Archive for November, 2009

What Makes Network Marketing MLM Different than a Traditional Business

November 16th, 2009

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Is Network Marketing MLM a lot Different than a Traditional Business?

Opinions on whether a network marketing MLM business is really that much different than a Traditional Business vary greatly. My opinion is that it depends on which part of it you are looking at.

If you are looking at it from a fundamental basis of what makes the business successful, there really isn’t a lot of difference. A traditional business is most successful when a sound business model is used. One that includes a financial plan, effective marketing, quality customer/client relation practices and offers a product or service that is demand by the market place. Network marketing MLM isn’t any different. There are a lot of people in the industry that would like to make you think otherwise but for the most part, if you use the same business principles that have been proven to be effective time and time again in other industries, you’ll have success in network marketing MLM.

The other side of this question of whether or not network marketing mlm is much different than a traditional business is how the actual transaction takes place. This is where the difference become very apparent. As you saw in the video and the diagram below, the way in which network marketing customers receive the product is a lot different from the traditional sense.

Traditional Marketing vs MLM Network Marketing

Traditional Marketing vs MLM Network Marketing

Traditionally, the product is shipped from the manufacturer, through a series of distributors (ex: national, regional and local) and eventually ends up on the shelves of a retail store. The customer finds about the product through marketing done by the manufacturer or the retail store (depending on product and manufacturer preferences) and if they like what they see (or hear) the customer goes to the store to purchase the product.

In contrast, with the network marketing MLM/Direct Sales business model, the product is shipped directly from the manufacturer to the customer rather than through the distributors to the retail store. The question then becomes, “how does the customer find out about the product?”

This is what makes the network marketing MLM industry so unique and offers all of us an opportunity to have a home business. The only way a customer learns about the product or service that the network marketing company offers is through individual associates of the network marketing company. In return for promoting the products and making sales, the associates are paid a commission (this is similar to the margin the retail store would make on selling the product – less the over head).

There you have it, that’s the difference. Hopefully you can use this knowledge to better educate your potential business partners on the difference between network marketing MLM and traditional business.

Until next time, cheers to your success.

Cheers to Your Success

Cheers to Your Success

Donny Watson

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Posted in 2: Passive Income: Inter-Network Marketing, Donny Watson

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6 Passive Residual Income Options For You To Choose From

November 15th, 2009

Contrary to popular belief, there are only 6 Passive Residual Income Options that you have to choose from if you want to earn passive income and live your perfect lifestyle.

There millions of dollars of books, courses and training material that supposedly teaches people how to earn multiple streams of passive income BUT when it comes right down to it, you can only do one of these 6 things to create passive income.

  1. Real Estate
  2. Stocks
  3. Network Marketing
  4. Big Business
  5. Royalty Business (Singing, Writing, Acting, Speaking, Branding, Etc)
  6. Internet

Of course there are a lot of different areas in each one of the options above but those are the only 6 options that give you enough leverage to produce passive residual income options.

The best part is that if you learn how to do one really, really well, then you’ll be able to stop spending time earning linear income and start spending time doing what ever is that you want to do. That may just be spending some time learning how to earn additional income from one of the other options.

The other thing you’ll realize when you get into earning passive residual income is that there are a lot of ways that you can leverage the time you put into one option into another options.

For Example, as you may or may not know, I’m a supporter of using a combination of network marketing, the internet and personal branding to create multiple streams of passive income. I started out doing network marketing but quickly realized that I could be more effective in building that business if I also became efficient in marketing online. It was actually easier to build the 3 things together than it was to build one of them by itself.

So what’s the point here? Well, you’ve got 6 options to produce passive residual income and put yourself in a position to live you perfect lifestyle, the thing you need to do is decide which one fits your situation and needs the best.

Cheers to you living your perfect lifestyle

Cheers to Your Success

Cheers to Your Success

Donny Watson.

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Posted in 1: Financial I.Q: Learn 2 Earn, Donny Watson

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Robert Kiyosaki’s Cash-Flow Quadrant

November 14th, 2009

Robert Kiyosaki’s cash-flow quadrant example really simplifies your income choices.

No matter how you slice, Robert Kiyoski’s cash-flow quadrant clearly identify’s the four choices you have when it comes to earning income. There isn’t 5 ways to earn income; there isn’t 3 ways to earn income; there is only 4 ways. This video and the diagram that follows displays the 4 ways:

Robert Kiysaki's Cash Flow Quadrant

If you want to control your time and your level of income, the only place you can do it is if you join one, or both, of the options on the right side. I’ve said it 1000’s of times and I will continue to say it, “if you are working as an employee, you are being leveraged and your employer controls your level of income and the amount of time that you work.” That is saying that employment is good or bad, I’m simply stating the facts. The way that the right side quadrants fit into the quit your job early philosophy is that you need to have a business that produces cash-flow (preferably passive income). This income will replace the employment income and have the potential to become very lucrative if the right leverage strategies are put in place. The intention with the passive income business is to build enough cash-flow so that you can take a portion of that cash-flow and build wealth through investments (real estate and stocks).

I have a ton of respect for Robert Kiyosaki and his message. He believes in raising your financial IQ so that you can control situation. The difference between him and us is (besides the fact that he is incredibly loaded) is that he talks a lot of theory. We intend to not only teach the theory but also offer a solution.

To learn more about our solution CLICK HERE.

Until we meet again, give a kid a dollar today. I can guarantee it will make your day more than it will make his. Cheers,

Donny Watson
Me and my Favorite 'little man' - Charlie

Me and my Favorite 'little man' - Charlie

204.223.3655

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How to plan to live your perfect lifestyle

November 13th, 2009

Unbeknownst to most people, it is actually possible to plan to live your perfect lifestyle and then actually make it become your reality.

What do you think about this thought

“we all have a vision of what our perfect lifestyle would look like; the challenge is trying to figure out

how the hell to actually live it in your lifetime.”

That’s the million dollar question isn’t it. Well here’s a little exercise that can help you get there

How to Plan to Live Your Perfect Lifestyle

The theory behind this exercise is that you need to know where you’ve been, and where you are at this moment in your life, before you can determine what the right course of action is that you want to take.

So, for this example, I’m going to use 30 years of age as our starting point. You can replace that with your current age. Take as much time as you want with this exercise and it may even help to write some stuff down. The important thing is to get of it is to know what you want in your life. What type of lifestyle do you want? So just follow along, think about questions and answer appropriately for what fits into your life.

  1. Take a snapshot of what your lifestyle is like right now. What does it include? What parts do you like and what parts don’t you like?
  2. Now follow the red arrow back to 5 years ago in your life. What was your life like then? What did it include? What did you like about it and what did you want to change? And Most importantly, what did you want your life to like 5 years from that day 5 years ago (which of course is today – I know it’s a little confusing but this is a powerful exercise to go through)
  3. Now follow the ocean blue arrow back to the present day ask yourself if your vision from 5 years ago is what you are living today? Then realize that regardless of what the answer is, it doesn’t matter, all you can do is take what you have and build on it.
  4. Dark Blue Arrow – Start to project what you want your life to like in 5 years time. In an ideal world what would it include? Who is part of it and what are you doing? How much money do you make? What things are you experiencing? These are all important questions.
  5. Green Arrow – Ask yourself the same questions from #4 only this time it’s 10 years into the future.
  6. Purple Arrow – Ask yourself the same questions as in #4  again. This time it’s 20 years into the future
  7. Orange Arrow – Depending on how old you are right now you can project yourself into the future 40 years and ask yourself the same questions as in #4.

The point of this exercise is to simply get you thinking about what you really, really want and ask yourself if earning passive income streams would make that lifestyle you envision easier to attain? Can you see how you can use this process to live your perfect lifestyle. The first thing you need to do is make sure that you’ve got a clear vision of what that lifestyle is. The second thing you need to do is go through this self-evaluation process on a daily, weekly, monthly and annual basis.

The bottom line is that you need to make sure that you are always moving towards your goal.  There is no way to do this unless you know where you want to go and then keep ‘score’ of where you are at in relation of where you want to be.

If you don’t keep score, how do you know if you are winning or losing? The best business’s in the world keep score every month by doing there financial analysis. Professional athletes keep score of their fitness every day so they know where they’re at so they know whether they have to push harder. By training at the optimal level they will be able to perform at the ultimate level.

You can do the same by going through this life projection exercise on a regular basis to make sure your plan to live your perfect lifestyle is on track.

Cheers to your perfect lifestyle,

Pretending I'm Cool on a Sail Boat

Pretending I'm Cool on a Sail Boat

Donny Watson

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Trading Stocks Vs Network Marketing MLM

November 9th, 2009

Is trading stocks better than having a network marketing business?

The answer to that question is really dependent on whether your mind-set is to build wealth (trading stocks) or build cash-flow (network marketing). One of the philosophies that we try to instill in the people we work with is that there are really 2 types of money. Cash-flow money and wealth money.

Here’s what I mean by that. Most people look at stocks and think that it is the way to Riches over a period of time – and if you trade them right, they are probably right (although I realize that a lot of people would wanna argue with me on that right now). But, through history, trading stocks for the long-term has proven to be a very lucrative way to build wealth BUT it isn’t a great way to produce cash flow.

Most people who have jobs invest passively whether they like it or not through their retirement savings plan that the company provides them with. Over a period of 20-30 years that savings plan will allow them to retire with a nice little nest-egg for themselves. With compounding interest, that nest-egg really gains momentum the longer the investment is not touched (and of course the market goes down).  This diagram shows how the earning curve is assumed to go with compounding interest.

Stock Trading Income Growth Curve

That is all fine and good if you like what you do BUT if you aren’t living the kind of lifestyle that you want to live, then that scenario doesn’t really help you be happy right now.

The Challenge with stock investment is that unless you are really good at it, the only way you build significant income is over long periods of time (I know, I know, some people have a knack for it and can make a fortune but they are the minority wouldn’t you say).  Building a lot of equity doesn’t do a lot for the person who wants to live his or her perfect lifestyle right now.

That’s why I say that Network Marketing makes sense for people that want to create cash-flow so they can give themselves more options now rather than waiting 25 years to cash-in on their nest-egg. The thing that most people don’t understand about network marketing is that when you do the math on the business model, you get some very attractive results. But for whatever reason, most people would rather wait 25 years, be “safe” and build a nest-egg rather than take some time to learn what network marketing is really all about.

So what’s the conclusion? Network marketing creates cash-flow (when it’s done right) and trading stocks (unless you’re an above average trader) builds long-term nest egg. Both are good, it’s a matter of deciding which one fits your goals.

Until Next Time – Cheers To Your Success,

Donny Watson
Pretending I'm Cool on a Sail Boat

Pretending I'm Cool on a Sail Boat

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Posted in 2: Passive Income: Inter-Network Marketing, Donny Watson