@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @/@ @/@ @//@ ===>MASTER NETWORKER<=== @//@ @///@ PROFESSOR LON LINDSEY @///@ @////@ A BUSINESS FOR EVERYONE @////@ @/////@ THE GREAT AMERICAN DREAM @/////@ @//////@ THE ART OF BUILDING A BUSINESS @//////@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ MASTER NETWORKER #9 A BUSINESS FOR EVERYONE December 11, 1996 ===================================================== INSIDE YOU WILL FIND: The Legalities of Network Marketing The Archive of Master Networker Publications Our weekly one liner. The Master Networker recommended business web page for the week. ================================================== Hello fellow "Master Networker" subscribers! This is number nine in the Master Networker series. If you happened to miss the first eight publications, you can retrieve them at: http://masternetworker.com/mailfiles/mailfile.html or you can retrieve them by email from the auto-responder: MasterNetworker-Issue#.txt@masternetworker.com Substitute the desired issue number in place of the "#" Example: mailto:MasterNetworker-Issue8.txt@masternetworker.com *********************************************************************** Getting this article out has been a real challenge because I am directly involved in a hot new Internet business-building approach called TEAM 2000 If you want to check out what all the "fuss" is about, you can go to my personal web page at: http://www.multi-level.com/millennium/314488340/html This is a reminder that the Master Networker series is purposely set up for the beginning networker or for those considering networking or even for networkers who have yet to be successful in networking. This means that The Master Networker series covers basic networking principles with the purpose of developing a firm foundation for networking. "The Master Networker" will be void of information that will thrust you to a $90,000 income within 90 days or a $15,000 monthly income without doing any work. Why? Because that isn't how networking works. I've been in networking for twelve years, and I have yet to meet anyone who has obtained networking riches without working for it . . .especially $90,000 in ninety days. This series is about the real world of networking. THE LEGALITIES OF NETWORK MARKETING A LEGAL BUSINESS . . . . . . is one that is authorized or permitted by law, or one that is not prohibited by law. Some states require registration for new businesses and other states don't. Over the past several years, persistent rumors have alleged that matrix compensation plans have been deemed to be illegal. Of course that is untrue, but often times rumors usually cite U.S. postal authorities as the source of their information. The fact is that matrix compensation plans are not illegal under any state or federal statute or regulation. The statutes and regulations directed at network marketing plans deal with the means by which a person becomes a distributor and how they move from one distributor position to another distributor position. No state or federal statute or regulation deals with the type of compensation plan utilized. MATRIX COMPENSATION PLANS It is illegal to describe a program in such a way as to be deceptive or misleading. For example, a company may not describe itself as being a 4X4 matrix, and then put in the maximum number of distributors on each level and then multiply that number by the commission per person on each level and then give a resulting income potential. The number of possible distributors on each level does not mean that there will be that many distributors on a given level; and if the complete number of distributors is attained in due course, that still does not mean that any or all of those distributors will be active and generate income. The use of charts and graphs showing the mathematical maximum potential numbers of distributors and the resulting income could be considered deceptive and/or misleading. MATRIX SPILLOVER The other potential problem deals with the realities of "spillover." A company may not tout spillover as a serious means of building one's downline organization and use it for recruiting purposes. The reality is that spillover may or may not occur from a given upline. One never knows; therefore, it is deemed a deceptive trade practice to state or infer that the spillover feature will help build a downline. It may do so, but that is not certain. Matrix compensation plans are not illegal. Spillover within a matrix program is not illegal. Again, the caution regarding matrix compensation plans is simply that they lend themselves to several deceptive trade practice situations where the company promotional materials may mislead prospective distributors. SPILLOVER IS THE KEY TO SUCCESS! Today, more than ever before, there is an ever-increasing need for pepole to provide themselves with a second income; not only for the luxuries, but also the necessities of life. The economy is a very real complex and perplexing problem for everyone, and it takes a lot more than a mere desire or need to overcome the inevitable obstacles. to succeed and to achieve the impossible dream, it takes the group effort of a people-helping-people business. You can not hope to gain either financial freedom or independence without it. Spillover is what a people-helping-people business is all about. Your sponsor's spillover helps others. You help your first-level people to get started and then they automatically help you to a bigger income. Spillover helps you to work smarter rather than harder. A matrix with spillover can propel you towards some really high-powered and extraordinary incomes. Usually, a computer will automatically fill and expand your matrix for you. the snowball effect will take over and your entire business will get bigger and bigger each and every day as you sponsor others. It is then that you will realize and benefit from the unlimited potential of a matrix. How much can and will be earned is only limited by your imagination. THINGS TO LOOK FOR Once you have established the legitimacy of the program, you should evaluate the product, the people behind the company and the program itself. Are the products of high quality and cost competitive? Do they fill needs and are they consumable? Is the supply adequate? When looking at the people within the company, you want to be sure of their credibility, experience and support. ========================================= We make a living from what we get. We make a life from what we give. What we have done for ourselves dies with us. What we have done for others in the world is immortal Mary Ann Evans (Known under the pen name of (George Eliot) =================================== Finally, there's the program. Most fall into four categories: (1) the old-line blue-chip companies with strong programs and quality products; (2) the knock-off programs modeled after existing blue-chip companies; (3) the sizzled or fad programs built around a singel or limited product line; and (4) the emerging blue-chip companies. A career-minded person will want to affiliate with an old-line or new blue-chip company that can match his/her commitment. The Kiplinger Washington Newsletter predicts that network marketing will do well this year . . . Avon, Amway, Fullerbrush, Watkins and others. Despite the slump in the enconomy a few years ago, these type companies flourished. They attract more opportunity seekers than ever when times are bad. To boost their profits, many direct-sales companies will even try foreign markets and with the Internet it is much easier to open foreign doors to networking companies in the USA. ***************************************** Web Page of the Week Pixelsight http://www.rene.pixelsight.com/ ****************************************** This week's one liner ---------------------------------- The only reason some people get lost in thought is because it's unfamiliar territory. ========================================================= Any suggestions for Master Networker articles? Submit to: professor@multi-level.com Remember, on the internet, it's not only who you know and what you know, but also WHERE YOU GO! See you there! Professor Lindsey If you want to unsubscribe from "The Master Networker" send e-mail to professor@multi-level.com and put unsubscribe in subject area.