mlm - dispelling the pyramid myth
TRANSCRIPT
By Ted Nuyten - The Netherlands - www.businessforhome.org
Multi Level Marketing (MLM)
The Pyramid myth and other
misunderstandings
By Ted Nuyten - The Netherlands - www.businessforhome.org
Is MLM or Network marketing a Scam?
Madoff
By Ted Nuyten - The Netherlands - www.businessforhome.org
Short answer ..If MLM or Network Marketing is a pyramid scam, 67 mil l ion people worldwide, would be in prison ….
By Ted Nuyten - The Netherlands - www.businessforhome.org
Long answer!Network marketing and Multi Level compensation plans were declared legal ways of compensation over 50 years ago:
By Ted Nuyten - The Netherlands - www.businessforhome.org
Direct Sell ing Organisation (DSA)
•67 mill ion Direct Sellers•95% has a MLM compensation plan•$110 bil l ion revenue worldwide
By Ted Nuyten - The Netherlands - www.businessforhome.org
Direct Sell ing Supporters
• Bil l Clinton - Former USA President
• Tony Blair – Former UK Prime Minister
• Michael Gorbatsjov – Former USSR President
By Ted Nuyten - The Netherlands - www.businessforhome.org
DSA Facts & Figures• USA is the largest market, 15 mill ion
distributors, $30 bil l ion revenue
Country Year Revenue Distributors
United States 2007 $30 billion 15,100,000
Japan 2006 $20 billion 2,700,000
Brazil 2008 $10 billion 2,200,000
South Korea 2007 $9 billion 3,187,933
Germany 2007 $9 billion 778,000
Mexico 2007 $4 billion 1,900,000
United Kingdom 2007 $4 billion 419,500
By Ted Nuyten - The Netherlands - www.businessforhome.org
Misunderstanding:“Only the top make money”
• There are numerous examples of distributors who make more money then people who joined earlier…
By Ted Nuyten - The Netherlands - www.businessforhome.org
Why?If i t would be not possible to earn more then your up-line, nobody would join an opportunity….
By Ted Nuyten - The Netherlands - www.businessforhome.org
An other way to explain this misunderstanding
If you introduce a “Top Earner” you could make a small fortune.. The “Top Earner” wil l earn more, but you can receive a % over his or her earnings.
By Ted Nuyten - The Netherlands - www.businessforhome.org
Misunderstanding:“You have to be broke to start”
• Some people are broke, however people from all walk of l i fe join Direct Selling
• Mill ionaires, Actors, Doctors, business men, stay home moms and many others..
• The start up costs are often between $25- $500, a small investment to start a great business.
By Ted Nuyten - The Netherlands - www.businessforhome.org
Fact: The average Top Earner Income
The average Top Earner make approx. $ 25.000 a month / $ 300,000 a year.
There are over 5,600 people who make a full t ime year income ($60.000+) with
Direct Sell ing
Source: www.businessforhome.org
By Ted Nuyten - The Netherlands - www.businessforhome.org
Fact: Newbies often introduce Top Earners
The majority of Top Earners are introduced by rookies. People with no experience in direct sell ing!
By Ted Nuyten - The Netherlands - www.businessforhome.org
Where is the money coming from?
The majority of the revenue in Direct The majority of the revenue in Direct Selling (80%+) is coming from customer Selling (80%+) is coming from customer orders. People who only want the product.orders. People who only want the product.
It’s obvious that a customer will not be It’s obvious that a customer will not be rewarded as a networker.rewarded as a networker.
Customer revenue is put into a Customer revenue is put into a “networkers pool” and is rewarded to “networkers pool” and is rewarded to networkers who build up an Direct Selling networkers who build up an Direct Selling organization.organization.
By Ted Nuyten - The Netherlands - www.businessforhome.org
A few MLM Celibrit ies….AC Milan, Boston Red Sox, Phoenix Suns, Inter Milan, and many more endorse MLM products