One of the biggest mistakes that I made in getting involved in party plan/multi-level marketing was in not understanding the importance of recruiting to the business model. Recruiting, or convincing others to get involved in the business as well, is the only way to make money in that business model. There is no money in selling the product (as I discovered), the money comes from other people who are selling the product.
I gave the spiel at every demonstration about how joining Company XYZ could give you the opportunity to earn an income around your family etc etc etc. Finally, after about 5 months of trying, someone asked me about being a consultant herself. WOW!! I had my first recruit. I walked her through the training manual, forwarded her cheque for the startup kit to the company and began organising her "business launch". Her launch was quite a success and I was very chuffed to receive a cheque myself from the company based on the sales from her launch. It wasn't a very big cheque...somewhere in the region of $30, but it was real money and it was the goose that laid the golden eggs of party plan success - PASSIVE INCOME.
Passive income is income that you get from doing nothing. Someone else is earning it for you. The problem is that I needed a minimum of 10 recruits doing really good parties every week to earn $300 a month. Ten recruits whom I would have to train and support, whilst continuing to do my own demonstrations to keep the recruiting train going and to keep a tiny amount of money dribbling in. All the time I was doing that, my upline was earning passive income from my hard graft. *Someone* way up the line was earning $45000 a year on the back of all the recruits under her slaving away their evenings and weekends, earning tiny amounts of money and racking up massive credit card debt.
Yes, it is possible to earn a big income selling party plan. But it is mathematically impossible for *everyone* in party plan to be making that kind of money. There is room at the top of the pyramid for a few people to make a lot, but only if they have hundreds of other people in their downline making it for them.
If you think you can do party plan without recruiting, then think again.
They may tell you that their company is not pyramid marketing. If the words recruit, upline, downline, passive income or commission are used in relation to the selling of the product, then it is pyramid marketing. It relies on little people working very, very hard so that the big people can earn impressive incomes. If pictures of people enjoying tropical holidays, pictures of fancy cars etc form a part of the demonstration pitch, then it's pyramid marketing.
Ordinary workers don't have to have pictures of tropical holidays around them to remind them to work harder for what they want. If you're involved in MLM (multi-level marketing) you HAVE to have those pictures to remind you of how hard you have to work/sell/recruit to make that kind of money.
Unless you are one in a million at sales and recruiting it is impossible to make an income selling party plan.
There's plenty of information on the net about MLM and I would encourage anyone thinking of entering into that kind of business model to do some research first. It's better to know before than after.
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