A CASE FOR NETWORK MARKETING: Debunking Misconceptions.
There are 2 kinds of people when it comes to network marketing. Those who don’t get it, and those who make money. I love the industry, it has allowed me to experience some incredible things in my life and provided so much for my family. In my almost 9 years working the corporate side of network marketing, I have seen some incredible stories and worked with incredible people, so no one, NO ONE, absolutely no one can tell me “it’s a scam” or “it doesn’t work”. Those who still make those claims probably had disappointing experiences with it, either because 1. Expected to get rich for nothing, 2. Never really worked it like a business or 3. Somehow signed up in their sleep. (That last one was mostly joking, but only mostly).
I will debunk this theories. Yes, it’ll take more than one article but that’s how it’s going to get done.
It’s a scam!
“Because I never made any money!”
Hey, it’s called business. If you don’t work, you don’t get paid. And even when you work, competition or plain bad luck can un-do everything you have worked for. Now, let’s be honest here: did you really work? Or did you do a handful of meetings with anyone who’d say yes and then quit? Treat it like a hobby and it’ll treat you like one, in other words, you’ll never make any profits with it.
“Because only the people at the top make money!”
No true. I know people who have joined after 15 years of the company’s existence and they got to make excellent money. What’s excellent money? To me that’s at least $10,000 a month. No, it didn’t take 15 years, they did it in 4-5 years and sometimes less. Some got less money in that time, $2,000-$3,000 a month. Is that insignificant? Maybe to some, but I guarantee that if I offer anyone $2K a month, every month for the foreseeable future, not one person would turn me down.
The first people to get involved (“at the top”) have better chances, that is true. That’s called opportunity. Ask Coke, Kleenex, Xerox, Nike, Q-tips and many more like them.
“Because if I was the last person to join, I’d never make any money!”
That doesn’t make it a scam, it’s called market saturation and it can happen to any company in any industry. Even then, is Sony going out of business because everyone has a TV and DVD player or sound system? No, right? So there isn’t such a thing as “the last person”.
“Because they always make you all these promises and turn out to be lies.”
That may mean you need better acquaintances. That has nothing to do with the company or the industry. Whoever showed you the presentation needs more scruples, but that doesn’t make the industry a scam.
“Because they take your money and run.”
That’s not true. Unless you’re buying online and you ignore all the obvious signs of a fraudulent company. You actually get product in return for your money, so they may take your money, but they don’t leave empty handed. If you gave a stranger your money and you never heard from them again, that’s different. Again, that doesn’t make a scam, it means some people are just smooth talking thieves, and one of them got the best of you. If you join a company with no products or service in exchange for your money, except for the promise of great returns on your investment, now you have an illegal scam in your hands. However, people actually tend to think those actually are legit. Beats me.
“Because pyramids are illegal.”
Actually, pyramids are very legal and you can view them when you go to Egypt on vacation. Pyramid schemes are 100% illegal, the problem is that no one really understands what that means, even when they think they know with 100% certainty. Pyramids are based on the concept of collecting money from people at the bottom to pay the person at the top. There is no exchange of value, you don’t receive anything for your participation, you simply put money in with the expectation to get money out. The new money goes to pay for existing participants and the only way to keep it going is to keep bringing more new participants. In network marketing you will always get something for your purchase; and because you are making a purchase that can be returned within 30 days you are not being “scammed” or “schemed” or anything of the likes. Because the products tend to be top notch quality goods, many people continue to purchase product which creates capital to pay those who invested time and energy in creating the Consumption network. Distributors are getting referral royalties. How is that illegal? It isn’t. Finally, these companies are closely monitored and regulated in order to protect the consumer. They report to the IRS periodically in order to keep their independent business owners database compliant. Pyramid scams try to stay away from any governing body. Why are network marketing companies illegal again?
“I can’t morally tell people to join a business opportunity”
And I can’t morally tell my friends to eat at KFC or Burger King, that doesn’t make those restaurants a scam. I personally think it should be illegal to sell something as monstrous as KFC’s famous Double Down, but that’s another conversation. Just because someone feels there is something wrong with something, it doesn’t mean there is actually something wrong there.
“The company can fold over night and then you’re back to zero.”
Actually, you’re back to less than zero because you have to now figure out what to do next. Newsflash: that’s called every day business.