Return on investment in MLM 

MLM is a business system in which your investment is time and effort – not money. As you invest your time, regularly, your return on investment (ROI) grows steadily until it reaches the point where it passes your investment level. And your ROI is paid in cash.

This graph shows how your investment works in MLM. The vertical axis represents your income. The horizontal axis represents time. The red line is your level of investment each month (in time) and the yellow line represents your rate of income growth.

Figure 1

Let’s say you invest 10 hours per week, and we value your time at $25 per hour. In money terms, you’re investing the equivalent of $250 per week, or around $1,000 per month (40+ hours), in your MLM business. If your income from your business falls below that level – as it will in the start-up phase – we treat that as your start-up investment in your business (orange area).

Figure 2

As you begin to retail some products and earn reciprocal income in the form of retail commissions, your income stream begins. At this stage, it’s still well below your level of investment, but growing as you continue to invest your time and effort each week. As you add residual income in the form of bonuses earned as a result of sponsoring others who do the same as you, your total income grows steadily. (The yellow line represents your income growth, the green area represents your total income.)

Figure 3

Your income (ROI) continues to grow each month until it reaches point B – your Break-even level, where your ROI equals your investment each month.

Figure 4

Your growth continues – but now your ROI exceeds your investment every month until, after a while, your profit (bright green) has matched your start-up investment (orange). You’ve now reached the point where you’ve recouped your initial investment of time and effort in cash, and your ROI each month continues to grow.

This is the real power of MLM, or Network Marketing. This is what makes it the unique opportunity it truly is for anyone willing to invest the time and effort required for success.
And this is why you cannot invest MONEY in your MLM business… there’s simply no way to obtain the same kind of Return On Investment from investing cash as you can get from investing time and effort.

If anyone — from your would-be sponsor to your would-be upline leaders — tries to persuade you that it's a great idea to crank up your credit card limit and spend up big on products, up front, so you can earn a higher bonus rate from Day One, you can count on one thing to be true....

THEY expect to earn a LOT more than YOU will from YOUR initial purchase!

You should immediately stop and listen to the alarm bells. They should be deafening to you. You ignore them — and your instincts — at your peril!

This is called "Front-end loading" and it's a key feature of illegal pyramid selling schemes. These people are infected with pyramid selling mentality, even if the opportunity itself is legitimate.
Its real name is G-R-E-E-D!