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Wall Street Wakes Up |
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| By now you know why MLM is such a fast growing industry. But did you know that some of the world's most successful investment firms have invested enormous sums into the industry? In September 2002, Warren Buffett, the second richest man in the world and CEO Berkshire Hathaway, purchased an MLM company for $1.5 billion. Fortune Magazine said that Buffett made the acquisition because of the company's high profit margins, zero debt, a fantastic management team and distribution network, and international expansion on the horizon. Then in May 2004, Ripplewood Holdings L.L.C. and Activated Holdings LLC acquired an 81% ownership of Shaklee Corporation for approximately $310 million. Activated's managing partner Roger Barnett decided that buying into the industry was the best long-term investment he could make - of any investment anywhere - and jumped on as Shaklee's CEO. He believes that MLM is the greatest business model ever invented. Sound interesting, but still believe that you have to get in "on the ground floor" to achieve any kind of success? Think again. According to the Direct Selling Association, the industry will grow as much or more in the next 10 years as it has in the previous 50. These investment firms are discovering what MLM professionals have known for years: that the model takes advantage of specific and direct support in how to use their products. And as for the professionals themselves, the education and training that takes place in MLM companies far surpasses that typically offered in the Corporate world, and the talent rises to the top, regardless of education, ethnicity, gender, or other "glass ceilings." MLM companies give people a chance to go out and not only sell a product, but instruct customers on how to use it and offer support to their customers. And what does this interaction between salesperson and customer mean to owners like Buffett and Barnett? It means they get instant and constructive input from their customer base on the efficacy of their products. They can find out what works and what doesn't in their sales presentations as well as the value and efficiency of the products themselves. |  |  | | | | There are now 17 public MLM companies traded on wall street, and their market capitalizations have far surpassed the growth of the S&P 500. $1000 dollars invested in 2003 would be worth $3000 today, whereas $1000 invested in the S&P 500 would be worth just $1200. Looks like these investment firms and MLM professionals are making winning choices! |  | |
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