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Why is it that businesses which pay other people to sell their product to friends and family have such a bad reputation when marketing experts agree that the most powerful advertising out there is word-of-mouth?

Well, as I and others have observed in the last twenty years in the industry, there is a trend that very well may be causing this bad wrap, if not at least a major player in contributing to it.

We'll call it DEFAULT

We've all experienced it. You get a program and fine tune it to your needs. What a joy it is. The sun is shining, the birds are singing. The blossoms are filling the air with fragrance. Then one day something happens and returns all your settings to DEFAULT. And there is no way to retrieve your former settings except by starting at the beginning again. Dark clouds gather. Hours are lost, appointments missed, decisions delayed, emotions run high, and many other things go wrong. All because of DEFAULT.

Almost every business around runs on a pyramid plan, not only network marketing businesses. Let me explain. There at the top of the company is the big CEO or president who's the leader of the whole show. This person has a few people he/she trusts who help run everything. These folks are the managers, right under the CEO and report to him/her. The Managers in turn have others who report to them, and so on down the levels with more and more people on each level down. Of course, the wages are according to your level. You wouldn't imagine the janitor being paid more than the president, or the manager being paid more than the president, right? That's the basics of the business model.

But then a neat network marketing businesses comes and changes everything up, at least that's what they say.

"Just stick with us, and we'll show you the best business in the world. In our business, you don't have to stay on those bottom levels and get paid less that the president. You can enjoy living like a CEO, have vacation whenever you like, travel the world in style, and even have oodles of time to spend with your family" and on and on and on they tell you. They draw circles all over a piece of paper and who you how it's possible.

And so you try it and everything goes incredibly wellfor a short time. Then suddenly, a dark day dawns and you find that everything you've worked so hard to set into motion is gone, all gone, and everything has turned back to DEFAULT. You find yourself again at the bottom of the pyramid just like if you worked at your local retail store stocking shelves.

Most people don't realize that nearly every network marketing plan is designed with a DEFUALT button. This causes it to go back to the old pyramid style of big CEO at the top racking in the cash and little guys on the bottom scrounging around for whatever little money they can make. This DEFAULT system works with various methods. They're called by a variety of names, but we'll list only four here. I think you'll recognize them.

1. Jump-Start: Knowing full well that most people will never get beyond the initial "buy-in", these companies push you to "tell all your friends and family" about the opportunity. This gives the company free advertising and quick profits from the "packet" that you had to buy.

2. Breakage: if you don't meet your monthly quota then you have to forfeit your "bonuses" or "points" and then the company keeps the money.

3. Break-away: when you "advance" to a higher level you leave behind some earning potential you had struggled hard to achieve. The company keeps the money.

4. Exhaustion: The company wears you out quick by requiring monthly quotas of new people enrolled knowing full well that you will eventually get tired and give up. Because the average recruit will only be able to enroll 2-3 people, the new enrollment requirement is kept high. When you leave because you're too tired, the company gets to keep all those new people and the money they're bringing in.

This is a short description of some of the ways network marketing companies make the big profits. They are designed to cause your own businesses that had lots of earning potential to DEFAULT back to you being the little guy on the bottom of the conventional business pyramid.

The best news however is that not all network marketing opportunities do this. Find one that really specializes in helping the little guy rather than trying to make them fail.

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