1. What is Network Marketing?

Network marketing, also known as MLM or Multi-Level Marketing, is an alternate channel for a manufacturer to deliver its products to arket. (Other channels include retail storefronts, catalog shopping, and door-to-door sales.)

Depending on the particular company, the Network Marketing channel may provide both word-of-mouth advertising and distribution.

Why would a company choose the Network Marketing route to product distribution?

There are several good reasons:

• Low overhead. There are virtually no up-front advertising costs. Unlike a typical retail company, the company utilizing Network Marketing doesn't have to spend massive amounts of money to "pull" customers in. Instead, it pays distributors to "push" the product out into the marketplace.

In addition, the company only has to pay the distributors for *results* -- that is, a percentage of products actually sold.

Ordinarily an Network Marketing company will use the money that *would* have gone into advertising to pay its distributors. (Using Procter & Gamble as an example: I have an unconfirmed report that says P&G's sales in 1992 were $25 billion. Their advertising budget was $10 billion. So they spent 40% of their sales on ads. Network Marketing companies typically pay 40-80% of their sales volume to their distributors.)

• Low distribution overhead. Typical retail companies generally use a series of national, regional, state, and local warehousers to distribute their product to the retail stores. Each of these intermediaries wants to make a living, and marks up the cost of the product. Using P&G again: my unconfirmed report says that a tube of Crest that sells for $2-3 in a store costs P&G roughly 13 cents to manufacture. If it sold for $2, 40% (80c) would go to advertising, leaving $2 - 80c - 13c = $1.07 for distribution costs and P&G's profit.
• Rapid Growth. A well-managed Network Marketing company can grow at an amazing rate -- as much as 20%, 50%, even 100% per MONTH. (In fact one of the biggest reasons for a Network Marketing Company to fail is inability to keep up with explosive growth.) It would be difficult or impossible to generate this kind of growth in an overcrowded retail market.
• Specialized and motivated "sales force." There are hundreds of thousands of products cramming the shelves of retail stores. It's almost impossible for a new product to make a dent in the market, unless the company spends megabucks on advertising. Also, many Network Marketing products need more explanation than can be done in a 30-second TV spot. A person-to-person word-of-mouth campaign can solve both of these problems.


That's the company's perspective. For the individual, Network Marketing can offer an opportunity to build a part-time income source that can, with enough effort, grow into a significant income. With hard work (and a little luck) you can earn incredible incomes.

How? Network Marketing is all about "a lot of people doing a little bit." In an Network Marketing you are rewarded for the sales you create -- not only directly, but indirectly as well. You get profit for any retail sales you make, plus you get a bonus on the sales made by people you enrolled into the company, and people they enrolled, and people THEY enrolled, and...

By getting a small percentage of many people, your income can grow to a very large number.

For example: let's say your company sells Widgets, and the average person in the company buys $100 in Widgets each month. (This might be for resale or for personal use, depending on the company.) Now let's say you get 5% override bonuses, and your plan pays 7 "levels" deep. Watch what happens if you find 5 hard workers, who each find 5 hard workers, who each find...

So, if each person found 5 people, and each bought $100 each month, you would earn almost $500,000 per MONTH! Great stuff, hey? Let's all go out and get paid what you are worth!

But wait. It's not that simple. It takes a lot of time and work to build up a group (called a "downline") in any Network Marketing endeavour. What's more, even if you're a real hard-working go-getter, YOU can't do all of it. You can't enroll the 90,000+ people in this group by yourself. Each person has to find 5 of his own -- and the sad truth is, most people are not that ambitous. It's hard to find the ones that will work.

So it's almost unheard-of for someone to actually build an idealized group like this. Some "legs" in the downline will build faster than others, and some will grow slower. If you don't work hard yourself, you might never start ANY legs that go anywhere.

But that's the concept: a whole lot of people doing a little bit each, and you getting a small reward on each one. If you have the initiative and work ethic to build that group, you can make a very nice income in Network Marketing -- and you will get paid what you are worth.

But Network Marketing **IS NOT** a get-rich-quick deal. It DOES take a lot of work, and most people won't put in the work it takes. The large majority of people will never get rich; quite a few hardly make a dime. But the beauty of it is, as long as you pick a good company with a good product or service, the size of your success is up to YOU.

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2. Can Network Marketing be done successfully part-time?

Absolutely....it's very common in fact. You can start your Network Marketing business on a part-time basis without giving up your current source of income until your Network Marketing business is generating the income you require. And the best part is that you can continue to operate indefinitely on a part-time basis. What would you do if you were financially independent and most of your time was free to do with as you pleased? This is why so many people are flocking to Network Marketing. And that's why we say that Network Marketing puts the freedom back in free enterprise!

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3. Do I have to sell products door-to-door or hold parties or meetings?

No. One of the greatest features of Network Marketing is that success can be achieved using a wide variety of methods. You choose the methods that YOU are comfortable with--whether that means direct mail, distributing catalogs, telemarketing, group get-togethers, one-on-one, in-home parties, via fundraisers, commercial accounts, and so on.

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4. Isn't Network Marketing one of those pyramid schemes?

Definitely not. Though Network Marketing and pyramid schemes do share some similarities, there's a very important difference that makes the latter illegal. You see, in pyramid schemes, income is generated solely on the process of recruiting others into the pyramid. Sometimes a product or service of questionable value is involved (that is never retailed to the general public by the way), but generally what you're buying is the right to recruit others into the scheme. This is illegal. Also, in pyramid schemes, those who get in first and who are at the top win, while everybody else loses. In a legitimate Network Marketing company, on the other hand, distributors are paid only on product movement--not on recruiting. Both at wholesale and retail. There's also compensation based on the training and managing of your marketing team. And unlike illegal pyramids, in Network Marketing, no matter where you're positioned or when you join, you can advance to the very highest income levels and even make more money than those above you in the network.

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5. I'm not a salesperson, so this probably isn't for me.

Actually, studies have shown that people with no sales experience do great in Network Marketing. In fact, the studies show that they often do better than those with previous sales experience. This is because Network Marketing isn't about selling--at least not in the way most people think of selling. There's no place for arm-twisting or high-pressure techniques in Network Marketing. Rather, Network Marketing is simply about sharing the concepts and products of your Network Marketing company that you use and you're excited about.

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6. How much money can I make?

The bottom line is you'll get out of it what you put into it. It works...if you do. But that's the beauty of it, too; you are in control--it's up to you how far you take it. And don't forget, the income you create in Network Marketing is residual. This basically means that for the work you do just today, you have the potential to earn money not only for today but for years to come.

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7. Do I have to sponsor a lot of people to be successful?

No, if you can sponsor just one person every month or two, you can do great in Network Marketing.

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8. What's so important about sponsoring in this business anyway?

It's like this: it doesn't matter how intelligent, rich, energetic, or dynamic you are--we are all limited to the same 24 hours a day. By sponsoring, however, you can overcome this limitation. By sponsoring, you can virtually clone yourself and have dozens, hundreds, even thousands of people all working indirectly on your behalf on their time--and receive a cut of everything they do.

Sponsoring also builds your security in this business. Why? In most traditional businesses, what happens if you become ill or disabled and are unable to service your customers? Or perhaps you just want to take a nice long vacation? Whatever the case, you could lose most if not all of your income overnight because it relies on you being there. That's not owning your own life and that's certainly not financial freedom.

Through the process of sponsoring and building a downline in Network Marketing, however, you can create total financial freedom for yourself. With a downline of independent business people working for you, you no longer have all your eggs in one basket. On the contrary, because each person in your downline has a vested interest in continuing and building their own businesses, you create an income that is non-dependent upon you--an income that can continue, even grow, indefinitely with or WITHOUT you.

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9. Do I have to stock and deliver products?

Most Network Marketing companies today allow its distributors (and often even retail customers) to order direct from the company. The company simultaneously tracks your commissions, credits your account, and automatically sends you a check for the total amount due.

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10. Isn't Network Marketing just another "get-rich-quick" scheme?

No, "get-rich-quick" is a fairy tale. It just doesn't happen in the real world. Sure, there are a few exceptions, but they're extremely rare. In fact, if overnight riches is your dream, your odds are probably better playing your state lottery than doing it in business--any business.

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11. I couldn't get involved in Network Marketing. It's not a "real" business.

It's very real. Network Marketing is now a multi-billion dollar industry involving millions of independent business people and major U.S. corporations like Colgate-Palmolive, Gillette, Sprint, and MCI, just to name a few. And it's a rapidly-growing international force, too, with thousands of Network Marketing companies already in operation in Canada, Mexico, Europe, Japan, Australia, New Zealand, and the Pacific Basin.

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12. If Network Marketing is so great, why aren't more people involved?

That can be summed up in one word: misconceptions. The general public just doesn't understand what Network Marketing is or its potential. But that's finally starting to change. Right now it's estimated that only about 2% of the U.S. population is involved in Network Marketing. But industry experts predict that that number could climb to 10% by the end of this decade. You can position yourself to take advantage of this trend by getting started in Network Marketing now. The timing is great for getting involved!

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13. What are the costs involved in starting and operating this kind of business?

Virtually all Network Marketing companies require you to first purchase some kind of "Starter Kit." This is a one-time cost, and is usually less than $100. In addition, of course, you'll have monthly expenses for office supplies, postage, advertising, etc. A total of $50-$150 dollars per month is probably a realistic expenditure to expect. Anyone can afford this amount of money without jeopardizing their current lifestyle while they're trying to build a better one. And here's some more good news--most, if not all of that, is tax deductible.

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14. What if I can't afford to buy extra products?

You're not supposed to. Network Marketing companies just want you to replace those products you now buy elsewhere with the equivalent-but-higher-quality products your Network Marketing company manufactures. By doing so, you'll likely save money since you now get to buy at wholesale. Plus, it only makes sense to buy from yourself--to buy from "your own store."

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15. I've tried Network Marketing before and it didn't work for me.

Let's say you've just moved into a new city and you decided to go out to eat that evening. Unfortunately, the food at the restaurant you picked turned out to be horrible. But just because of this one bad experience, you surely wouldn't swear off eating at all the other restaurants in the city, would you? Of course not! Network Marketing is no different. There are fair Network Marketing companies, great Network Marketing companies, and, yes, even some bad Network Marketing companies. But Network Marketing works! You just need to link up with the right company.

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16. I don't have the cash right now to get involved in Network Marketing.

Get it! If a brand new $60,000 Mercedes were offered to you for $100, would you find the money somehow to buy it? Go and get the money because your own Network Marketing business could be worth a lot more than that Mercedes.

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17. I can see how others have become successful, but I don't think I could do it.

People of every age, every background, from every walk of life are making it in Network Marketing today. If you have the desire, you can succeed in Network Marketing.

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18. If I would happen to be sponsored by someone half way across the country, how do I get questions answered? And what about training?

Free consultation and assistance from your sponsor, other upline associates (and often the corporate staff of your Network Marketing company) is a phone call away. Faxes, E-Mail, Voice Mail, and other new technologies also provide fast and efficient communications between upline and downline...no matter where they're located. As for long-distance training, this is easily handled through video training tapes, audio tape seminars, books, online computer and telephone conferences, etc.

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19. I just don't have the time to start a Network Marketing business. I've got too many irons in the fire already.

That's precisely why you should consider Network Marketing. Besides creating financial freedom, Network Marketing is specifically designed to create personal freedom for you so that you can do all the things in life you really want to do that you don't have the time for now.

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20. Don't you have to get in at the beginning to make any real money? Doesn't saturation eventually occur?

That's another big misconception that's been perpetuated by the media for years. The fact is, there has never been any evidence produced that "saturation" occurs in Network Marketing. This very topic was debated in U.S. courts at one time and that was the conclusion by the courts.

Secondly, realize that because Network Marketing is still a very young industry, there are hundreds of millions of prospects worldwide who have never even heard of Network Marketing. It will take years to even make a dent in that.

But here's the main reason why "saturation" is a myth: Timing. In the U.S. alone, there are tens of thousands of brand new prospects "hatched" every year. Part of that figure is young adults who have only just reached the stage in their lives where they'd consider (and could afford) to start a business. Then there are the thousands who have just experienced a major shift in the direction of their lives because of changes at work, at home, etc. These same people, who just months before could in no way, shape, or form be considered prospects for Network Marketing, NOW are suddenly very open to the proposition. And this is happening constantly. Bottom line: The market is wide open and the potential is enormous.

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21. Is MLM a scam? Is it legal? Is it moral, ethical, etc?

The short answer is: maybe.

This is the cause of 99% of the flamefests, arguments, and general disagreements about Network Marketing. Many people contend Network Marketing is immoral or unethical. Many Attorneys General (who ought to know what they're talking about) say a properly-run Network Marketing Company is perfectly legitimate and ethical. Who's right?

The truth is, Network Marketing is not inherently good or evil any more than capitalism is good or evil. Both can be done ethically, and both can be done unethically. It depends on how a particular company is designed and managed.

Since the Network Marketing industry is very young (about 40 years old), the law is still in flux. There are admittedly many Network Marketing companies that are nothing more than scams, get-rich deals for the owners and their cronies, glorified chain letters, etc. Some of them even manage to skirt around the legal issues and avoid prosecution. There are other companies that have legitimate products, and may have been in business for many years, but which are run in such a way that many people get burned -- old ladies investing their retirement funds to buy a garage full of products, and so on. Most people would agree these companies, or at least the distributors that do the questionable practices, are not very ethical.

On the other hand, there ARE many companies that are run legitimately, legally, and ethically. They produce good products that are valued by customers, and give many people the opportunity to improve their financial situation.

The anti-Network Marketing people will often assert that Network Marketing companies and people sell unrealistic fantasies of income potential, recruiting "cannon fodder" to fatten their upline's bonus checks. This view is understandable, but misses one critical point: in general, the new person has the SAME OPPORTUNITY to build a group as the fatcat upline guy. The upline has worked hard, maybe for years, to build the downline that is now rewarding him so richly. The new person has invested maybe a couple of hundred bucks and a few hours. It's only fair that everyone starts out in the same place -- AT THE BOTTOM -- and everyone has the SAME chance to build a downline of their own.

The major exception to this is in the theoretical case of "saturation." In this situation the company has grown so much that a large percentage of people who would be interested in enrolling have already enrolled. (NOTE that this does NOT mean "EVERY person is enrolled"!) The new person has a much harder time finding new recruits than the upline person did N years ago. The new person has several choices: go with the established company, and live with the saturation; go with another company that has no saturation problems; or give up.

On the other hand, while it may be a bit harder to find new prospects when a company is mature, the new person who joins the mature company has MANY more tools and support mechanisms available to him/her than the "old hands" did back at the start of the company. There are probably also many more products, more professional literature, etc. While those pioneers may have had wide-open spaces to settle, they also got more arrows in their backs. It works out pretty evenly.

In actual practice, saturation is very seldom a problem. It may be easier or harder to find new prospects for a particular company in a particular location, but there are very few cases that are actually "saturated." The thing to understand is that saturation is not a clear-cut, yes-or-no situation; one company may be CLOSER to saturation than another, but neither might be actually "saturated."

The anti-Network Marketing argument often runs calculations of exponential growth, and demonstrates that the entire population of the planet will be enrolled within a short period. This is an intellectual exercise rather like the example of "one pregnant mosquito could carpet the earth in mosquitoes by the end of the summer." In other words, in actual reality, it doesn't happen that way. The growth rate is normally much slower than people realize (especially once a company gets larger), and slows down as a company approaches saturation. It may get harder to enroll new people in a large and near-saturated company, but NO company in the history of Network Marketing has ever grown fast enough to exhaust its potential marketplace. More people turn 18 every year in the United States than are enrolled in all Network Marketing companies combined. So far, at least, the growth of Network Marketing companies hasn't kept up with the growth of population.

So, bottom line: In the opinion of many people, Network Marketing *can* be done legally, morally, and ethically. It can also be done unethically and illegally. Choose your company carefully.

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22. But isn't it wrong to keep bringing in new participants, rather than concentrating on selling a product like "regular" businesses?

This is a common opinion with Network Marketing detractors. In one sense they are right; if the only driving force behind a Network Marketing Company is to bring in new people, for example if new-member fees are the only thing that pays bonuses, then that's definitely not OK.

But many anti-Network Marketing folks think that the only purpose of ANY NETWORK MARKETING COMPANY is to enroll new people, instead of selling a product. What they don't understand is that ENROLLING NEW PEOPLE *IS* HOW YOU SELL THE PRODUCT IN NETWORK MARKETING.

If you focus only on selling, it isn't Network Marketing -- it's plain old sales. Nothing wrong with that; it's just not Network Marketing.

Network Marketing works with a DIFFERENT PROCESS than typical sales. Rather than finding a few people who sell a ton, you find a bunch of people who sell a little. (And, since each sells so little, self-consumption can account for a significant portion of those sales.) Enrolling new people, and building downlines, is how you find the people who each do the small amount of sales. (Note: EACH do a small amount of sales. NOT just the "suckers on the bottom". In any legitimately-run Network Marketing company, ALL people, from top to bottom, contribute to the sales effort.) Product still gets moved -- that's how bonuses get paid in a legitimate Network Marketing Company -- it's just done in a different manner than in traditional sales or retail.

Network Marketing works differently than traditional methods, but just because it's different doesn't make it bad. It's just DIFFERENT. Just like franchising was different from traditional retailing, and was considered to be a scam for many years. But when properly implemented, franchising is not a scam; it's a very effective way to do business. Similarly, when properly implemented, Network Marketing is different from traditional retailing AND franchising, but can be a very effective way to do business.

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23. What's a pyramid, and how is it different from a legitimate Network Marketing Company?

I'll answer only for the US, since that's what I'm familiar with. Some other countries, such as the UK, legally define *any* Network Marketing Structure to be a "pyramid sales scheme." That's not the case in the US.

In the US, a "pyramid", as usually defined by the FTC and state Attorneys General, is an illegal multi-level scheme wherein people pay an "entrance fee" for the opportunity to recruit others to do the same.

Sounds like Network Marketing so far? The primary differentiators between a pyramid and an Network Marketing company are:

• Product. A legitimate Network Marketing company has a legitimate product that would be purchased by customers *even if they were not in the company*.

Pyramids have no product (the typical chain letter is a classic example) or a "sham" product. In a pyramid, the pyramid *itself* is the real "product".

• "Headhunting fees." Pyramids often have large entry fees that drive the bonus structures for the "upline." The Attorneys General often consider nearly-mandatory inventory purchases (the infamous garages full of product) to be "entrance fees" and have shut down several companies as a result. Most legal Network Marketing Companies have only a small registration/membership fee (usually in the $10-$50 range) that pays for a starter kit, manual, newsletter subscription, etc. No bonuses can be paid on the registration fee.
• Income promises. Pyramids often make claims of huge incomes with little or no effort. "Earn $50,000 in 90 days!!" or similar chain-letter claims are a good example. Real Network Marketing Companies will make it clear that you build an income by hard work and dedication.


Basically, if a company is based on a solid product or service, and bonuses flow from regular purchases of those products (either repeat purchases or sales to new customers), you can be fairly certain it's not a pyramid.

For a very good explanation of the pyramid "red flags" by a highly respected MLM attorney, see http://www2.primenet.com/~magrath/djack.html.

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24. What's the difference between MLM and Network Marketing?

Most people would say the terms are synonymous. MLM is an older term, and has taken on negative connotations in some people's minds. Network Marketing is preferred by some who are trying to avoid this stigma.

Some companies, such as Amway, consider "Network Marketing" to be a specific form of MLM: namely, combining a "network" of outside suppliers (AT&T, Coke, Reebok, etc.) with a network of "marketing" folks (the distributors).

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25. How can I succeed in Network Marketing?

Short answer: Work diligently, work consistently, and don't give up.

Long answer: all companies are different, and what works in one company might not work in another. You should learn from your upline -- ask them what works and what you should do to succeed. Draw on them for help. They've found out from experience what works and what doesn't, and they're interested in your success.

The fundamental ideas, though, are the same in any company. Do what a distributor/associate/whatever is supposed to do in your company -- retail products, sell services, consume products, whatever -- and find others to do the same. Teach them to do what you do.

*Duplication* is the key to success in Network Marketing. You're not supposed to go out and enroll the world, or sell something to everybody on the planet. You're supposed to find a FEW people who want to build a business, and help them do it. More importantly, teach THEM to do what a distributor does, AND go out and find a few people to work with, AND teach those new people. Until you have "taught your people to teach their people to teach," you have not really duplicated yourself.

Keep plugging away. Unless you're incredibly good at this, it will take time to build a group. It takes time to find good people and teach them what they need to know. Sometimes your best people will give up and drop out. Sometimes it can be very discouraging. Sometimes you may be tempted to give up. (And if your company isn't working very well, maybe you should. But if the company's working well, and others are succeeding, you need to take a look at what YOU'RE doing that isn't working. It may be that you wouldn't do any better in another company, even if the grass looks greener, because you're doing the wrong things.)

It is a sad fact that a very small percentage of people who enroll in any particular Network Marketing Company will succeed big. This is NOT, however, a fatal flaw of Network Marketing; it's a reflection of real life. 90%+ of small businesses fail within 1-5 years -- and the owners lose a whole lot more than the few hundred dollars an Network Marketing person typically invests. 98%+ of corporate employees will never achieve executive levels. 95% of 65-year-old retirees in the US (according to insurance & Social Security statistics) are dead or broke. The sad fact is, very few people succeed big in ANY endeavor. Most people simply will not do what it takes to succeed. Network Marketing is no different in this regard.

However, many people get into an Network Marketing with the idea that it's some kind of "easy road to riches". It's not. It takes work. It takes time and dedication. But most people don't see that, either because their sponsor misled them with rosy predictions of instant wealth, or because they chose to hear the easy story. People like this enroll and don't do anything, or give it a try but give up after a few months. This is where the vast majority of "MLM failures" comes from.

The biggest problem with Network Marketing is that it's "too easy" to get into it (usually no more than a few hundred dollars), so it's "too easy" to get out. With only a few hundred bucks committed, it's easy for someone to say "Ah, heck, I talked to 4 people and none of them were interested. This doesn't work! Guess I wasted $200." (And, often, "So MLM is a scam!!")

You should approach your business as if it was a "real" business, one that you had invested your life savings into. If you had sunk $200,000 into your Network Marketing business, would you let 4 "no"s stop you? Hell no!! You'd get back OUT there and KEEP working until you MADE it work, because you had too darn much money in it to give up! Well, guess what? That's what makes Network Marketing work too -- that dedication to keep working until you make it work.

If you work consistently, and effectively, and build your group faster than the faint-hearted people drop out, your group will slowly but steadily build. And if you've taught your people the correct ideas of "work consistently, work effectively, and teach your people how to duplicate your efforts", you should see a consistent rate of growth. It will probably take longer than you'd like (hey, that's the way life works!), but as long as you keep working at it, your income will eventually build to the level you want.

The problem is, most people don't do this. Most people who get into Network Marketing give it a half-hearted try, then give up the first time they get a "no" and complain that "It doesn't work." Only the people who determine to put in the effort, and actually DO what it takes to succeed, will stick it out and end up on top.

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26. What are some good books about Network Marketing?

Here are some good books, in roughly "most recommended" to "least recommended" order. A good bookstore should be able to find them for you, or you can order them directly from the author/publisher in some cases. (You can often get significant discounts by ordering in quantity.)

• "Wave 3: The New Era in Network Marketing" by Richard Poe.

A very good intro by a former editor of Success Magazine.
Poe edited the (in)famous 1991 Success MLM cover story.
Available from: Waldenbooks and other bookstores
• "Being The Best You Can Be In MLM" by John Kalench.

An excellent "how to do it" book that emphasizes "doing it for the right reasons" and helping others.
Available from: Millionaires in Motion (phone#?) or KAAS (below)
• "How To Build A Large Successful Multi-Level Marketing Organization" by Don Failla.

The book is easier to read than the title!
A small, easy-to-digest book on the basic why's & how's of MLM.
Available from: MLM International, PO Box 889, Gig Harbor, WA 98335 1-800-458-0888 FAX 206-851-3096
• "Big Al Tells All" by Tom Schrieter.

A light-hearted "how-to" book with a lot of good nuggets.
This is the first of five "Big Al" books by Schrieter, all of which are reasonably good. Available from: KAAS Publishing, 16516 Sealark, Houston, TX 77062 713-280-9800 FAX 713-486-0549
• "Winning the Greatest Game of All" by Randy Ward.

Available from: KAAS
• "MLM Magic" by Venus Andrecht.

Fairly breezy, but good info.
Available from: Ransom Hill Press, PO Box 325, Ramona CA 92065 FAX 619-789-1582
• "How To Make Big Money In Multi-Level Marketing" by David Roller.

Lots of "real-life" stories from people, a fair amount of "how-to".
• "Charismatic Capitalism" by Nicole Woolsey Biggart.

This is a unique one: a scholarly study of MLM and direct marketing companies.
Earns distinction as probably the only MLM book to use the term "Leninesque." :-)
• "Multilevel Marketing" by Rodney K. Smith.

Smith is a lawyer and examines some of the legal issues surrounding MLM.
Lots of references to Amway and Shaklee.
• "Who Stole the American Dream?" by Burke Hedges.

This book tells it all, from flimflam pyramid scams to what makes a legitimate MLM, and why.

We do not recommend:

• "How to Get Rich in MLM" by Holmes & Andrews.
• "MLM, A Shortcut to Financial Freedom" by Jim Sweeney.
• "Get Rich through Multi-Level Selling" by Gini Graham Scott.


There are also a number of books specifically about Amway and a few other large companies, such as "Promises to Keep" and "Believe!". These are so focused on that particular company that, while they may be excellent, they probably aren't of interest to people in other companies, and they are well publicized within those companies. (To be fair, there are also company-specific books that are *not* promoted within those companies, because of their very negative position. Examples include "Fake It 'til You Make It" and "Amway, the Cult of Free Enterprise". The reader is encouraged to make his or her own judgements on the objectivity of any of these books.)

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27. Why are it January and February traditionally big months for network marketing?

Because in January and February people get "hit" by their Xmas and Holidays expenses, and suddenly realise how their income from their normal full time job just isn't enough and doesn't grow fast enough. So suddenly they look at / re-look network marketing business ventures with which they can build an additional residual income...

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