| Through my journey to financial freedom I've | | | | financial compilation by CPA; complete continuing |
| been called to task to compare the mortgage/real | | | | education classes; maintain net worth mandated |
| estate industries with the network marketing | | | | by state; keep abreast of lending laws and |
| industry. First things first, I unequivocally | | | | disclosure requirements; maintain every application |
| appreciate the real estate industry. It has | | | | and file for 36 months after application; adhere to |
| afforded my family and I treasured memories, | | | | advertising and marketing regulations; enter and |
| the ability to help others, exotic vacations, a | | | | maintain all applications taken in Cook County in |
| beautiful custom-built home, luxury cars and a | | | | SB167 database; maintain approval and broker |
| lifestyle we are thankful for. However, network | | | | agreement with lenders; and keep loan origination |
| marketing is truly the business of my dreams. It | | | | software current amongst other things. |
| provides all the things listed above and a whole lot | | | | Round 5: Expensive Training & Continuing |
| more. | | | | Education |
| I liken the current state of our economy and the | | | | Network Marketing - None. In fact, usually your |
| mortgage/real estate crisis to the rise and fall of | | | | downline will train you to start a successful home |
| the Motor City. At its height the automotive | | | | based business for FREE! |
| industry cultivated over twenty million jobs. And | | | | Mortgage/Real Estate - We've spent thousands of |
| Michigan was the Mecca. The census of 1950 | | | | dollars over the years on training and continuation |
| peaked Detroit's population at 1,849,000 with | | | | classes for loan officers and processors. |
| Detroit having the highest median income and | | | | Round 6: Hours Worked Weekly |
| highest rate of home ownership of any major U.S. | | | | Network Marketing - Approximately, 15-20 hours. |
| city. But as of 2007 Detroit leads our nation in | | | | Mortgage/Real Estate - Approximately, 40-55 |
| foreclosures and the population is less than half it's | | | | hours. |
| previous size. The reason...The "Big Three" also | | | | Round 7: Type & Frequency of |
| known as, Chrysler, Ford and General Motors are | | | | Compensation |
| no longer making money in the American car | | | | Network Marketing - Every month networkers |
| market, forcing car plants to close throughout | | | | earn bonuses and ongoing residual income. Residual |
| Michigan. There are only 6,000 General Motor | | | | income is income that continues to be generated |
| workers in Flint, Michigan compared to 100,000 at | | | | after the initial effort has been expended. Singers, |
| the peak. | | | | authors and actors earn residual income. One of |
| The towns and workers in Michigan are suffering. | | | | the great advantages of residual income is that |
| Politically, Michigan will to lose a seat in the U.S. | | | | once things are set in motion, you continue |
| House of Representatives every time the census | | | | making money from your initial efforts while |
| is taken; and it's due largely to people leaving | | | | gaining time to devote to other things, such as |
| Michigan in search of better opportunities. As the | | | | generating more streams of residual income. Note: |
| flailing auto industry struggles, it's taking the | | | | The business I chose to partner with even allows |
| connected industries like, steel mills, auto | | | | us to will our business over to our children when |
| components manufacturers, road and | | | | we pass. |
| infrastructure contractors, auto rubber makers | | | | Mortgage/Real Estate - Once you close a deal |
| and sales jobs down with it. Auto suppliers are | | | | you get paid. This is considered linear income. If |
| either declaring bankruptcy or moving to other | | | | you close a deal you get paid, if you don't close a |
| states. Unfortunately, there are no more jobs | | | | deal you don't get paid. Work an hour, get paid an |
| being created in the automobile and manufacturing | | | | hour. This is a "one shot" compensation in the |
| sectors; only downsizing. | | | | form of a fee, wage, commission or salary. If |
| Drive down a typical street in a Detroit suburb | | | | given a choice, which would you prefer: (1) Work |
| and you will most likely see an oversupply of | | | | hard and get paid only once, through linear income |
| vacant homes and "For Sale" signs. Here are the | | | | or (2) Work once and get paid continuously, |
| facts I discovered when asked to compare the | | | | perhaps for the rest of your life, through residual |
| mortgage and real estate industries to the | | | | income? |
| network marketing industry. I call it my | | | | Round 8: Hours Spent to Close 1 Customer |
| championship fight and network marketing is a | | | | Network Marketing - Approximately, 1 hour. |
| clear winner! | | | | Mortgage/Real Estate - Approximately, 15-30 |
| Round 1: Initial Investment | | | | hours. |
| Network Marketing - Low start-up cost. My | | | | Round 9: Monthly Residual Income Potential |
| husband, Deon, and I were able to start our | | | | Network Marketing - Unlimited residual income |
| network marketing business for under $200 - | | | | potential. |
| which included 34 consumable products. You will | | | | Mortgage/Real Estate - No residual income. |
| need to establish a marketing budget to get your | | | | Round 10: Factors That Affect Ability to Close |
| business off the ground. There are marketing | | | | Network Marketing - Must have a method of |
| strategies to help you attract new customers and | | | | payment, e.g., credit card or checking account. |
| business partners using the internet, press | | | | Mortgage/Real Estate - There are numerous |
| releases, teleconferencing and article writing. | | | | factors that have an effect on our ability to close |
| Mortgage/Real Estate - As a brokerage owner, | | | | a loan. These items include a quality home |
| this figure could range from $50,000- $150,000. | | | | inspection; acceptable appraisal; proof of credit |
| We spent approximately $63,000 to initially open | | | | worthiness; qualified income; sufficient money in |
| Accurate Mortgage Corporation. | | | | reserves; seasoned reserves and funds to close; |
| Round 2: Industry Economic Trend | | | | seasoned title holder; encumbrance-free title; type |
| Network Marketing - Constant growth, recession | | | | of property; appraiser approval; changing |
| proof industry. Provides services and unique | | | | underwriting guidelines; program availability; |
| consumable products that every household uses | | | | oscillating interest rates; legislation and a host of |
| monthly like soap, lotion, toothpaste and shampoo. | | | | other factors. |
| In fact, economist forecast that network | | | | Round 11: Amount of Paperwork Per Customer |
| marketing will create 10 million new millionaires by | | | | Network Marketing - Most companies allow online |
| 2016. How you ask? By partnering with a | | | | enrollment - paper free. If you have a paper |
| network marketing company that sells health and | | | | preference, generally 2 pages. |
| wellness products. Baby boomers are reaching | | | | Mortgage/Real Estate - Approximately, 30-80 |
| retirement age and account for 65% of all | | | | pages. |
| spending in the economy. Worldwide there are 1 | | | | Round 12: Miscellaneous Pros & Cons |
| billion baby boomers. Therefore, with all that | | | | Network Marketing: |
| buying power, whatever the baby boomers want | | | | (1) As a home based business owner you are |
| the baby boomers will get - and they want health | | | | allowed to deduct a substantial amount of your |
| and wellness products. | | | | expenses, but please seek the advice of your tax |
| Mortgage/Real Estate - Cyclical, with ebbs and | | | | advisor. |
| flows. We are currently in the midst of the worst | | | | (2) There's no commuting to work since it's a |
| financial crisis since the Great Depression. | | | | home based business. Therefore, you will save |
| Round 3: Monthly Overhead | | | | money on gas. |
| Network Marketing - Very little overhead; there | | | | (3) You don't have to worry about being a victim |
| are no employees and no rent. Home based | | | | of a sudden round of layoffs or downsizing. You |
| business. The only costs are your monthly | | | | are self-employed. |
| marketing/advertising needs. Most of the work is | | | | Mortgage/Real Estate: |
| done with the internet, phone and fax. I spend | | | | (1) As a self-employed mortgage/real estate |
| approximately $50 a month. Mortgage/Real Estate | | | | professional you can also deduct a lot of your |
| - $3,300 approximately. This includes rent, phone, | | | | expenses, but please seek the advice of your tax |
| utilities and office supplies since our downsizing a | | | | advisor. |
| couple years ago. | | | | (2) Commuting to the office is necessary. |
| Round 4: License, Insurance and Administrative | | | | (3) Over 1 million unemployed professionals. The |
| Hassles | | | | nation's second largest independent lender just |
| Network Marketing- None. You're a self-employed | | | | abruptly closed their doors with no warning, Fannie |
| marketing representative for an established | | | | Mae and Freddie Mac were taken over by the |
| company which handles all the product selection, | | | | government and since the end of 2006 there |
| research & development, shipping & | | | | have been over 300 lenders who have closed! |
| warehouse, licensing & insurance and legal | | | | There's no security. |
| issues. | | | | And the winner is...surprise, surprise...NETWORK |
| Mortgage/Real Estate - As a mortgage brokerage | | | | MARKETING! Pound for pound the network |
| owner, I am required to have/do the following: Be | | | | marketing industry has many advantages over |
| licensed as a broker through the Department of | | | | the mortgage and real estate industries. If you |
| Financial & Professional Regulations; licensed | | | | love the mortgage and real estate business and it |
| and registered as a loan officer; ensure all | | | | has afforded you as many opportunities as it has |
| employed loan officers and processors are | | | | afforded my family and I, then by all means, |
| licensed and registered; maintain surety bond; | | | | originate, sell and keep your licenses active. But |
| have annual exam/audit performed by IDFPR; | | | | please remember Motor City and start working |
| submit annual license renewal which includes | | | | on your Plan B. |