Why is business booming in the direct sales industry?

Here's another excerpt of an excellent article entitled "Unlocking Your Entrepreneurial Spirit" featured in "Success from Home" magazine written by Todd Eliason and Martha Belden:

Several business-savvy individuals and large, respected companies have taken notice.

Sir Richard Branson, founder of Virgin Records and Virgin Atlantic Airways and one of the richest men in the world, owns Virgin Cosmetics Company, one of the leading cosmecitcs firms in the United Kingdom and a direct selling company. Companies such as Lillian Vernon, Time Warner and Citigroup, among many others, have launched direct selling companies.

In addition, [best-selling author of Rich Dad, Poor Dad Robert] Kiyosaki, financial planning expert David Bach, whose appearances on The Oprah Winfrey Show have changed the financial fortunes of millions, and Stephen Covey, author of the legendary 7 Habits of Highly Effective People, each have noted the enormous potential of direct selling.

If these respected business owners, companies and authors have taken a closer look at direct selling, why haven't you? For many, direct selling remains an enigma, and despite its resurgence, it's still dogged by misconceptions. "It's a pyramid scheme;" "Only a select few actually make any money;" "You end up with a bunch of products you can't sell." Such antiquated views and general misunderstanding of how the business actually works often rest at the core of the industry's relatively low profile. In truth, direct selling is a decades-old business model that is really quite simple to master.

Here are eight compelling reasons:

1. It is a business built on relationships, and people trust personal recommendations. If you've ever recommended a product to someone else, then you've participated in a form of direct selling. Now imagine getting paid for your recommendation.

2. More and more Americans are forgoing the usual inconveniences of corporate America and creating business opportunities from their hoes, and direct selling is the perfect vehicle for such a start-up. No headquarters, no employees and most of the legwork can be done over the phone or on the computer.

3. A small initial investment and low risk generates high return and high earning potential. And most companies have, and supply access to, a proven marketing plan and strategy for finding and maintaining customers.

4. There are no boundaries to direct selling; no sales territories or restrictions granting the direct seller full access to national and international markets.

5. Recent changes in U.S. tax law have given the home-based businessperson the ability to enjoy the same kind of tax-deferred savings and benefits as corporate employees.

6. Residual income is the key to time and financial freedom. Miss a day of work? No problem - the money continues to roll in.

7. No education? No previous sales experience? No problem! Direct selling is open to absolutely everyone, regardless of age, financial status, education or experience.

8. You don't succeed unless others succeed, promoting a vested interest in helping others, prompting ethical standards for conducting business so as not to harm others counting on your guidance and leadership.

Business Is Booming

Here's an excerpt of an excellent article entitled "Unlocking Your Entrepreneurial Spirit" featured in "Success from Home" magazine written by Todd Eliason and Martha Belden:

According to an article in Fortune magazine, it is, "An investor's dream.... The best-kept secret of the business world.... An industry with steady annual growth, healthy cash flow, high return on invested capital, and long-term prospects for global expansion."

Former President Bill Clinton hailed its opportunity: "Your industry promotes core values all around the lobe and gives people the chance to make the most of their lives."

British Prime Minister Tony Blair declared it, "A tremendous contribution to the overall prosperity of the economy."

And billionaire investor Warren Buffet labeled it simply, "The best investment I ever made."

None of which should be news to the 13 million Americans and 55 million people worldwide who are already part of the business of the 21st century. It's called direct selling, or network marketing. Others term it multilevel marketing or referral marketing. Whatever you call it, right now in the world of direct selling, business is booming. Direct selling has grown more than 91 percent in the last 10 years and currently enjoys annual sales of $30 billion in the United States and $100 billion worldwide.

Each and every week, about 175,000 people in the United States, plus more than 300,000 around the globe, dive headfirst into the industry's exciting potential. Yet, despite its explosive growth, less than 1 percent of the world's population is currently involved in direct selling, meaning the industry has only tapped a tiny fraction of its limitless possibilities.

How is it possible that an industry is thriving when we're supposedly stuck in the middle of an economic recession? Well, that is simply a matter of perspective.

The glass-is-half-full camp believes this is a time of massive economic change. And discerning entrepreneurs who recognize these shifting trends and stake their claim in these new and emerging industries will be the ones to gain enormously. As Fortune magazine recently stated, "Forget the paycheck; your W-2 days are over. It's a 1099 world now."

And one of the fastest-growing industries is direct selling. Distinguished economist and best-selling author Paul Zane Pilzer predicts 10 million new millionaires will be created in the United States between 2006 and 2016. That's more than double the previous 10 years. What's more, Pilzer specifically states that many of these new millionaires will be from the direct selling industry.

Carrots, Eggs, & Coffee Beans

here's a story that contains an invaluable lesson... wisdom that should be passed on from generations to generations. enjoy!

A young woman went to her mother and told her about her life and how things were so hard for her. She did not know how she was going to make it and wanted to give up. She was tired of fighting and struggling. It seemed as one problem was solved a new one arose.

Her mother took her to the kitchen. She filled three pots with water. In the first, she placed carrots, in the second she placed eggs and the last, ground coffee beans. She let them sit and boil without saying a word. In about twenty minutes she turned off the burners. She fished the carrots out and placed them in a bowl. She pulled the eggs out and placed them in a bowl. Then she ladled the coffee out and placed it in a bowl.

Turning to her daughter, she asked,"Tell me what do you see?"

"Carrots, eggs, and coffee," she replied.

She brought her closer and asked her to feel the carrots. The daughter did and noted that they were soft. She then asked her to take an egg and break it. After pulling off the shell, she observed the hard-boiled egg.

Finally, she asked her to sip the coffee. The daughter smiled, as she tasted its rich aroma. The daughter then asked. "What's the point, mother?"

Her mother explained that each of these objects had faced the same adversity - boiling water - but each reacted differently. The carrot went in strong, hard and unrelenting. However after being subjected to the boiling water, it softened and became weak.

The egg had been fragile. Its thin outer shell had protected its liquid interior. But, after sitting through the boiling water, its inside became hardened.

The ground coffee beans were unique, however. After they were in the boiling water they had changed the water.

"Which are you?" she asked her daughter. "When adversity knocks on your door, how do you respond? Are you a carrot, an egg, or a coffee bean?"

Think of this: Which am I? With pain and adversity, do I wilt and become soft and lose my strength? Am I the egg that starts with a malleable heart, but changes with the heat? Did I have a fluid spirit, but after a death, a breakup, a financial hardship or some other trial, have I become hardened and stiff?

Does my shell look the same, but on the inside am I bitter and tough with a stiff spirit and a hardened heart? Or am I like the coffee bean? The bean actually changes the hot water, the very circumstance that brings the pain. When the water gets hot, it releases the fragrance and flavor.

If you are like the bean, when things are at their worst, you get better and change the situation around you. When the hours are the darkest and trials are their greatest, do you elevate to another level? How do you handle Adversity?

~ Author Unknown ~

The Ultimate Reason to Become a Millionaire

Sorry... it's been a while since my last post. Below is an article written by one of my big time mentors, Mike Litman. I hope you enjoy reading it - HIRO

Why should you strive for financial success?

For the money you will receive? For the attention you might garner? What is your reason?

I would like to suggest another reason for you to consider. Recently, I was sitting down with multi-millionaire Jim Rohn, Tony Robbins' original mentor, and he told me what he feels is the best reason to become a millionaire.

He said.
'Set a goal to become a millionaire for what it makes of you to achieve it.'

He went on to tell me about his own mentor.

'Mr. Schoaff had an interesting way of teaching it. When I was 25 years old he said, 'I suggest, Jim, that you set a goal to become a millionaire.' I was all intrigued by that. You know, it's got a nice ring to it--millionaire.'

Then Mr. Shoaff said, 'Here's why.'

'I thought to myself, 'gosh, he doesn't need to teach me why. Wouldn't it be great to have a million dollars?'

Shoaff said, 'No. Then you'll never acquire it. Instead, set a goal to become a millionaire for what it makes of you to achieve it.'

'Do it for the skills you have to learn and the person you have to become. Do it for what you'll end up knowing about the marketplace. What you'll learn about the management of time and working with people.

Do it for the ability of discovering how to keep your ego in check--for what you have to learn about being benevolent. Being kind as well as being strong. What you
have to learn about society and business and government and taxes and becoming an accomplished person to reach the status of millionaire.'

'All that you have learned and all that you've become to reach the status of millionaire is what's valuable. Not the million dollars.'

Jim Rohn told me a lot of amazing things in our time together. But, after all of the millionaires I've had the pleasure of interviewing, this lesson really stands out as advice we should all follow.

You need to ask yourself: What kind of communication skills do I need to develop in order to become a millionaire?

Then begin working on them.

Ask yourself: How must I think in order to become a millionaire? Then begin thinking that way.

Ask yourself: What kind of people do I need to associate with so I can achieve my goals faster?

Then strive to become a person those people will want to be around.

None of us can afford to underestimate the value and importance of this reason to become a millionaire.

In other words, the greatest value you'll receive by becoming a millionaire is the person you have to become to make it in the first place. That is the greatest reward of your journey to success.

In fact, Jim Rohn wasn't the only millionaire who helped me to realize the power of this lesson. A couple of years ago, Chicken Soup for the Soul co-author, Jack Canfield gave me the same lesson when I sat down with him.

Jack said, 'It doesn't make a lot of difference to become a millionaire. I've done that many times over and I can tell you that it's nice to have a house and a car that doesn't fall apart and all that.'

'But, what's more important is who did I have to become in order to become a millionaire?'

'I had to learn how to overcome my fears. I had to learn how to talk in front of groups. I had to learn how to plan a speech. I had to learn how to ask people I was initially afraid of to loan me money, etc.'

'All of that was scary. But, when I did it and survived it, I was no longer afraid to do it in the future. Now you can take away my house, my money, my car and everything, and it wouldn't matter. I know how to create more of those things because of who I've become, NOT what I possess.'

What these millionaires taught me is priceless.

The point is you must go after your goals and dreams with a burning desire because you'll begin to see a transformation in yourself. A greater self-confidence and belief in yourself will be the first of many rewards.

Now THAT is what I call the ultimate reason to become a millionaire!

Pay It Forward

I happened to find the movie "Pay It Forward" on one of the channels this past weekend and watched it with my wife. I thought it was one of the most inspiring films I've ever seen. I'd highly recommend it to anyone who hasn't seen the movie yet. It also dawned on me how this movie was a perfect demonstration of how being involved in the network marketing / MLM industry enables us to potentially positively influence so many people around us by the use of the same "leverage" depicted in the movie.

The story line goes something like this... Beginning as a seventh-grade social studies class assignment to put into action an idea that could change the world, young Trevor McKinney (Haley Joel Osment) comes up with a plan to do good deeds for three people who then by way of payment each must do good turns for three other people. These nine people also must pay it forward and so on... if succussful, the resulting network of good-doers ought to comprise the entire world. Trevor's attempts to get the ball rolling include befriending a junkie and trying to set up his recovering-alcoholic mother (Helen Hunt) with his burn-victim teacher (Kevin Spacey), who posed the assignment.

I don't want to spoil it for people who have not seen the movie, so i'll stop here... but I think this is precisely what we in the industry aspire to do - to change the world by providing superior goods and/or services to the marketplace (e.g. bring better health to the world through superior dietary supplement) and also by introducing the opportunities to people the possibilities of financial/time freedom... "paying it forward" and eventually bringing health, wealth and happiness to the world just like Trevor did.

One of the quotes from the movie by Haley Joel Osment (Trevor) that stuck in my mind was this:

"I guess it's hard for people who are so used to things the way they are - even if they're bad - to change. 'Cause they kind of give up. And when they do, everybody kind of loses."

Hmmm... food for thought...

Enjoy the movie!!

What Network Marketing / MLM is

In the previous post, I briefly discussed about what Network Marketing / MLM is NOT. In this post, I wanted to take a stab at describing what it IS.

If you have ever been to a restaurant and loved it, or saw a great movie, didn't you tell your friends and family about them? This is called "word-of-mouth" advertising. It is the most effective form of advertising. Network marketing / MLM is a way for businesses to leverage this powerful form of advertising - "word-of-mouth".

Here's a hypothetical example to illustrate. Suppose you found a great restaurant and recommended it to your best friend. Your friend and his/her boyfriend/girlfriend decides to check it out themselves. They go to the restaurant and loves it too... just as you told them. During the meal, the restaurant owner drops by their table and asks how everything is, whether this was their first time at the restaurant, and how they heard about the restaurant. Your friend tells the owner that you heard about the place from you.

A few days later, you receive a letter from the restaurant owner with a coupon for a free meal thanking you for your recommendation of the restaurant to your friend explaining how the restaurant has gained a potential long-term customer. The letter goes on to say that anytime your friend visits his restaurant in the future, he will send you a check for 8 percent of the value of the meal as a continuing appreciation.

Sure enough, you begin receiving a small thank-you check every so often. You are so impressed that you start telling others about the restaurant. This generates more free-meal coupons and more 8 percent word-of-mouth checks. After a while, you begin to receive small checks each month. After several years, you have helped the restaurant to have repeat, long-term monthly customers, generating you hundreds of dollars of extra, no-hassle income to you. The restaurant appreciates this word-of-mouth advertising since it is less costly than their traditional yellow pages and newspaper ads.

This, in theory, is how network marketing / MLM works.

What Network Marketing is NOT

Today, I wanted to touch on a very common concern people tend to have when they hear the terms "Network Marketing" or "Multi-Level Marketing (MLM)" (yes, i also used to be a skeptic!). There are so many misconceptions out there about what network marketing is or is not. Here is what network marketing is NOT.

Network Marketing is NOT an Illegal Pyramid scheme

Pyramid schemes and network marketing are not the same thing in any way shape or form. Pyramid schemes are illegal. They are illegal financial engines where there are no products or services being sold. Pyramid schemes are systems to redistribute money from one person to another.

Network marketing, on the other hand, is a legal business model where real and legitimate products and services are distributed between large networks of customers.

Tax Benefits - part II

I have found a great blog written by Tracy Austin which illustrates the tax benefits of owning a home based MLM business. Click here to read the post.