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IS THERE FUTURE IN MLM
The Future Looks Bright
Why The Network Marketing Business Will Continue To Grow.
By Robert T. Kiyosaki

Whether you are full-time or part-time network marketers, the future looks very bright indeed, because there are economic trends already in process that will drive more and more people to participate in this business in the years ahead. People Want More Freedom Gone are the days when a person takes a job at age 25 and stays there for life, doing as he's told to keep that job secure. Today, people want to be more mobile and have more choices. They want the freedom to live their lives on their own terms. A part-time network marketing business offers people more control over their lives; ultimately, it provides more freedom. It provides a low-cost-of-entry, ready-made system for those anxious to make a change. People Want to Be Rich During my parents' generation, the rules said, "If you work hard, the older you get, the more you'll be paid, earning ever more money (within tightly proscribed limits) through incremental pay raises." As you approached the end of your life, however, those rules reversed: when you retired you expected your income to go down. In other words, the assumption for my parents and their contemporaries was that one would work hard all one's life--and retire poor. No more.


Today we have 25-year-olds who've never held down a job in their lives, yet have become billionaires by building a software company. At the same time, we have 50-year-olds looking for jobs, hoping to get back to a place where they can earn $50,000 a year. What's worse, these same 50-year-olds have little or nothing to set aside for retirement; indeed, they may never be able to retire. These 50-year-olds don't need jobs; they need the opportunity to get rich enough to provide a sustainable level of income for the rest of their lives. That opportunity is exactly what network marketing provides. Network marketing companies offer this possibility by providing the necessary education, mentoring and business systems to assist these 50-year-olds build their own B quadrant [business-owner] businesses. By the year 2010 (not that far away!) the first of 75 million Baby Boomers in America will reach the age of 65. Many will come to network marketing as a means of building that lifetime of security which their jobs did not provide. Indeed, beyond meeting the basic needs of minimum-level financial security, a person who successfully builds a network marketing business may potentially join the ranks of the world's ultra-rich, becoming far more wealthy than highly-educated and hard-working professional people, such as doctors, lawyers and engineers. They may even become wealthier than many sports stars, movie stars and rock stars. If you are already an established network marketer, what does this mean for you?

This is the best news of all: as the year 2010 approaches, many people who are already network marketers will do exceptionally well as millions of Baby Boomers come their way. Individual Retirement Portfolios Will Be Wiped Out Never in the history of the world have so many people bet their retirement years on the stock market. This is a recipe for financial disaster. During my parents' generation, retirees counted on the companies they worked for and the federal government to provide the income stream to support their retirement years. They didn't have to worry about managing their retirement portfolio: the companies they worked for did that for them. Today, more often than not, when you retire you're on your own. Millions of Americans have 401k's or similar retirement accounts--and that's all they have. If your 401k runs out of money when you reach, say, age 78, you won't be able to go back to your former employee and ask for help.

There'll be nowhere to turn. There's also a strong possibility that the US stock market will collapse by the year 2010--if not sooner. If this happens, many 401k retirement plans will collapse along with it, which will mean that millions of people will never be able to retire--or at best, they won't have the pleasant retirements of which they had so fondly dreamed. Suddenly a person with $2 million in mutual funds in his retirement account may find that portfolio cut in half. On top of that, he may be stuck with a capital gains tax that could bankrupt the remaining value of the retirement portfolio. That's the risk of betting your retirement years on paper. The number of people who have bet their lives on the stock market is at an all-time high: if there is a crash, millions of people will be seeking other sources for financial security--such as building the kind of B quadrant business that network marketing can provide. The Rules Have Changed In 1989, when the Berlin Wall came down and the World Wide Web went up, the rules of the world changed forever. According to many economic historians, that's when the Industrial Age ended, and the Information Age began.

In the Industrial Age, the rules were that if you worked hard, your company and the government would take care of you. In the Information Age, the rules are different: the new rules say, you had better be planning to take care of yourself. How? Starting now, by investing in your own network marketing business.


MLM-RELATED GLOSSARY
Affiliate Marketing
Affiliate Marketing is a widespread method of promoting a website, in which an affiliate is rewarded for every visitor, subscriber and/or customer provided through his efforts. It is a modern variation of the practice of paying finder's-fees to individuals who introduce new clients to a business. Compensation may be made based on a certain value for each visit (Pay-per-click), registrant (Pay-per-lead), or a commission for each customer or sale (Pay-per-Sale).
The most attractive aspect of affiliate marketing, from the marketer's viewpoint, is that no payment is due to an affiliate until results are realized.
E-commerce sites, such as Amazon.com run their own affiliate programs while other e-commerce vendors use a third party services provided by CommissionJunction.com, LinkShare.com, BeFree.com and others to track traffic or sales that are referred from affiliates. Some businesses credit a great part of their growth and success to this marketing technique, and many online vendors have used it to substantially increase their sales.
In its early days many internet users held negative opinions of affiliate marketing due to the tendency of affiliates to use spam to promote the programs in which they were enrolled. As the practice has matured, many affiliate programs now prohibit their affiliates from spamming.

Auto-Responder
An autoresponder is a computer program that automatically answers email sent to it. They can be very simple or quite complex.
The first autoresponders were created within mail transfer agents that found they could not deliver an email to a given address. These create messages such as "your email could not be delivered because..." type responses.
Today's autoresponders have evolved into successful email marketing tools, employed by thousands of companies to immediately provide information to their prospective customers and then follow-up with them at preset time intervals.
Such follow-up autoresponders can be divided into two categories:
Outsourced ASP model — these autoresponders operate on the provider's infrastructure and are usually configurable via a web-based control panel. The customer pays a monthly usage fee. This is easiest to implement for the end-user.
Server-side — enables users to install the autoresponder system on their own server. This requires technical skills.
Autoresponders are also incorporated into electronic mailing list software, to confirm subscriptions, unsubscriptions, posts, and other list activities.

Autoship
Often compensation plans specify that for a member to receive a check that month, the member must have a minimum points value of sales for that month to qualify. To ensure qualification, the member can arrange to have a certain points value of products automatically shipped to him/her each month. Sometimes the member may arrange a failsafe, so that the autoship doesn't occur if he/she already has reached the required points value.

Binary
A compensation plan based on income centers (positions in the binary plan) with a frontline of 2, and there may be no limit to the number of levels for which to be paid. This plan requires one to balance sales volume on two legs and usually sets a maximum income level per center.

Building
Refers to a member increasing her/his downline. This is by personally recruiting more members, and more importantly helping and motivating his/her downline to recruit more members and make more sales. Techniques such as "building in depth" are used, where new members are placed several levels down a leg, helping to enthuse and promote those members in between.

Classified Advertising
Classified advertising is a form of advertising which is particulalry common in newspapers and other periodicals. Classified advertising is usually textually based and can consist of as little as the type of item being sold, (i.e., "Clothing") and a telephone number to call for more information ("call 555-777x"). It can also have much more detail, such as name to contact, address to contact or visit, a detailed desription of the product or products ("pants and sweaters, size 10" as opposed to "clothing", "red 1996 Pontiac Grand Prix" as opposed to "automobile"). There are generally no pictures or other graphics within the advertisement, although sometimes a logo may be used. Classified advertising is called such because it is generally grouped within the publication under headings classifying the product or service being offered (headings such as Accounting, Automobiles, Clothing, Farm Produce, For Sale, For Rent, etc.) and is grouped entirely in a distinct section of the periodical, which makes it distinct from display advertising, which often contains graphics or other art work and which is more typically distributed throughout a publication adjacent to editorial content.
In recent years the term "classified advertising" has expanded from merely the sense of print advertisements in periodicals to include similar types of advertising on computer services, radio, and even television, particularly cable television but occasionally broadcast television as well, typically very early in the morning hours.
Like most forms of printed media, the classified ad has found its way to the Internet. Printed classified ads are typically just a few column lines in length, and they often filled with abbreviations to save space and money. Internet classified ads don’t typically use per line pricing models so they tend to be longer. They are also searchable, unlike their offline brethren and tend to be local classifieds with a great sense of urgency because of their daily structure. Because of their self-policing nature and therefore low cost structures some companies like mlm.cc offer free online classified ads.
In 2003, the market for classified ads in the United States was $15.9 billion (newspapers), $14.1 billion (online) according to market researcher Classified Intelligence. The worldwide market for classified ads in 2003 was estimated at $100 billion.

Compensation Plans
Over the course of decades, companies have devised various MLM compensation plans:
Stairstep Breakaway plan. This plan features two types of distributors: managers and non-managers and three types of pay:
Baseshop overrides are overrides of managers from their subordinate non-managers. This is no different from any sales organisation.
Generational overrides are overrides of managers from managers who were previously their subordinate. Most plans compensate at least three generations of such managers.
Executive bonuses. Additional commission to managers who exceed a sales quota. For example, 2% of the total company sales revenue goes to a bonus pool which is shared monthly pro-rata to managers who exceed $10,000 in that month.
Matrix plan. This plan limits the width of each level in a distributor's group, hereby forcing strong distributors to pile their recruits over people who did not sponsor them.
Binary plan. This plan limits the width of each level to two legs. Commissions are based on "cycles" where a distributor is paid a fixed amount whenever both legs achieve a certain number of sales units each.
One, two, four, eight pyramid structure. This plan features a "game board" where each participating distributor would pay in one or more product units, and that the "one" would receive consideration when the "eight" had paid in. After this the structure would split, the "two" advance to the "one" position and an additional "eight" would be required for each of the structures before the "one" would be paid and the structures again split.