subject: Why Does Network Marketing Get Such A Bad Rap? [print this page] Why Does Network Marketing Get Such A Bad Rap?
Oh, you're in network marketing...huh? Geez, is this another one of those pyramid schemes? People don't really make money in network marketing so why even try? This is what so many people say when they find out someone they know is in network marketing. I would like to clarify what this industry is all about.
The idea of network marketing started in 1861 with the traveling salesman. The first "home party" company was founded in 1931 by Frank Stanley Beveridge and Catherine L. O'Brien when they opened Stanley Home Products. The earliest documented MLM compensation plan was in 1945 when Nutrilite contracted with Mytinger & Casselberry to become the only American distributor of Nutrilite products. Tim Sales at www.firstclassmlm.com has written an outstanding article on the "History of MLM (Network Marketing)" and I encourage you to check it out.
Network marketing is also identified as MLM or direct sales. The meaning is one in the same and you will note that pyramid is not included. Network marketing companies are built around a business and products. Distributors sign on to sell the products. The products are sold to customers and the representative will also recruit others who are interested in doing the same.
On the other hand a pyramid is missing one important aspect, the product. According to a statement issued by the FTC, "a pyramid scheme promises consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure".
Network marketing companies most certainly have products to sell. The products are usually laser targeted to one particular niche. Quite often they are developed by professionals who spend years on research and development. When it comes time to promote the products, they choose network marketing. They could choose Walmart or some other retail company, but many choose network marketing.
One reason I believe the industry's reputation suffers is because some newbies become "buggers", but forgive them because they don't know any better. These are the people who will try to sell to or recruit anyone with a heartbeat. I think you know who I mean. The friend or relative everyone ducks from when they see them coming. This industry is not meant to bug and annoy people. What we want to do is help people and change lives.
When someone is considering an MLM opportunity it is in their best interest to talk to a number of sponsors before making a decision. Many sponsors say "I want to interview you to see if you would be a good fit with my team". It's just as important for the prospect to interiew a sponsor to make sure they join a good leader and team.
If you want success in this business it's critical to have an upline that supports you and, particularly if you're a newbie, someone who will teach you good marketing skills. Make a decision to select a mentor. It doesn't have to be within your company but it must be someone you trust.
In conclusion, network marketing is most definitely a respected industry where a person can make a very good living. It's important to choose the right company, a product you believe in and a mentor to guide you along the way.
