MLM Talk

[Peter Arnold / Canada]

NWM//MLM - MORE than One Biz? => The REALITY

Dear Business Associates:

This subject has always been highly controversial -- I'd like to add my own 2-cents worth ((Canadian, of course :>))

FIRST, as a Business and Financial Consultant, I believe in and advise clients in the intelligence of developing "multiple income streams". For many, a NWM business ought to be one of those streams -- as well as the possibility of - Real Estate - a good Mutual Fund Portfolio - Tax Shelters - other Business Interests, etc. -- IF they fit the client's circumstances.

SECOND, I happen to subscribe to some of the teachings of ROBERT KIYOSAKI (of 'Rich Dad, Poor Dad' fame). RK is well known. I don't agree with 'everything' he says -- but I DO know that most of us will have a far better chance of reaching total Financial Independence and Time Freedom -- IF -- we can find a way to gradually move from the left side of the Quadrant ((the "E" - Employee + the "S" - Self Employed)) => over to the right side of the CASH FLOW QUADRANT (the "B" - Business Ownership + the "I" - Investment Holdings)) side -- and that a Network Marketing business (if it's chosen 'correctly') can become a perfect "B".

CHOOSING The 'Right' One - Even a 'good' NWM company (behind the Biz Opp) can involve RISK - and most people don't have access to the critical info. necessary to DO a prudent evaluation (but more about that in a minute). There are SO many factors that must come into the equation for potential success (company / product / integrity of co. management and upline / support structure / comp plan / marketing tools & systems / timing / personal attitude - belief - desire - descipline / etc, etc).

However, there are also risks in just about everything we do in LIFE.

MULTIPLE MLMs? - OK, but what about a "mix" of NWM // MLM Businesses?

Hmmmmm... that's a far more heated debate.

In my own case, we DO happen to have more than one Network Marketing // Affiliate business in our family.

Only ONE Income Source? - In today's world, we are extremely VULNERABLE with only one source of ((passive)) income within the MLM industry - in my strong opinion.

Certainly not everyone 'agrees' with that (more than one NWM Biz), and I respect that position. I've also heard - mostly from heavy-hitter Uplines, with strong self interests (my opinion) - that working more than one NWM company will only bring about "fractured focus". And there are those who will put forth the comparison that, to do so, would be like "cheating on our spouse". To each, his or her own on that. What follows are strictly "my own" thoughts on this.

After 20+ years in this industry, I've found it's indeed quite possible to do this -- but with two primary qualifications...

(a)-- That such NWM businesses do NOT COMPETE with each other (they could be 'separately', from - Health &Nutrition // Telecommunications // Business, Legal, Financial, Wealth Management Srevices // Personal Care // Leads Supply // Affiliate deals, for Biz Building Tools // etc). Very often, such businesses can in fact, COMPLEMENT each other quite nicely.

(b)-- That "brand new" people stay with only ONE Network Marketing business - at least until that "first" one is highly profitable -- and then the next, etc.

A Business MIX within an INVESTMENT System? - One way to accomplish multiple streams of ((passive)) income would be to hold a 'group' of MINI-AFFILIATE Networking Businesses - within ONE Investment Structure. This is more common in Australia, but could become popular in North America as well.

LONG LASTING - Before recommending any 'particular' MLM business to a prospect -- I want us each to discover "up front" whether we have a trusting RELATIONSHIP going -- whether it will be a good FIT for them -- and whether we have a "mutual" match of interest - values - vision. The latter part is extremely important to me personally -- as after all (to me), a BUSINESS PARTNERSHIP -- if it is to be a long lasting success ("retention" = solid RESIDUAL (recurring / passive) Income) -- it's like a healthy marriage should be -- a serious undertaking, built on -- mutual respect -- loyalty -- sacrifice -- team effort -- caring -- leadership. Again, these are my 'own' thoughts here.

SELECTION - I liken this to professional - Insurance Brokers - Stock Brokers - Attorneys - CPAs ==> to serve their clients in the best possible way -- they tend to represent (or be associated with) a "number" of different companies or resources from which to draw products//services for their clients. Those who are aligned with only "one" company // source // product // service will not have that same 'range' of options to offer.

Not that this is a "bad" thing, it's not -- it's just that I believe people are better served by the former model.

A 'REALITY' in NWM - As much as I personally respect and admire many fine NWM companies -- I have "always" maintained (and strongly recommended to others) -- that we need to keep ourselves "at arms length" when associating with "any" NWM Co. I believe that we can "love" the company(s) we associate with -- but that we should never be "in love with" these companies. Can you see the difference?

WARNING - This is my 'own' call on this, based on some "real bad" experiences over the years. Things CAN go wrong in this industry. In fact, some times, "terrible" things can and do happen. Unfortunately, some in this industry take a position of almost 'worshiping' the owners of their NWM company -- others I feel, almost become a little 'too smug' about their relationship with corporate -- that they'll 'sail off into the sunset' with that company - to their freedom. These positions are a mistake I believe.

TRUTH - The fact is -- whether we like it or not -- many (not all) company "owners" (and their bank of attorneys) are the ones who call the shots. THEY have the control. They can cause "negative changes" -- a change in their "corporate mission" (I got caught in that!) -- a change in the Comp Plan (that too!) -- a change in ownership at the top (or, going public -vs- privately held) -- a decision to "cease being a 'NWM' company, and go DIRECT SALES only (a number of my friends got caught there!) -- or, seeing some "brutal treatment" of distributors, by owners who lack INTEGRITY. One of the best ways to measure whether the Owners//Management Team have integrity is to very carefully study their POLICIES & PROCEDURES -- well BEFORE joining any NWM Company's Biz Opp. Sadly, most do not do this.

DSA - Please keep in mind that the P&Ps are the Binding Legal CONTRACT we sign when we decide to partner with them -- and these (often 'boiler-plate') Biz Agreements are probably a carry-over of the (often absurd) RULES imposed by the bank of Attorneys at the DSA (Direct Selling Association).

DISTRIBUTORS 'RIGHTS' ASSOCIATION - Currently, the DRA is the only resource we (as [so-called] Independent Business Owners // IBOs have, to fight for our "rights" as [again, so-called] Independent Contractors, when serious disputes / abuse / lawsuits arise. I believe we should ALL be Members (only $50./year). Their website is at - http://www.MLM-DRA.org (but it's currently under re-construction). Another site that is parallel - and which exposes some of the 'turbulance' within our great industry is at - http://www.MLMWatchdog.com .

PANM - Another place to visit (and be a Member of) is the Professional Association for Network Marketing -- http://www.PANM.org . It provides us with a Professional Code Of Ethics -- it helps us to 'raise the bar' on standards of conduct and excellence.

The T-E-A-M - My own strong belief has always been -- that the TEAM is a major part of the answer. IF we build a 'unified' Team of partners -- who respect and trust and care for each other -- who mastermind and brainstorm on important issues -- who are loyal, professional and honorable in their dealings with each other -- where there's an environment (a 'culture') of positive inspiration and empowerment and education -- THAT alone, will help carry a Group through most of the "storms" that could occur.

But beyond this -- (in my opinion) that TEAM should treat their NWM company(s) as "VENDORS of good Products//Services -- for themselves / for their customers / for their new partners". Period. Period.

WHO 'IS' IN CHARGE? - And then -- IF that NWM company should "mess up" -- the TEAM should "fire" that Vendor -- and then -- "push and play" a NEW Vendor. This helps to remove the "emotional attachment" to any NWM Company // Biz Opp. This is NOT to be disrespectful to NWM companies. It is simply to cause us to have the right "mindset" -- that we are running a business -- that we are in business to make a profit -- and that WE DO have both independence and rights (although some would argue this).

EXAMPLES ((HeartBar)) - Here's one of those SAD stories in our industry. After it built itself using the NWM business model, HeartBar's "corporate" division made a decision to all-of-a-sudden 'bypass' its own distributors -- and offer its product under a completely different name, Online -- and go DIRECT SALES instead. Someone in the distributorship happened to discover it by accident -- confronted corporate about it -- got the 'run-around'. As you can imagine, any element of 'trust' that had existed previously -- was rapidly killed. The end result was -- after much heartache, agony and devastation ((both financial and emotional)) amongst the Heartbar distributors => HeartBar, as a NWM business, was closed out. There are SO many similar stories -- or stories of NWM Companies that have ceased operations or "crashed and burned" (just a few => Equinox / Skybiz / Zig Ziglar Network / Renaissance / One Source /.Lifetronix / TPN / Alliance USA / United Sciences of America / Excel Communications / The Tax Man / Primebuy Network / BigSmart / iPowerBiz / OneWorld Online / The Payline / PRSI / Jewelway Intnl / Quorum / FutureNet / TravelMax / ProTravel Solutions / I-Link / ITI / Global Prosperity / BigSmart / * / GMT / Retire Quickly (FFSI).

LAWSUITS - I can tell you this -- lawsuits take place in "every" Network Marketing company. Both ways -- NWM companies terminate distributors (sometimes, unjustly -- I've seen it happen). Distributors also sue NWM companies. Sometimes the company wins. Sometimes the distributor wins. This has happened (is happening) with very well known companies - PrePaid Legal // FreeLife // 4Life // Amway // NuSkin - on and on. These legal wranglings are not unusual -- just as they're not unusual in "any other" industry / company / business / institution. It happens. It will continue to happen. We live in a litigous society. And the NWM companies we may be currently looking at are probably no different. They ALL have had their own similar stories.

But with NO 'DIVERSIFICATION' - or safety-nets - or "cushions" in place whatsoever ((such as another NWM Biz)), many will suffer needlessly -- because they had their "heads in the sand" -- thinking - "it could never happen to ME!"

RISK - Business people DO take some 'risks'. NWM is a "business" -- and we need to think more like "entrepreneurs" -- more like "merchants" do I believe -- and never become 'too content' (or smug) about our relationship with our NWM companies -- that's all.

Respect - YES // Pride - YES // Passion for the products and services - YES. BUT, beyond that -- I feel strongly that we need to keep a healthy at-arms-length position. Multiple income streams are simply prudent. We 'diversify' both our risks / rewards.

Bottom Line - Perhaps some will feel all this sounds a bit harsh. Forgive me if I've in any way dampened your quest. That's not my objective. I simply want to talk some REALITY. We're all adults here. At the end of the day, in my own view, it all comes down to having correct knowlege -- to being well informed -- and to "positioning" ourselves for the future in the best possible way -- in order to cope - survive - prosper. This is not a pipe-dream. This is real - and to me, it's both challenging and exciting.

NWM - This is an industry I have a personal PASSION for. NWM is a 'business model' I greatly respect -- both as a Business and Financial Consultant, and as a professional Network Marketer. I have grown to admire some of its most important strengths -- the GIFT of the friendships made -- the opportunity for business education and for personal growth --the thrill of seeing people achieve their objectives -- the enormous economic potential available -- the chance to offer consultation to others -- the opportunity for personal business ownership, that can easily be conducted from the privacy of my own home -- the fun we can have together as a 'Team' -- to touch on only a few.

Is NWM 'PERFECT'? --NO-- of course not (SEE ABOVE). But show me an industry//business//profession//investment that is.

Is there Opportunity for TIME + FINANCIAL Freedom? --YES-- you bet there is! Far more so than in just about 'any other' business. And it's there for "any one" of US.

For those of us who will pay the PRICE -- and do today what others won't -- we'll reap the PRIZE -- and have tomorrow what others can't. It's a matter of choice.

MORE than one NWM business? -- That's a matter of individual choice also.

Sincerely, Peter A.
http://www.PeterArnoldOnline.com

Peter Arnold, CLU, CFC // Founder
Business Achievers Academy // Canada

How to 'Evaluate' a Biz: http://www.Keys2Success.biz

--------------------------------------------------------------

Executive Regional Director for the D-R-A // Canada
Distributor Rights Association: http://www.MLM-DRA.org

DRA: MLM//NWM - Distributor Rights Association
DRA 'Bill of Rights': http://www.MLM-DRA.org/BillOfRights.asp
------------------------------------------------------------------------------------
A Non Profit Organization - Preserving the Promise of Residual Income
================================================

DRA - a global organization formed to protect and defend the rights and
incomes of Network Marketing professionals against any unfair conduct by
NWM (MLM) companies. Serious Network Marketers need to be members of
the DRA. It cost less than $1/week. Join Now! Go to - http://www.MLM-DRA.org
========================================================

l