The question now is:
Will you do something differently for you and your family
to...
Have financial freedom?
This is where you will learn the truth about:
Business, The Economy, Jobs, Retirement, and Building Wealth.
If you have the desire to take charge of your future,
this is where it begins!
I have created links to the different topic headings. They work in reverse as well.
Here are the links:
Planning for freedom (Retirement)
Choosing the right financial vehicle
Characteristics of the right vehicle
I want to give you some very important information that can literally "change your life" financially.
Before I get into the information, I want to ask you a few questions.
Do you wish you had more money to do some things you currently can’t afford?
Are you struggling just to pay your bills?
Have you been laid off from your job, or been cut back on your hours?
Are you tired of living paycheck to paycheck?
Are you tired of being a few paychecks away from bankruptcy or even welfare?
Have you lost a large portion of your retirement savings to an economic downturn?
Has the poor economy hit you hard in your investment portfolio?
Are you a professional person who is tired of fighting the bureaucracies?
Are you interested in a way to prosper financially, even in a bad economy?
Are you tired of being told when and how long you can take vacations?
Do you want to be financially free?
Are you willing to pay the price for financial freedom?If you answered YES to any of the above questions, you will want to read the information I’ve provided below, and watch the videos!
We are living in difficult economic times, and many people are predicting that it’s only going to get worse. In spite of the economic crisis we are in, you don’t have to be a victim of it. There is a solution that will give you the financial freedom for which you are looking.
Napoleon Hill said, “Before success comes in any man's life, he's sure to meet with much temporary defeat and, perhaps some failures. When defeat overtakes a man, the easiest and the most logical thing to do is to quit. That's exactly what the majority of men do.”
He also said, “Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit.” Over the past few years there’ve been many people in our country who have lost their job due to the down-turn in the economy.
This is always a devastating blow to the person as well as their family. I too have experienced loosing a job through a down-sizing and restructuring of a company with which I had given almost a decade of service.
You may have also experienced the same thing. This kind of thing not only affects your financial security, but can affect your personal feeling of worth and value. You may even experience a time of insecurity and doubt about the future.
How does a person recognize this seed of equal or greater benefit, and how does a person overcome these seeming failures to rise to prosperity? Rregardless of the negative circumstances we experience, there’s always a silver lining to the dark cloud?
Charles Stanley said, “Life is 10% what happens to us and 90% how we respond to it.”
Circumstances like loosing a job or loosing a substantial portion of retirement savings can certainly cause a person to rethink his or her actions when it comes to their financial future and how to maintain an adequate income to enjoy the same level of comfort during retirement.
It is these actions that make all the difference in the ultimate outcome of a person’s financial life.
So, let’s examine some of these actions in the form of fundamental principles that affect how we view our jobs, our incomes, and eventual retirement. The common principles are:
- Conditioning by society
- Planning for freedom (Retirement)
- Choosing the right financial vehicle
- Characteristics of the right vehicle
- Taking action
Most of us were taught as young people to go to college, get a degree, and find a good job working for someone else. Perhaps this “someone else” was a large corporation with lots of benefits, perks, security in a routine payday, and possibly even what most people would call a high salary.
There’s nothing wrong with this of course, but you must ask yourself this question, “what are you trading in return for all these so-called benefits”? What do I mean by this? Well, we are always trading something for something else aren’t we? As I’ve said in my book, “Don’t Get Trampled by the Moose!” we either trade quality for price, or price for convenience, or even convenience for something else we want.
As an employee of someone else, you may trade personal free time for more pay so you can have more money to buy something you want or take a trip you want.
The bottom line is, as an employee, you trade personal freedom for company benefits. This may be just fine for most people, but there’s a segment of our society that is tired of living under the thumb of corporate control.
This segment is growing at an unprecedented rate. People are tired of the broken promises of corporations. A person is hired for a certain hourly wage in return for his time performing a certain task designated by the company.
Then the bottom drops out of the company and people are laid off without warning.
This is not the company’s fault, after all, the economy is affecting everyone, but more than that, how can a company be loyal to a person, or a person be loyal to a company. What is a company anyway?
A company isn’t an individual or entity; it is a conglomerate of people and ideas. Loyalty to a non-entity is misplaced.
You can only be loyal to a person, and most people are more loyal to themselves than any other person; this is normal human nature and is looked down upon by many. However, you must look at the consequences of loyalties if you are to understand how to survive in the current economy in which we find ourselves.
No one could rightly argue against the need for a man to protect and provide for his family, or a single parent to meet the needs of their children. Every person who is responsible for a child must find the means whereby to give them the chance for education and opportunity. This is the basic of all human endeavors.
The greater an individual views the value of the child in their charge, the greater the level at which they will strive to provide for that child’s future. This doesn’t mean just monetary provisions, but emotional and spiritual responsibilities as well. But, we’ll discuss only the monetary responsibilities.
Loyalty to yourself is the only way to secure financial security for you and your family. This action isn’t selfish, as many people may think. Over 200 years ago, most people relied on their ability to provide for themselves.
This attitude of self provision and rugged individualism is what made our nation great. Sadly, large portions of our society today have been conditioned to rely on someone else, namely, the government, to provide for their financial security.
We have seen in recent months just how fragile this relationship can be. So, how does a person achieve financial security in our current economic environment? We have already seen how corporations no longer provide the security of long-term employment.
How can a person provide this security for themselves once again? The answer is, by planning properly for financial freedom.
Planning for freedom (Retirement)
Employment is simply the means of generating currency, approved by our society, to trade for other goods and services. The manner in which we generate this currency is the main focus of this discussion.
There are three primary ways you can generate currency. You must generate currency through either revenue from commerce, wages through employment, or profits through investment.
With this in mind we can conclude that each of these three sources is simply a “means to an end.” We can also call this process, “planning toward a financial goal.”
In order for us to plan toward a specific financial goal, we must know what the goal is in the first place. This goal is the driving force behind every action you take, and every action you take should move you closer to your goal.
If you are doing something that takes you further away from your financial goal, you must stop that action immediately. So, the first decision to make is to establish the financial goal you want for yourself.
The majority of people never give this step a second thought. They think if they currently have a job, they are going to be just fine.
History has proven that people, who fail to plan financially, end up either living beneath their current quality of life when they reach retirement age, or must continue to work far beyond normal retirement age. This does not have to happen to you.
We have discovered in recent months that retirement savings held in company stock is not the safest choice to provide a suitable income after retirement. I am not offering financial advice here, but whatever choices you make to secure your financial future, you must ensure it will be there when the time comes and when you need it most.
So, what is retirement all about? Well, many years ago, the government (and I use that term loosely, after all, we are the government right?) anyway, the government decided it would be a good idea to take a portion of money out of everyone’s paycheck and “save” it for us until we reach old age so we would have money to live on. (We won’t get into how the bureaucrats have spent our money when they were entrusted to save it for us. That’s another lecture for another day.)
Then, when we reach the age they determine, we start receiving monthly incremental payments of our own money. Sounds kind of funny doesn’t it! Having the government take money out of your check so they can use it as they please until you reach a certain age. Who asked them to do that anyway? Not me!
You may ask, “Why do I need other people taking money out of my check, when I am barely making it now?” Well, that’s the way it is, and unless a lot of people get together and change the system, that’s the way it will remain, at least until the money you and I have put in there is spent by the politicians, then who knows what they will come up with. So, you need to ask yourself, “Is this money going to be there when I retire?” “Is it going to be enough, even if it is there?”
The truth is, there are no guarantees that any of it will be there. If that’s the case, what are you going to do when you get too old to work?
Let me ask you another question. Why do you have to wait until the government decides you’re old enough to retire? The answer is, YOU DON’T!! In fact, you can “retire” anytime you please, if you have the money to do it, right?
So why do you have to retire at all? Why not call it freedom, instead of retirement? Do I need the government to tell me when I can be free financially? NO! And, neither do you!
Let’s look at retirement from a different perspective. According to the traditional, corporate mentality, retirement is supposed to be the reward for a life of service and employment to a company.
This is what most people think of when they talk about retiring. In fact, most people are of the opinion that you retire from something. Let me say very emphatically, you should never retire from anything, but rather to something! And why does retiring have to be after 30 or 40 years of employment?
The sad truth is, if you are working for someone else, it takes this many years to accumulate enough money to retire. This is the whole problem, as I see it!
And if we are calling retirement – freedom, wouldn’t it be much better to choose the age at which you want to enjoy this freedom? You can, but only if you effectively plan for it.
You must change your mentality from one of retirement to one of freedom. Retiring means: to stop working, withdraw, exit, leave, pull back, fall back, pull out, give ground, retreat, etc; doesn’t sound real positive, does it.
To be honest, it kind of sounds like…dying. On the other hand, freedom is having the ability to do what you want when you want. Isn’t this much more positive? This is the end for which you must work.
So the means by which you obtain this end, or freedom, is very important. The real goal then is to get to freedom as quickly as possible so you can enjoy the freedom the longest possible amount of time. Why wait until you are in your 70’s to enjoy financial freedom?
The question you must ask yourself now is, “How well is your current plan working for you?” Are you going to reach financial freedom sooner than later, or perhaps not at all?
Are you going to be one of the millions who have to wait until they are in their 70s to enjoy financial freedom? Are you going to be one of the other millions who never have financial freedom at any age?
You see, it really is up to you. If what you are currently doing is not going to provide you and your family with the freedom you desire, you must create another plan; a plan “B” if you will.
You must first have a desire to be financially free before you can create this plan “B” to take you to your goal.
Freedom is truly within your grasp, if you want it badly enough. The problem with most people is they are unwilling to pay the price to gain financial freedom for themselves and their families.
If you are willing to pay the price, there is no limit to what you can achieve. Once you have a desire that is strong enough to carry you through to the end, you must create your plan.
The most important part of your new plan is choosing the right vehicle that will take you to your goal.
Choosing the Right Financial Vehicle
The first choice of vehicle for most people is working for someone else.
Let’s examine the fallacy of gaining financial freedom through being an employee. There are many reasons why a person makes this choice.
First, many times it is because someone in their family before them has worked at the same location, in the same vocation, or with the same company. Thus, they believe it is a noble thing to follow in the footsteps of their family member.
While this may be noble, it is not smart financially. Second, many people do not have the education or expertise to do anything other than work for someone else.
It is not wrong for a person to labor for someone else; in fact, there is always a need for laborers. However, this is not a vehicle by which financial freedom can be gained.
The employee or laborer, let’s call him Lem, will always be dependent upon the employer for one thing, his employer's willingness to pay. As soon as the employer is unwilling or unable to pay, Lem is without an income. This dependence is a scary thing, and it is getting even scarier.
Through the years, people have had to compete for the best paying jobs. This was no different for Lem. He had to acquire more education, more skills, more recognition, or more connections to position himself for that high-paying job; all the while spending thousands of dollars to acquire those requirements of “positioning.”
What he did not realize is that he was only indebting himself so much that it will take decades to even break even with what it cost him. By then, the younger, more able, more skillful, more educated, and more connected is now in competition for his job.
If Lem has not been promoted into higher positions of authority, he is a “sitting duck” for the competition. All of the sudden Lem finds himself with the prospect of being replaced, and the decades of service were only useful in his life to pay for the “cost of positioning.”
He is not able to enjoy the security he once thought was a sure thing. He is now in the mid-life years and having to compete with younger more energetic individuals for the same job. He is not financially secure because the past ten or fifteen years have been paying for his cost of positioning.
Even if he has been promoted, he is still competing with others for the ever-illusive position “that will guarantee security.”
Lem’s dream of financial freedom quickly becomes a nightmare. He does not possess financial freedom, personal freedom, or any other freedom, because he is told when to go to work, when he can leave work, when he can go on vacation, how long he can stay on vacation, how much money he is going to make, and for how long he is going to make it.
He is told where he has to work, who he must work with, and who he must work for. Since he is trading his time for this control by his employer, and therefore, his time freedom, he is quite literally giving up everything just to work for someone else.
This is not what he had envisioned when he was in college preparing for his career.
Lem had a vision of being financial free some day, at retirement age, but never recognized what he was giving up in the best years of his life. If he could have recognized when he was younger that the only way to true financial freedom is to be free to make his own choices, it would have empowered him to make the choices that would take him to his goal faster than he could have ever dreamed possible.
The dream of financial freedom, however, is not held by everyone. There are those individuals that choose to work all their life for someone else. For them, financial freedom will never be a reality. They have accepted a certain level of quality of life as being sufficient for them. To them I say, “More power to you!”
I would not want to reduce their choice to anything other than it being their choice. If they are happy with this arrangement, then who am I to say otherwise?
There is, however, a large segment of our society who desires to live their life to its fullest possible extent.
They desire to have the ability to go where they please, when they please.
They want to choose for themselves who they work with, and desire to work for no one.
They have an appetite for a higher quality of life than the average person.
They are willing to risk more to have more.
They are willing to pay the price now, for a few short years, in order to enjoy the life they desire for many years to come.
They enjoy and must have financial, personal, and time freedom.
They are the givers of the world.
They recognize that the only way to enjoy this kind of life is to give themselves to others, and thereby proving that it is more blessed to give than to receive.
It is this group of people that provide the employment opportunities to most other people.
This group of people also gives a large portion of their earnings to non-profit endeavors.
It is also this group who generates more tax revenue for the government through commerce.
The vehicle chosen by this group to reach financial freedom is business ownership.
The reason is simple; as a business owner, this person, and we will call him Shem, has the ability to determine how much money he will make, as apposed to the employee who has this determined for him.
Shem has the opportunity, as a business owner, to make decisions that directly affect how much freedom he will have. Shem can decide what line of work he wants to pursue, and how much he wants to be paid. He decides how many hours he wants to work, and when he works those hours.
Shem decides when he goes on vacation, and how long he wants to enjoy the vacation. The only limit Shem has is the limitations he places on himself.
What are the differences in Lem and Shem when it comes to finances and financial freedom?...
The most obvious difference between the two is: while Shem makes a profit, Lem only makes a wage. These two different approaches to income creates polar opposite results in personal finances.
While both can be considered an income, only profits from business retain the larger portion of the earnings. As stated in my book, “Don’t Get Trampled by the Moose!” “An employee is taxed on his wages while a small business owner pays taxes on his profits.” This means that Lem must pay the government all their money before he sees his paycheck, while Shem pays his expenses before he gives the government anything.
In some cases, Lem may actually pay the government more than he is supposed to and feel he is getting something great when the government returns the overpayment to him in April of each year in the form of a tax return.
This arrangement takes money out of Lem’s pocket during the year that he could be investing or using for expenses, and allows the government to use it instead. Lem is not in control of his finances because other people are deciding what is done for him.
Lem has one of the rarest and most precious commodities any of us have, and he’s trading it for one of the least valuable commodities. He is trading his time for someone else’s money.
Time can never be saved or created. We all have the same amount of time in a day. When time has passed, we can never regain that time. It is imperative that we all use our time as wisely as possible!
Money, on the other hand, is not rare; you can save, create, regain, manipulate, and generate as much money as you desire. It is not even worth that much any more, and they print or mint more of it all the time.
The truth is, Lem is getting the raw end of the deal. He is told what, when, where, and how he is to live more than one half of the available hours in his day. In return he is receiving just enough money to pay his bills and have a little left over for a movie or to eat out once a week.
Lem can never make more money than the number of hours he works, thus, his income is very limited, and so is his future. The only way he can increase his income is to work more hours. The only way he can change his economic status is to find another legal source of income, reduce his expenses, or both.
Shem is the one in control of his money, and consequently, his financial future. He has tax advantages that Lem hasn’t even heard of; much less have the opportunity to enjoy.
Shem can reduce his tax burden dramatically by claiming over 150 tax deductions as a small business owner. As an officer of his company, Shem also gets to pay for many personal expenses such as: children’s college education, vacations corresponding with business trips, housing, etc, all out of the company’s revenues, and not having to pay a penny of income tax on those items.
This reduces the taxable income necessary for Shem to enjoy these benefits and a greater quality of life, while Lem must figure out how to save for or do without these opportunities. The tax incentives alone are motivation enough for Lem to start a small or home-based business.
Add to this the freedom Shem enjoys to live life on his terms, and you can see why Lem is angry. He has been sold a bill of goods that is not what he bargained for. Lem was looking for something much different than that with which he wound up.
The question now is, “How can Lem get out of this predicament?” He must change the vehicle, which he is counting on, to gain the financial freedom he desires. His current vehicle, or plan, is not working, so he must choose another vehicle to provide the freedom he desires. Place yourself in Lem’s shoes.
It is important for you to make this choice wisely because you do not have as much time left as you once did. Therefore, the particular vehicle you choose must get you to the desired “end” faster than the ones you would have chosen when you were younger. It is also very important to select the right vehicle for the economic environment in which you live.
Some financial vehicles may seem to be great opportunities at first, but turn out to be just the opposite, causing you to waste precious time getting to your financial goal. You must determine the effectiveness of your current choice of vehicle, and select a second vehicle that will supplement your income in the short term, and perhaps even replace it in the long term.
To effectively make this choice, you must first decide whether or not you even have a plan to reach your financial goals. Once you recognize what level of income is needed to reach your goals, the business vehicle you will choose to carry you to the “end” is of utmost importance.
There are only three types of basic business models to choose from: a conventional brick-and-mortar business, a franchise business, or a home-based business? To determine which one is right for you, the activities of the business must coincide with your purpose for having the business in the first place. In other words, the business model should match your desired goals.
If your goal is financial, time, and personal freedom, you don’t want a business that ties you to activities that are not in line with your goals. Let’s look at these three in comparison one with another.
First, let’s look at the conventional brick-and-mortar business. The critical elements of this type of business is, location, location, location (as it has been overstated, but still true), a trend friendly product line, a lot of personal time on site, and lots of working capitol (and I mean lots).
In a typical conventional business, you would build and own a building, buy an existing building, or lease an existing building. If you build a building you also must also purchase the land on which the building will sit; if it is in the right location, you must purchase a very expensive piece of property if it is going to draw traffic through your doors.
Without traffic, you have no business. In this business model, there are several factors that will affect how well suited it is for your goals. You must ask yourself these questions:
- Do you have the capital to initiate this type of endeavor?
- Do you have the personal time to invest into running this type of business?
- Do you have the products or services that people want?
- Can this business get you to your goal quickly enough?
If you answer no to any of these questions, you best not begin this type of business. Because this type of business is commonly very labor intensive, you will not have the freedom you may think you will have.
There is the option of paying other people to work for you, and this is a good thing for the economy, however, until you have sufficient income to cover all the financial obligations placed upon an employer by the government, you are going to be the “chief cook and bottle washer.” This is OK as long as you can answer yes to all the above questions.
Second choice of vehicles is the franchise business.This type of business closely resembles the conventional brick-and-mortar business except that your products or services are already established for you. There are advantages the franchise business has over the conventional business. These advantages would typically include:
1. National recognition
2. A proven system for you to follow
3. Standardized products and services
4. Established business modelWhile this type of business usually generates a higher income to investment ratio, the downside to this kind of business is that it normally requires a substantial initial investment. Most franchise businesses must also share a percentage of the gross or net revenues with the parent company.
In other words, since I enjoy eating at a fast-food restaurant called Wendy's, let’s say I wanted to open a Wendy’s restaurant and was successful in doing so. In return for the privilege of using the Wendy’s name, I would have to share a percentage of the revenue of the franchise with the Wendy’s franchise corporation.
The owner of this type of business must dedicate himself to the life of the business.
In other words, as long as he owns the franchise he will be tied to a schedule that includes very long hours and all the headaches that go along with hiring and firing employees.
Thirdly, we discuss the vehicle option of the home-based business.
There are many different options for the home-based business owner in regard to the type of business, the business model, the product or services, and the initial investment requirement.
The most common home-based business is network marketing. Network marketing is one of the fastest growing industries in the world. A recent article in the USA Today, Business section, promoted network marketing as being a recession proof business. Well known business men such as Donald Trump, Robert Kiyosaki, Sir Richard Branson, and others have not only encouraged participation in this industry, but have invested heavily in the industry themselves.
There is a reason for this.
Network marketing is one of the most appealing business models because it does not require a large investment of working capitol, long hours, or the need for employees.
The average person can easily afford to start a network marketing business due to the low up-front investment, and yet, they can see a potential for a tremendous return on that investment.
There is no special skill or experience necessary to run a successful network marketing business. With the right company, the business owner doesn’t even have to handle product inventories, service calls, or paperwork.
It has often been said that the network marketing industry is its own worst enemy. Network marketing has been given a bad rap because some companies have used the industry model to peddle their crooked schemes.
The network marketing business model is a sound, ethical, and potentially lucrative model that is even taught at Harvard Business School and other major learning institutions around the country.
There is no reason anyone should shy away from an opportunity to get involved with network marketing.
The benefits of working in network marketing far outweigh any stigma that could be associated with it. When you consider the freedom you have to build your business at your pace, be involved with products you can be very passionate about, work the amount of hours you desire, possess the potential for thousands of times the return on your investment, and have the freedom to make choices that are right for you and your family, network marketing is a right fit for the majority of people.
A friend of mine once said, “In order to build wealth in America today, you have to either multiply money or multiply people.” Network marketing is a vehicle whereby you can multiply people, helping yourself financially, all the while helping other people be more and have more than they ever dreamed possible working for someone else.
The question now is which type of business is right for you.
After weighing the pros and cons of the three businesses we just discussed, it makes sense that network marketing is the strongest choice. Regardless of which vehicle you choose, the object is to get to your goal as quickly as possible in order to enjoy the freedom you will have for as long as possible. This is not going to happen overnight.
You must recognize the fact that anything worth having is going to take some effort to obtain. Understanding this up front will help you set realistic goals for yourself so you won’t become discouraged along the way.
Be content with the reality that it will take a minimum of 3 to 5 years to build a strong network marketing business that takes on a life of its own.
Most traditional brick-and-mortar businesses require a lifetime of dedication. If your brick-and-mortar business is your hobby, there is no reason to do anything else. If your business is not your hobby, you might as well be working for someone else because you are tied to the business like a ball and chain. This may be suitable for some people, but the majority of people have a desire to reach their goal of financial freedom more quickly.
The only way to accomplish this is to determine up front that you are going to choose the plan or business that is most lucrative over the shortest period of time available. This type of business falls squarely in the network marketing area of home-based businesses.
Characteristics of the right vehicle
Recognizing network marketing as the industry to give you financial freedom is one thing, recognizing the right company within the industry is a whole different matter altogether. It is not a simple matter to locate a company that has all the benefits you desire.
It takes time to understand all the intricacies of a network marketing company’s business model, promotion level requirements, compensation plan, financial strengths and weaknesses, initial investment required, product line, and future stability, and marketing techniques that foster success, unless you have someone who can tell you what to look for in a good company.
Well, this segment is about just that, “what to look for.”
Many people do not know how to find the network marketing company that is right for them. If you are going to join yourself to a company it would be wise to learn as much about the company as you can. Your research should include certain aspects of the company such as their stability and longevity. A stable company is a financially solid, debt free organization.
You should look for a business that has been around for several years. This does not mean new companies cannot be stable and solid. Every company must have a beginning. However, the average lifespan of a new network marketing company is just over seven months.
Less than five percent of new network marketing companies last longer than twenty four months. It is very important to look at the longevity of a company because no one wants to spend a year of their life building a business just to find out that the company is closing its doors due to instability or poor management.
A good way to judge the stability of the company is to look at its ownership, management team, and financial standing.
There are two schools of thought when it comes to ownership of a company. A privately held business with no shareholders allows the management of the company to share more of the profits with its distributors, (those who are actually doing the work) but it has less scrutiny.
A publicly owned company must be very transparent in its business practices. This makes it easier to find information about the company’s ownership and financial status than a privately owned business. Unfortunately, they often focus most of their attention on the shareholders rather than the representatives.
You should also look for a company that has a good training program. If you are going to work with a company, there should at least be training material available for you to learn about your company, its products and/ or services, and business tools or helps.
You do not want to be involved in a company that pushes its distributors with hype and empty promises. Look for a company that markets a product or service that you can personally believe in. If you do not believe in what you are doing it is harder to succeed because it is obvious to prospective customers that you are putting on a show.
Many good network marketing companies offer products or services that are part of a very large and growing market. This plays a large role in the longevity of the company.
For example, if you are a distributor for a company that sells and services Conestoga wagon wheels, at one point in history this would have been a large and rapidly growing market. But, we live in the twenty first century.
The wheel still exists but the wagon wheel is an antiquity and novelty. This is not the market you want to be in to make a lot of money.
In order for a network marketing company to survive, it must offer a product that is consumable. If a product or service being offered is not consumable, there cannot be a recurring monthly income to the company by which to pay its representatives.
The company would eventually fold because the payouts would overwork the income generated, regardless of the amount of the product or service. Many companies have offered good products, but these products were not consumable in nature.
Therefore, most of these companies either failed or had to restructure their product line offering. Another thing to look for in a network marketing company is timing. By timing I mean, the timing of the product on the market.
If your company markets a very unique brass door knob when the current styles of the day are bronze, your product is nearly useless. The company should always be researching, developing, and associating itself with products and services that reflect the trends of the times.
Another aspect of timing is when to join a company. Many people believe they have to get into a network marketing company on what they call the “ground floor” in order to be successful.
For some companies this may be true; with the better network marketing companies, however, the time of entry into the company should not affect your level of success.
The management team should have integrity and should truly care about the success of the distributors and representatives that belong to the organization. Read the company’s mission statement. This should be very clear about the intentions of the company and its leaders.
Also, if it is available, find out what percentage of the revenues are paid out to the representatives. Another way to find out about the management of any company is to speak with the management team itself. Sound business practices and integrity are vital to the foundation of any business.
When companies close their doors due to a flaw in their business practices, it is devastating to the representatives. They worked hard to build their organizations and ultimately lose everything they worked for because of faulty practices.
When looking for the network marketing company that is right for you, you should look for the following characteristics:
1. Proven to stand the test of time.
2. Financially solid. No/low debt service.
3. Strong corporate support structure.
4. Leadership with integrity and experience.
5. Good ratings from independent (watch-dog) organizations such as Better Business Bureau, Dunn & Bradstreet, etc.
6. Transparency about mission and vision.
7. Strong compensation plan that includes both a residual and bonus structure which puts representatives first.(This encourages the representatives to work hard because they can know what to expect for their achievements.)
8. Multi-product diversity. (A variety of products and/or services that a great majority of the population is already using.)
9. Provides products and services that lend themselves to a recurring nature. (Because people are conditioned to unconsciously pay their monthly bills, it is more appealing when they do not have to think about repurchasing or replenishing their supply or services. They are marketed one time and the sale occurs month after month. This leads to a true residual income.)
10. Simplified responsibilities of the representatives. (The representatives are not required to produce, inventory, deliver, or collect for the products and services they market. The task of the representatives should be purely marketing, not manufacturing, warehousing, financing, delivering or collections.)
There are several companies that pass this close scrutiny with flying colors. While some companies are better than others, it is not the purpose of this writing to compare the opportunities that exist in the network marketing industry.
Instead, this work is designed to give relevant and pertinent information to those individuals who are interested in gaining knowledge about this industry or perhaps have been struggling with getting a business off the ground. This information is written to give the person who desires to start their own network marketing business an educated edge toward success.
Compensation Plan
Any great network marketing company is set apart by a compensation plan that includes not only a long-term residual income, but also an up-front bonus system that allows its representatives to enjoy fruits of their labors as quickly as possible. Most compensation plans pay to at least four levels deep.The better the compensation plan, the more levels on which the company will pay. There are some companies that actually pay to unlimited levels and still have the up-front bonus system in place.
If you are already a representative in network marketing, look at the pay structure available to you and ask if the pay plan has expanded over time, and if it will continue to expand into the future. If it is truly expanding, the payouts to the representatives will continue to get better.
If the company is cutting back on its pay plan, beware. When a company is struggling financially, representative compensation is one of the first things to go.
Products and Services
The products and services of great network marketing companies have a few qualities in common. First, they carry products that are used on a weekly, if not daily basis. They are products and services used on a very large scale.At a minimum the products or services should be available regionally, the best case being nation wide or even internationally. This creates the largest possible pool of prospective clients and potential new distributors.
Whatever the product or service, it does not have to be manufactured, produced or provided by the network marketing company itself. There are many great name brand products that are marketed by network marketing businesses that have no production ties to one another.
Some companies carry a “buffet” of sorts in their product and service line. This makes them great because, inevitably, trends will dictate change. When a company is not tied to one specific product, and it loses one for any reason, it can simply pick up a new product that is “hot” on the market and continue to thrive.
What to Avoid
When searching for the best network marketing opportunity, you will want to avoid several things. Stay away from a company that does not have a viable product or service. These businesses are often schemes, which are illegal.A network marketing company that partners with major corporations has already been investigated by these corporation’s highly paid attorneys. There is little chance these corporations are going to be connected in any way to some “flyby-night” operation that is here today and gone tomorrow.
Once you have joined the company of your choice, move forward in every avenue possible. Any distributor should adhere closely to the policies set forth by their company. These policies are established to protect and to serve not only the company but also the representatives.
A multitude of legal issues can be avoided if the distributors will simply stay within the bounds set forth by their company. One of the more problematic issues to avoid is “projecting” incomes. Projecting an income is when a representative reveals or displays his income to a potential representative to “show him” what he could be making some day.
Though it is possible for the new representative to make the same amount or more, the law prohibits leading him to sign up under this pretense. The new representative may never achieve the same pay level and may therefore, feel he was tricked into the business.
Some people have made false claims about their company’s products. This often happens when a company’s product line is built around the nutrition industry. For example, an uneducated representative claims that his product will cure cancer or heal the body of a certain disease.
The Food and Drug Administration enforces laws which forbid any food or drink to claim healing properties for a disease or to cure an ailment, unless it is classified as a pharmaceutical drug. Since legal drugs can only be purchased over the counter, network marketing companies are not allowed to sell or distribute them. Thus, any nutritional products sold and distributed must not be represented as a cure or healing agent.
While there are various pitfalls to avoid in network marketing, there is one problem area that affects people the most. This pitfall is when people join the first direct sales business that is presented to them. For one reason or another, they do not realize there are other possibilities available and that if they simply checked them out they would find the one that is the most comfortable fit for them.
This is not to say that the first business opportunity is not the best. You should simply do your homework and prevent yourself from being one of those who fail or quit because it “just didn’t work out.”
There are many characteristics that make up a strong network marketing company. Only a few of them have been listed in this chapter. One of the most important aspects of any network marketing company is the representatives.
People follow other people, and the real strength of any company lies in the character and integrity of the people who are associated with it. If the company business model, pay structure, integrity, or any other major characteristic is flawed, it will not be long before you begin to see people “jumping ship.”
Taking Action(From "Don't Get Trampled by the Moose!")
The best intentions and the greatest desire to make a difference in your life are worthless if there is no structure to build upon in producing financial freedom. Just as it is important for the coach of a football team to follow the game plan he believes will guide his team to victory, you must follow your game plan, whether it is to simply supplement your income or to gain total financial freedom for you and your family.
There are many things you can do that will give you a better chance of winning the financial race, but one thing is for certain: if you do not have a solid plan of action, it will be far more difficult to see the end from the beginning. Having this game plan is what this section is all about.
The following steps are given as a guide for you to follow in designing your game plan that fits your goals and personality. There is not a “one size fits all” plan of action for network marketing businesses.
You must take the information you have learned and design your plan based on what works for you. You may have to adjust your plan several times to find the exact combination of methods, techniques, and ideas that produce the desired results.
Very few people start a network marketing business and find extreme success right from the beginning. For the majority, this is a process of discovery that takes several years to perfect.
Once you have the right combination, opportunities will present themselves you never before thought possible. The dream of financial and personal freedom is alive and well for those who dare to embrace change and new ideas.
1. You must be convinced that the way to financial freedom is through business ownership.
There is an old saying that goes like this: “A man convinced against his will is of the same opinion still.” Many people are of the opinion that working for a company is the way to financial freedom or the American dream. Unfortunately for many people today, this dream has turned into a financial nightmare.
Business closings and job layoffs are at an increase, companies that are still operating are struggling to stay afloat, the national debt is the highest ever, and fuel prices continue rising, even after a brief reprieve. And to top it all off, the baby boomers are not leaving the work force as soon as everyone thought, which leaves even fewer jobs for college graduates.
These and other factors are changing the way people view their source of income. In the past, people could rely on working for the same company for their entire career. Those days are long gone for the majority of workers. People are realizing the only way to truly find financial security is through becoming a business owner.
Unfortunately, there are still some people that are hanging on to what they think is a “secure” job, thinking the company will be loyal to them after having given the best years of their life to the company. Somehow the words of Tennessee Ernie Ford ring in my head as he sings “Sixteen Tons.” I can hear him now, (snap, snap, snap) “You load sixteen tons and what’a ya get, another day older and deeper in debt, St. Peter don’t ya call me cause I can’t go, I owe my soul to the company store.”
If I had not experienced the loyalty to a company and subsequent job loss in a downsizing, I might not understand this either, but the fact is that there are many people who know the exact feeling after having lost their job.
One thing I came to realize soon after losing this job was that you cannot be loyal to a non-entity. What is a company? It is not a person; it is the sum total of all its parts. It is a non-entity. Once you realize you cannot be loyal to a non-entity, you also realize this same non-entity cannot be loyal to you either.
Many people struggle with this concept. They believe they should receive something for so many years of loyal service. The truth is, a company owes nothing to its employees beyond payment for hours traded. Anything a company offers an employee above a payroll check is a perk.
As an employee, hours of labor are traded for the company’s money. An employee can only earn so much money because there are only so many hours in a day. No matter how much money an employee wants to make, no matter how badly a person wants to be financially free, it is nearly impossible to do so while producing a profit for someone else.
For you to understand the principles of wealth building, you must realize the fallacy of gaining financial freedom as an employee. This is not an attempt to convince you of this principle because you must convince yourself of this truth.
There must be a fundamental shift in your understanding for you to be completely convinced that the only way to financial freedom is through owning a business. This must be the core belief of the network marketer. Without this belief, there will not be enough motivation to continue when things get tough.
2. You must believe that network marketing is the right business vehicle for you.
One of the most successful, and arguably the most talented, basketball players in history is Michael Jordan. Although he never held the record for points scored in a game, he was known as the world’s greatest clutch player in basketball.
A lesser known fact about Michael Jordan is that his first love of sports was for baseball. He actually played for the Birmingham Barons and was considered to be a less-than-average player by many. A personal quote of MichaelJordan is, “If you’re trying to achieve, there will be roadblocks. I’ve had them; everybody has had them. But obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.”
Network marketing may be considered by many to be their second choice of income solutions. If Michael Jordan’s story is of any consequence, it would be to make this exact point.
Many people have a plan “A” that does not give them what they dreamed of when they finished college or started their life-long career. There is no shame in this whatsoever. The shame would be to continue down the same path with no regard to where it is taking them.
In your life, there may be dreams you once had of becoming financially free, but over time that dream slipped away into obscurity. Network marketing is the basketball instead of the baseball for many people.
If Michael Jordan had continued playing baseball, he would, without a doubt, not be worth in excess of 400 million dollars right now. He had to make a decision about which vehicle would take him to where he dreamed of being.
That vehicle turned out to be basketball instead of baseball. Your career may be as a professional person such as a doctor, attorney, architect, teacher, politician, or entertainer, but you must ask yourself the question, “When you are not working, are you getting paid?” Unless you have a contract with Nike, like Michael Jordan, you probably do not have another source of income.
A recent conversation with a friend of mine in the medical field stated that it was becoming increasingly difficult to meet the requirements of the insurance companies.
This trend seems to be getting worse, not better.If forced into early retirement, would you have the financial resources available to continue your present lifestyle? This is a valid question, one that many professionals are asking themselves everyday. If your answer is “no”, making the decision to start “plan B” would be wise.
What is your plan B going to be? Would you start another practice or open another office in the same field or profession? I seriously doubt it. Network marketing is one, if not the best, way to produce a substantial income in a relatively short amount of time.
As a professional, you probably have a fairly large circle of influence already. This influence can be leveraged to build a business that allows you not only to continue your current lifestyle, but also to be free to choose how you use your time, money, and talents.
For this to happen, you must be convinced that network marketing is the right vehicle for you. Network marketing is only a means to an end, but it is a very good one. If baseball isn’t working for you, perhaps you should try basketball!
3. Find the company that will provide the income solution that fits you best.
When searching for the right combination of characteristics in a company, more than likely it will be a one that carries the products and services you can be passionate about and that has a balanced and lucrative pay structure that attracts you.
Making these determinations can take time. Do not be afraid to take the time necessary to research these characteristics before you decide which is best for you.
The most important consideration when deciding which company is right for you is a company that has a good pay structure. This may be more difficult than you might think.Most network marketing companies claim to have the best pay structure in the industry. You should look for a company that gives regular pay increases to the representatives over the life of the company.
A tell-tale sign of how well the company is performing in this area is whether or not the company is actually giving pay increases to its representatives or reducing the pay incentives.
A company that has the representatives’ success at the heart of its pay structure does all it can to consistently increase the amount of the payouts to the representatives.
This pay structure should include both residual commission and bonus pay incentives.
Bonus pay is exactly that, a bonus. Bonus pay should not be the only element of the pay structure. Residual income is a far more important element.Residual income is when you make a sale one time, yet you continue receiving an income from that transaction every month the bill is paid. Residual income is one of the most powerful wealth-building tools available.
Many companies are aware of this extremely powerful revenue tool. Consider the electric company from which you receive your electricity. You call them to begin service at your residence and they come out and place a power meter on the side of your house one time, yet they continue receiving revenue from that meter every month you make a payment. Insurance companies have used the power of residual income for many years. You sign up for a premium one time, but make monthly payments.
Banks and lending institutions also use this principle of wealth building to the fullest degree. How about your cell phone service? Did you know that when you go to a store, such as Wal-Mart, Radio Shack, Best Buy, Target, the kiosk at the mall, or any other outlet where you can purchase cell phone service, once you sign the contract for the service, the location where you initiated the contract receives a commission every time you pay your bill. These companies know the power of residual income very
well. This is why they carry products such as cell phones and satellite cable TV service.If you could become a representative for a company that allows you to be the middle-man between these companies and their customers, like Wal-Mart, Radio Shack and others do, you can amass a very substantial revenue stream from the residual income alone.
Residual income can take a long time to build. It is the bonus structure that allows you to receive immediate reward for your efforts, while the residual income steadily builds over time. If you were to locate a company that provided a well-balanced pay structure utilizing both these qualities, you would have found the proverbial “leprechaun’s pot of gold,” or the “goose that laid the golden egg.”
Another consideration is the manner in which a person acquires and continues in each level of promotion. The better companies offer position promotions that are not removed if quotas are not met. In other words, the absence of quotas to remain at a given level is a very attractive characteristic.
Not all companies are able to accommodate this requirement due to their particular business model. This does not mean they are not worthy of consideration, but you must consider this very carefully before making your decision.
In some companies, if you are promoted to a new level and have a bad month, as often happens, you may be penalized for it. The amount of initial investment should also have some bearing in your decision. The advantage of almost all network marketing companies is they have a very low initial cost to get started. The benefit is obvious.
You have the potential for a substantial income with a very low up-front investment. This is much different than traditional brick-and-mortar businesses that require large sums of money to become operational.
For the average person, even buying a franchise is cost prohibitive in most cases. With network marketing, everyone is on a level playing field. The average person has the same opportunity as everyone else in the business. When considering an opportunity, most people want to know basically three things:
1. How much does it cost to join?
2. What do I have to do?
3. How much do I get paid?If you can find the answers to these basic questions, and you are satisfied with the answers given by the company, then perhaps you have found the company that is right for you.
4. Join the company.
This may seem a bit simplistic, but it is a very important step. Many people will get analysis paralysis and never make the decision to break out of the mold they have been poured into week after week and year after year as an employee.
The dentist in the first chapter may have been in danger after he fired the first shot at the moose, but had he not taken the first step of going on the hunt, he would not have the trophy hanging on his wall even now. Sometimes we must risk everything to have everything.
“Nothing ventured, nothing gained.” Many self-made millionaires lost everything, several times, before finally reaching their goal. In network marketing there is actually little to lose, perhaps a few hundred dollars in initial investment, a few hours of time, and a little pride. But, what is this compared to what can be gained? The opportunity to produce a substantial income, on a part time basis, is not found in many other industries.
The key is to get started right away. All the best equipment in the world, the most thorough preparation, the best laid plans, and the greatest of intentions would not have produced the victory the dentist enjoyed and the pride of such an accomplishment, if he had not actually gone to Alaska. The most favorable trip is no trip at all until it is actually taken. The glory is in the doing, not in the knowing or even in having done.
5. Become the expert in network marketing.
Becoming the expert in network marketing does not mean you must know every detail of every network marketing company in history. Becoming the expert is learning everything you can about your chosen company and how to help others become successful in their business.
You may ask yourself why it is important to be an expert. Network marketing allows average people to have above average incomes for themselves, but the only way to accomplish this is by helping others become successful. There is not a shortcut to this process.
For you to help others in this way, you must be knowledgeable and capable of transferring that knowledge to other people. You become an expert by choosing to engage in personal development. We have talked at length in previous chapters about the necessity of personal development.
The natural progression of personal development is teaching others and helping them succeed in their business by duplicating yourself through their actions. Once they have become the expert, they will continue this process in their organization. This process continues through all the levels of your business, strengthening your business and increasing your income as a result.
6. Implement what you have learned.
When I was in high school, I played several sports. My favorite was baseball, but when baseball was not in season I also loved wrestling, basketball and soccer. I excelled in wrestling, winning the unlimited-class championship my senior year.
Although I was slightly taller for my age, I recall not enjoying basketball as much, but one thing I remember very well was the plays we would run over and over again in practice. We ran these plays so many times we could run them in our sleep. When it came time to compete against rival teams, we knew the plays so well they went like clockwork. We were regional champions for several years running.
I will always attribute our winning to the practices we were made to endure. We would never have been regional champions had we not implemented on the court for game day what we had learned off the court in practice.
You must also apply this same principle to your network marketing business. Regardless of how much you learn, there comes a time to implement the things you have been taught. Consider the first few months in your business as practice by using this book to develop your game plan.
When you learn what you need to win the financial freedom game, implement your plan with all the excitement and enthusiasm you can muster. Do not let the shouts from the opposing team discourage you. Stick to the plays you have developed, stay for the whole game, and you will be a winner.
7. Don’t Quit!
Most statistics show that approximately 90% of direct sales representatives quit, and yet the majority of people in America today consider themselves to be above average. A large number of representatives give up on their business, walking away from an amazing opportunity. Those who are dedicated to their business stand a greater chance of producing an extraordinary income as a network marketing business owner.
If you research and study many of the extremely wealthy in our country, you will find they overcame failure and overwhelming odds to succeed. They caught a vision of something, pursued it and did not give up or quit even after their success. Take to heart their perseverance; push on just one more minute, one more mile, one more month. Don’t Quit!
Just because Wall Street crashes does not mean those of us on Main Street have to follow suit. Taxes may go up, inflation may rise, and our government may make decisions with which we do not agree. But we, as Americans, though these things may affect our economy, do not have to let them affect our personal bottom line. We are still Americans, and we still have the freedom and the right to choose our destiny and to follow our dreams.
The average person in America today is afraid of the economy, but there is no reason to fear if you are prepared for it. Just like the dentist had the guide to show him where the moose was in the woods, you should have a guide to help you not only survive this economy, but to thrive in it. By now you know and understand that the future belongs to those who prepare for it and take action.
Network marketing is one of the last bastions of capitalism available to the average American. Network marketing is not about seeing who can make the most money. Network marketing is about making a difference in your life and in the lives of others.
It is about giving back and building a business on the premise of giving first in order to receive. It is about freedom, and taking charge of your life; owning your time instead of selling it to a boss or a company for the reward of a plaque and a watch in thirty years.
Network marketing is about owning your business and building a source of income that will continue even when you retire. There is a logical sequence of events that a person will go through to find financial freedom.
If you can learn that sequence, and determine where you are in that order of events, knowing what you now know, you will be able to help not only yourself, but multitudes of other people; securing not only your financial future but possibly even that of your children, grandchildren, and great grandchildren.
What a legacy for you to be remembered as the person who helped so many reach their goals and dreams, and in doing so, made your family wealthy for generations. There is a door of opportunity available to those who are willing to walk through it.
Do you have a desire to move from the majority, who are enslaved and in debt,
to the minority, who enjoy personal and financial freedom?
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