It’s true, I am on this mission to expose the myths of Network Marketing.
After more than 20 years in the network marketing industry and some home runs that brought in a lot of money I am just becoming wiser in my old age and more concerned about all the masses that continue to fall for the network marketing hype and empty promises.
So for this post I’m going to talk about the myth of “Legacy Income”, that is income that will continue on after you are gone.
It is one of the big selling points for most network marketing “opportunities”. The claim is that you can work hard for 2 to 5 years and build an income that will go on past your lifetime. That your business is “willable” and “sellable”. An income you can leave to your children, grandchildren and future generations.
The big problem with that is, while it sounds good and so many people buy into it, there is just not enough factual history to prove that it ever truly happens.
In my personal experience of more than 20 years in the industry I have NEVER, not even one time seen that happen for anyone.
The fact is the opportunity of a lifetime is only as good as the lifetime of the opportunity.
When you have more than 90% of the participants have left the company within ten years how can that possibly equate to a “permanent ongoing residual income”?
In my own experience I realized after reaching a point where I was being told I had a “lifetime residual income”, I’m just not sure who’s lifetime they were talking about, the simple fact is, it was also not residual at all. I had to work harder every year just to keep replacing the people that were leaving the business. Why were they leaving?
There were NOT making any money THEY WERE LOSING MONEY!
One thing I found in all my years of network marketing is that if you can’t help someone start making money within 90 days most of them will quit. I’ve never seen a network marketing company that did not have monthly purchase requirements, or “auto-ship”. So if someone has joined a company and 3 or 4 months later they are still not making money they will usually quit and I can’t blame them. Their new “business” has become an added expense that was not in their budget.
When people join a network marketing “opportunity” they do so with the intent of making money. That is usually the only reason they are willing to purchase over priced products to begin with.
Most people that join are also not already financially independent or even financially secure in fact it’s been my experience that most of them are BROKE!
That is why they are looking for a way to make some money.
So they buy into the hyped up empty promises of the network marketing promoters and begin their quest for prosperity. In most cases putting the expense of it all on a credit card, then after a few months they realize their credit card is getting maxed out and they are not even close to making enough money with their “business” to cover their monthly expenses of having the business, they are just literally going deeper and deeper in the hole.
Reality is starting to set in… they do not have the financial resources to keep up with this game. They usually try and hang on to false hopes for a few months longer, running up the balances on the credit cards even more until finally they are stuck between a rock and a hard place.
With their credit cards maxed out they have no choice but to quit the “business” because they cannot cover the cost of their “auto-ship” and still pay their rent, utilities and groceries to feed their kids.
It’s really like trying to fill a bucket that has holes in it.
I used to say “They are going out the back door as fast as I can bring them in the front door.”
How can you ever have ongoing residual income with that going on?
I personally know many people that make six figure incomes with a network marketing business however they still work at their business as hard today as they ever did, if not harder.
How does that equate to any kind of “walk away residual income”? What would happen to that income if something happened to them? It would slowly dissipate into nothing!
And the claim is that… there is a “legacy income” to be had?
In more than 20 years in the industry I have never seen that work for a single person, not one!
Sure there may be a small percentage of a percentage of people in network marketing that have created a long lasting residual income. But that percentage is so small it does not relate to the real world or the average person that joins a network marketing business. It is just like so much about network marketing that is nothing more than another MYTH!
In the book “The Case For and Against MLM” the author Dr. Jon Taylor states…
What would a “good MLM” look like?
Many have asked if it is possible to have a fair and equitable “retail-focused MLM” program. In other words, what would a “good MLM” look like? Considering the inherent flaws in MLM as a business model, the established precedents, and the motivations that drive the industry, one might wonder if such an MLM is possible. Some insist that a “good MLM” is an oxymoron.
Prospects would have to be told that market saturation could inevitably occur, leading to a diminishing opportunity for new recruits. Such protections would remove the underlying “easy money” motivation (“residual income,” “time freedom,” etc.) and the complex maze of deceptions, upon which MLM is dependent.
“I have tried in vain to visualize an MLM program with such consumer protections succeeding. The driving force of huge incomes for TOPPs would be absent, and founders may find it more difficult to skim from revenues. In fact, I have run these suggestions by several persons who were interested in starting a “good MLM,” but they each decided on a more standard MLM compensation plan – probably because no one would make obscene profits with such strict protections against abuse.”
Please don’t misunderstand me here. I am not saying you cannot make money in network marketing. For a very very small percentage of people that is possible, but I just want to help the masses that will never make a dime in the industry, more than 99% of the people that join a network marketing business LOSE MONEY! More than anything I want to get people away from the hype and B.S. that is the claim of “Legacy Income”. It’s NOT there! It doesn’t exist.
I have no doubt that I would still not be able to speak out about the flaws of network marketing and deceptive practices that are such common place with network marketing companies and organizations if I had not found a better model, a better way for the average everyday person to be able to build a large six or even seven figure residual income.
A model that does not have all the downsides of network marketing, a model that doesn’t take an investment to get involved with, a model that does not require any kind of monthly auto-ship or high priced products or hyped up miracle cures, soaps, lotions and potions.
A model that is built on real shopping by real customers from traditional businesses that they already purchase from every day, a model that is about the biggest “no-brainer” to ever come along in the work at home industry.
If you would like to learn more and take a look yourself just CLICK HERE, complete the form and watch your inbox for details.
Remember, I have NOTHING for sale.
We literally give this away, there are no investments to make, no kits to purchase, no websites to pay for, no monthly purchase requirements. In fact the only thing it even has in common with network marketing is that you can refer other people to it and that is where the similarities end.
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I hope my articles help you consider your options with a work at home business and realize the risks involved with network marketing.