It is amazing that people have such extreme polar views when it comes to MLM and Network Marketing. Successful people are passionate about their business in the extreme while those less successful declare the whole idea a failure. Very well known people such as Robert Kyosaki and Robert Allen are involved in it and advocate it. While in other circles, you just don't want to admit that you're involved with a MLM network marketing business.
What causes such different opinions about MLM network marketing?
Is the compensation plan to fault? It seems that those at the top earn more income that the folks at the bottom. Conventional businesses operate in the same fashion. The salesman at the bottom makes a commission on his sales. However, his sales manager makes money on each salesman's performance and the VP of sales makes even more. This compensation scheme has been around forever.
Could it be that it costs you money to play? Well, you don't expect to get something for nothing do you? Any business you choose to become involved with is going to cost you money or effort of both no matter whether it's a stand alone business, a franchise, or a MLM network marketing business. Every opportunity has a cost associated with it. In most cases however, the cost of getting involved with a MLM network marketing opportunity is much smaller than the cost of getting involved with a brick and mortar stand alone business.
We've all heard about pyramid schemes and the losses people have experienced from them. There are usually not real products or services associated with them. Money from new members is used to pay the old members until the money runs out. Bernie Madoff was a master at this technique and successfully operated his ponzi scheme for more than 20 years and scammed people out of Billions of dollars. MLM and network marketing have taken an unfair hit to their standing as legitimate businesses because of scams like Bernie.
MLM and network marketing companies such as Amway, Meleleuca, and Prepaid Legal have provided billions of dollars in products and services to millions of satisfied customers while providing great incomes for individuals who worked with those companies. So, MLM and network marketing companies have provided an abundance of wealth to the American economy.
As a business model, MLM and network marketing work. Potential return on investment is usually very high. That is what attracts many people to MLM network Marketing. Unfortunately, most of the people who are attracted have no business experience. They know nothing about sales and marketing and have very few of the skills necessary to run a successful business. They expect whatever opportunity they buy into will provide everything they need to be successful. Unfortunately this is not the case.
So, many of the neophytes rely totally on what their sponsor provides to them whether that be individual support or company support. They find that it is not adequate and succumb to not knowing what or how to operate their new opportunity and do nothing further with it. They are now genuinely disenchanted with the whole MLM thing and tell everyone they know about their failure.
Network marketers are an enthusiastic bunch. The try to present their opportunity to any warm body they come in contact with expecting some percentage to say yes. After all, isn't that what they were told by their sponsor. Their sales pitch includes inaccuracies or deceptive claims that will never materialize. So, they are only serving themselves and will probably fail.
All network marketers don't fall into this category. But enough do to give the MLM network marketing industry a negative rep.
"Is Network Marketing a god send or an evil program designed to suck the life out of you?" Only you can decide what the correct answer is.
If you realize that you are investing your time and money in a new business, and you realize that you need all those skills of business management, sales, marketing, and personnel management to succeed, then you will probably find a place in the MLM network marketplace where you can succeed. It will take perseverance and determination but you can succeed.
Going forward, MLM network marketing has a very bright future!
Best regards,
Doug Blackley
What causes such different opinions about MLM network marketing?
Is the compensation plan to fault? It seems that those at the top earn more income that the folks at the bottom. Conventional businesses operate in the same fashion. The salesman at the bottom makes a commission on his sales. However, his sales manager makes money on each salesman's performance and the VP of sales makes even more. This compensation scheme has been around forever.
Could it be that it costs you money to play? Well, you don't expect to get something for nothing do you? Any business you choose to become involved with is going to cost you money or effort of both no matter whether it's a stand alone business, a franchise, or a MLM network marketing business. Every opportunity has a cost associated with it. In most cases however, the cost of getting involved with a MLM network marketing opportunity is much smaller than the cost of getting involved with a brick and mortar stand alone business.
We've all heard about pyramid schemes and the losses people have experienced from them. There are usually not real products or services associated with them. Money from new members is used to pay the old members until the money runs out. Bernie Madoff was a master at this technique and successfully operated his ponzi scheme for more than 20 years and scammed people out of Billions of dollars. MLM and network marketing have taken an unfair hit to their standing as legitimate businesses because of scams like Bernie.
MLM and network marketing companies such as Amway, Meleleuca, and Prepaid Legal have provided billions of dollars in products and services to millions of satisfied customers while providing great incomes for individuals who worked with those companies. So, MLM and network marketing companies have provided an abundance of wealth to the American economy.
As a business model, MLM and network marketing work. Potential return on investment is usually very high. That is what attracts many people to MLM network Marketing. Unfortunately, most of the people who are attracted have no business experience. They know nothing about sales and marketing and have very few of the skills necessary to run a successful business. They expect whatever opportunity they buy into will provide everything they need to be successful. Unfortunately this is not the case.
So, many of the neophytes rely totally on what their sponsor provides to them whether that be individual support or company support. They find that it is not adequate and succumb to not knowing what or how to operate their new opportunity and do nothing further with it. They are now genuinely disenchanted with the whole MLM thing and tell everyone they know about their failure.
Network marketers are an enthusiastic bunch. The try to present their opportunity to any warm body they come in contact with expecting some percentage to say yes. After all, isn't that what they were told by their sponsor. Their sales pitch includes inaccuracies or deceptive claims that will never materialize. So, they are only serving themselves and will probably fail.
All network marketers don't fall into this category. But enough do to give the MLM network marketing industry a negative rep.
"Is Network Marketing a god send or an evil program designed to suck the life out of you?" Only you can decide what the correct answer is.
If you realize that you are investing your time and money in a new business, and you realize that you need all those skills of business management, sales, marketing, and personnel management to succeed, then you will probably find a place in the MLM network marketplace where you can succeed. It will take perseverance and determination but you can succeed.
Going forward, MLM network marketing has a very bright future!
Best regards,
Doug Blackley
About the Author:
Learn more about internet marketing. Stop by Douglas Blackley's site where you can find out all about network marketing and what it can do for you.
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