

In doing so, the company only incurs marketing cost if and when a sale is made. Instead of spending millions in traditional media ad buys, which has a declining effectiveness, companies are opting to employ the network marketing model. My research led me to learn why this business model made so much sense for a company that wanted a cost-effective way to bring a product to market. Let me explain why I found it to be a step better. That was the birth of my enlightenment, and I began to enter and study this network marketing profession. I had been closed-minded and it was costing me. Then he said, “Who is working smarter, you or your dad and brother?” Now I was mad. He replied, “Do you mean like your family earns money off the backs of the real estate agents in your company?” I froze, and anyone who knows me knows how quick-witted I normally am. I shared that he was earning money off the backs of others he recruited into his downline, not from his own efforts. At first I refuted him by denouncements that he was in a pyramid scheme. He was doing so in a network marketing business.

One day, a friend shared with me how he was earning the same income I was, but that he was doing so from home without the overhead, employees, insurance, stress, and being subject to market conditions. So how is Network Marketing any different? I submit to you that I found it to be a step better. Those who are smart, willing to take the financial risk of overhead, and up for the challenge of recruiting good agents, are the ones who get to live a life benefitting from leveraged Income. I guess he was at the top of the “pyramid.” Is this legal? Should he be allowed to earn more than any of the agents who worked so hard selling homes? I imagine everyone will agree that being a real estate broker is totally legal.

He worked smarter, while I worked harder. He made millions because he earned a cut of every commission from all the houses his 1,000+ agents sold. My brother never listed and sold a single house in his career, yet he out-earned me 10-to-1. He focused on opening offices and recruiting others to become agents to sell houses for him. My brother worked hard too, but not in the same fashion. I worked 60+ hours a week in such pursuit. In sales, I was able to create a six-figure income. I went into sales and into opening a few offices, while my older brother went into management of the company. When my brother and I graduated from college, we both joined him in building a new real estate company. My father built one of the largest real estate brokerage companies on the East Coast in the 1970s, before selling it to Merrill Lynch. “What is a “pyramid?” I grew up in real estate my entire life.
