• Section: Money Guide - Category: Home Business
• Written by Keya Williams

A Network Marketing Start Up Lesson Learned From The Mortgage Industry

Many aspiring entrepreneurs start an MLM business only to run out of energy and money a few months down the line with little or no profit to show for their hard work. How can the newbie avoid some of the common network marketing start up mistakes? Here's a lesson we can all learn from our flailing mortgage industry.

I was having a very candid conversation with my mother about how the housing market is so terrible these days. Banks are foreclosing on homes in record numbers and much of the foreclosure activity is a direct result of homeowners refinancing their mortgages and/or accepting high interest arms on their home loans.

I personally have two neighbors who have fallen victim to the mortgage industry push to get home owners to take equity out of thei

r homes, leaving people with high payments that they cannot afford. Or who have purchased a loan from a mortgage broker that after three years kicked their monthly payments up so high they could no longer afford to keep up. Both of my neighbors have fallen behind in their payments and have been forced to foreclose.

But why has this happened to so many people?

And what does this have to do with entrepreneurs who want to start an MLM business?

I'll explain how this all ties into network marketing in a second. But let me address my mother's take on why so many homeowners have fallen victim.

You see, my mother argues that the mortgage crisis in this country is the fault of unethical mortgage brokers.

She says that these brokers knew that their clients would not be unable keep up with such high payments and that it should have been their jobs to educate these homeowners on how the refinance or the higher interest arm would affect their monthly payments.

Basically, my mom believes that the mortgage broker was a scam artist for taking advantage of these poor unknowing homeowners.

I think that we cannot place the blame on the mortgage broker in this situation. It is the homeowners job to do their own due diligence before making such a big financial decision.

The homeowner should be asking the questions and reading about their refinance options and loan options. Just because the homeowner failed to do their due diligence, does not mean that the Broker is a sleezy scam artist.

Okay, so what does the mortgage industry have to do with someone wanting to start an MLM business?

Let's get into it. Here is my perspective as someone in the network marketing industry.

A similar scenario occurs in network marketing when newbies start an MLM business.

New business builders jump into a company at the advice of a friend who is making good money in MLM. This friend trains the newbie on their marketing system and the new business builder jumps in head first.

The average new business builder does not do their own due diligence. And does not ask enough questions about what it will take to succeed a network marketing start up.

So just like the homeowners in the previous example the network marketing newbie gets excited, gets involved and loses their shirt. When some new business builders start an MLM business and it fails, the sponsor often gets labeled as a sleezy scam artist.

Is that really fair to honest people in network marketing making an honest living?

Now I'm not saying that there aren't unethical people in the mortgage and network marketing industries. There certainly are and you'll find these kinds of dishonest people in any industry.

But if you want to be a homeowner or a network marketing business owner you've got to learn to be accountable for your own actions and your own finances.

When you start an MLM business the first thing you need to do (with no exceptions) is to do you own research and due diligence. This way you will KNOW with very little doubt what you are getting into AND you'll know if MLM is the right business model for your home based business.

So "How Do The Pros Start An MLM Business WITHOUT Losing Their Shirts?

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