Like most people, I was very skeptical of Network or Multi-Level Marketing.  I was of the opinion they were pyramid schemes that were very shady at best.  Then one day, someone that I admire greatly introduced me to network marketing and the rest, as they say, is history.

The first question you may be asking is why the difference in Cost of Goods Sold?  In network marketing, the product or service is sold via word of mouth.  If that is the case, the product better be above average for people to be willing to recommend it to their friends and associates – don’t you agree?  For this reason, most network marketing companies spend more than the traditional manufactures to ensure they have a high quality product.   Think of products that you know that are sold via direct sales.  Would you agree that on average, they are of a higher quality that what you would purchase in a chain store?

Now let’s look at advertising.  The traditional company such as Proctor and Gamble spend millions – even billions – of dollars in advertising every year.  Just think what it costs to run an ad during Super Bowl!   Now let’s look at a network marketing or MLM company.  They pay several people (thus the term “Multi”) down several generations (thus the term “Level”) each time a product or service is sold.  The depth of levels or generations is determined by the company.  Generally, the pay out is 50% or what would normally be spent on advertising.

When people ask me if I am embarrassed by being involved with a MLM company instead of practicing accounting, I ask them “Does the CEO of Proctor and Gamble get embarrassed about making millions of dollars?  And he sells soap!   I am not embarrassed to be marketing a health product that has helped millions of people, including my family, to have better health. “

Please do not confuse MLM with pyramids.  Pyramids are illegal.  One of the main reasons they are illegal is their failure to move a product or provide a valid service.  I often think of my experience in corporate America as a pyramid.  I was working 50 hours a week and my boss was working 20 hours a week and I would never make more money than he was making and he would never make more money that his boss.  To me that is a pyramid!   I can now make as much money as I am willing to work for and that could be more than the person that sponsored me into this business.

One of the other aspects that I enjoy about MLM companies is that you are in business for yourself – but not by yourself.  When I sponsor someone into XanGo, I go to work for them.  We work together to build a successful enterprise if that is their desire.  This is a win/win business. 

By being in business for yourself, especially if you are operating from home, you may be entitled to some substantial tax breaks.  You can take a look at our page on taxes to determine if you qualify.

People often think of Network Marketing as direct sales and think of door-to-door sales people.  However, what happens in most cases is that someone has a good experience with a product (as my husband and I had with mangosteen juice), then they share it with people they know.  We recently went to a new restaurant in town and it was fabulous.   I bet I told 50 people to check out this new restaurant.  Did the owner of the restaurant send me a referral check?  Every time I recommend mangosteen juice to an associate and they decide to try it for themselves, XanGo sends me a check.   And guess what?  Every time that person reorders the mangosteen juice, I get another check.  I worked for it once (if you call sharing a terrific product with a friend work) and I get paid for a lifetime.  How great is that? 

In Multi-Level or Network Marketing programs you can make a lot of money.  Is it a get rich quick scheme?  NO.  Does it take some time and effort?  YES.  Being successful in this business takes building an organization not just selling product to friends and family.  That is what we are here for, to help you build an organization.  If you are like me, you may get started to earn a couple hundred dollars a month to go on a nice vacation.  Then you realize that with some effort, you could be making thousands of dollars a month – then you make the decision whether this business is right for you.