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The Network Marketing Tools Scandal And How You Can Profit From It

Back in the early 80’s when network marketing was really coming into its own, there was this big controversy over what they called the network marketing tools scandal.

Basically, successful distributors were creating these huge down lines and began monopolizing on that by selling books, CDs, tapes, memberships etc., to people on their existing teams as well as new people that signed up.

At one point, I think that some of these rouge mega- teams within their perspective MLM companies (a lot of this was happening without the knowledge of their MLM companies) started “requiring” people to purchase these tools for the development of their businesses.

This of course, made the people at the top of these mega-teams an enormous about of money but the fallout of this was that people in their down line were not able to duplicate their up lines success.

The reason being, they didn’t have access to these network marketing “tools” and they were spending quite a bit of money trying to keep up with the monthly fees associated with having these tools on top of their regular monthly auto shop.

As a result, network marketing companies were surrounded by a level of mistrust as people began to believe that you couldn’t make money in the actual MLM Company unless you could sell these tools, which back then, your average distributor had absolutely no way of creating these kinds of multiple streams of income type products.

Consequently, lawsuits were filed as it was argued that the network marketing tool business was considered illegal and unethical because the majority of these high-level distributors were actually making the majority of their money from the sales of these tools and not the products themselves.

The MLM industry today has since been regulated and distributors cannot require people to buy these business building tools.

Now the problem was not in the fact that the MLM platform didn’t actually work to make people in the industry wealthy, because these people did build enormous organizations and they continue to make residual income ’til this day.

So the system works.

The problem wasn’t even that they were selling other streams of income like books, CDs etc., to their teams. The real problem was in the fact that they were requiring people to purchase them!

Network Marketing Tools Today…

Now days, with the creation of the world wide web, and “instant access” technology, your average network marketer has access to a slue of products and services that can be offered to their customers and can be used to build multiple streams of income.

We also understand that the top producers in the MLM industry are that much more successful because of, not only their MLM company and products, but because they can offer other resources to their market and profit from them.

What was shunned in the past is now the norm for today’s network marketer who wants to be financially successful- minus the forced prerequisite factor of course! =)

#1 Mistake of New Network Marketers.

The newbie network marketers fail to take advantage of marketing their own “tools” apart from their MLM business.


One reason is that they didn’t even know they could…

They don’t know how to find the right product tools..

They have no idea how to market it.

See, the hard fact is that 97% of the people you expose your MLM business to will say NO to your business. What you must have in place is a way to create income even if your prospect says “no thanks”.

This is where your network marketing tools comes in.

If you can create a way to provide something of value to the prospect that is not interested in your opportunity, i.e. e-books, CDs, free training etc., you would not only still be able to make money, but if you do it right, that prospect will be more likely to join you when the timing is right for them because now you have given them something of value that they can benefit from.

They now KNOW, LIKE and TRUST you…

The 4 Profit Centers Of The Top Online Network Marketers:

The 4 profit centers (tools) you need to have in place to have a truly profitable business.

The purpose of having “profit centers” is to increase cash flow to your business. These are revenue streams that every top earner in the industry have in place in their MLM/home businesses right now, and you should too.

The fact is, it can be a lot easier to sell a product to someone than a business opportunity, and even easier to sell a biz op to an existing customer.

The following are 4 pure profit (you keep 100% of the profit) centers that you should have in place.

  1. Products that provide value to your niche.- All top earners sell their own stuff (Affiliate products)
  2. Continuity Revenue – Pays you ongoing or residual income even if someone drops out (Membership sites Ongoing coaching programs – Monthly webinars).
  3. High Ticket Revenue- Believe it or not, high ticket items ($1,000 and up) sell very well and It’s easier to sell high ticket items to a current customer than a new one.
  4. Your Network Marketing Business Opportunity And Products

Lastly, your business opportunity that you can offer in order to build residual income and generational wealth.

No top earner just focuses on their biz opp…

They have valuable network marketing tools and products that they market that puts them in a leadership position which by default, attracts more people to them, that in turn results in more sign ups to their business opportunity.

Seriously, this is the formula for success!

They had the right idea back in the early 80’s, they just took to the extreme and didn’t teach others how they could do the same.

Network Marketing Tools – The Big Problem

Unfortunately, obtaining products and services like these is not an easy task, especially for the new MLM’re. Not only do you have to own the products but you must be able to position them in away that will attract your target market, as well as find the time to implement all of this.

Source by April Ray

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