The power of positive leverage – one of the most powerful advantages of MLM
Posted April 17, 2009on:
When we read the news of the current economic turmoil, a very often blamed issue is leverage.
This kind of leverage is defined as borrowing money to supplement existing funds for investment in such a way that the potential positive or negative outcome is magnified and/or enhanced. There is a dangerous downside and this downside is what is blamed as the principal cause of the present economic tsunami.
However the term leverage was not always treated like this.
The ancient Greek philosopher, Aristotle said that “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”
And it is this positive aspect of leverage that MLM businesses thrive on.
MLM, or Network Marketing as we all know works on the principle of Member get Member. There are some rewards that accrue to the uplines as the downlines work on selling and recruiting.
It can be compared to franchising in a way, as the parent company (the upline) gets rewards from the sales of the franchisors (the downlines).
In theory, if the upline manages to recruit committed and dedicated downlines who continue the process of selling and recruiting there is great rewards for the uplines.
And most importantly it is not a case of the uplines just hanging round their houses all day while the downlines work hard and the rewards all accrue to the uplines. The uplines too, have to work hard at keeping the downlines motivated and support them in their sales efforts.
This great wonderful effect of leverage is not found in most other jobs, full time or part time. The tuition teacher gets his /her rewards each time he or she teaches. So does the CEO or the general labourer.
In MLM, however, we can get the benefits of 1% of the efforts of a 100 or 1,000 people, rather than 100% effort of 1 person.
All these can only work if there is a good product or service to sell. After all this is the basic foundation of any business.
I urge you not to be turned off by all the negative stories that you may have heard about MLM. After all banks have failed before. Fund managers have been proven to be frauds. As in the case of everything, there are good apples and bad apples. So keep an open mind. MLM has many advantages to someone starting out. Explore the opportunities that are presented and if they seem good for you, take them on!
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Thank you for reading this post.