Network marketing is the chiropractic of the business world. I say this with authority and confidence because I am a chiropractor. For many years we were looked at as the charlatans of health care. In recent decades, though, the profession has made great strides in proving its value and validity, both through anecdotal evidence as well as solid research. However, in spite of this, I still hear prejudiced comments that we are not “real doctors.” We have come a long way, but we still have a long way to go.
To anyone in the network marketing world, this story must sound very familiar. Just do an internet search on “Network marketing scams” and see the plethora of information that comes up. Even when you are doing a legitimate search on the topic, the search results are peppered with naysayers.
I’m going to tell you something that not many people realize. It will immediately open your eyes up to the legitimacy of the network marketing industry. In current times, most well known (we’re talking Fortune 500 companies) traditional companies are involved in, or at least considering, how to sell their products through network and/or affiliate marketing. As an example, Discovery Toys markets their products exclusively through network marketing with sales figures that exceed $100 million. Sprint’ MCI and AT&T make their long distance phone service available through network marketing companies. Major chains like Best Buy and Target use affiliate marketers to market their stores and products.
So, as the dark veil of scam has been lifted from network marketing just a little bit with that juicy tidbit of information, let’s put this negative image to rest once and for all, shall we?
Here are the facts:
1. MLM, or what is more commonly referred to as network marketing these days, has been around since the 1940s, with the vitamin company Nutrilite.
2. In 1959, Amway was born. They eventually took over Nutrilite, and MLM never looked back.
3. The success of Amway drew attention; hence multiple network marketing companies were born.
4. The people who ruin it for everyone came along. They saw the potential for lucrative rewards, created a counterfeit version of MLM, and Ponzi and pyramid schemes were developed. This caused the network marketing business to become associated with the word “scam”.
5. At the urging through petition by ethical MLM companies, the government established ethical practices for a reputable MLM company and clearly defined what MLM is.
6. MLM companies that are really just pyramid schemes get closed up relatively quickly as a result of the laws that have been put into place.
7. Since MLM came into existence, the industry has evolved into a wide array of companies with a diverse range of products to sell, good compensation plans, and tools to help their marketers build their own business. Despite all the bumps in the road, MLM is a thriving industry and a very good way to build a business for yourself.
If the above is true, why does the negative image persist?
Issues that enhance the “Network Marketing Scam” image are as follows:
1. There is greater than a 90 percent failure rate in the industry because the people who sign up don’t take action. They then blame the business model and perpetuate the “scam” image.
2. Just like any other start-up business, it takes time and effort to build this type of business. If people don’t start getting a 4 figure monthly residual income check after signing up a few people, they think it’s a “scam.”
3. Relating to point number 2, the marketing tactics by people already in the business are not sound. Proper marketing must be done in order to create and duplicate success. Otherwise, the network marketing scam image is perpetuated when promises are made of riches and free time within weeks of joining, but in reality those promises cannot be kept.
4. The laws that were meant to protect MLM also hurt the MLM image, unfortunately. The idea of pyramid selling is also a mentality, not necessarily just a business structure. So, with any MLM compensation plan, the attitude of pyramid scheme gets easily applied to it, and people immediately think “network marketing scam.”
5. Most people you speak to about your network marketing business will never join you because it’s not for them. It takes persistence, perseverance, and maximum exposure of your business through solid marketing techniques to find the people who are cut out for network marketing.
6. Network marketing gives people the impression it is easy to make money; the REAL truth is, network marketing is HARD.
So, with everything I just told you, where is the good news in all of this? We have a reputable business model that has a somewhat tarnished reputation. It’s not as easy as it was once made out to be. You must ask yourself this question, then: Are you truly cut out for this business?
Consider the following as you try to answer that question.
· Do you want to continue working in a corporate job most of your life with the realization that you may never retire early and spend time with your family? For some people this is the easier route because at your J-O-B you just show up, put your time in, get your check, and leave. Not much effort besides what your job requires, and there is a guaranteed income, even if it’s not the amount you would like to have.
OR…
· Do you have an entrepreneurial spirit? Being an entrepreneur doesn’t mean you have to come up with an idea from scratch. You are just as entrepreneurial if you see an opportunity and create your own destiny based on how you present that opportunity to the world.
My full and final assessment of network marketing is this: if you have ever wanted to own your own business, be your own boss, work from home, set your own hours, and not have a salary cap on how much you can earn, then you should consider network marketing. You must not enter this business, though, if you think it’s going to be easy, and you aren’t willing to put in the work.
Do your due diligence; study the company (or companies) you are going to get involved in – in addition to the material they provide you, there are also websites that list the top network marketing companies. Learn about their products. Understand how you will get paid. Ask questions. Talk to other distributors. Assess whether or not you yourself can duplicate a successful business model within that company.
Take your time with this decision. You are going into business for yourself. Once you figure out if you are ready to take your career into your own hands, move forward with confidence and a solid business and marketing plan.
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