Would You Join A Multi-Level Marketing Company For Retirement Income?

Source: forbes.com ~ Contributor: Robert Laura

At some point in your life you’ve been pitched a multi-level marketing (MLM), direct selling, or network marketing business opportunity.  While the pitch varies from company to company, it basically promises a chance to ditch your 9-5 work schedule, be your own boss, and make lots of money while making new friends in the process.

It all sounds good on paper, yet there is a seemingly endless debate over whether these companies and programs are legitimate business opportunities or not, so I dug in and got the real scoop.  As a result, I believe that the entire industry is poised for explosive growth and can be one of the most significant solutions to America’s current retirement savings crisis.

Initially, that may sound like a bold statement, but it’s not if you understand retirement the way I do.  The reality is, making a successful transition into retirement has more to do with psychology than with money… and the same may hold true for multi-level and network marketing.

Don’t get me wrong, money has a role in retirement, but it’s not the primary one every one gives it.  Combine that concept with eye-opening statistics like AARP’s estimate that half of all baby boomers (76 million) are interested in starting a business and the makings of a massive trend are in place.

As far as the retirement saving crisis is concerned, more and more people are coming to terms with the fact that they probably aren’t going to be able to save enough money to just sit around and slowly deplete their nest egg from age 62 to 100.  With the average 50 year-old estimated to have less than $50,000 in retirement savings, there is an obvious need to find alternative ways to either save more or generate supplemental income starting now, and continuing throughout retirement.  Moving beyond just the dollars and cents, boomers are growing tired of feeling guilty or bad about their past savings habits and are interested in moving towards possible solutions.

Another growing reality that could benefit MLM and related businesses is the increasing number of baby boomers who are disenchanted with their current careers.  They’re worn-out from years of the corporate grind and don’t feel the connection between their job and the people it impacts outside their office walls or company grounds.  They’re shifting their focus from accumulating a giant nest egg to a desire to be part of something bigger and better… to have a positive effect on others… and working in retirement.  Facets of life that can be fulfilled with specific types of products and service available through some MLM or Direct selling opportunities.

MLM and direct selling programs also offer very low barriers into entrepreneurship, often providing training, support, and ample encouragement along the way.  As retirees begin to realize they need activities that keep them busy, relevant, in good health, and connected to others, the time, energy and cost to participate in these kinds of companies make them very appealing to large segments of the population caught up in these dynamics.

This is not a ringing endorsement for the entire industry.  Like any investment of time, money, and energy, people need to be aware of what they are getting into and do their homework.  That’s the primary reasons I began researching the topic by reaching out to regular everyday people involved in these types of businesses and who were willing to skip the hype and offer a transparent view of the programs and give their opinions as to whether this can be a realistic source of retirement income.

I initially spoke to a retired friend who said she joined a health and beauty direct selling company as a means of meeting new people. She had recently remarried and moved to a new location, so she combined the practice of meeting new people with making extra money.  After almost a decade in the business, she’s built a small niche business with family and friends despite switching to from one company to another competitor after three years.

She admits she doesn’t attend all of the company’s local meetings and goal-setting sessions because she’s not interested in becoming a top producer.  She just likes to use the business activity to keep busy (particularly in the winter) and use the extra money she earns to travel and spoil the grand kids.

Having studied the psychology and behavior of boomers, this example represents a major shift in my thinking about the industry.  I no longer perceive these types of opportunities as money-making pyramid schemes.  Instead, I now see it as a way to enhance many of the personal aspects of retirement that are rarely discussed let alone planned for, with the added benefit of supplementing other popular retirement income sources such as pension and social security.

Daria M. Brezinski Ph.D, a practicing psychologist and former marketing director for a multi-level marketing magazine, echoes these sentiments.  “Many people don’t realize that multi-level marketing companies are successful because they help people satisfy a number of important human needs, including feeling significant, having connections, learning something new, and making a difference.  I have heard people in network marketing say again and again, ‘I’m doing this because I’m meeting amazing people … making so many connections … and I feel so good about myself.’”

Dr. Brezinski’s point is well taken and easy to see practiced by popular network marketing companies.  Many MLM and NM companies tout a three-to-five year plan to attain freedom and wealth, yet many of the people running company meetings have been in the business for five or ten years and still haven’t left their full-time job or landed on easy street.  “As it turns out,” Dr. Brezinski notes, “when other human needs are being met, the members and consultants don’t focus solely on the financial aspects.”

Continuing my interviews, I challenged three others who are in the business to be straightforward, and prove to me that the process really works.  What I found was good, consistent business advice applicable to any new business.

Lorene Hochstetler, from Ohio, recommends keeping your current job while slowly making the transition into MLM.  She’s been able to replace her full-time income but explains, “It didn’t happen overnight, and I still work every day.  I am very disciplined with my business and wake up every day knowing what I have to do in order to succeed at this.  You have to treat it like a business and be willing to follow advice from others who have made it.”

Tracy Willard of California began her MLM career out of necessity.  “Prior to getting involved in my business, I told my friends to never let me join one of those things… but when our family was hit by the mortgage crisis I had to do something different.”  She started her business with the intention some retirees may also find themselves.  “I started with the idea that I just needed to make my month easier.  My company helped me figure out what I needed to do in order to make an extra $500 per month.”

She reiterated a common theme I heard throughout the interviews.  “If you treat it like a hobby it won’t pay you like a business.”  She also acknowledged that, in spite of her success, she doesn’t sit around eating bonbons every day waiting for residual checks to hit the mailbox.  “That’s a common misconception,” she said.  “I work hard at my business every day, although it doesn’t always feel like work.  Similar to other entrepreneurs who profit from their passion, she says “It’s rewarding because I found a product that has made in difference in how I look and feel… and I love selling it and helping other people start a business.”

Staci Cahill runs her Washington MLM company in a way many people can appreciate.  She keeps her personal life separate from her business life by avoiding home parties, offering instead workshops that educate prospects on the products she offers.  “I didn’t want to be that person others hid from because they thought I was going to ask them to host a party.  I like to keep my business life and personal life separate.”

When I asked her if she was successful at her craft, she pointed out an MLM approach different from what many might expect.  “Yes, I am very successful given what I wanted to get out of it.  I’m a single mother who used to work 50 hours per week outside the home.  Now I’ve cut it to 20 hours, which is a major upgrade for me and my family.”

As a five-year veteran of MLM, she attributes her success to the fact that, “I switched companies a few years ago once I realized that pots and pans don’t change people lives.  The products I now offer has changed my life and that of others… and I find a lot of value in waking up and going to bed knowing that.”

The interviews and psychological connections lead me to conclude that MLM and NM companies, along with other small businesses opportunities, are important considerations for anyone entering retirement.  In fact, I believe the concept of starting a business for retirement income will become one of the most significant trends impacting retirement in the 21st century.  But it has to start with redefining entrepreneurship and framing it into a retirement lifestyle.  That means helping people find ways to turn a passion, hobby, or personal desire into extra money in their pocket… not to mention helping people see the importance of  planning for the non-financial aspects of retirement such as replacing a work identity, staying relevant and connected, as well as keeping mentally and physically fit.

Something multi-level marketing as well as network marketing companies are poised to capitalize on.  As a result, the industry could soon experience larger than life growth, spurred by baby boomers looking to adjust their retirement feelings and plans.

Be Happy By Cultivating Great Relationships

Source: briantracy.com ~ Author: Brian Tracy

Be Happy By Cultivating Great RelationshipsMake an effort to be happy and cultivate great relationships all the days of your life. This is perhaps more important than anything else in life and I am going to tell you why living a good life, full of great relationships is more important than anything else.

85% of your happiness and joy in life will be associated with other people. This means that, of course, 85% of your frustrations and problems in life will be associated with other people as well. In order to be happy in life you must focus on building great relationships with others.

The Golden Rule

An important part of living a wonderful life is for you to remember that relationships are central to your health and happiness. Practice the Golden Rule in all of your relationships. Take a look at my previous blog “7 Secret Ingredients of a Happy Life” to learn more about living a good life and practicing the Golden Rule.

Make the important people in your life the most important parts of your world. Treat other people with courtesy, kindness and consideration, exactly the way you would like to be treated by them. When you practice the Golden Rule, it will not only help you to be happy by being good to others, it will help others to be happy as well.

The Best Investment

The critical factor in every relationship is the variable of time. The more time you invest to be happy in a relationship, the more important that relationship becomes. Be sure to spend lots of time with the people who are the most important to you. The more time you spend with the people you care about, you will be happy, healthier and more fulfilled as a person.

In your relationships with other people, here is a special technique you can use. Especially when you feel impatient or angry for any reason, imagine that the other person only has a short time to live, and you are the only one who knows about it. What would you do differently?

Here is a great YouTube video about how I am able to keep a great relationship with my wife and we are both able to be happy. How can you apply these things to your life to cultivate great relationships?

Treat every person as though they were carrying a heavy load. Treat each person as though they have a lot of problems and difficulties. Be compassionate and friendly, even when you don’t feel like it.

Make Others Feel Important

Continually look for ways to make other people feel important. Look for ways to express appreciation and admiration. Look for ways to give them approval and praise. Look for ways to acknowledge the special qualities they have, and the efforts they are making. Go out of your way to bring a little sunshine into the life of another person you meet.

You are designed emotionally in a remarkable way. Whenever you do or say anything that makes another person feel better about himself or herself, you automatically feel better about yourself as well.

Each time you raise the self-esteem of another person, your own self-esteem goes up.  Whenever you make other people feel important, you feel more important as well. Take a minute to read one of my other blogs on building self-esteem, great relationships and living a good life.

How Will You Be Remembered?

When your life is done, no one will really care about anything that you accomplished, or any amount of money that you acquired. Their only concern will be the kind of person that you were, the way you treated them, and if you lived a good life as a good person. Remember, the first question anybody ever asks is, “Do you care about me?”

Six Months to Live?

Imagine that you only have six months left to live.

How would you spend your last six months on earth? Have you lived a good life up to this point? What would you want to do? Who would you want to see? Who would you want to spend your time with and what would you want to do during that time?

These are important questions to keep your relationships on the front burner of your life. Here is another short YouTube video about building relationships that I think you will enjoy.

Take Action

Live your life as if you only had 6 months to live. Be with the people you care about the most. Do the things that you really want to do. Always cultivate great relationships with the people you love. Practice the Golden Rule with everyone you come in contact with and most importantly, be happy and live a good life that people will remember you for.

 

10 HAPPINESS HACKS: BACKED BY SCIENCE

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Huffington Post| I would love to be happier, as I’m sure most people would, so I thought it would be interesting to find some ways to become a happier person that are actually backed up by science. Here are ten of the best ones I found.

1. Exercise more – 7 minutes might be enough

You might have seen some talk recently about the scientific 7 minute workout mentioned in The New York Times. So if you thought exercise was something you didn’t have time for, maybe you can fit it in after all.

Exercise has such a profound effect on our happiness and well-being that it’s actually been proven to be an effective strategy for overcoming depression. In a study cited in Shawn Achor’s book, The Happiness Advantage, three groups of patients treated their depression with either medication, exercise, or a combination of the two. The results of this study really surprised me. Although all three groups experienced similar improvements in their happiness levels to begin with, the follow up assessments proved to be radically different:

The groups were then tested six months later to assess their relapse rate. Of those who had taken the medication alone, 38 percent had slipped back into depression. Those in the combination group were doing only slightly better, with a 31 percent relapse rate.The biggest shock, though, came from the exercise group: Their relapse rate was only 9 percent!

You don’t have to be depressed to gain benefit from exercise, though. It can help you to relax, increase your brain power and even improve your body image, even if you don’t lose any weight.

study in the Journal of Health Psychology found that people who exercised felt better about their bodies, even when they saw no physical changes:

Body weight, shape and body image were assessed in 16 males and 18 females before and after both 6 × 40 mins exercise and 6 × 40 mins reading. Over both conditions, body weight and shape did not change. Various aspects of body image, however, improved after exercise compared to before.

We’ve explored exercise in depth before, and looked at what it does to our brains, such as releasing proteins and endorphins that make us feel happier, as you can see in the image below.

2. Sleep more – you’ll be less sensitive to negative emotions

We know that sleep helps our bodies to recover from the day and repair themselves, and that it helps us focus and be more productive. It turns out, it’s also important for our happiness.

In NutureShock, Po Bronson and Ashley Merryman explain how sleep affects our positivity:

Negative stimuli get processed by the amygdala; positive or neutral memories gets processed by the hippocampus. Sleep deprivation hits the hippocampus harder than the amygdala. The result is that sleep-deprived people fail to recall pleasant memories, yet recall gloomy memories just fine.

In one experiment by Walker, sleep-deprived college students tried to memorize a list of words. They could remember 81% of the words with a negative connotation, like “cancer.” But they could remember only 31% of the words with a positive or neutral connotation, like “sunshine” or “basket.”

The BPS Research Digest explores another study that proves sleep affects our sensitivity to negative emotions. Using a facial recognition task over the course of a day, the researchers studied how sensitive participants were to positive and negative emotions. Those who worked through the afternoon without taking a nap became more sensitive late in the day to negative emotions like fear and anger.

Using a face recognition task, here we demonstrate an amplified reactivity to anger and fear emotions across the day, without sleep. However, an intervening nap blocked and even reversed this negative emotional reactivity to anger and fear while conversely enhancing ratings of positive (happy) expressions.

Of course, how well (and how long) you sleep will probably affect how you feel when you wake up, which can make a difference to your whole day. Especially this graph showing how your brain activity decreases is a great insight about how important enough sleep is for productivity and happiness:

Another study tested how employees’ moods when they started work in the morning affected their work day.

Researchers found that employees’ moods when they clocked in tended to affect how they felt the rest of the day. Early mood was linked to their perceptions of customers and to how they reacted to customers’ moods.
And most importantly to managers, employee mood had a clear impact on performance, including both how much work employees did and how well they did it.

Sleep is another topic we’ve looked into before, exploring how much sleep we really need to be productive.

3. Move closer to work – a short commute is worth more than a big house

Our commute to the office can have a surprisingly powerful impact on our happiness. The fact that we tend to do this twice a day, five days a week, makes it unsurprising that its effect would build up over time and make us less and less happy.

According to The Art of Manliness, having a long commute is something we often fail to realize will affect us so dramatically:

… while many voluntary conditions don’t affect our happiness in the long term because we acclimate to them, people never get accustomed to their daily slog to work because sometimes the traffic is awful and sometimes it’s not. Or as Harvard psychologist Daniel Gilbert put it, “Driving in traffic is a different kind of hell every day.”

We tend to try to compensate for this by having a bigger house or a better job, but these compensations just don’t work:

Two Swiss economists who studied the effect of commuting on happiness found that such factors could not make up for the misery created by a long commute.

4. Spend time with friends and family – don’t regret it on your deathbed

Staying in touch with friends and family is one of the top five regrets of the dying. If you want more evidence that it’s beneficial for you, I’ve found some research that proves it can make you happier right now.

Social time is highly valuable when it comes to improving our happiness, even for introverts. Several studies have found that time spent with friends and family makes a big difference to how happy we feel, generally.

I love the way Harvard happiness expert Daniel Gilbert explains it:

We are happy when we have family, we are happy when we have friends and almost all the other things we think make us happy are actually just ways of getting more family and friends.

George Vaillant is the director of a 72-year study of the lives of 268 men.

In an interview in the March 2008 newsletter to the Grant Study subjects, Vaillant was asked, “What have you learned from the Grant Study men?” Vaillant’s response: “That the only thing that really matters in life are your relationships to other people.”

He shared insights of the study with Joshua Wolf Shenk at The Atlantic on how the men’s social connections made a difference to their overall happiness:

The men’s relationships at age 47, he found, predicted late-life adjustment better than any other variable, except defenses. Good sibling relationships seem especially powerful: 93 percent of the men who were thriving at age 65 had been close to a brother or sister when younger.

In fact, a study published in the Journal of Socio-Economics states than your relationships are worth more than $100,000:

Using the British Household Panel Survey, I find that an increase in the level of social involvements is worth up to an extra £85,000 a year in terms of life satisfaction. Actual changes in income, on the other hand, buy very little happiness.

I think that last line is especially fascinating: Actual changes in income, on the other hand, buy very little happiness. So we could increase our annual income by hundreds of thousands of dollars and still not be as happy as if we increased the strength of our social relationships.

The Terman study, which is covered in The Longevity Project, found that relationships and how we help others were important factors in living long, happy lives:

We figured that if a Terman participant sincerely felt that he or she had friends and relatives to count on when having a hard time then that person would be healthier. Those who felt very loved and cared for, we predicted, would live the longest.Surprise: our prediction was wrong… Beyond social network size, the clearest benefit of social relationships came from helping others. Those who helped their friends and neighbors, advising and caring for others, tended to live to old age.

5. Go outside – happiness is maximized at 13.9°C

In The Happiness Advantage, Shawn Achor recommends spending time in the fresh air to improve your happiness:

Making time to go outside on a nice day also delivers a huge advantage; one study found that spending 20 minutes outside in good weather not only boosted positive mood, but broadened thinking and improved working memory…

This is pretty good news for those of us who are worried about fitting new habits into our already-busy schedules. Twenty minutes is a short enough time to spend outside that you could fit it into your commute or even your lunch break.

A UK study from the University of Sussex also found that being outdoors made people happier:

Being outdoors, near the sea, on a warm, sunny weekend afternoon is the perfect spot for most. In fact, participants were found to be substantially happier outdoors in all natural environments than they were in urban environments.

The American Meteorological Society published research in 2011 that found current temperature has a bigger effect on our happiness than variables like wind speed and humidity, or even the average temperature over the course of a day. It also found thathappiness is maximized at 13.9°C, so keep an eye on the weather forecast before heading outside for your 20 minutes of fresh air.

The connection between productivity and temperature is another topic we’ve talked about more here. It’s fascinating what a small change in temperature can do.

6. Help others – 100 hours a year is the magical number

One of the most counterintuitive pieces of advice I found is that to make yourself feel happier, you should help others. In fact, 100 hours per year (or two hours per week) is theoptimal time we should dedicate to helping others in order to enrich our lives.

If we go back to Shawn Achor’s book again, he says this about helping others:

…when researchers interviewed more than 150 people about their recent purchases, they found that money spent on activities–such as concerts and group dinners out–brought far more pleasure than material purchases like shoes, televisions, or expensive watches. Spending money on other people, called “prosocial spending,” also boosts happiness.

The Journal of Happiness Studies published a study that explored this very topic:

Participants recalled a previous purchase made for either themselves or someone else and then reported their happiness. Afterward, participants chose whether to spend a monetary windfall on themselves or someone else. Participants assigned to recall a purchase made for someone else reported feeling significantly happierimmediately after this recollection; most importantly, the happier participants felt, the more likely they were to choose to spend a windfall on someone else in the near future.

So spending money on other people makes us happier than buying stuff for ourselves. What about spending our time on other people? A study of volunteering in Germany explored how volunteers were affected when their opportunities to help others were taken away:

 Shortly after the fall of the Berlin Wall but before the German reunion, the first wave of data of the GSOEP was collected in East Germany. Volunteering was still widespread. Due to the shock of the reunion, a large portion of the infrastructure of volunteering (e.g. sports clubs associated with firms) collapsed and people randomly lost their opportunities for volunteering. Based on a comparison of the change in subjective well-being of these people and of people from the control group who had no change in their volunteer status, the hypothesis is supported that volunteering is rewarding in terms of higher life satisfaction.

In his book Flourish: A Visionary New Understanding of Happiness and Well-being, University of Pennsylvania professor Martin Seligman explains that helping others can improve our own lives:

…we scientists have found that doing a kindness produces the single most reliable momentary increase in well-being of any exercise we have tested.

7. Practice smiling – it can alleviate pain

Smiling itself can make us feel better, but it’s more effective when we back it up with positive thoughts, according to this study:

A new study led by a Michigan State University business scholar suggests customer-service workers who fake smile throughout the day worsen their mood and withdraw from work, affecting productivity. But workers who smile as a result of cultivating positive thoughts – such as a tropical vacation or a child’s recital – improve their mood and withdraw less.

Of course it’s important to practice “real smiles” where you use your eye sockets. It’s very easy to spot the difference:

According to PsyBlogsmiling can improve our attention and help us perform better on cognitive tasks:

Smiling makes us feel good which also increases our attentional flexibility and our ability to think holistically. When this idea was tested by Johnson et al. (2010), the results showed that participants who smiled performed better on attentional tasks which required seeing the whole forest rather than just the trees.

A smile is also a good way to alleviate some of the pain we feel in troubling circumstances:

Smiling is one way to reduce the distress caused by an upsetting situation. Psychologists call this the facial feedback hypothesis. Even forcing a smile when we don’t feel like it is enough to lift our mood slightly (this is one example of embodied cognition).

One of our previous posts goes into even more detail about the science of smiling.

8. Plan a trip – but don’t take one

As opposed to actually taking a holiday, it seems that planning a vacation or just a break from work can improve our happiness. A study published in the journal, Applied Research in Quality of Life showed that the highest spike in happiness came during the planning stage of a vacation as employees enjoyed the sense of anticipation:

In the study, the effect of vacation anticipation boosted happiness for eight weeks.

After the vacation, happiness quickly dropped back to baseline levels for most people.

Shawn Achor has some info for us on this point, as well:

One study found that people who just thought about watching their favorite movie actually raised their endorphin levels by 27 percent.If you can’t take the time for a vacation right now, or even a night out with friends, put something on the calendar–even if it’s a month or a year down the road. Then whenever you need a boost of happiness, remind yourself about it.

9. Meditate – rewire your brain for happiness

Meditation is often touted as an important habit for improving focus, clarity and attention span, as well as helping to keep you calm. It turns out it’s also useful for improving your happiness:

In one study, a research team from Massachusetts General Hospital looked at the brain scans of 16 people before and after they participated in an eight-week course in mindfulness meditation. The study, published in the January issue of Psychiatry Research: Neuroimaging, concluded that after completing the course, parts of the participants’ brains associated with compassion and self-awareness grew, and parts associated with stress shrank.

Meditation literally clears your mind and calms you down, it’s been often proven to be the single most effective way to live a happier live. I believe that this graphic explains it the best:

According to Shawn Achor, meditation can actually make you happier long-term:

Studies show that in the minutes right after meditating, we experience feelings of calm and contentment, as well as heightened awareness and empathy. And, research even shows that regular meditation can permanently rewire the brain to raise levels of happiness.

The fact that we can actually alter our brain structure through mediation is most surprising to me and somewhat reassuring that however we feel and think today isn’t permanent.

We’ve explored the topic of meditation and it’s effects on the brain in-depth before. It’s definitely mind-blowing what this can do to us.

10. Practice gratitude – increase both happiness and life satisfaction

This is a seemingly simple strategy, but I’ve personally found it to make a huge difference to my outlook. There are lots of ways to practice gratitude, from keeping a journal of things you’re grateful for, sharing three good things that happen each day with a friend or your partner, and going out of your way to show gratitude when others help you.

In an experiment where some participants took note of things they were grateful for each day, their moods were improved just from this simple practice:

The gratitude-outlook groups exhibited heightened well-being across several, though not all, of the outcome measures across the 3 studies, relative to the comparison groups. The effect on positive affect appeared to be the most robust finding. Results suggest that a conscious focus on blessings may have emotional and interpersonal benefits.

The Journal of Happiness studies published a study that used letters of gratitude to test how being grateful can affect our levels of happiness:

Participants included 219 men and women who wrote three letters of gratitude over a 3 week period.
Results indicated that writing letters of gratitude increased participants’ happiness and life satisfaction, while decreasing depressive symptoms.

For further reading, check out 7 Simple productivity tips you can apply today, backed by science, which goes even deeper into what we can do to be more grateful.

Quick last fact: Getting older will make yourself happier

As a final point, it’s interesting to note that as we get older, particularly past middle age, we tend to grow happier naturally. There’s still some debate over why this happens, but scientists have got a few ideas:

Researchers, including the authors, have found that older people shown pictures of faces or situations tend to focus on and remember the happier ones more and the negative ones less.
Other studies have discovered that as people age, they seek out situations that will lift their moods — for instance, pruning social circles of friends or acquaintances who might bring them down. Still other work finds that older adults learn to let go of loss and disappointment over unachieved goals, and hew their goals toward greater wellbeing.