Scams and Pyramids
SICK AND TIRED
I am sick and tired of people who have no real idea of what they are speaking about and society has brainwashed, saying, Network Marketing is an illegal pyramid scheme and this or that opportunity is a scam. They keep perpetuating the myths and lies from back in the fifties. In this letter to the world, I will show you a real pyramid scheme that has the US Government legal backs and why network marketing is not an illegal pyramid. How the illegal pyramid keeps the lie going that Network Marketing is a Pyramid and that “those opportunities are nothing but scams.
I will cover why people fail in the industry and what they can do about it and how to make any network marketing work in any opportunity. I will explain why after 20 years studying this industry I have the chops to tell you the truth without hype. Some people say they don't like to do network Marketing and they don't like recruiting, but they are deceived by their own minds.
So let's get started.
THE GOVERNMENT APPROVED PYRAMID
they can regulate the taxation so they let it be
This is going to surprise you. The majority of Americans work in a legalized pyramid: Corporate America and you are going to prove it to yourself so keep reading. If you are in a job at a particular salary, what chance do you have of snagging that top position of CEO and his multi-million dollar salary?
Well, let's take a look at the reality we refuse to see. Here's a better question how much time have you dedicated to the thought of becoming the CEO? The answer to the first one gives you the answer to the second. You don't think about it because you don't believe you can make it. True or not?
Here is the truth about why you cannot get there.
1. Most companies hire the CEO from outside.
2. Who you know
1. Education,
2. Degrees
3. Experience
4. Time in the position
5. Time on the job
6. If the CEO takes notice of you
7. Etc.
There are so many obstacles in the way. What if you go to school to learn something to get that job and they change the criteria? That will delay you more.
WHEN THE CEO RETIRES
who's next in line?
See the problem of wanting to become the CEO is that the current Ceo may be there until he or she retires. That could be 10, 20 even thirty years. So that's thirty years of your life gone. What if he hires his son and mentors him for the position and he's, 35 years old and he stays till he retires that could be another 40 or fifty years. So 30 +40 =70 years of your life waiting to get to that level. It is even more difficult if the Board of directors hires from outside the company, your chances drop dramatically. So no low level or mid level employee stands a chance at the big money.
Another question, how does the job you do now qualify you to sit in the big chair in the CEO office?
In the corporation, it's every man for himself. The CEO is not going to come down from the ivory tower to help you succeed, you are on your own.
In the corporate world, a company can only hire so many people before it starts losing profits. So they hit a level and make acceptable risks to ensure profits are maximized.
Can you begin to see why this is the real scam? You work forty to fifty years of your life there and in the end, you retire with 40% less money than you got when you were working. It is a subtle scam to take your money in return for a lot less energy. (money is actually energy; you exchange your energy for the energizing effect of a paycheck See my article on the true nature of money
A NEW WAY FOR PEOPLE TO MAKE MONEY
the Ballard of Network Marketing
Let's take a look at that Network Marketing business structure.
Network Marketing started with one opportunity. It is the granddaddy of Network Marketing. They blazed the foundation upon which all network marketing companies are built today-The Compensation Plan. This entity endured multiple law suits because someone thought "Something had to be illegal about it". "How could it be possible for such a model to be able to turn a profit helping ordinary people create wealth? "This was done because no one took the time to find out exactly what it was before passing judgment.
People are always afraid of what they don't understand. Especially a new way of doing things. The founders, when a company they were salesmen for closed its doors and so many of the sales people looked to them to find a solution to their problem. They got a mastermind started and got an inspired plan on how to help the sales people distribute the product they had been selling for the now defunct company. They were doing well.,. Their team was making money, but some one decided to take a closer look and the fed came in and they were off to court.
this company endured and still endures, and won the case, but it was not over. Several times they were dragged into court and defended the MLM business model and each time, they won. And the courts came to the conclusion that MLM was a viable and legal business model. Network Marketing/MLM now brings in 170+ billion dollars a year into our economy. If MLM was illegal they would not file income taxes or hand out IRS form 1099 to distributors to file taxes on income earned. To do so would lead to discovery and exposure to legal action if they were illegal.
Look up the annual reports for any Network Marketing company and read it See how much they pay in taxes. Only a real business reports taxes. as a distributor, you have to file IRS form 1099, which your MLM should send or provide you access to through your back office. Here's a word of advice find a tax person that knows tax strategies for self-employed people and learn the tax advantages. They can tell you how much you will pay in taxes so you can put some money aside for that. you might want to learn about pure trusts to protect your assets
LIVING IN THE LEGACY OF GRAND DADDY MLM
In this industry, there are no promotions there are pin-levels. And what's great about this industry the criteria for advancement is entirely different than corporations. (Remeber the list we had earlier?) compare it to this list. The criteria for advancement in Network Marketing is
VOLUME!
That's it!
Create the corresponding volume of a top earner and you can climb to the top pay ranks. Now here is a myth, but there is some truth to it. "Only the people at the top make all the money," It's not totally true. Here is the huge difference in the business models of this and corporations, Yes only those at the top make huge money, but there are UNLIMITED POSITIONS AT THE TOP OF THE COMPENSATION PLAN! Remember the only criteria here is volume. Let's say there is a guy that produces, $60,000 in volume a month, and he has been in for say 6 years.
Now here comes a young lady in this man's sixth year and because of her ability to influence her spider web of acquaintances, she hits $75,000 in volume her 5th months. She will bypass the 6 year $60,000 dollar guy, and she'd be closer to the top of the pay scale. How is that possible? Remeber, It is according to the volume you are able to create. In Network Marketing You have greater control of your income, then when you have a boss calling all the shots.
In this industry you are literally building and running your own business, You are now working for YOU! Will you work harder for yourself than for a boss? You have to see your opportunity as a REAL business and treat it accordingly. it's as much as a real business as Target, IBM and Marshall's, (but without the operating costs or overhead) Think about doing this, invest the time to study the origins of all of the companies I mentioned They had to start at some point, faced difficulties but kept going. Some started as small to moderate sized mom and pop operations with a strong vision of what it could be in the future.
That is why it is called an opportunity. You can take the opportunity and make it something you can pass down to your children who can increase its size. and profitability. A real legacy you can pass on. It is not a hobby or just something to make a little cash. IT IS A BUSINESS!
I have witnessed one person come into a company, a former car detailer, who hit the diamond level in just 28 days! (No I am not kidding) he bypassed a lot of people who have been there a lot longer. So in Network Marketing, there are literally no barriers to one's success and progress. the only barriers are the barriers you erect in your own mind. You just need the right skills and accurate information Can You recall ever seeing an entry level person come in and shoot to the executive level in less than a year? It happens in Network Marketing all the time.
THE LAND WITHOUT PERSISTENCE
the reason most people fail
The only barriers are the ones we have erected over time in our own minds.
“PERSISTENCE is an essential factor in the procedure of transmuting DESIRE into its monetary equivalent. The basis of persistence is the POWER OF WILL. Will-power and desire, when properly combined, make an irresistible pair. Men who accumulate great fortunes are generally known as cold-blooded, and sometimes ruthless. Often they are misunderstood. What they have is willpower, which they mix with persistence, and place back of their desires to ensure the attainment of their objectives” ~Napoleon Hill - Think and Grow Rich - Chapter 9 Persistence.
Some people don't really believe they can do it, so they fail when they only TRY, But when they fail, they'll blame everyone and everything and get on social media and try to justify their loss by calling the company a scam.
I've been with several companies before I found out the truth about this industry and settled down with one company. I, however, never got on social media to put those opportunities down. Yes, I was an opportunity hopper and yes I quit some companies before I learned how I was failing myself doing so. I was a quilter so I know this first hand. but one person shared some valuable information with me that cured my opportunity-hopping.
“If you quit, own it.”~ Michael Dennis
Let's face it, some people are just quitters. They quit at everything they do in life,. They quit school, quit a girlfriend for another who they late quit, they quit their marriage, they just quit and they quit on themselves, but they won't admit they quit and gave up on their dream.
Some people do not develop a strong tangible vision for what they want, so they have a 50 or 60 percent why, and when a 70% challenge comes along they will fold and quit. They don't have persistence because they look at what is happening to them and not focused on the goal or the goal is not really worth while, or they think they cannot make it. It's like a person that wants to drive from NY to Miami, they get a flat tire in Southern Georgia, they get it fixed, and turn around and go back home.to New York.
Most people when they get hit with a real challenge crumble into pieces and say “It doesn't work.” I had people buy a kit and do nothing. NOTHING! Then they tell me this doesn't work it's a scam I quit. Some people fall apart and quit if one of their people quit. They can have five people still working hard and one quit and they walk out on their team. No persistence and no commitment, no dedication.
Here is what Napoleon Hill says in Think and Grow Rich (Chapter 9 Persistence):
“The majority of people are ready to throw their aims and purposes overboard and give up at the first sign of opposition or misfortune. A few carry on DESPITE all opposition until they attain their goal. These few are the Fords, Carnegies, Rockefellers, and Edisons.“
“There may be no connotation to the word “PERSISTENCE,” but the quality is to the character of man what carbon is to steel.”
I did some research and found that carbon makes steel harder and stronger, so a person without persistence is not hard enough to endure difficult times. A lack of persistence is a character deficiency. Most people have never developed persistence because they turn and run at the first sign of trouble. You hear them say “Oh Well I tried”. But not hard enough long enough to succeed.
They are more willing to stay locked in a job, helping a stranger make their dreams come true (some CEO make Millions in a month). They stayed locked in for years making not nearly enough to cover all their bills, but an opportunity to finally take control of their income, they walk out on it, making every excuse in the book. “Well thirty years ago my mother looked at me funny, it's her fault.” Some of the excuses are so lame and foolish, I don't know how anyone could fix their mouth to even say those things. “I quit! My neighbor has my lawn mower and he won't give it back because his wife cooks spaghetti every Wednesday!. Any old excuse will do.
You know people like that. They never complete anything meaningful and worthwhile and are full of excuses. A very wise man once told me “How you do anything is how you'll do everything.” A quitter quits, they will always quit!. They won't learn the skills, they won't improve themselves and they want magic because they are too lazy to care about their future.
In fact, when a person signs a contract to work for someone else, they are relinquishing their financial responsibility and putting that responsibility into the hands of a stranger, who is going to make adverse decisions that adversely affect them, without their permission or counsel. So they even quit on their responsibility to themselves. This is one of the biggest reasons people fail to grab opportunities. They are controlled by the fear of failure, "What will my friends and family say or think about me when I fail" the fear of loss of money, friends, and family. They are dominated by a fear of loss of someone they love; "What if my family and friends stop speaking to me" they are not really friends. Anyone who is not going to pay your bills or put food on the table and your children through college, pay your medical and cable bills, has no right to cause you to not do your absolute best to provide for your family. If they can't afford to or are not willing to lavish you in wealth for the rest of your life, and your children's lives, why listen to them? These individuals are of no consequence to your future.
THE LAND OF SCAM, SCAM, SCAM.
Here is something to consider. I never make pages asking if my opportunity is a scam or I do not pick on other people's opportunity because that is not my business. Or my right. But further understand this, most people who have scam pages have an opportunity themselves and they want to scare you from another opportunity and make you trust them and feel an obligation towards them for saving you, so you will join their business. Some people have been told something is a scam and there are people who will let these scam criers do their thinking for them.
People will not do their due diligence to learn for themselves and will then pass on what other people tell them as fact. Here is something more sinister about crying scam, scam, scam, about every opportunity. You may be stealing from that person that believes you. What if it is a good business, and that person would have made it big for themselves. In that opportunity but would fail in yours? What right do we have to turn someone away and impose our limiting beliefs on them? It's a despicable thing to do to another human being.
And know then, that anyone that would try to scam you into joining their opportunity does this; How they do anything is how they will do everything. If they stoop to try to scam you to get into their deal, they will scam you all the way through, because that is how they are. So be careful who you listen to... even me.
Do your due diligence and stop looking for scams in everything, Negative people look for the negative. Napoleon Hill explains that negative thoughts attract like thoughts that lead to poverty. Instead look positive. seek out the success stories! This is another reason there are fewer people at the top, they are positive people and positively see themselves succeeding - and they do succeed. I have, from the age of 11, believed that if I can see someone do it, I can do it also. They are no more human than I am. If they can do I it is possible to be done. If they have a duplicatable system that is easy to do, which anyone can plug into and have success, then I know I can do it.
Instead look for the positive. Seek out the success stories! This is another reason there are fewer people at the top, they are positive people and positively see themselves succeeding. I have, from the age of 11, believed that if I can see someone do it, I can do it also. They are no more human than I am. If they can do I it is possible to be done. If they have a duplicatable system that is easy to do, which anyone can plug into and have success, then I know I can do it.
I have, from the age of 11, believed that if I can see someone do it, I can do it also. They are no more human than I am. If they can do I it is possible to be done. If they have a duplicatable system that is easy to do, which anyone can plug into and have success, then I know I can do it.
I have, from the age of 11, believed that if I can see someone do it, I can do it also. They are no more human than I am. If they can do I it is possible to be done. If they have a duplicatable system that is easy to do, which anyone can plug into and have success, then I know I can do it. the reason I failed forward is I never stopped. I understood the principle from the beginning would work.
WHY DO NETWORK MARKETING, AND NOT GET A PAYCHECK?
You go to see a movie, you buy your ticket ($7.50) and you buy some popcorn and soca (8.95) a grand total of $16.45. you go into the theater and sit down. The movie comes on you eat and drink and the movie is one of the best you have seen in years.
You leave the movie and go home and meet 3 friends along the way and you stop and tell them about how great that movie was.
Now your 3 friends go to see the movie. They buy a ticket ($7.50 X 6= $45 (they each bring a friend). They walk in, see the popcorn soda, frankfurters and candy and they buy some (9.75.00 X 6 = 58.50). A total of 103.50 they go in and watch the movie, eat and drink and they love the movie.
They go out and tell three friends each.
Now 6 X 3 = 18 people. They go to see the movie (Tickets) 18 X 7.50 = $135 and they walk in and see and smell the popcorn, soda, frankfurters and candy and they buy some (18 X 9.50 = $171. a total of $306 (now if they all bought a friend that would be 36 people so double the numbers.).
You have helped the movie owner to make $425.95. Here's a question; you recommended a move to three people and they told three people who each told 3 people and so on. You have helped to create income for someone you don't know and who does not know you, do you make any from helping the owner make that money? Advertising companies tell millions of people about a product and they make millions recommending products. Why don't' you make money for doing the same thing?
Here is the difference, they believe they deserve it for the work they did and you most likely don't think you deserve it for doing the same work. Actually, there is no difference in what is being done, it's the mind set that makes the difference.
I HATE RECRUITING.
I said earlier that we all recruit. We have done it for most of our lives, "let's go play in the park," "Let's Go get some pizza it's on me." "Come on. Let's go get a cup of coffee." "I know a great place we can eat on 7th and Park Rd." "Want to go to a concert with me, it's going to be great so and so is playing." Like it or not, this is recruiting! You have recruited people to go somewhere with you to do something to enrich their lives. But to help them make a ton of money, and save them from losing their home or keeping their car from being repossessed, you won't do it? Really?
You are going to recommend movies and ask people to do things with you and never get paid for being an advertiser of some one's products and services, and never get paid the big bucks to do it, if you keep listening to the people who cry scam, scam, scam. they will scam you and your children out of a future of wealth and freedom. That should make you mad enough to ignore them in the future
Michael Dennis
Certified Mentor
Mentoring For free