Johnny and Jerry decide to sell lemonade.

Johnny asks his mom to borrow $20 for supplies.

Thrilled to see the entrepreneurial spirit in her little boy, the mother says "Sure. in fact, Johnny I'll drive you to the store and help you pick out the supplies."

Jerry rides his bike to his rich uncle and says, "Uncle Pete, can I borrow twenty dollars to start a lemonade stand?"

Uncle Pete says, "Where are the customers?"

Jerry says, "I don't know, but me and Johnny want to sell lemonade and be rich.  Right now, Johnny's mother is driving him to the store to help him with the supplies."

Uncle Pete smiled and said, "Jerry, Remember this rule in business. Sell it First, then Buy it."

Jerry thanked his uncle for the advice and hopped on his bike and drove to the local baseball game. There he sees a crowd of fifteen year old boys with their parents sweating in the hot, summer sun.

He walks up to the coach standing in the shade.

"Hey, mister, would you like some lemonade?"

The coach says, "Sure, how much?"

Johnny says, "I don't know, how much do you and your players want?"

The coach says, "Well, there are 20 guys on each team so I'd say 3 gallons should do it."

Johnny says, "No problem, I'll give you a discount. That will be $20.

The coach hands him a twenty dollar bill and says, "Can you come here every weekend?"

I first heard this story after my first failed business. I was distraught after the company I was representing declared bankruptcy, and I was forced to call my customers to report the bad news. I was humiliated and upset.

After I settled down, I called an old friend and very successful businessman.

The first thing he asked was, "What did you learn?" and  he told me something I'll never forget.

"Mark, businesses may fail, but YOU will only fail if you quit on yourself. Take the lessons you learn as a gift and don't ever let ANYONE steal your dreams."

He then told me the Lemonade Story and I've used the Lemonade Story to build my own businesses ever since.

The essence of the Lemonade Story is this. If you have a business, you don't need to shell out loads of money to get started. In fact, the opposite is true.

Sell It, then Buy it.

Here are some examples.

Options on Real Estate. Putting big down payments on real estate will only hurt if deals turn bad. Don't do it and do what the rich do. Put an option to control a large parcel of real estate.

Sell an annual contract. In the lemonade story, Jerry found the decision maker and sold him a long-term contract without any supplies, or investment or overhead. This means exponential growth and very little risk for the business owner.

Pre-sell memberships or subscriptions. I use various membership websites to give both value to my members and generate revenue. it yields passive income and means I build the product it once and repackage it and sell it over and over.

Sell Limited/Unlimited Access for a premium. Restaurants know that by selling "All You Can Eat" Buffets, the numbers of increased customers will defray the cost of service or production.

And one of the most important secrets to Growing Your Business is this:
ALWAYS MONEY IN BEFORE MONEY OUT.

It amazes me how many teachers still use the word "failure" in our public school systems. I'm not clear what the word means anymore, but I believe the words we use (casually or formally) can either assist or disrupt our attitudes and mindset.

Our attitudes create behaviors (or habits) that create a lasting result and effect. Young children are often in a constant form of self-hypnosis or hypnotic state and their attitudes can drastically shift when hearing words like "failure" or "loser." Learning often involves stumbling (like a child learning to walk) Its ok to fall down and its better if you get back up.

Your Thoughts Create Your Words and Actions. Your Thoughts Create your mindset. Your Mindset = Your Results.

While in Navy Flight School, we often "failed."

To this day, I'm still impressed how the US Navy can take a handful of college graduates with no prior flight experience and train them to solely launch and land an airplane within only twelve flights.

The training is intense and the students continually "fail".

While the flight student is failing, however, he's learning critical skills, skills that may someday save him from crashing into the water.

Life often serves up many lessons to teach us to grow and learn. Whether we launch a new business or we start a new job, career, marriage, we may often "fail."

Its ok to fail, because if not we're not failing, it generally means we're in our comfort zones, afraid to "fail, learn and grow."

Consider the American game of baseball.

If a batter hits the ball 4 out of 10 times, he would be most likely considered as an inductee into the Baseball Hall of Fame. If a student correctly answers 4 out of 10 questions on a geometry exam, he risks "failing" the class.

The difference is obvious and its only fair that we point out that comparing the two examples is like comparing apples to oranges.

Baseball is considered by many as one of the most challenging sports in the world. In contrast, our school systems have been designed for the student to succeed.

My only point is that its been my experience that 'failing' can be a 'teacher' and perhaps we can re-evaluate how we can implement better ways to allow our children to safely fail.

I'll save that debate for a different day and article, but for now, see what Eben Pagan talks about the speed of implementation.

Watch this video and see how you can fail moving forward and leave at the comment at the bottom.

(this was reposted from RNP marketing.. it was originally posted in Spring 2008)

I ran into a good friend, Jason Gilbert, founder of the Commercial Training Institute last week when I was flying out of LAX International Airport.

After catching up about our families and personal lives, and the landing gear retracted into the fuselage, we didn't waste any time talking about our latest ventures.

I mentioned that I was busy with some online ventures, and had just landed two large contracts with some clients where I was improving their SEO and internet marketing.  He said he had just returned from a cruise where he was speaking about how to buy commercial land using none of your own money.

I casually told Jason that I was actually looking to purchase some apartment buildings in the next couple of months and if he knew of any good brokers that could assist me.

Without hesitation, he said, "Mark, I have to talk you out of buying apartment buildings. I've seen it happen too many times. I'm not saying that apartments are bad investments, but there are better ones. See, the real estate investor who is comfortable with single family units or  quadplexes, gradually evolves into apartment buildings. Its within their comfort zones but there are better real estate investments."

Now, before I share the keys to Real Estate Investing, I have to tell you a little about Jason Gilbert. Jason served 10 years as a US Marine Corps Officer. Since leaving the USMC,  Jason has been involved in real estate ever since. He has sold or transacted over $50 million dollars in real estate since 2005 and his largest single deal was a $20 million renovation of five 3-story buildings in San Diego. He operates four real estate companies and in his spare time he patents inventions.

Jason is smart.

He knows real estate.

When Jason speaks about real estate or real estate development, you better listen.

The Top Three Commercial Real Estate Investments a la Jason Gilbert.

The magic of all of these real estate investments is that they are recession-proof, meaning they'll get be great investments if the US economy slows or stalls.

1. Buy Mobile Home Parks

Advantages:

Mobile Homes require minimum maintenance and management
Huge Cash Flow
Opportunity for creating additional profit centers.

Most of mobile home parks range from 10 to 20 acres – some are even as large as 50 acres.

Land becomes valuable that eventually replaced by retail, residential, or commercial real estate. Mobile home parks are creating huge amount of cash flow because you are renting the dirt that the mobile homes sit on -  which makes it a very attractive investment.

By leasing the land to residents, there is very little maintenance required. You will need to ensure that the electrical, gas, water and sewer are in good condition, but from the point of connection into their homes, the owners are responsible for all maintenance expenses. The expenses incurred by the mobile home park owner are minimal, (compared to apartments or single family homes)

Other Benefits:

Most residents stay for a very long time.

Creating many profit centers, like selling new units to tenants on a lease option (or sold on a note). So you are not only leasing the land, but you are selling the mobile home on terms as well.

2.  Invest in Self-Storage Units

There are Three "Generation" Types of Self Storage Units.

1st Generation: As Defined, usually developed in the 1960s and 1970s.

2nd Generation: Typical row buildings, some multi-story facilities and conversion to older buildings.

3rd Generation:  Excellent Lighting, air conditioned units and aesthetics.

Invest in 2nd Generation. They offer the biggest bang for the buck. Look for units with high occupancy.

Self Storage Park Advantages

Low Maintenance

No Tenant Headaches
Large Demand in Boom or Bust Cycles. People will utilize storage when they downsize in a real estate bust. People will utilize self-storage when they are upgrading to bigger homes.
Cash Flow

3.  Invest in Self-Assisted Living complexes.

Baby Boomers Drive this market.

Advantages.

Cash Flow
Large Demand
Little Maintenance
Looking at Jason's recommendations, you'll see one thing in common. Very low maintenance and management and very high cash flow.

This is my type of investments.  High Cash Flow and Low Maintenance.

Jason Gilbert is teaching people all over the country how to buy commercial real estate with none of your own money or credit.

Check it out here:

Commercial Training Institute

On June 5th, Jim Rohn Passed Away.

He will be missed.

If you've never heard his words before, check out and watch this video.

If you are not happy with your results, then you need to improve your skills.

Come check out how to improve your skills and place your direct sales and primary business on autopilot.

By Greg Stewart…

For the article's full excerpt:

http://www.richnavypilot.com/95/the-history-and-truth-of-network-marketing-by-greg-stewart/

In the early 1960's franchising was a revolutionary new technology in business, and it was also met with resistance. Newspapers and magazines wrote what a scam and rip-off franchising was. Stories of people who lost their life savings to some franchise were everywhere. There was a strong move to make franchising illegal. In fact, franchising actually came within 11 votes of being outlawed by Congress. Today this so-called scam is responsible for over 34 percent of all retail sales in North America. Franchises sell nearly 800 billion dollars worth of goods and services today. Every industry goes through an evolution similar to this. Chiropractors were considered quacks in the 1970's, the stock market was considered shady and a form of gambling, and the first newspaper in British North America, The Public Occurrence (1690), was suppressed by the governor of Massachusetts. Now, we almost can't do without these industries.

The Pioneers
Like all-powerful concepts, Network Marketing has also met resistance due to a lack of understanding. There is no mystery to Network Marketing. It's just another form of sales and distribution. Network Marketing is 50 years young.

In the early 1940's a company by the name of California Vitamins recognized that all their new sales representatives coming aboard were friends and family of their existing sales force, primarily because they wanted the product at wholesale cost. They also discovered that it was easier to create a sales force of a lot of people who each sold a small amount of product than it was to find a few superstars who could sell a lot of products.  So they combined those two ideas and designed a sales compensation structure that encouraged their salespeople to invite new representatives from satisfied customers, most of whom were family and friends, who each had the same right to offer the product and representative status to others, which allowed the sales force to grow exponentially. The company rewarded them for the sales produced by their entire group or network of sales representatives.  Network Marketing was born! A few years later, the company changed its name to NutraLite Food Supplement Corporations. In 1956, NutraLite was joined in Network Marketing by Dr. Forrest Shaklee to gain a broader distribution of the food supplements he had developed. Not long after, in 1959, former NutraLite distributors Rich DeVoss and Jay Van Andel started the Amway company as the American Way of marketing products. Like many truly innovative breakthroughs, the development of true network marketing was an accident. Abuses of exponential growth haunted network marketing for years and it is still misunderstood today. One of the first abuses of the concept of exponential growth to generate income may have been the chain letter craze that swept the U.S. after World War I. The letters promised great profit if you would send a dime or a dollar to the person at the bottom.

The chain letters spread as far as Europe, and by the 1930's the U.S. post office estimated that 10 million letters were being mailed each day. Postal Authorities and law enforcement agencies battled the fraudulent schemes and the chain letter phenomenon began to subside in the early 1940s.

Unfortunately, this scam spawned schemes which came to be known as pyramids, where money was given for the right to involve others, as no valid product which was being purchased from the company.

In 1974, Senator Walter Mondale declared such companies to be the nation's number one consumer fraud. Law enforcement agencies moved quickly to clean up the abuses. In the mid 1970's, with no clear understanding of what constituted a legitimate use of network marketing, the Federal Trade Commission and state agencies across the nation turned their eyes to almost all network marketing companies. In 1975, the FTC filed suit against Amway, alleging that the company was an illegal pyramid and that its refusal to sell its products in retail stores constituted a restraint of trade.

Amway spent four years and millions of dollars in legal fees to clear its name. In 1979 the FTC (Federal Trade Commission) ruled that Amway was not a pyramid, that its revenue was generated from the sale of its products, and the FTC acknowledged network marketing as a legal and efficient distribution system. Network Marketing exploded in the next decade.

Who's Involved in Network Marketing?
Today there are thousands of Network Marketing companies operating throughout the United States, Canada, Mexico, South America, the United Kingdom, Europe, Australia, New Zealand, Israel, Japan and the Pacific Basin. Little Malaysia alone has more than 800 active Network Marketing companies. Network Marketing is reported to be a $100 billion dollar industry, internationally, made up of FORTUNE 500 and New York Stock Exchange (NYSE) companies.

In 1993, Amway was the fastest growing foreign company in Japan with sales over $1 billion. Discovery Toys markets their products solely by Network Marketing, with sales figures in excess of $100 million. Sprint, MCI and AT&T make their long distance phone service available through Network Marketing companies. The A.L. Williams Company utilized Network Marketing and astounded the insurance industry by outselling Prudential, a giant in the industry, in four short years.

Traditional sales method companies such as Colgate-Palmolive and the Gillette Company have Network Marketing subsidiaries. Rexall Drug is now utilizing the Network Marketing method of distribution with its subsidiary, Rexall Showcase. Network Marketing companies such as Melaleuca outperformed Liz Claiborne, The Limited and John Paul Mitchell while Nu Skin bested the likes of Maybelline, Dow Chemical and Matrix. Mary Kay is bigger than Johnson & Johnson, Amway is bigger than Revlon, and Avon is bigger than Estee Lauder. Sam Walton, the founder of Wal-Mart is quoted as saying, "I'd rather run a profitable business in an unconventional industry than an unprofitable business in a conventional industry." Network Marketing has evolved in other ways, as well. Companies that began as direct selling companies are now utilizing networking marketing compensation plans. Some examples include Avon, the $3 billion cosmetic giant, Watkins Products, which had been direct selling for nearly 100 years before it converted to network marketing, and Encyclopedia Britannica.

One reason for the decline of direct selling is that beginning in the 1970's, distributors making calls on people found that no one was home. Women, long standing as the customer backbone of direct sales, had entered the work force, leaving few at home during the day. Companies watching these societal trends moved quickly to revise their marketing plans to network marketing, which allows for more informal methods of sales and greater compensation.

Network Marketing Companies have actually pioneered entire industries: natural vitamin supplements, nutrition and diet drinks, concentrated and environmentally friendly household cleaners. One network marketing company almost single-handedly created the billion dollar home water filtration business.

The Company Wins too.
Why are so many companies utilizing network marketing as their chosen method of marketing? Simply stated, it's more efficient! They do not pay for marketing, distribution or sales until after the sale is made and the product is delivered. Compare that to traditional marketing where a company can spend millions of dollars on advertising, as well as all costs associated with an employee based sales force, such as benefits, support staff, communication, travel and office, before any product is sold. Charles Givens, financial expert and best selling author of Wealth Without Risk, points out that 80 percent of the cost of getting a product to consumers today is the result of marketing expenses. Companies are looking to move their cost as close to the point of sale as possible.

Network Marketing companies replace traditional advertising and marketing costs with sales commissions to the independent representatives, paid after the product is sold.

In her best selling book, The Popcorn Report, Faith Popcorn explains additional societal trends driving the success of Network Marketing. Her book describes consumers as having a desire to cocoon and stay at home. She believes that they wish to avoid crowded malls and traffic jams, and are looking for the convenience of direct delivery of the product that Network Marketing provides. Advertising Age magazine states that the recommendation from a friend is the most powerful form of advertising; that is what Network Marketing is all about.

The changing work place has demonstrated that there is no security in the traditional corporate structure and career path. In the United States over 3,100 jobs are lost each day due to downsizing. Automation and technological advances are streamlining business and changing entire industries. Millions of people will be out of work searching for the same kinds of jobs their former employers just eliminated, in another company that just hasn't yet streamlined. This is postponing the inevitable; In fact, 47 percent of the companies that made up the Fortune 500 in 1980 are no longer in operation today, which represents a net loss of more than five million jobs!

Technological advances affect the work forces of entire industries. One example is the vinyl record business. In 1985, vinyl records supported a $24 billion a year industry. Today it is all but extinct, having been replaced with producers of cassettes tapes and compact discs. The steel and copper industries have suffered with the advent of new plastics and alloys. The functions computers are able to execute have caused the replacement of millions of workers. Robotic technology similarly has taken its toll in the workplace. One robot can replace twenty human workers and extinguishes the need for companies to pay exorbitant amounts in employee benefits. Man Power Inc., a temporary service, is now one of the largest employers in the world because companies are finding it less expensive to hire temporary employees and thereby avoid paying benefits to permanent employees. Marketing on a part-time effort can provide a financial cushion of residual income to protect oneself from such events. A recent Wall Street Journal survey found that 80 percent of the work force want to own their own business and 40 percent surveyed would like to work at home. This is exactly what network marketing provides. People are searching for ways to build a future that develops leadership and provides a balance in their lives for their families and each other, without sacrificing their sanity in the process.

How Does It Work?
In network marketing, you share information and develop personal and professional contacts. You are rewarded for sharing information that results in product sales. Network Marketing empowers you to build your own networking sales organization from your personal and professional contacts, which also empowers everyone to do the same, creating exponential growth of your network. You can earn income from the successful efforts of your network of business associates. Unlike conventional Corporations with one chief executive at the top, in Network Marketing everyone is the CEO of his or her own independent organization.

A network marketing company supplies the product. Then they join in partnership with a network of independent representatives, each one in business for themselves. The company takes care of the research and development, finances, management, public relations, production, warehousing, packaging, quality control, administration, shipping, data processing, the accounting and payment of representative sales commission checks.

Cooperation vs. Competition
One of the reasons for the success of Network Marketing in the 1990's is that it is based on cooperation, not competition. Unlike in traditional business, career advancement in network marketing comes directly from helping to create success with those that you introduce to the company. Network Marketing is sharing information that results in product sales.

People involve themselves because they want to finally be compensated for what their efforts are really worth. They're involved because somebody cared enough about them to show them the awesome opportunity of network marketing. They get involved because they were ready to make a change

Why Hasn't the Truth About Network Marketing Been Told?
People resist change and are fearful of what is not fully understood. People are comfortable with what is known and accepted by most. The truth is that most people in power today have an overriding fear of the loss of their own power. Network Marketing is about empowerment of the individual.

Is it really your best interest they have at heart? Remember what happened with W.T. Grant, franchising, and the first newspaper? Most new concepts have always met with resistance and rejection at first.

Newspapers, magazines, radio and television earn their primary profits from their advertisers. Is it in the media's best interest to say anything positive about an industry that does not advertise? Do you suppose major traditional marketing companies that are receiving increased competition from network marketing companies are excited? Whose side do you suppose the media would take to protect their advertising dollar?

A few years ago a network marketing company that sold personal care products became the attention of the media and several state Attorney Generals. Their sales were approaching $500 million dollars. These sales were being taken away from companies such as Revlon, Max Factor, Estee Lauder and others in the health and beauty aids industry. Do you believe the competition was pleased with the success of a network marketing company that was not spending multi-millions of dollars on advertising as they had traditionally done? Furthermore, network marketing companies were bypassing the department stores and malls and going direct to the consumer's living rooms with sharing, caring service and timesaving convenience. What if you were one of the brokers, retailers, wholesalers, media people or any other person whose job or businesses were being threatened because network marketing was a new and better way of doing things?

What would you do?
If you had a friend in the State Attorney general's office would you call them? If you or your company had contributed to any industry lobbyist, political action committee or had media contacts might they be contacted, too? What if, in fact, your job were in jeopardy either as the VP of Sales or as one of the executive staff who might have to answer to stockholders and explain why your market share was being taken away by some network marketing company and your position, your power and your income were at stake? Do you suppose these strategies are ever used against a competitor? How many votes do you suppose an Attorney General would risk by focusing on a network marketing company that employed many people and paid a great amount of local and state taxes – in a different state?

Just as in any business or industry, there are scams and schemes that hurt the industry image. Real estate has had its scams. Banking and Savings and Loans have had their improprieties. Ministries have had abuses for self-serving purposes. The stock market has had its insider trading scandals. Why should network marketing be any different?

Look at the company, the product, its management and their past history. Understand the commitment that is necessary to achieve success and residual income. This advice is just as valid in network marketing as in anything else. There are many myths about the industry of network marketing and the companies involved. It is true that many recognized traditional companies have started subsidiaries, such as Gillette, Colgate-Palmolive, Rexall and thousands of other companies that are using network marketing as their preferred method of distribution, creating sales of approximately $100 million dollars. It is often stated that Coca-Cola, Goodyear, IBM, Firestone, and General Motors are involved in network marketing with their own divisions.

Actually, these companies are suppliers of products to companies that utilize network marketing, such as Amway. MCI, U.S. Sprint and AT&T supply long distance service to network marketing companies that are rebillers. Due to the high cost of real estate for showrooms, Toyota of Japan uses direct sales to market directly to the consumer, but not network marketing.

Network Marketing is the new way to financial freedom. You'll never create residual income and freedom from the traditional job. Even professionals are trading their time for money; if they are not seeing clients or patients, they are not getting paid. Most income is temporary and it is easy to determine if your income is temporary – just stop working for 90 days. If your income stops or slows down, you have temporary income. In network marketing you can stop trading time for money. Once you develop a solid network of sales representatives, you will create ongoing residual income. This can give you the freedom to do what you want when you want to. It's interesting how resistant we are to change. We want to stay in our comfort zones even when we're miserable. It's been said network marketing is the next step in the evolution of free enterprise. But there is one thing we can always be assured of: the most fundamental fact of life in our world today is that change is inevitable!

I have a confession.

I used to be a network marketing snob.

Yes, it is true.

My team knows it.

My sponsor knows it and the leaders of my team know it.

But, the best part is…they'll forgive me.

See, when I was first started learning the business, I was in a company that I thought had some "shady" businessmen that were simply in the business for the money  (looking back, these were not "shady" at all, but very successful at what they did)

Some of these guys had great skills, and I learned lots from them.

I learned about "posturing" "question based selling" (all things we'll discuss in time) but deep inside I knew that I could never be like these guys.

These guys were good, all earning over 5 figure monthly salaries but they were "slick." (or so I thought)

They had the art of selling down pretty darn good, drove expensive cars and lived in huge mansions.

• They would take control back from the conversation by asking a question to a question–or objection. (A good skill to master, by the way)
• They would change their inflection of their own voice to match the prospect.
• They would model the body language of the prospect.

Many of these techniques do work and some professionals make full-time incomes teaching these strategies. (It is called NLP or neuro-linguistic programming)

But deep inside I knew I did NOT want to be like these guys and knew there was a better way…but I sucked it up, tried out the techniques…(trust me, they do work) and I did pretty well with my primary business.

But, deep inside I didn't feel right.

Deep inside I was embarrassed to tell my parents and brothers what I was secretly doing.  I was truthfully ashamed to tell people I was involved in MLM or network marketing.

With a basic mastery of my newly acquired skills, I worked my way up the company's pay ladder and just as my doubt grew stronger and stronger, I started to slow down in business.

The various "Nos" from trusted friends and families started to gnaw at me.  The negative body language from relatives and neighbors started to wear at me.  In essence, I started to "believe" that what I was doing was not ethical and dreaded the infamous "pyramid" objections.

Finally, with some extra residual income in my bank account, I started consulting and teaching myself how to market online and move away from the network marketing industry.  After about a year learning new skills online, I convinced myself that I was "too good" for Network marketing…..so I quit and started building my own private consulting practice.  (While I didn't truly "quit" because I still received monthly checks, I no longer considered myself an "active" distribuor)

About 1.5 years later, a good, trusted friend named Jesse called me to ask my opinion of NM/MLM.  I  gave him the standard disclaimer.  "It is not right for everyone," but a great way to build residual income and wealth.

So, I told him if I enjoyed the products, and believed in the company, I would definately consider joining the business.  I sampled the products and enjoyed great results.  That's all it took; because once I experienced the products, I started to explore the idea of becoming a rep again and distributing the products.  I checked out the company, spoke to a top-earner and jumped into the company full speed.

Some of the best trainers on the planet say that your hardest "sell" is yourself.  I couldn't agree more.

But the moral of the story is this: All that time I was filling my head with noise about the "slick" reps, I was becoming a NM snob.  I was actually telling myself that I was too good for an industry, but the reality was the industry was too good for me.

"Your thougts lead to your actions, which lead to feelings, which lead to your actions which equal your results." T. Harv Eker.

Keep an open mind and don't be too good for one of the best wealth vehicles on the planet.

When you model rich and successful people, you'll become rich.  When you model poor people, you'll become poor.

I thought I was too good for the industry, but the reality is the industry became too good for me.