Investment Club and MLM
With job losses high and traditional employment options limited, many will turn to self employment and membership of Investment Clubs. However, it is advised that the best time to make hay is while the sun shines. The best time to join or form an Investment Club or Multi-Level Marketing is while you are still gainfully employed. This is based on the fact that the employer will one day take his job (which he will surely do one day because you cannot work for him for life). Once an employer notices a decline in your productivity level, you are fired. Do not be deceived by any one that without you, the company would not survive. One day you will leave the company willingly or unwillingly. You have the right to chose your soft-landing by being able to generate passive income and choosing whom to associate with. When you are out of job, the desire to succeed quick is always there and if your expectations are not met as fact as possible (which is always difficult), frustration sets in.
The recent global economic meltdown has taught many individuals and corporate organisations lessons on survival strategies. Many have voluntarily or involuntarily devised means of letting ends get nearer, if it could not meet. One of such strategies is participating in Investment Clubs. Another survival strategy is being a member of Multi-Level Marketing (MLM). These 2 strategies have one thing in common – team work and leveraging on the skills of others for maximum benefit. This is so because no man is an island. You need the skills, intelligence and expertise of others to survive and move to another level in life. In achieving this also, you would have touched the lives of many people unaware.
In developed countries, Investment Clubs seem to have gained prominence and recognition. It serves as a vehicle for beginner investors to learn and exchange ideas among themselves. It is a group of individuals such as friends, colleagues, church members, family members who meet on a regular basis for the purpose of contributing and investing same in an agreed portfolio. Apart from the money aspect of the Club, Club members also educate each other on investment matters. They usually agree on where and when their monies should be invested. Club members who are knowledgeable on particular areas use the opportunity to enlighten others. Just as in mutual fund, personal risk is usually low because the money invested belongs to the whole Club members. Also, when profits are made from investments, such gains are shared among Club members. The potential for higher profit is more because the investments are done in high volumes which invariable attracts higher profit to the Club and Club members.
Multi-Level Marketing (MLM) is another survival strategy based on the principle of leveraging and team work. Usually, it involves individuals becoming members of a scheme by registering through existing members. Teams are formed and as new members join the scheme, they are placed under existing members. Many people have lost much money in various investments during the recent global meltdown, so the idea of an Investment Club or MLM does not mean much to them when they remember their monies are either lost or tied to various investments. Needless to state that there is no investment that is risk-free; however caution and due diligence is required. If there is a risk-free investment, it is no longer an investment.
I will not discuss the technicalities involved in a Multi-Level Marketing but do know that some of the MLMs do not stand the test of time while some others have made their impact on the lives of their members. While some are still functioning, others have fallen by the road side. The good ones apart from the residual income to members, they also devise other means of generating income for the members. A good example is Holidays and Cash. Apart from the financial reward in Dollars to members, members also enjoy discounts on some designated hotels and rebate on air flights. They also sell computers and other valuables at reduced rates to members of the Club. Members are regularly updated on development in the Club.
The greatest obstacle in Investment Club or Multi-Level Marketing is marketing. It is very difficult convincing people to become members of a Club they are not familiar with. No thanks to the recent loss of monies in various investments which have eroded investors confidence in investments generally. However, it requires great deal of effort to convince people to join an existing Club or form a new one or to join an MLM. The character and integrity of people involved in the club membership will determine to a great extent its acceptability or otherwise by prospective members.
To participate actively in these activities, one must first conquer the greatest obstacles to success which according to Brain Tracy are “Fear of Failure and Fear of Rejection”.
Being destined for greatness requires that you take risks and confront great hazards. In the words of John Stemmons “when your chances are slim and none, go with the slim”. If your life is ever going to get better, you have to take calculated risks. Remember the words of Peitro Metasiso that “every noble acquisition is attended with its risk; he who fears to encounter the one must not expect to obtain the other”. Conrad Hilton said “I encourage boldness because the danger of seniority and pension plans tempt a young man to settle in a rut named security rather than find his own rainbow”.
In conclusion, please note the word of Emerson “if we are related, we shall meet”. We shall indeed, get there.