Personal Development Is It a Scam or The Real Thing?
personal development has evolved into “direct
sales” personal development. There's a big difference and one
that makes you sit up and take notice when the word
“scam” comes to mind.
Level Marketing (MLM) was new, it had everyone chasing after their
friends and family to buy the “latest, greatest”
soap! But was it really the best soap? And why do
companies opt for the multi level marketing approach?
it's very profitable, both for the company and the distributor [if the
distributor can get past his/her circle of friends and family!]
yes, it probably was the best soap! It had to be in order to
compete with traditional distribution.
But, a lot of
people confuse the two terms of “multi level” and
“network marketing.” In fact,
many people use the two interchangeably. But there's one
distinguishing factor when looking at an opportunity for
And that is
whether the opportunity is network marketing “direct
sales” or network marketing
“mlm.” (Or sometimes it could be a little
bit of both if the company has more than one avenue of
income.) Today's “mlm personal
development” has evolved into using “direct
sales” for the bulk of its sales.
first take a quick look at what makes up network marketing MLM and why
it's gotten such a bad name.
Personal Development Introduction
why do so
many mlm companies get labeled “scams?”
over the years there have been “fraudulent pyramid
schemes.” These have come to be known as
“Ponzi schemes” because of a man named Charles
Ponzi, who became notorious for using the “pyramid
scheme” in the 1920's.
So, what did Mr.
Ponzi do to get such a title? He sold a ton of
“nothing” to a whole lot of people, and
“robbed Peter to pay Paul” to do it.
really wasn't any valuable product being purchased. Even
today there are “pyramids” out there where there's
supposedly a product, but they never materialize.
what about the mlm companies that have the soap? That's a
tangible, valuable product...
lot of people will call that a scam too. But when you
ask a few targeted questions, you'll find out out a different story.
example conversation would be:
A:Oh, that's a scam.
it and never made any money.
Was there a tangible product being exchanged for money?
So people actaully sold a product rather than making their
money from sign-up fees of
new people, right?
Yes, the commissions were paid from the sale of the products
and the sign-up fees went to the company as administration
Person B:Okay, were there people who
money in that business?
Some people made a ton of money, but I never made
Person B:Okay, well, if
people were making money in it, yet you weren't making money, what was
A:Well, I didn't have
the time. I didn't think I could be like
them. I guess I didn't really apply
myself like they did.
Person B:So, does that make it
A:No, I guess not.
lot of people are into the
“blame game" and the word
“scam” is something that is often used when people
don't get the results they wanted.
I saw it all
the time when I did talent scouting around the country for models and
actors. We had a viable product and people (who applied
themselves) got great results and had
success, yet those who didn't “apply themselves” to
the opportunity in front of them, quickly came up with the word
It's a word that is
used to shift responsibility that you should have taken to make
yourself successful, onto someone else so you don't feel bad for
Except in Mr. Ponzi's case and the other
pyramids floating around out there today.
if you did apply yourself but still didn't
get results? Let
me ask you, “Was your "opportunity" one of those where you
were earned "a quarter of a penny commission per person?"
hear you laughing and saying, “Oh, come on Suzanne. Aren't
no, actually I'm
not. I was introduced to such an opportunity. I did
math and found that by the time the money "came down all those levels"
it came out to about 1/4 of a cent per person residual.
I politely said, “No thanks" to the person who invited me
(and kept the
“Are you crazy” part to myself.)
Interestingly enough, the
man that introduced me to it lasted about 3 months before
quitting that "opportunity" himself.)
even if it's not a true "ponzi scheme", each opportunity needs to be
weighed and measured against, "Do I have the human energy to make a
million dollars off of 1/4 cent per person?
I'd take my own pennies (and spare change from my desk, pockets and
glove box) and collect them in a jar. In a month, I'd be
profitable and could celebrate my first month "in business" by taking
myself out for ice cream - two scoops if the profits were high
enough! (Can you tell I'm a little jaded when it
comes to MLM?)
Personal Development DIRECT SALES
the difference between network marketing “MLM” and
network marketing “direct sales” is simply this:
level: A lot of people get a piece of the pie as it moves up
Direct sales: One person gets
the proceeds from each sale. Whether that person be on level
one, two or three, only one person gets all the proceeds from the one
So mlm personal development has turned into
high profit personal development because all the profits from each sale
go to one person – instead of dividing it up among a 100
people in your “upline,”
“downline” or “crossline!”
there be a combination of both? Yes and no. Look
for how many people get a cut of the money. If it passes up a
couple of levels, but still only one person gets it all, it's still
direct sales – with a “flavor” of
mlm. The good news about that is that when it gets
passed up to you, you also get the whole thing.
good example of this would be a “complete online mlm
marketing system” that not only recruits prospects for you
for direct sales, but is fashioned in an mlm format to give you some
“pocket change” for your costs with the system.
MLM personal development can be a combination of both direct sales
commissions and muliti-level recruiting commissions, depending on how
it's set up.
Personal Development Summary
personal development can be the real thing if you:
an opportunity that pays high dollars per sale!
a good online network marketing lead system
the other way when someone talks about Mr. Ponzi!
more information about promoting positive thinking, check out
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