do you consider someone who buys a franchise as an entrepreneur? Considering that he has to conform to the strict rules of a franchise and can not use any initiative to make a different hamburger or pizza of his own design?


And yet some franchisees succeed and flourish and others fail despite same product and business model...

I think even in a classic franchise situation, the soft skills and self-discipline of the franchisee matters - and there's no doubt that varies from person to person.

Dragging franchises into the mix, there was a patch where MLM's (or at least their promoters) were painting "distributors" as "franchise operators." It ticked off the franchise industry enough for them to go to the ASA about it (and win the argument).

It's amazing how things change over time. I can recall a time when a company that just franchised their concept (rather than build a business out of that concept themselves) were questioned as to whether they were a "real" business. 

Maybe one day making a living out of dropping affiliate links all over social media sites and encouraging other people to do the same *will* be considered a "real business."

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## Darkangelyaya

> Interesting how some consider sitting on their a$$e$ waiting for other people to sign up to THEIR rung in an American pyramid scheme to be entreprenuership.


Lol, you always manage to make me laugh when you're so direct about stating what most of us are thinking anyway.

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## Darkangelyaya

BTW, they happily took my money...
As a result:
I'm motivated to the point of being comatose.

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## Blurock

> And yet some franchisees succeed and flourish and others fail despite same product and business model...
> 
> I think even in a classic franchise situation, the soft skills and self-discipline of the franchisee matters - and there's no doubt that varies from person to person.


I would consider that to be management skills. Maybe also an intrepreneur (a person who has entrepreneurial skills, but is employed by someone else).




> Maybe one day making a living out of dropping affiliate links all over social media sites and encouraging other people to do the same *will* be considered a "real business."


Exactly like unsolicited and unplanned cold calling. The more people you contact, the more chance you have of hooking just that one prospect.

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## adrianh

There doesn't seem to be a single clear definition of the erm "Entreprenuer"

I suppose the best description would be "a person who creates business where there was none before" - this of course means that buying and runnning a franchise or getting poor sods to sign up to your MLM is not considered to be entreprenuerial because you are not creating NEW business - you are simply extending an existing business.

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## Dave A

> ... is not considered to be entreprenuerial because you are not creating NEW business - you are simply extending an existing business.


I had thought of that. The hitch in that thinking is the folk who buy struggling businesses, make them very profitable, sell them and go onto the next. To my mind that's *very* entrepreneurial.

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## Blurock

I like the definition by the Stanford Business School:

en·tre·pre·neur  /ˌäntrəprəˈno͝or/

Noun
1. A person who organizes and operates a business or businesses, taking on financial risk to do so.
2. A promoter in the entertainment industry.

Synonyms
contractor - undertaker - businessman - impresario

Consider the example of a promoter who identifies an artist as worthy of promoting. He hires a venue and supporting acts and spends money on staging a production. This may be his own or borrowed money, which he will have to repay anyway.

He sells tickets in the hope that enough people will attend to cover the cost of putting up the production. If the artist is good, more people will attend and hopefully the show may be extended. The longer the show runs, the more profit there is to be made after paying the artists and the production people.

If the show flops, he still needs to pay the salaries of the people involved and cost of production, the venue etc. In business it is exactly the same. That is the risk that you take as an entrepreneur.

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## Chrisjan B

As such franchisees then entrepreneurs as they take a financial risk. ..

Sent from my GT-I8190 using Tapatalk 2

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## adrianh

@Dave - agreed - so there is no clear definition.

1. is a lady of the night who makes a good income an enterprenuer (she clearly creates her own business)?
2. is a guy who manages many ladies of the night an enterprenuer?
3. same goes for drug dealers...

The problem lies in the definition, methinks that there are many forms of entreprenuership then, some legal and some not.

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## Blurock

> As such franchisees then entrepreneurs as they take a financial risk. ..
> 
> Sent from my GT-I8190 using Tapatalk 2


I do not want to run down any franchise as they provide an excellent stepping stone for someone to get into his/her own business. Mostly good systems and training and everything structured along a proven recipe. A much safer option than venturing into that abyss on your own. Many franchisees learn from the franchisor and then start another venture on their own.

When I fired my boss I also considered buying a franchise. After considering many, I came to the conclusion that it would restrict and frustrate me even more than the job I had at the time. You have to conform to the rules and it allows very little room for innovation. One has to first look at the type of person you are before venturing into something where you are told what to do and when to do it.

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## anthuwin

That's the way the traditional mlm and network marketing companies operate.You get an Intro pack,training and products,meetings,phone prospects...exc
However,in today's world,its a different ballgame.You do everything with your computer.This is called internet marketing.
Here's a fact:network marketing and internet marketing has produced the most millionaires in any industry.And is highly recommended by Donald Trump and Robert Kiyosaki.I think i'll take a slice of that cake.

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## Blurock

> That's the way the traditional mlm and network marketing companies operate.You get an Intro pack,training and products,meetings,phone prospects...exc
> However,in today's world,its a different ballgame.You do everything with your computer.This is called internet marketing.
> Here's a fact:network marketing and internet marketing has produced the most millionaires in any industry.And is highly recommended by Donald Trump and Robert Kiyosaki.I think i'll take a slice of that cake.


Please don't spam me :Frown:

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## Citizen X

> That's the way the traditional mlm and network marketing companies operate.You get an Intro pack,training and products,meetings,phone prospects...exc
> However,in today's world,its a different ballgame.You do everything with your computer.This is called internet marketing.
> Here's a fact:network marketing and internet marketing has produced the most millionaires in any industry.And is highly recommended by Donald Trump and Robert Kiyosaki.I think i'll take a slice of that cake.


Please don't spam me :Frown:

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## Blurock

I have never been to an MLM recruitment meeting (yes, that is what it is) where they promote or introduce any products. They get very dismissive and vague when you start asking about products. 

All they do is tell you how easy it is to work from home, spend time with your family and enjoy the profits of your MLM scheme. None of this is true. MLM is hard work and many evenings (and sometimes weekends) spent away from your family, attending meetings and trying to recruit more people to operate under you. 

Here is what the Federal Trade Commission in the USA have to say on MLM; 
In multilevel or network marketing, individuals sell products to the public  often by word of mouth and direct sales. Typically, distributors earn commissions, not only for their own sales, but also for sales made by the people they recruit.




> Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, its not. It's a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money.
> 
> If youre considering buying into a multilevel marketing plan, get the details.


http://www.consumer.ftc.gov/articles...evel-marketing  Please heed their very valid warning.

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Dave A (04-Mar-13)

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## mikren

> I have never been to an MLM recruitment meeting (yes, that is what it is) where they promote or introduce any products. They get very dismissive and vague when you start asking about products. 
> 
> All they do is tell you how easy it is to work from home, spend time with your family and enjoy the profits of your MLM scheme. None of this is true. MLM is hard work and many evenings (and sometimes weekends) spent away from your family, attending meetings and trying to recruit more people to operate under you. 
> 
> Here is what the Federal Trade Commission in the USA have to say on MLM; 
> In multilevel or network marketing, individuals sell products to the public  often by word of mouth and direct sales. Typically, distributors earn commissions, not only for their own sales, but also for sales made by the people they recruit.
> 
> 
> 
> http://www.consumer.ftc.gov/articles...evel-marketing  Please heed their very valid warning.


Hi Blurock

I am a new member to the forum and was initially pleasantly surprised at the level of openness to MLM.
This thread has been quite the opposite - wow, and then some.

The warning about MLMs that you posted is a really valid one.  I, unlike you, am a mlm junkie.  I believe in duplication being the key to any sales force, no matter what you are selling.  The more sales people in my team, the more my volume of sales.  For their effort, I split the profit with them by way of commission payments.

Now a mlm is exactly the same thing.

The warning that you have stated though is a very tenious one, the way that you have stated it.  It would hold true of most mlm businesses, yet they are approved by DTI and FSB.

The essense of the law, as I understand it, is that there needs to be a legitimate product sold.  The focus of the business needs to be more than the recruitment of people for gain.  It is highly subjective.

I understand that in order to introduce a mlm plan to the forum requires that the product is clearly identified and the business model explained, as well as a clear explanation of the commission structure used in the model.  I am very in favour of this.  It goes to the root of many people's dislike of mlm.  They are invited to a presentation without being told what it is about and are sucked in with hype, their money taken and very little else.  From then they have to work their butts off to dupe the next individual and so on till they make some money from the scheme.

I have looked at Amway, Herbalife, Sportron and many more.  I've been duped into 1 or 2.

I recently attended a meeting for the sake of the person who invited me.  (I needed her help with something I wanted to get into.)  I promised my wife I would be respectful and tactful.  I was going to be seen and would leave as soon as possible.  Well the presenter threw the usual cliches like it is your business etc etc.

By the time I got home and my wife asked how it went, I grudgingly said that I like the model.  I have been a little concerned over the lack of product training and the lack of focus on the product.  I have been researching the legal aspects of mlm businesses and found the basic ground rule is that there needs to be a product which is the core of what is being marketed, as opposed to the recruitment - or business opportunity.

I have been selling a product 1 on 1 to individuals.  The product is absolutely brilliant.  The service being offered is magnificent.  The sad reality is that selling it like this would take years for us to get the word out.  The competition is well entrenched in the market - don't offer the same level of service, but are well established.

The way to sell this product is to get it to the corporates who have the numbers.  Most of us don't have the intro to the decision makers and so never get past first base.

Recruit a few reps, I hear someone say.  Now the product is so affordable that the commission element is too small to attract dedicated reps.

What if I could show these dedicated reps that they should duplicate themselves while selling it themselves?   Well, if I get right what I hope to in the next few months, it will take 2 to 3 years and this service provider will be as much a part of South African's lives as Handy Andy.

There is definitely a place in society for mlm.

btw:  every business in the world is - lesser or larger degree - a pyramid scheme.  One at the top and a few beneath him and then more and more workers further down.  Is it possible for the workers at the bottom to realise the earning potential of the company they are working for?  Usually not.  At least in legitimate mlm, the guys further down have the ability to increase earnings in line with the growth of the company.

We need to do our due diligence on the companies we support, since there are a lot of sharks out there who would take advantage of struggling people.  We should not throw out the baby with the bathwater, though.

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Blurock (05-Mar-13), Dave A (05-Mar-13), wynn (06-Mar-13)

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## Blurock

@milkren, Thank you for a very well thought out post. My resentment with MLM may be the hard sell and the blatant lies told to little old ladies with no marketing or selling skills. One just have to attend one of those meetings to see the little heads nodding in absolute awe and approval of the "doctor", "lawyer" or "accountant" who has made so much money staying at home with their families that they could give up their practice and concentrate all their attention on MLM. Bullshit!!!

Direct selling is hard work and the surest way to get friends and family to shun you and never talk to you again. (That is if you are doing it right by being persistent and using every opportunity to sell. You will not be successful any other way).




> btw:  every business in the world is - lesser or larger degree - a pyramid scheme.  One at the top and a few beneath him and then more and more workers further down.  Is it possible for the workers at the bottom to realise the earning potential of the company they are working for?  Usually not.  At least in legitimate mlm, the guys further down have the ability to increase earnings in line with the growth of the company.


I am afraid I can not agree with you on this one. A company organogram or chain of command may resemble a pyramid in its structure, but it does not operate like a pyramid scheme. Employees earn a set salary and do not have to recruit people below them to earn a living. (also refer to other threads for the definition of a pyramid scheme)

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