A Network Marketing Start Up Lesson Learned From The Mortgage Industry
Many aspiring entrepreneurs start an MLM business only to run out of energy and money a few months down the line with little or no profit to show for their hard work. How can the newbie avoid some of the common network marketing start up mistakes? Here’s a lesson we can all learn from our flailing mortgage industry.
I was having a very candid conversation with my mother about how the housing market is so terrible these days. Banks are foreclosing on homes in record numbers and much of the foreclosure activity is a direct result of homeowners refinancing their mortgages and/or accepting high interest arms on their home loans.
I personally have two neighbors who have fallen victim to the mortgage industry push to get home owners to take equity out of their homes, leaving people with high payments that they cannot afford. Or who have purchased a loan from a mortgage broker that after three years kicked their monthly payments up so high they could no longer afford to keep up. Both of my neighbors have fallen behind in their payments and have been forced to foreclose.
But why has this happened to so many people?
And what does this have to do with entrepreneurs who want to start an MLM business?
I’ll explain how this all ties into network marketing in a second. But let me address my mother’s take on why so many homeowners have fallen victim.
You see, my mother argues that the mortgage crisis in this country is the fault of unethical mortgage brokers.
She says that these brokers knew that their clients would not be unable keep up with such high payments and that it should have been their jobs to educate these homeowners on how the refinance or the higher interest arm would affect their monthly payments.
Basically, my mom believes that the mortgage broker was a scam artist for taking advantage of these poor unknowing homeowners.
I think that we cannot place the blame on the mortgage broker in this situation. It is the homeowners job to do their own due diligence before making such a big financial decision.
The homeowner should be asking the questions and reading about their refinance options and loan options. Just because the homeowner failed to do their due diligence, does not mean that the Broker is a sleezy scam artist.
Okay, so what does the mortgage industry have to do with someone wanting to start an MLM business?
Let’s get into it. Here is my perspective as someone in the network marketing industry.
A similar scenario occurs in network marketing when newbies start an MLM business.
New business builders jump into a company at the advice of a friend who is making good money in MLM. This friend trains the newbie on their marketing system and the new business builder jumps in head first.
The average new business builder does not do their own due diligence. And does not ask enough questions about what it will take to succeed a network marketing start up.
So just like the homeowners in the previous example the network marketing newbie gets excited, gets involved and loses their shirt. When some new business builders start an MLM business and it fails, the sponsor often gets labeled as a sleezy scam artist.
Is that really fair to honest people in network marketing making an honest living?
Now I’m not saying that there aren’t unethical people in the mortgage and network marketing industries. There certainly are and you’ll find these kinds of dishonest people in any industry.
But if you want to be a homeowner or a network marketing business owner you’ve got to learn to be accountable for your own actions and your own finances.
When you start an MLM business the first thing you need to do (with no exceptions) is to do you own research and due diligence. This way you will KNOW with very little doubt what you are getting into AND you’ll know if MLM is the right business model for your home based business.
So “How Do The Pros Start An MLM Business WITHOUT Losing Their Shirts?
The answer is, they all start by doing their research first.
If you don’t research first. If you don’t learn for yourself what is involved in a network marketing start up BEFORE you get involved, then you have no one to blame but yourself.
I realize these may sound like strong words. But the fact of the matter is, it takes a strong and disciplined person to succeed in business. And you must be disciplined enough to do a little digging so that you know what you are getting into before you jump in the hot tub.
Would you agree to marry someone without getting to know them first?
Of course not?
So why would you start an MLM business (which you just might spend more time involved with than your spouse) without getting to “know” the opportunity and industry first?
Related Articles
MLM - Network Marketing Companies - are They a Scam?
By: Brian Jones | 27/06/2008 | Internet
Do you believe all MLM - Network Marketing companies are a scam? Can you make money? Are 6 figure incomes possible? You decide...
Five Steps to Start an MLM Business the Right Way
By: Keya Williams | 07/04/2008 | Home Business
Many new network marketers start an MLM business with big hopes and dreams of becoming a top earner in the industry. However most of these people soon run out of money and energy with nothing to show for it.
But all of this unnecessary failure could be avoided. By slowing down and going through five simple steps BEFORE you join a network marketing business, you will find that success in this industry can be a straight forward and exhilarating journey.
As a Newbie, How to Find a Good Mentor in MLM
By: Craig Mattice | 23/06/2008 | Internet
This is an insightful look at the processes a newbie should evaluate and incorporate into their search for a good quality mentor for their business. The article delves into the elements necessary, the ease of locating a mentor, and what a mentor should have to be qualified for a good match. Relax and enjoy this article and learn something new.
When to Leave Your MLM Company. Should You Stay or Should You Go?
By: Craig Mattice | 18/06/2008 | Internet
This article deals with the serious question of whether to stay or leave one's current network marketing or MLM company and goes into the insightful elements that must be considered before making such a decision. Sit back, relax, and enjoy the insight of one who has been there and done that.
MLM Businesses are Needed for Prosperity
By: Aziz Jangbar | 12/09/2007 | Business Opportunities
MLM or Network Marketing is not only a great way for individuals to build financial security, but it can also contribute towards the stability and prosperity of the economy by creating independent small businesses.
What Generation Y Can Teach Us About MLM
By: Jackie Ulmer | 28/02/2008 | Home Business
Generation Y. They are smart, re-defining the rules about work and business and love technology. MLM and Network Marketing is perfect for this crowd. And, we have much to learn from them.
Tips On Avoiding Work At Home Scams
By: Gray Rollins | 26/12/2006 | Business
Working from home can be a perfect opportunity for any person looking for a more flexible schedule. Many parents, both moms and dads alike, love the idea of being available for their children when they need to be there. Working from home sure beats driving to and from the office...
MLM Training - Blow The "Scam" Objection Out Of The Water
By: Tim Sales | 03/04/2008 | Home Business
One of the most frequent objections you can get from your prospects is "MLM is a scam." Here's some MLM training advice you can use to confidently and professionally address this common prospecting objection.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
The Best Kind Of Online Business ???
By: johnaydan | 09-07-2008
Hi Guys,I am planning to get into home business, and have conducted some small groundwork... I just wanted to know that which kind of online business opportunity is the best business right now??_________________________Proven Online Home Business Opportunity...
Family Business as a Job
By: MarilynBB | 21-06-2008
Would you like to work in a business run by one of your family members? Why or why not?
How many people are involved with Multi level ...
By: B | 11-06-2008
How many people are involved with Multi level marketing?
Norwex Questions
By: RockvilleMomof3 | 27-04-2008
I want to start a home based business. Norwex sounds like they sell environmentally friendly, quality products, but I don't know anything about the company and the products. Are all of their products non-toxic and biodegradable? Is th company easy to work for? I have a lot of other questions, can anyone help me?
Good article but I was hoping to get some ...
By: smartipants | 09-04-2008
Good article but I was hoping to get some technical step-by-step info about how to create a lead capture page. Is a lead page just a web page with data entry fields?? Can you refer me to a site that provides all the technical details?? That would be great. Thanks and keep sharing your knowledge!
Is the WorkatHomeSolutions website not good?
By: excelsior | 25-03-2008
is the WorkatHomeSolutions website not good?
Q&A Powered by:
Latest Home Business Articles
Legitimate Work at Home Job: Earn Money without Going Bankrupt!
By: Jeff Casmer | 19/07/2008
One of the best ways to solidify yourself as a legitimate work at home job is to offer your prospects a guarantee. You establish credibility as well as ease their mind when it comes to following through on their purchase. But most people are reluctant to offer guarantees and I dont blame them.
5linx Work From Home Business Opportunity
By: Wardell Brooks | 18/07/2008
Get ready to learn about an exciting opportunity that could change your life. We’re not talking about another job. We’re talking about the opportunity to control your own time and financial future, and live the life you deserve – the 5LINX Business Opportunity!
Are You Serious About Growing And Retaining Your Direct Sales Team?
By: Jackie Prehn | 18/07/2008
If you are serious about growing and retaining your direct sales team, then you need to be incorporating a monthly team newsletter in your team communications. Here's some tips on what to include in your publications to have an effective team newsletter.
So You Have A Desire To Have A Home Based Business
By: Chris Simpson | 18/07/2008
Do you have a desire to have a home based business? If you answered "yes", then there are some things that you will need to know and understand as far as what it takes to start a home based business. By not equipping yourself with the knowledge of the steps that are necessary to starting and successfully operating your home based business, you will quickly learn that that it is impossible...
Part Time Work From Home Business - Is It Possible?
By: Koz Huseyin | 18/07/2008
Is it really possible to work from home in your own business? So many people believe that it needs to be a full time affair, but there are also those who are part time and working from home. Is it possible to create a part time work from home business, and be able to succeed? Join me as we take a look at part time work from home business.
Starting A Home Business - Do You Know Your Marketing
By: Koz Huseyin | 18/07/2008
When we do home business planning, though it can take time and effort, it still has a sense of ease. Often we can go through the starting of the home business all ok, but then soon find we are in new territory. Here is where many home businesses fail; I hope this article can stop that happening to you.
3 MLM Marketing Expenses That Could Bust Your Budget
By: Keya Williams | 18/07/2008
If you have taken the step to create a MLM Marketing budget – Congratulations! You are one step ahead of the average network marketer. However in addition to the typical expenses for leads and advertising, there are 3 important expenses that most new marketers forget about. And forgetting these three can completely bust your budget.
Creating Income With Cash Gifting For A Better Tomorrow
By: Michael J Kohn | 18/07/2008
This article deals with the old and the new. We have gone from a generation of savers, to a generation of investors. Which one will have the finances to retire in comfort and which one may not?
More from Keya Williams
3 MLM Marketing Expenses That Could Bust Your Budget
By: Keya Williams | 18/07/2008 | Home Business
If you have taken the step to create a MLM Marketing budget – Congratulations! You are one step ahead of the average network marketer. However in addition to the typical expenses for leads and advertising, there are 3 important expenses that most new marketers forget about. And forgetting these three can completely bust your budget.
2 Big Reasons for Network Marketing Online
By: Keya Williams | 09/07/2008 | Home Business
In the old “pre-internet” days we could easily invite our prospects to business meetings and focus on 3-way calls with our upline to get new distributors to join or team. Unfortunately, these methods have become much harder, and to stay afloat MLMers need to leverage technology and focus on network marketing online. Here are 2 big reasons why you should turn to the internet to grow your business.
2 Simple Internet Marketing MLM Strategies Anyone Can Use
By: Keya Williams | 09/07/2008 | Home Business
With these 2 simple internet marketing MLM strategies, YOU can launch your online business and be turning a profit sooner than you think. Many networkers are scared off by the very thought of marketing their businesses online. They feel overwhelmed with all of the technology and think they’ll never be able to make any income on the internet.
What is a Business Opportunity Lead Really?
By: Keya Williams | 09/07/2008 | Entrepreneurship
If you have started a network marketing business and have decided to purchase business opportunity leads to grow your organization – STOP. Do nothing until you fully understand what these leads are. Keep reading to get the skinny on biz op leads.
5 Simple Questions to Choosing the Best Network Marketing System
By: Keya Williams | 20/06/2008 | Home Business
Every MLM company and every upline claims to have a PROVEN and DUPLICATABLE network marketing system. But is that system really the best one for you and your business? You’ll never know unless you do a little digging. Here are 5 simple questions to ask when choosing the best MLM system for you.
2 Simple MLM Advertising Methods to Grow Your Business on a Budget
By: Keya Williams | 05/06/2008 | Home Business
So you’ve started your MLM business and now you have to figure out how to advertise your business to get it going. Relax! MLM advertising is not as tricky as you may think. Here are 2 super simple advertising methods to grow your business on a budget.
Three Easy Ways to Get Free MLM Training
By: Keya Williams | 05/06/2008 | Home Business
Getting started in an MLM business is no easy task. To be successful we all need training, however MLM training and take a chunk out of what little money we have to market our new business. Not to worry. There are some free MLM training sources and here are 3 of them.
The Number 1 Rule to Growing Your MLM Business – Target Your Market
By: Keya Williams | 16/05/2008 | Home Business
We all know that every business needs customers in order to bring in revenue – right? However, most of us Networkers are convinced that EVERYONE needs what we sell and will hop over hurdles to become one of our customers.
Business 
