Is MLM a four letter word?

There are only three letters in MLM, but when you speak the words "Multi-Level Marketing" to some people, you may notice them begin to slowly back away from you as if you were emitting a foul odor.

I have heard mixed reviews about MLM, or "Network marketing" plans, but I also know people who have been very successful in it. When I recently contacted LegalShield to inquire about becoming an associate, the representative I talked with emphasized that I was becoming involved in a "home-based business," and never mentioned the words multi-level marketing, or network marketing.

I began seeking out opportunities in MLM companies because I was looking for opportunities to own my own business with the goal of financial freedom. MLM companies give the opportunity to be part of an established business system that others have been successful in. I discovered LegalShield on a nexera.com list of Top 25 Network Marketing Companies in the World.

What attracted me to LegalShield was its 40 years in business and the fact that associates are not required to buy and hold inventory. I have a one car garage and I can truthfully say that my car has never seen the inside of it because it is packed from floor to ceiling with no space in between for boxes of vitamin supplements from a marketing company. Second, but equally important, LegalShield offers a product that everyone needs and everyone can use. You don't have to be a health nut to need the services of a lawyer. On top of that, LegalShield also offers an identity theft protection program. The coverage includes the member's spouse as well as minor children, and children under 26 living at home. This year the IRS told me that someone had been using my 2 year old son's Social Security number to file their own tax return, so I can see the value of identity theft protection.


I signed up as an associate today. I am compiling my "warm list" of contacts to tell about the business. Follow my blog to find out what I'm learning. You can find out more about this amazing company, and even become a member of my team, by going to my website: www.jasonpatrick.legalshieldassociate.com

What kind of investor are you?

In my spare time I read books about business, investing, and success. I'm currently reading the Cashflow Quadrant by Robert Kiyosaki, author of Rich Dad, Poor Dad.

In the book, he talks about 7 levels of investors. He bases the levels on the levels originally conceived by John Burley. The Burley version is here. 

Kiyosaki's 7 levels are:

Level 0: Nothing to invest (or, not really investors)

Level 1: Borrowers ("underwater" and "over-leveraged")

Level 2: Savers (opposite of borrowers)

                These are people who  hoard cash because they are afraid to lose it. They favor low-risk, low interest, low return investments. They fear debt because they have never learned the difference between "good debt" (debt that builds assets) and "bad debt" (debt to consume, which will consume you if it gets out of balance).

Level 3: "Smart" investors (aka, investors who are too smart to really learn how to invest the right way.)

Level 3 is divided into 3 subcategories:

3a: The "I can't be bothered group." Closed minded people who are not interested in learning how to make money work for them. Only know how to work for money. 

3b: The Cynic. Negative thinkers who will discourage everyone around them. They can sound intelligent, but their fear of risk keeps them from jumping on an opportunity at the right time. 

3c: The gambler. Loves risk, but tends to rely more on luck than due diligence. They end up losing most of the time. 

Level 4: Long Term Investors. These investors are the first level who can bee considered investors in the true sense of the word. They have a goal and a vision for what they want from to receive in the future from their investment of time and money today. They invest their energy to develop a long term plan and they are actively involved. They tend to be conservative investors. Living below their means and following a debt free lifestyle provides them with excess capital available for investing. Kiyosaki mentions the book The Millionaire Next Door, which offers a thorough analysis of level 4 investors. I recommend the book for anyone who wants to learn more, or for help to get started at level 4. Fans of Dave Ramsey are taught to invest at level 4. 

Level 5: Sophisticated Investors. Investors who have a solid financial background. They know how to invest for high returns and they are not afraid of risk. They have learned how to evaluate risk. They are learning the rules of the game of money by making deals and growing their asset base. 

Level 6: Capitalists. The top percentile. The most successful of all investors. They make money using other peoples money. They have created systems that bring them income without their direct involvement. They employ people to work for them (4 hour workweek).  Money and deals are attracted to them because they have vast experience and a track record of high returns. 

Level 4 is the starting point of all long term wealth creation. Which level are you?

What? Another blog?

I started this blog with the goal of tracking my own successes and failures in the world of  investing and business startups. I will talk about what I have personally tried and can recommend. Topics will include P2P lending and borrowing through Prosper and LendingClub, MicroVentures, a place to find opportunities for funding startup companies, and LegalShield, a company that offers legal services and identity theft protection to everyone for an affordable monthly price point. Without a plan, you will go nowhere. My goal is to become financially free and live the life I have always dreamed of by accumulating enough assets and passive income to allow me to retire before the age of 50. I am willing to do what it takes to pursue my dream.