So what is Network Marketing and why does it get a bad name?What is Network Marketing and why does it get a bad rap?

Well the second question is easy to answer. It is probably because of the natural progression of any new idea.

1. Skeptics will at first deny the idea

2. Concede to the idea as working but not very viable

3.The majority will realize that the idea is valuable and actually important

4.and finally the last stage is when the critics said that they know it would work all the time.

I believe that Network marketing is at it’s early 3rd stage and that it will be accepted as a viable way of doing business as a whole in the next decade or so.

As great as I think network marketing it is not with it’s problems. Network Marketing has gone trough allot of growing pains and some dishonest people. Let me clarify some things immediately.

  • Network Marketing is not illegal
  • Network Marketing is not a pyramid scheme, anyone that tells you that it is does not know what a pyramid scheme is and you probably should not be taking advice from them.
  • Network marketing isn’t a structure where the majority of distributors lose to pay the minority of people who succeed.
  • It’s not build on the concept that the people at the top make all the money, that is also a pyramid scheme and it happens tp be the corporate structure as well as the social security structure in the US. Actually for most of the compensation plans I have evaluated the concept is totally opposite. It does not matter where you are in the organization you have the same opportunity as anyone else.
  • Network marketing is not a get rich quick scheme. Those that get rich usually do it with great sacrifice and hard work. Usually people do not see the sacrife they have made and only see the success they and lifestyle that they have build. This is for good reason, the lifestyle sells.
  • Network marketing is not just for salespeople

 

If anyone is claiming that this is what network marketing is all about, then their opinion is worthless and you should move on to a more credible source.

 

So what is Network Marketing? It is a system for distributing goods and services in which individuals are compensated not only for their sales but for the sales of the organizations they have helped to build. You could be paid by levels (MLM) or just on the total volume generated in the organizations.

 

This might not have to be said but I have seen so many articles at the top of the search engines which are useless evaluations, telling you that you can or can not make money in a particular company. If you want to know if people can make money in a particular company it might seem counter intuitive but ask those that are making the money. Their answer will be obvious. The question should not be if you can make money but how? Please do not ask someone that did not make money in a particular company their evaluation is useless. They don’t know how.

 

Can you make money in Network Marketing. Yes. There are tens of thousands of people making a living at network marketing, and hundreds of thousands supplementing their income just look at any legitimate company. But lets face it all industries have their failures. So lets analyze some of the failures that Network Marketing has and then see if we can help you avoid being one of them.

 

How much money can you make?

 

It is hard to gauge network marketing companies. If you where applying for a job you usually would be compensated by the hour or on salary. So it is easy to tell how much money you could make, and you could just decide to take it or leave it. However in network marketing the game is different the individuals ability, knowledge , learning curve and determination is a big factor. But the old adage of a penny being doubled every day for a month gives you the idea of exponential growth.

 

So lets be straight. The direct sales association stated that the median annual income for Network Marketing is 2,400 dollars annually. Actually based on numbers that I saw on Wikipedia they did an investigation in the UK where it showed that 99.7 percent of distributors loss money yearly in their company, another stated that the average distributor made no more than $5000 dollars per year. And I have heard numbers that the average network marketer only makes 10 per month. To be fair who is the average network marketer? Maybe instead of analyzing the numbers we should analyze the difference between the success and failures in the business. It is obvious you can succeed in network marketing by looking a the industry leaders but what does it take? Well I will talk about that in another article. Here I will concentrate on the mistakes that people make before they join a company.

 

The majority of the people that join network marketing do so because it fell in their lap. They where not actively looking for a business. Most people don’t actively search for the best network marketing company for them. People are approached and enticed sometimes convinced and coerced into joining a business. Many people just will take the presenters word and with very little research join a company. This happens easily because of two reasons

  1. A big challenge of network marketing is the low cost of entry coupled with the big money alluded to by the presentations. People that should have never even register their business get started in hopes of getting rich by luck. I heard Anthony Robbins say once that most of the people that buy self help books don’t even get past the first chapter. They are satisfied with just buying the self help book. I believe the same principle applies here. It is no surprise that most people that register don’t make it.
  2. Emotions are what sells people and when selling the business the presenter is going to use this to sell you his opportunity as the best opportunity in the market. And that it is the easiest and simplest opportunity to do. Emotions don’t build a business, persistence and consistency do.

 

On the positive side billions of dollars are paid out to millions of distributors every year in the for of override commissions. The bottom line is that Network Marketing has proven itself to be legitimate and that people are making money.

 

I wrote this article for those that may have been approached by someone about Network Marketing and wanted to know what it is. Sadly enough even tough the industry is legitimate many will start their business with the wrong impressions and never succeed. Th life blood of any network marketing business is leads if you want to get an endless amount of enter your name, email and phone number on the right hand side.

 

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