The network marketing lifestyles of successful mlm business distributors are displayed everywhere on the internet.
These company celebrated network marketing success stories showcase tens of network marketing distributors earning millions of dollars per year from the network marketing business opportunity.
These network marketing celebrities are shown driving really expensive cars, living in really expensive houses and cruising on yachts.
Why do many mlm companies deem it necessary to display the lifestyles of their successful distributors?
These list of top 20 earners (or list of top 50 earners) are promoted by mlm companies to . . .
1. Show new prospects (and even existing distributors) the type of income levels possible with the mlm opportunity and
2. To encourage non-performers to up their game and become just as successful
The intent of showcasing these network marketing lifestyles may look good on the surface but they eventually pose serious problems for the company and its distributors.
Let's examine why this is so.
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Network marketing business is a business like any other business.
The difference between the network marketing business model and conventional businesses is simply in the distributor compensation plan and the route to market.
Network marketing is a direct selling business while conventional businesses are not.
However, when it comes to failure rate, network marketing distributors have about the same failure rate as conventional small business owners (over a period of, say, 5years).
So, what is the failure rate of small businesses?
Statistics vary depend on who you talk to. But many agree that up to 70 percent of small businesses fail within 5years of startup.
That means that if 100 people start a small business today, up to 70 of them will shut down within 5years.
Some people actually argue that the failure rate could be as high as 85% within 5years of startup.
The same applies to network marketing business.
In fact, if 100 people join a network marketing business today, there is a likelihood that 80 of them will stop participating in the program within one year.
That means there is a likelihood that the failure rate of network marketing distributors is higher than that of conventional small business owners.
However, you do not see conventional companies like Coca-Cola or Nestle showcasing the luxury lifestyles (or earnings) of their retailers or even their distributors.
The truth is this . . . business is tough.
Our formal education system teaches people how to read and pass exams. And then to search for jobs once they graduate from school.
Our school system generally does not teach students . . .
Therefore, the world has generations of educated people who have absolutely no idea how to run a business.
Therefore, the majority of people who venture into small business (including network marketing business) will fail (or quit) within 5years of startup.
Showcasing the luxury network marketing lifestyles of a few successful people as proof that others will be successful hides the truth. And the truth is that most people who join an mlm opportunity will fail . . . they will make losses month after month until they quit.
Consequently, the mlm company's marketing strategy of showcasing the luxury network marketing lifestyles of its most successful distributors is bad marketing strategy.
We actually call it a two-edged sword.
First, it gives new recruits the illusion that mlm business success is easy.
Second, it opens the network marketing company to deceptive advertising lawsuit from consumer protection agencies and distressed ex-participants.
If you're considering joining a network marketing company as part of your retirement planning strategy, beware of network marketing companies that have a policy of showcasing the network marketing lifestyles of successful distributors.
That marketing strategy eventually backfires. And the company may eventually shut down.
What happens when the company whose products or services you're promoting gets shut down by the government?
You lose everything . . .
This retirement planning guide therefore recommends that you partner
with a network marketing company with compensation plan and policies and
procedures that is as close to a conventional business as possible.
That will keep the business out of trouble and guarantee you a steady passive retirement income for life . . . if you're a productive business person.
Lastly, remember to invest your earnings from your network marketing business into investment for retirement opportunities that could grow your money by as much as 25 times its initial value.
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