An ancient proverb says that if there is no risk, there is no reward and when things seem too good to be true, they usually are. Please proceed with caution.
I have been in network marketing for over 25 years, I have experienced the good and the bad of every opportunity and hope that my advice can help you identify the type of opportunity, the blatant and the potential hazards. Regardless of what the people tell you about there opportunity, they will always fall into these four categories. I have done a type of SWAT analysis on each one so that you can identify each one.
Remember that money-making is a business, not an emotion – don’t allow the excitement of others to cloud your judgement.
In each category I will answer the following questions: Do I need capital? How do I make money? What if things go wrong? When do I know things are going wrong? Disadvantages and Advantages
Sales always provide the easiest way to earn and if you are good at this craft, you will earn regardless of the industry you are in.
Do I need capital? When you selling you should not need to pay anything. However, in some companies, they may require that you buy products so that you can resell them. Make sure there is a demand for the product before spending your money, you don’t want to have stock no one wants.
How do I make money? The bottom line of sales is, if you don’t sell you won’t make money.
What if things go wrong? Find another opportunity whose products you can sell, never wait for any company. Move quickly you never want to be part of a failure.
When do I know things are going wrong? Companies that offer you an opportunity to earn without selling products or when people say ‘yes we are a product company, but you don’t need to sell products to earn’. Please understand that this type of company is a front for some kind of scheme. Just ask yourself how can they pay me if they are not making a profit from the sale of products.
Disadvantages: Sales can be a great game, but like any game, there are always dirty tricks. The company sets targets and if you don’t meet the targets the company does not have to pay you. They benefit from manipulating you to work harder knowing that the target is almost impossible.
Advantages: If you are good at sales you will make good money and you could become a director of the company. Always make sure you join a company that has a realistic career plan.
NOTE: Don’t believe people when they say ‘only companies that sell products are real’. What are they actually saying that my doctor, my accountant and my lawyer are scammers because they don’t sell products? We need to think about what we think about when we think.
There is a hill billy saying that goes ‘you can stop breathing but you should never stop scheming’ and as my late father always said ‘there is a sucker born every day’. In the world of schemes, the schemers are looking for the suckers.
Schemes are not necessarily bad, however, I have a problem with them as ultimately someone always loses. The focus of all schemes is recruitment and that is how the most money is made. However, if you are making money now, that does not mean that the friend you join in four months time will have the same experience.
Schemes are often disguised as peer to peer platforms, where the rules are more defined and unfortunately the administrators do not stick to the rules and people don’t understand the rules. All schemes eventually look like a Ponzi in one way or another.
The one way I always identify a scheme is that they never provide information about the owners and the company (besides providing photos of bogus people). When you ask them questions they will always tell you about how much money they making and avoid your questions.
Do I need capital? You will be required to buy a package. Never overcommit and only use the money you are happy to lose.
How do I make money? Your package earns a monthly return, your capital is returned first and then your profits. This is how many people get caught, they seem to think they are earning 20% profit, when in fact 20% profit per month will only give them their money back in 5 months. The average scheme lasts 6 months and the better ones may last 10 months, so it’s doubtful whether you will make much or any profit.
What if things go wrong? You lose the money you have not received yet.
When do I know things are going wrong? Before you even get involved that anyone who offers indirect bonuses and other bonuses for recruiting are a full-blown scheme, no matter what they say. The other signs of collapse are normally specials or anything for free, these are normally offered to try boost membership when things start failing. Then there are the upgrades to the system and website, which will take forever and keep people hoping for things that won’t happen.
Disadvantages: Unless you are recruiting you will probably not make much money. You will, however, be sold on the dream of making millions.
Advantages: You will make money that is too good to be true, especially if you get in early.
NOTE: People love schemes, and promote them unashamedly so be very careful.
Business offers you the most control of your money, probably the most difficult part of any business is choosing the correct partners and associates to be in business with.
My brother who is a business consultant has one thought that he often shares with his clients ‘If partnerships were a good idea, God would have one’.
Do I need capital? Yes if you want to be a member and receive profits.
How do I make money? When profits are made you are paid a percentage of the profit.
What if things go wrong? You will know when things are going wrong, as you will not be getting profits.
When do I know things are going wrong? Whenever they are not open with communication.
Disadvantages: A business needs to make a profit to stay in business. This is the reality.
Advantages: You could be part of the next big thing. Work hard you may become a billionaire.
NOTE: Depending on the type of business you become involved in, as a smaller investor in a good business you should be able to get your money out by selling to other partners. In times when the business is not succeeding your capital may be committed.
An increasing number of good business investments offer you your capital back very quickly and this is usually because it is a great opportunity and you would typically not like to sell, however, you may need money for an emergency and this is then an added advantage.
Firstly shop around, don’t just take the first deal you find – it’s your money so make sure you get the best rates possible and watch out for the hidden fees and costs.
The main difference between a business and an investment is that investment allows you to sit back and allow the company to do all the work making the money for you. Trust is paramount and often it will take a bit of time to understand what can be expected in terms of results from these companies.
The crux is really will they be honest enough to share the extra with you or will they simply be greedy. It is rather alarming that they will quickly communicate a loss that they need you to ride, yet seldom share the cream with you.
The internet has helped people share experiences and the greedy companies obviously hate the fact that people are so well connected. You just need to find the companies with integrity.
Do I need capital? Yes, you will need capital to invest.
How do I make money? You will earn profits monthly and your capital is returned at the end of the contract.
What if things go wrong? Start the legal process. Also, certain countries stipulate that their citizens are looked after first and the rest of the world are not covered. You may think you are protected because a company is registered in a certain country, but that is not often the case.
When do I know things are going wrong? When it is too late and the legal process can take forever. It could easily take 10 years to wind up a failed pension fund and the, unfortunately, most of the people needing the money would have passed on by then.
Disadvantages: Your capital can be committed for a long time.
Advantages: Choose your investment wisely, earn a good return and you could become financially free.
NOTE: Don’t put all your eggs in one basket. Have a strategy to diversify, stick to it and don’t try to make quick money.
Below you will find a table for quick reference