MLM or MBA? What’s the difference?

Multi-Level Marketing (MLM) has more value than a Masters in Business Administration (MBA). The funny thing is that MBA’s are likely to be offended by that statement. (My apologies in advance to MBA’s. This is to demonstrate a point that will make sense later.)

Masters in Business Administration (MBA)

Business woman with a briefcase.This designation tells me that you have the ability to study, stay focussed and finish what you start.

An MBA likely spent four or more years in University and $60,000 to $100,000 of someone’s hard earned or borrowed money. Many graduate with large student debt and missed the opportunity to make double that income. That means the true cost is likely upwards of $300,000. (Average cost of Tuition in Ontario:  $8,474)

Now it’s time to find a job or start a business. I have heard of people graduating with their MBA only to end up in a retail job making $30,000 a year with a debt load equal to two times their annual salary. Let’s see, the cost of a $60,000 loan would be approximately $552/month at 2% for 10 years. That’s if you are lucky enough to get away with 2%.

Should you want to start a business, it will cost you thousands if not hundreds of thousands of dollars to buy a franchise or start a business from the ground up. Let’s see, you have a monthly commitment of $552 a month with no source of income and you want me to lend you money to start a business?

Congratulations! You’re an MBA!

Multi-Level Marketing (MLM)

This is a Life Long Learning Plan! “Tuition” may be as little as a couple of hundred dollars, once. From there, the ongoing costs can usually be controlled by you.

man-with-barsFor example, one my wife and I are involved in has a one time cost of $249 and then the only fixed cost is a monthly membership in a #LegalSavingsPlan that ends up saving us far more than the cost of the plan itself. Some people make a few dollars a year while others make hundreds of thousands. Like any business, it’s what you are willing to do that makes the difference.

Between meetings and our membership, our average operating cost is about $150 per month. You can’t realistically work in any sales industry for less than that. When I was in financial services, my monthly cost as a consultant was about $1,000 per month. If you can’t afford $150 a month, you shouldn’t get involved in any business.

What are the benefits?

Most MLM companies provide continuous education in areas like financial planning, sales techniques, time management, personal development and more. They also provide a supportive environment where you can feel safe and try new ideas.

What are the negatives?

The reality is we, ourselves, are the negatives. Success in a MLM opportunity is totally up to you and what you are willing to do.  Will you focus on your activity and use your time effectively? Can you make the choice to tune out the naysayers?

MBA or MLM

Only you can decide. What’s the old saying? “Different strokes for different folks”!

3D-Women-Arrow-02Some need the structure that an MBA and employment bring to their life. Others are more entrepreneurial and self directed and will find MLM a better way to go. There is no right or wrong direction, just the right or wrong one for you.

In my opinion, MLM is a path that those who lack huge financial resources can take to achieve their life goals, not necessarily just money. I have seen huge personal growth and transformation in many people over the past few years in our business, including an MBA who came to heed his father’s advice after trying corporate Canada!

What will you choose?

Make it a great day,

Barry

P.S.  What am I thankful for today? I’m thankful for opportunity. I’m thankful for differences. I’m thankful for life long learning.

Buying and Selling: What’s your preferred distribution model?

There is more than one distribution model for buying and selling products and services.  How do you like to sell?  How do you like to buy?

DISTRIBUTION MODELS

3D-Women-Arrow-02How many ways can you buy and sell?

 

I would be glad to hear about any other ways that you know of.  In the meantime, lets look at the differences and similarities of these models.

similarities

  • All provide a product or service.
  • All are legitimate methods.
  • All create “jobs”. (Some may be self-employed)
  • All offer opportunities for personal growth and development.
  • All contribute to a growing economy.

differences

  • Ownership.
  • Organization.
  • Product and service distribution.

BRICKS AND MORTAR

Businesses that set up in physical locations are commonly referred to as a “bricks and mortar” business.  These are most commonly retail and wholesale operations and personal or business to business service providers.  I can’t say I have heard of anything less than $50,000 unencumbered cash to get started in some years now.

  • Lawyers; Doctors; Dentists; etc.
  • Salons and spas; auto repair; plumbers; electricians; etc.
  • Grocery stores; Car dealers; Electronics stores (Future Shop, Best Buy); etc.
  • Marketing firms; Print shops; Management consultants; etc.

More often than not, these companies have a top down, pyramidal management structure.  Sometimes the roles all fall to one person!  You will rarely see direct sales companies, MLM or Network Marketing companies with a bricks and mortar location outside of their head office.  There are some exceptions.

 

INTERNET

gvo-Header.jpgSome companies are purely internet based.  eBay for example has a physical office for administration but don’t have a location that you can walk into to do your shopping.  Starting your own internet business from scratch will require specialized skills and a fair bit of cash for servers, software, internet services and so on.

Most distribution channels will use the internet for marketing.  Some will have call centres where you can talk to a real person.  These companies still have a top down structure.  Others may combine Direct Sales models or Network Marketing with their Internet marketing efforts.

 

DIRECT SALES

Companies like:

are direct sales companies.  Products and services are typically sold through home demonstrations and you have the ability to build a team under you.  You will likely be paid on the productivity of your direct team but not much further down.  If you stop selling, your income stops with it.

 

MULTILEVEL MARKETING OR MLM

Are you looking for a business opportunity that requires little cash outlay or specialized skills to get started?  Opportunity knocks!  The greatest advantage to Multilevel Marketing (MLM) is the opportunity for personal development and the opportunity to learn while you earn.

 

Why Robert Kyosaki recommended Network Marketing from Morse Wong on Vimeo.

 

I would suggest the greatest challenge is choosing companies and products that fit you.  Like any companies and franchises, there are bad and good opportunities.  You still need to do your due diligence in choosing your business partners.

MLM’s are different in that they recognize the importance of the front line sales people.

Although the MLM structure is very similar to most corporations, the treatment of people and profitability for business partners is very different.  You are treated as a business owner, not an employee.  You are paid as a business partner, not an employee.

You are paid:

  • To learn,
  • to sell,
  • to lead,
  • to teach.

When you have built a solid business, most MLM’s with a solid service or product, will pay you for many years after you stop “working”.

 

WHAT IS YOUR PREFERRED BUSINESS MODEL

man-with-barsAll of the above models are legitimate.  Your job is to find something that fits with your “Why” and then decide how to deliver your product or service to the marketplace.  The only “right” answer is the one that fits you and your budget.

You may want to consider taking baby steps.  Robert Kyosaki does a great job of talking about this in “The Business of The 21st Century” and in “Cashflow Quadrant.

I love that old saying: “Life is a journey, not a destination”.  I would suggest that if you don’t like roller coasters, don’t go into business!

 

Make it a great day,

Barry

P.S.  What am I thankful for today?  I’m thankful for all that I have learned through network marketing.  I’m thankful for all that I learned through corporate Canada.  I’m thankful for opportunity.

What are you thankful for today?

 

 

 

 

The end is just the beginning. Happy New Year!

happy_end_of_old_year__2013The end.

New Year’s Eve marks the end of the year.  What does that mean for you?

The answer is different for everyone depending on the lens you are looking through at the time.  A lot has happened over the last 365 days.  For some, there may have been tragedy that made the year difficult.

 

 

  • Loss of a loved one.
  • Career change or job loss.
  • Financial disaster

You may or may not have had control that would have changed the outcome.  There is nothing you can do about that now.  What you do have control over is how you choose to react.  Just remember, you made it through and you’re here to go forward.  Celebrate that!

Alternatively, you may be ending what seems to be the most wonderful year of your life.

  • Started your first full time job in your chosen career.
  • Got a new pet or started a new family.
  • Had the most amazing experience visiting a new place.

Whether the year was good or bad may well depend on how you choose to look at it.  It’s like reading a chapter of a book.  If you learned from it, there was a benefit.  If you didn’t learn anything, you just wasted time you’ll never get back, never mind the money you wasted in the process.

 

happy-new-year-2014The Beginning!

New Year’s Eve brings hope for new beginnings.

This is the time of year you can make bold changes and people will celebrate those changes with you.  (Ok, maybe the crabs won’t!)  Most are reviewing the past year with every intention of making change so there is no surprise when you do the same.

 

 

 

What are  your plans for this year?

  • Education?
  • Career Change?
  • Creating a financial plan?
  • Creating a master to-do list?

2013 is ending and 2014 brings the opportunity to start something new.  Are you up to the task?

 

Year in review.

One year is like a snapshot of life.  It will start and it will end.  There is no stopping time.  Make every moment count.  You can lose and make money over and over again but you can’t buy more time.

I hope you enjoyed the great moments in 2013.  Whatever challenges you faced, I hope you find the strength to learn from them and move forward with a mind open to the opportunities that the new year brings.  Happy New Year!

 

Make it a great day,

Barry

P.S.  What am I thankful for today?  I’m thankful for every breath I take.  I’m thankful for the time I had with my son.  I’m thankful for the opportunity a new year brings.

What are you thankful for today?

I’m hearing voices!

Don’t do it!  Go for it!  You’re an idiot for even thinking about it!  What a brilliant idea!

VOICE OF REASON?

criticismWe live in conflict with ourselves and the world around us every day.  When faced with a challenge, note I don’t use the word “problem”, those voices start to clamor for our attention.  They get really loud when faced with opportunity in particular.

Then, we make the mistake of asking our friends.  Now, their voice of reason kicks in.  Think about this, who are you asking?  The people who have gone against all odds and found great success?  Or, do you ask all those people struggling to find that great opportunity or job that will lead them to a new life?  The latter are usually a group of naysayers who will never be successful and yet, we give them the most credibility.

Next time you are faced with a decision and are seeking advice, think twice about who you choose to listen to.

 

VOICE OF INSANITY!

Your optimistic personality kicks in and starts to tell you that you can do whatever you set your mind to.  Isn’t that insane?  We all impose limits but, are they always real?

Certain limitations can be very real.  If you are diabetic, you won’t be eating candy because you know it will kill you.  Choose to like nuts or another tasty food that will satisfy the desire for a treat.  Ignore the voice that says only candy will do.

T. Harv Eker wrote a wonderful book, The Secrets Of The Millionaire Mind, that talks about how we develop a map in our minds as we grow up based on our experience.  He acknowledges that it’s difficult to draw a new map but it can be done.  It’s a choice.

WHICH VOICE DO YOU CHOOSE TO LISTEN TO?

3D-Women-Wave-03We need to learn to choose which voices to listen to.  Remove toxic people from your life.  They are like the crabs in the bucket.  People who claim to love you can pull you back down.

Many of the toxic people in your life really do love you!  You just need to limit your exposure to them.  It’s like a fine red wine, a glass is good for you, a bottle isn’t!

Maintain positive thoughts by being around the people who will reinforce your goals.  Read good books.  Do you realize that if you read 10 pages a day, you can read 10-15 books a year?  Keep one in the bathroom!

my recommended reading!

  • The Slight Edge, Jeff Olson
  • The Secrets of The Millionaire Mind, T. Harv Eker
  • The Leader Who Had No Title, Robin Sharma
  • Awaken The Giant Within, Tony Robbins
  • The Emyth Revisited, Michael E. Gerber
  • The 21 Irrefutable Laws of Leadership, John C. Maxwell

The seeds you allow to germinate in your mind will determine what you reap.

Are you a crab? What will you choose?

 

Make it a great day,

Barry

P.S.  What am I thankful for today?  I’m thankful for great leaders.  I’m thankful for God given choice.  I’m thankful for the opportunity each new day brings.

What are you thankful for today?