Network marketing, or “MLM” can be a great way to earn everything from a small additional income to a generous full time living.

However, many people join network marketing opportunities without really knowing what they are getting themselves in to. This is probably one of the biggest reasons for the unfortunate fact that some people have very negative opinions about this type of home based business.

MLM works if you do it right. Period. Having said that, here are some bad reasons to join a network marketing program.

1) Earning “easy money”

I know - the MLM-companies are very good a promoting their business as a simple 1-2-3 process that anyone can do and become an instant millionaire. Especially online it has almost become a standard to use super long and totally over hyped sales letters.

This is the equivalent of claiming that anyone who can open a can of beans can be a master chef.

Don’t get me wrong, I do think most people CAN make it in MLM if they put their minds to it. But you must be prepared to learn many new things and you WILL have to work for it. Make no mistake about that!

2) Expecting that “spill over” will do all the work

Many of the best MLM opportunities are built on what’s called a “forced matrix”. For example, in a 3×9 matrix, when you have sponsored your three first new members, the fourth will be placed under the first person you sponsored. This person has thus gained one person in HIS downline, without any effort on his part.

Now, some companies would have you believe that their top recruiters are so effective that the spill over from their marketing will automatically make you, who are joining at the very bottom right now, an instant success.

Of course this is fantasy that will not come true. Yes, you probably will get a few people spilled over into your downline, but nowhere near enough to guarantee your success. The sheer width of the matrix on your level, means that there is an enormous amount of representatives that will have to join before any amount of spill over comes back around to you.

And who says the top recruiters are as active as they once were anyway? Worst case scenario, they are now working on something else entirely, because their income in this particular opportunity is already secured.

3) Thinking that a product is so great it will sell itself

This is a classic mistake, because most MLM systems simply aren’t really about the product. This fact is difficult to swallow, I know.

Trust me, having great products like we do in NHR Products makes a huge difference.  If you have great products then you don’t experience terrible attrition and recruiting is a lot easier, but remember: you still have to recruit.  You still have to get out there and present the product and the opportunity.  No product is going to “sell itself.”

So it will not matter if you are selling a breakthrough product that contains every mineral and vitamin under the sun - if you do not understand what network marketing is really all about.

4) Doing an old friend a favor

We have all been there - an old friend you haven’t met for years who suddenly calls you and want to set up a meeting about something he will tell you more about when you meet…

I’m not saying that this couldn’t be a potentially good business. But calling all your friends is a very ineffective way to do mlm, and you should never join any opportunity only to do someone else a favor. Because in the end this is about you, your money and your career.

5) Earning a lot of money in a short period of time

Most mlm testimonials always seem to go something like this:

- In my first month I made $800 and now, in my third month, I have been able to quit my job and…etc.

While not outright lies, testimonials like these are usually collected from individuals who, through luck or skill, managed to join this particular opportunity from the very beginning. They are simply at the top of the pyramid and they often know exactly what they are doing - they’re the mlm experts.

Like most offerings, mlm opportunities have a life cycle that grows rapidly in the beginning. During this phase of explosive growth it can be very easy to sponsor dozens of new people per day, with relatively little effort. After all, this is something entirely new and one well placed ad can do wonders.

However, if you join after this initial explosion, it is much more difficult to see quick results and it requires more effort to attract new people into the business. Patience, knowledge and the right strategy is required to succeed here.

6) Big name X endorses this program

This is somewhat related to the previous point. Mr. Big Hitter has made thousands of dollars with this opportunity already and he is not shy about telling anyone how EASY it was. And he’s probably not lying either. It was easy - for him.

Because, like noted above, he probably got involved in this opportunity long before it was launched to the general public, because he already knows all the right people.

He (or she), also know their stuff, and have the resources (large email lists, advanced Internet marketing tools etc.) to quickly and efficiently let the word out to a large number of people.

If you are relatively new to this game, it is a very bad idea indeed to assume that you instantly could pull off feats worthy of a network marketing guru. Would you compare your golfing abilities to those of Tiger Woods?

I didn’t think so.

7) Thinking this will be a free business to run

I’m not talking about the membership fee of your mlm opportunity here, because that is a given. But many people falsely believe that they can market entirely for free using the Internet.

While it’s true that there are some effective low cost Internet marketing techniques you can use, you should never fool yourself into believing that Internet marketing will be a no cost affair. Moreover, the online competition is usually quite fierce.

To summarize; MLM can offer an exciting new way to earn money. But your motivation for joining a mlm business shouldn’t be based on one of the misconceptions mentioned above.

Treat your MLM home business like a business, and you will be okay.

There is a bill in the progress before the House of Representatives that is trying to put the issue of the pay and compensation package that executives of publicly traded companies receive in front of stockholders. It is obvious that executive compensation is out of control in many cases.

This bill is actually expected to pass through the house successfully; however, it is unclear how well the Senate will receive it. Is this bill the right direction for a modern America, or do we need to consider more intimately the economic implications of such a decision? Not everyone lives paycheck to paycheck picking up side jobs as they go!

The White House has already formally registered its opposition to such a plan, however the backers are unconcerned. Many feel that the compensation plans of the major officers of the publicly traded companies should be tied to the performance of the company and the officers themselves, and not to the figures that the officers wish to receive.

This bill if passed could place an enormous amount of power into the hands of stockholders who are upset with the way several companies have behaved lately, with declining profits and horrible business practices while the officers of the companies have picked up large compensation packages that include their salary, benefits, and stock options. Each officer can end up with hundreds if not thousands in profits even while the company is performing badly, which stockholders believe is an inequitable outcome.

Many have wondered if the officers in charge of these companies would tighten the belts on spending if their own pay was tied to their performance rather than their wishes, and with numerous companies falling short of profits with huge pay packages going out, and raises occurring almost yearly many investors have started complaining loudly.

While current President Bush has urged the officers of the companies to step up and take responsibility. He has also said that it is not an issue that the government should become involved in. How far should the government extend into a private business? How many people would really feel comfortable with the idea of having the government determine what their pay could be? Most Americans can agree that they would not like the idea of the government interfering with their job and pays.

At the same time, while most Americans do not wish to have the government intruding into their jobs and careers, many still want some measures put into place to hold the executives accountable who are responsible for multi-million and multi-billion companies that employ hundreds to thousands of people.

Many have argued that the concept is nothing new; it is similar to ideas that are currently in place in countries such as Sweden, Australia and even in Britain. With examples such as those to follow, it makes people wonder if this actually does have the chance to pass through the House of Representatives and the Senate once the voting time has arrived.

With time as the key factor, there is scheduled to be a vote on the issue in the House of Representatives in the very near future, which is very much expected to pass without much opposition. It is the next step in the Senate that is where it starts getting sticky with people unsure of the results once the voting in the Senate starts. However, with increasing support from the people, many of whom work for companies affected by this issue, there is scope for a mass political influence, which will certainly make the outcome interesting.