Multiple Streams of Income - MLM Marketing

When the pandemic hit, millions lost their jobs. When natural disasters strike, many lose income while business are closed. If you or a family member becomes ill, you may lose income while you miss work. 

All it takes is one hiccup, one unexpected event, and suddenly...you no longer have a paycheck coming in. And whether it's just for a few days, as in a bout with the flu or a sick child, or months as in the case of the pandemic, it can be devastating.

That's why it's so important to have multiple income streams. Ways to keep cash flowing even when your primary source of income has stopped or slowed.

One of the easiest to get started is MLM marketing or network marketing. 

MLM marketing, is a method for selling and distributing products or services. It works on the principle that the most successful way to build a business with new and returning customers is through word of mouth or through integrated online marketing that then promotes one person telling another about the business.

Before you turn away saying this can never work for me, let me assure you it can. It works for many people all over the world every day. It is one of the most successful marketing concepts ever created. You just have to understand what it is and how it works.

SO WHAT EXACTLY IS MLM MARKETING?

If you have ever purchased Avon, or Tupperware, or Amway, or Melaleuca, or Paparzzi Jewelry...

Or any of hundreds of thousands of products from hundreds of thousands of companies, you have purchased from a network/mlm marketing company.

Many of these companies refer to themselves as "direct sales". But if you can recruit people to be on your team and get paid for doing so, it's an MLM marketing company.

But what exactly is it? MLM marketing is a business model used by many companies to sell their products. Instead of doing the marketing themselves through online sites or brick-and-mortar stores, they use representatives to market and distribute their products.

Most MLM reps work from home. In the past, reps typically had to buy product upfront and then sell it. Remember Tupperware and Mary Kay parties? But with the advent of the internet, now reps focus on getting people to simply sign up as customers and order their products directly from the company. The company ships, invoices, and collects payment. Reps simply keep the company supplied with a stream of customers for their products.

In addition to earning commission from product sales, reps have the ability to recruit and train other people to be reps also. As these new recruits make sales and recruit their own reps, everyone above them on that team earns a commission. Hence the term MULTI-LEVEL or NETWORK Marketing

HOW IT WORKS

MLM marketing reps are typically recruited by other reps in the business. In the past, you probably attended an opportunity meeting where someone did a presentation about the company and then people were encouraged to sign up.

Once again, the internet has changed how we do things. There are still group presentations, but these are mostly done online. Most reps, myself included, prefer to get to know people first. Then if it seems like they might be a good prospect for the business, we might sit down for a face-to-face chat or invite them to watch a video presentation.

Once you have watched the presentation and decide to join, the signup process is easy. There are forms to fill out to become an independent representative for the company and for tax purposes. You typically will not have to purchase large quantities of merchandise. But you will be encouraged to buy some products for your own use or to sell to others. And you will be encouraged to put these on AUTOSHIP. Autoship means the company will ship your products to you every month without you having to re-order. Since these companies make their money and pay their reps from product sales, getting you to purchase is important. Companies will incentivize you to do this in many ways. The most popular are to either only pay commissions to reps who are on autoship, offer product discounts to reps on autoship, or both.

IS IT LEGAL? DOES IT WORK?

MLM Marketing is perfectly legal. Yes, there are pyramid schemes and scams out there. The best way to determine if it is a reputable company is to see where the focus is. If the company makes the bulk of their money from the sales of a quality product, and NOT the recruitment of other reps, it is most likely a legitimate MLM Marketing company.

And just because a company is legitimate does not mean all the reps operate with integrity. I have seen all kinds of claims made about products, particularly in the health and wellness/weight loss markets. And I have seen outrageous income claims made in an effort to recruit reps.

Does it work? That depends. This is a business, just like any other business. You won't make $10,000 overnight in your sleep with no work owning a McDonald's franchise. The same is true here. But if you are willing to learn the skills necessary and do the work, you can build a very successful business.

SHOULD I JOIN AN MLM MARKETING COMPANY

I can't answer that question for you. Only you know if this is the right business model for you. But I can tell you some of the advantages.

Anyone can make a decent living with an MLM business. It all depends on how hard you want to work. It's just like any other business. If I open a restaurant, or a childcare service, or a flower shop and then don't promote my business and don't try to sell my products or services, I am not going to make any money. I might sell a little bit to family and friends, but if I don't advertise and market and look for new customers every day, I won't be successful. And you have to be willing to learn how to do that effectively. There's good marketing and very bad marketing. Why do you think every franchise makes all of their new owners do things the way they want? Because they have found out what works. In network marketing, you won't be told what you have to do. It's your business. But you should be offered lots of opportunities to learn.

You will be expected to recruit others into the business. Yes, we get bonuses for recruiting other reps. But if you think we can live off that without product sales, you are sadly mistaken. And where do you think the money comes from to pay those bonuses anyway? Product sales!

Is it hard to recruit others? Not once you learn how to do it properly. Do you REALLY have to? No. You can be content with what you make on your own product sales. But this is where one of the big benefits of network marketing comes in. It's called LEVERAGE. Say I have to make 10 sales to make $1000. That means I have to find 10 new customers for every $1000 I make. If I'm making $10,000 a month, that's 1000 new customers I have to find EVERY MONTH!

Now suppose I have recruited 5 people on my team. I still get $1000 for every 10 sales I make. But I also get $200 for every 10 sales my team makes. So suppose we have a really good month and we all made 1000 sales. Instead of $10,000, I now have made $110,000. With no more work on my part than it took to make $10,000. And if something happens and I am sick or I have a family emergency and can't make my 10 sales, I will still earn some income from the sales my team made. Will I always make that kind of money? No. Just like any other business, there will be good months and bad ones. You will have go-getters on your team who will make lots of sales and you will have some that don't do anything. But the potential is there. And the bigger your team, the greater the opportunity for money!

By the way, the concept of leverage has made lots of companies very wealthy. Think about McDonald's. Do you think they would be the company they are today if they didn't get a piece of the pie from every McDonald's franchise out there? Same concept.

You will be expected to pay an enrollment fee. You are buying a business. Do you think that McDonald's gave away those franchises for free? This is a legitimate business model. Expect to treat it like one! How much? That depends on the company. I have seen as low as $30 to as high as several thousand. The wonderful thing is that there are companies with enrollment fees to fit almost any budget. Some companies even have a range of prices, depending on what you want and can afford.

This is your own business. You will be subject to taxes and laws just like any other business. Your company will provide you with materials and training but you will be expected to do your own marketing and recruiting. They will probably have some ground rules that tell you what you can and can't do when representing them. Things like no fraudulent claims, or charging more for enrollment fees than the company dictates. If you expect to grow very large, you will have to learn all the things it takes to manage a business.

You can work at your own pace. Many of us started part-time until we built a large enough business that we could just work it full-time. There are no quotas to meet. Only your paycheck which will directly reflect the amount of work you put in. There are no set hours. When I started, I worked rotating shifts so sometimes I worked my business during the day. And sometimes I worked while most others were sleeping. Not always easy back then. Today, with the internet, you can learn how to be promoting your products and business 24/7...even while you sleep.

You don't need a big office or special equipment or certain skills. Most of us started out of our homes. I worked mostly from my living room or bedroom. And all it takes is your kit from your company and effort. A computer or smart phone makes things easier, but I didn't have any of those when I started. Heck they didn't even exist! (Oops, did I just give away my age?!) Anyone can do this. I have an 18 year old college student on my team. And I have a 74 year old grandmother. And every age in between. I have stay at home moms, lawyers, teachers, a hairdresser, a fitness instructor, and even a used-car salesman on my team. Anyone can do this if they are willing to work and learn.

This is a real business. Which means you will qualify for all of those home business tax deductions!

The income potential is limitless. You can make as much or as little as you choose. It all depends on the amount of time and effort you put into building your team and your business. The network marketing industry has created more millionaires than any other industry. 

However, while making millions would be wonderful, the cold, hard, facts are that most MLM marketers won't ever hit that level. Not because it's not possible. Most of us just don't won't to devote the time and energy it takes to get there. 

What many of us will do, and what is most important, is this. We make enough to keep food on the table and bills paid, We can keep a roof over our heads. We can put money into investments and savings. We can afford some of the nicer things in life. 

If you are looking for a an additional income stream, I highly recommend you take a thorough look at MLM marketing. 

Ready to get started? Want more information? Contact me here!

Want to Save More Money? Make Your Savings Hard To Get At

The first step to financial fitness is savings. Everyone should have a savings account. The problem is that even though many do have one, there never seems to be much money in them. And that's because our savings account is usually the first place we look when we're a little strapped for cash.

If you want to reach your savings goal, you have to keep that money out of easy reach...and no I don't mean a cookie jar on the top shelf. It's for your goals...the things you decided you needed to be prepared for life's foibles. It is  not for those moments when you're temporarily a little short on cash. 

So how do you keep from dipping into the piggy bank?  Here are some ways to make your savings VERY hard to get at:

1. Keep your savings account at a different bank than your primary bank. Having both your primary checking account and your savings account at the same bank makes it too easy to just transfer money from savings if you're a little short on cash. If your debit card is linked to your savings account, that's even worse. Now you can access your savings from almost anywhere! 

I recommend keeping your savings in a totally separate online account. This will definitely cut down on the speed with which you can access your money, which means you might be more likely to look for ways to stretch your dollars until your next payday, instead of pilfering your savings. Plus online banks often pay a higher interest rate on savings than your neighborhood bank. 

If you would prefer to use a brick-and-mortar bank, then open a separate savings account at a bank you don't normally use. Preferably on the other side of town. Do whatever it takes to make taking money out of your account as inconvenient as possible. 

2. Do not link your debit card to your savings account. Again, this just makes it too easy to access your savings. Many banks will give you a card automatically when you open your savings account. They might advertise this as a benefit of setting up an account with them, but it's not. So if you have the option, tell your bank you don't want it. If you already have one, cut it up. If you simply can't imagine not having one, then at least keep it locked up at home and not in your wallet.

3. Reduce the amount of your contributions if necessary. Let's be real. If you are putting a substantial sum into your savings account each month, only to take some of it out again each month, something isn't working. 

It's much better to put a smaller amount in your savings each month and LEAVE IT THERE.

One of the easiest ways to grow your savings is to put money in an interest-bearing savings account and don't touch it.

Have you found yourself dipping into your savings more than you should? How have you stopped? Share your tips in the comments. 

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Know How Much You Need To Save

The first step to making sure you won't be running out of money in an emergency is to know how much you'll actually need. Yes, I know...the typical advice is 3 - 6 months of expenses. But do you know exactly how much you REALLY need?

Don't use guesswork. "I make $4000 a month so that's how much I need." Maybe. It depends on how that $4000 is spent each month. If it all goes to cover essentials, you are correct. If not, you could possibly manage for a bit with less.

You can get started by determining where your money goes each month. This is somewhat like making a budget. Add up all of your income for a month. If you're a dual income family, both paychecks count. Then add alimony, child support, any income from side hustles, investment income...if money comes in to your bank account, add it to your income.

Next take a look at your expenses. Which are absolutely essential? Rent or mortgage payments, food, utilities, obviously. But what else do you absolutely have to pay each month? Car payment? Probably. Insurance and vehicle maintenance costs (this includes fuel in my book). Is anyone in your family on regular medications? They'll need to keep taking them. Childcare? That could depend on the type of emergency. I would always err on the side of caution. Better to have more than you need than not enough.

Anything that does not have to be paid each month...meaning it's something you don't need for survival...is non-essential and can be cut if need be. You can live without cable TV, or your morning Starbucks run. You won't die if you miss a spa day. 

Add up your total monthly ESSENTIAL expenses. Multiply by six. That's how much you need to have saved for emergencies. 

Now...how to do that.

Many experts recommend saving 20% of your monthly income. That's great. If you can do it. But if you are already stretched thin, taking out 20% could be difficult. Start where you can. Something is better than nothing. The important thing is to get started saving now! The sooner you start, the sooner you will have your financial cushion ready for emergencies. If you can only save $5 a week, do it. But do it consistently! Once you figure out how much you can save each month, do it EVERY MONTH! No excuses. A little self-sacrificing now may make all the difference in an actual emergency.

Check out these posts for some additional information on saving money:

Why Did I Buy Those Shoes?!

Set A Savings Goal

The First Step to Saving Money - Spend Less Than You Earn

Got a College-Bound Kid? Invest in a 529 Plan

As the grandparent of a college-bound teen, do you want to know what I have learned? College is EXPENSIVE! And it's expected to just keep getting more expensive. 

Fortunately, we are in a position to be able to help him with tuition so he won't have to graduate under a mountain of debt. But it would be so much easier if we would have known that his dreams of a military career would be dashed by health issues. We would have encouraged him and his parents to prepare for his college days themselves! 

It's a little late for him to really start saving. But it's not too late for anyone else who may have children dreaming of college in their future. There are lots of ways to start saving money for college. One of the best is the 529 plan.

A 529 plan is like a 401k for college savings. You put money in, get a tax deduction, and allow the money to grow tax-deferred for the purpose of paying future college costs.

I am not an expert on them by any means. So before investing, I highly recommend you educate yourself so you understand them. But I will share some basic reasons why you should open one if college is in your child's future.

1. High contribution limits: 529 plan limits are set by the states. Limits vary from state to state. California currently has the highest limit. Mississippi has the lowest. But even at a $235,000 limit in Mississippi, that still makes quite a dent in a hefty college tuition bill!

2. They are tax-deferred: Your contributions and earnings grow tax-deferred. And as long as you use the money for qualified education expenses, your withdrawals will also be tax free. 

3. Flexibility: Your 529 plan is not limited to paying tuition. It can also pay for books and computers. And it doesn't just cover college. You can use your 529 plan for other post-secondary qualified training. 

4. It's easy to invest: Most 529 plans make it very easy to invest. They are professionally managed so they have choices like pre-set asset allocation models and age-based options. So if you're not an expert on investing, no worries! Let the professionals handle your allocation and use the age-based model to lower your risk.

5. No tax reporting - if you use your 529 plan for qualified expenses: This definitely makes your life easier at tax time. There are times when you will have to report such as if your withdrawals exceed your qualified education expenses.

If you have a college-bound kid, you definitely want to invest in a 529 plan. With college costs rising annually, it can be challenging to know how much you will need. But if college is on the horizon, any amount you can start investing in a 529 plan can only help.

An Abundance of Money

I used to think that all I need to be financially secure was to make more money. With an abundance of money anything is possible. Unfortunately, this isn't true. How do I know? When you make $97,000 a year and still don't really have any savings, your credit cards are maxed, and you are still living paycheck to paycheck...something is not working.

Obviously I had the "making money" part down. So why was I still struggling? The answer...I still had a poverty mindset. So today's smart money advice isn't going to be about how to make more or save more or invest better. It's about improving your money mindset. Because if you continue to go through life with an attitude of lack, it won't matter how much money you make. You won't be able to keep it.

And you do want to have more money...right? Who wouldn't like to be rich? I'm sure we all want to create wealth and abundance in our lives. If you don't believe me, just ask Google how to make more money and see how many hits you get! There are more than enough website out there wanting you to spend your money so they can show you how to make more. Literally trillions! But none of them teach you how to keep it once you have it. If you learned how to do that you might not purchase their next big thing guaranteed to make you more money!

Most of us get our attitude towards money from our parents. If you read my blog post What My Parents Taught Me About Money, you will understand why I struggled. I was basically taught how to be poor. And it was a lesson I learned very well.

The good news is that you can overcome the lessons you learned. You can basically reprogram your entire belief system around money. It takes time. It takes effort. But it can happen. 

So what do we do to combat our negative programming? Here's some tips:


1. Be aware. That's the first step. Acknowledge that you do it and make a note, mental or otherwise, every time you catch yourself.


2. Identify where the thoughts are coming from. For example, the "people like us weren't meant to be rich" comes straight from my mother and has no basis in fact. There are people in my family that have done quite well. Why can't I?


3. Turn it around. Whenever you catch yourself thinking a negative thought, replace it with the opposite. "Money doesn't grow on trees" becomes "I am prosperous and have more than enough to meet my needs." "People like us weren't meant to be rich" becomes "I am a 6-figure earner." When I catch myself about to make a poor spending decision (like another pair of shoes or a dog!), I remind myself that I am not my mother and I now make smart money decisions.


Our past lessons don't have to become part of who we are. Keep the good stuff. Replace the negative. Positive self talk and affirmations can help you reframe your thinking.


Ready? Repeat after me.


"I am prosperous and have more than enough to meet my needs.
"I am a 6-figure earner."
"I will make more money this month than last."
"I effortlessly attract abundance."
"I am finding new income streams."
"I use money to create a better life."
"I release my money worries."
"I am financially empowered."
"I enjoy making money."
"I will have zero debt."
"I look at my finances without fear."
"I make money while I sleep."
"I am going to make a crap-ton of money today!"
"I am smart when it comes to making important financial decisions."
"I have money making ideas all the time."
"I have wealth in all areas of my life."
"I am worth the money I charge."
"I have multiple streams of passive income."
"I am a rich, powerful woman" (Or man)

The First Step to Saving Money - Spend Less Than You Earn

Preparing for any emergency - whether it be loss of a job, unexpected expenses, illness, or whatever may come your way will require some money. It's just a fact. If you have a financial cushion built up, you will be able to be unemployed longer without worry. You will be able to cover emergency repairs or medical expenses without going into debt. You will be able to purchase the things your family needs to survive and thrive without stress.

The first step to building that cushion sounds easy but often is more difficult than it seems. Spend less than you earn. 

Well that's not hard, you say. But how many of you are actually doing it? Very few, if the truth were known. I make really good money and I still have problems with it sometimes. We all want nice things. And nice things cost money. (And yes...I got a really good deal on the brand new Jeep Gladiator you saw on Facebook so I am still within my budget).

My daughter reminded me the other day that I used to have quite the spending problem. Growing up poor meant I did not have many of the things other kids had. And I vowed my kids would never go without the things they wanted. And what was wrong with buying a few nice things for my husband or my parents? My problem was never buying for myself. But I would spend on others with no thought at all about the expense or if this was a necessary purchase. It wasn't until I discovered a Christmas present from the previous year sitting in my grandson's closet, still unopened, that I realized I was overdoing it. And all that spending soon created huge credit card debt to the point that I found myself unable to pay my bills on time. When I broke my glasses and couldn't afford a new pair because I had maxed out my cards and had no savings, I knew I had to make a change.

Here's how I did it:

1. I am naturally competitive so my first step was to set a goal of how much I would save each week. The challenge of reaching that goal was often enough to keep me from reaching into my wallet. Once I discovered how much fun challenging myself could be, I used it in other ways. How much could I reduce my grocery bill? Could I get a great bargain on any new purchase? Could I find cheaper, better ways to live my life? It became a game. And the prize was an ever increasing amount of money in my bank account.

2. I enlisted my family. The rule was I could not spend anything above a certain dollar amount without discussing it with my family first. Household purchases were discussed with my husband. Purchases for the grandkids were discussed with their parents. For my kids, I talked to their spouses. The discussions were designed to help me understand whether this was a worthwhile purchase. It wasn't based on price. Heck, we bought the grandson his first car. But it was based on NEED and VALUE. Needs were always approved. WANTS were approved if it fit within our budget and provided value. And on the rare occasion I did want to purchase something for myself, I soon developed the habit of walking around the store with the desired item in my cart while I questioned myself as to whether I really needed it. Most times, I would talk myself out of whatever item had caught my eye before I headed to the checkout.

3. Speaking of NEEDS vs WANTS, I learned to differentiate between the two. When my husband saw what I was doing and decided to join me, we took a good look at where "our" money went. And discovered many things we were paying for that we could live without. Cable TV? Gone! Weekly dinners out? Gone! Subscriptions and memberships we didn't use regularly? Gone! Gourmet coffee and "artisan" foods? Gone! And the great thing is - we don't even miss any of this stuff!

4. I learned my triggers. I don't have many vices. But I do have a couple. Books. Music. Jewelry. Shoes. My husband took a pictures of the stacks (yes, plural) of books that hadn't been read, the mountain of CDs that had not yet been opened, and the tangled mess of jewelry I had never worn and presented them to me one day. And how many pairs of shoes does one woman need? So I set rules in place to help me compensate. I can't buy a book until I finish the one I just purchased. I can't buy a CD until I listen to the one I just bought. When I am shopping, I no longer use a cart. It's amazing how fast you will talk yourself out of something once you get tired of carrying it around the store while you shop! If shopping online, once I load everything into my online cart, I leave the website until the next day. Often by then, I will discover I didn't want the items nearly as badly as I thought I did.

5. Here's the big one. I cut up most of my credit cards. I do have a couple that I use for travel or if I just don't have the cash I need on me at the time. I think this was the hardest for me, but it was so beneficial. You can't spend what you don't have! Well, actually with credit, you can. And that's a bad thing. So the rule is if I can't pay cash now or know that I can pay off the credit card debt in 90 days or less, I don't make the purchase.

Spending less than you make is physically quite easy. It's mentally and emotionally hard! Buying things makes us feel good. One of the rules of marketing I learned was that people buy based on emotion and then use logic to justify their purchase. The trick is to find other ways of creating that emotional rush without spending money. Reaching my next savings goal feels gives me warm fuzzies. Knowing I negotiated major savings on a large purchase feels GREAT! Knowing that when we truly need or want something, we can just write the check is priceless.

Try these ideas for yourself. Start saving for the things that are truly important in life and stop wasting money on things that provide no lasting benefit.

If you have some tips on how to spend less than you make, share them here! We can always use some new ideas!

  

Set A Savings Goal

Having trouble saving money? You're not alone. Saving money is often easier said than done. But just like any other area of your life, having a clear goal can help make it a bit easier. And just like any goal you set, it helps to do it right.

How do you set a clear savings goal? Isn't it just like a weight loss goal? You want to lose 50 pounds in 6 months. Goal set! You want to save $500 in 6 months. Done! Right? Maybe...

When setting savings goals, it helps to know what you want the money for. If you merely decide to save $500 in the next 6 months, and then in month 7 you see a great sale on TV's and purchase it, have you accomplished your goal? Theoretically. But now you're right back where you started...unless buying a new TV was your ultimate goal.

Ready to set some SMART savings goals? Here are some tips to help

1. Determine what you are saving for. This will depend on how prepared you are already. Do you have an emergency fund already established? Do you have money saved for retirement? If not, I recommend you start with these. First, 6 months of living expenses as an emergency fund. Then start putting some money aside to invest for your future.

2. Assess your situation. Unlike weight loss or many other goals, savings goals are often dependent on outside factors. If you decide to lose 50 pounds in 6 months, you can most likely achieve that goal if you are willing to do what it takes. But if you decide to save $500 in 6 months while every dollar of your paycheck is being used just to meet basic expenses, that may not be a realistic goal.

This is where you need to take a good look at your spending habits. First, determine your monthly income and include EVERYTHING! Salary, alimony or child support if you receive it, income from a side hustle if it's reliable. You aren't sharing this with the IRS so every penny of income must be included, even if it's "off the books."

Now do the same thing with your expenses. Where does your money go each month? Rent or mortgage payments, food, clothing, car payment, gas, utilities...everything gets included. If you have trouble remembering, check your bank statement. That will give you a pretty good idea of what you spend your money on.

Once you know exactly how much you bring in each month and how much you spend, subtract cash out from cash in.  Is there anything left? That's how much you have to play with.

3. Based on the results from step 2, you have choices. If what you have left over each month is enough to enable you to reach your goal, then good. You're done. Decide where you are going to keep your savings until you need it. Emergency funds should be handled differently than retirement savings for example.

If you don't have enough left over, you still have a choice. You can either modify your savings goal or change your spending habits. Personally, I recommend changing your spending. In order to meet my savings goal, I stopped my cable subscription, my daily Starbucks run, the monthly manicure and other non-necessities. You can do the same. Examine your monthly expenditures for things that are not necessities. Wants rather than needs. Can you give some of them up to meet your goals? It turns out I can get Netflix free with my phone plan. That and a $20 HD antenna and I have all the television I need. Saving Starbucks for an occasional treat has not only helped my put more money in my bank account, it has also helped my take off a few extra pounds. And I have discovered doing my own nails as part of my weekend 'me' time is actually very relaxing.

Did you find a few more dollars to add to your savings goal?

4. Track your savings. Check on your progress from time-to-time to make sure you are on track to meet your goal. And don't stress if you slip up one month. Pick yourself up and get back at it the next month.

5. Reward yourself as you reach milestones along the way. This can help you stay motivated and on track to meeting your new savings goal!