The Problem with Network Marketing.

It never ceases to amaze me the extreme polar views on the topic of network marketing and MLM. Some people are passionate about it and there are even business icons like Robert Kiyosaki doing it and advocating it. Yet, in many circles, you might as well declare yourself a leper as admit to being in network marketing.

So, what is the problem with MLM and network marketing?

As soon as you mention the term multi level marketing, many people assume that it’s a pyramid scheme. But you can't really take issue with the tiered compensation structure—almost every large sales organization in the world has that. Salespeople get commission, and sales managers get overrides or bonuses on top of that, and sales directors on top of that, and VPs on top of that.

Or maybe it's the fact that you have to pay to participate in it? But that can't be it—that's a standard franchising model. And I assure you, the franchise fee of most traditional franchises dwarf the sign-up cost of any MLM program by comparison. 

Now certainly, there are illegal pyramid, or "Ponzi", schemes. This is where the money is all being made off of signing up other people, with little or no real product ever being delivered and trust me because I have fallen victim to this kind of scam. But in spite of whatever perceptions people may have, the fact is that Amway, Vitamark, Meleleuca, PrePaid Legal, Herbalife and many others have sold millions upon millions of dollars of products to happy customers, many of whom are NOT also reps. So, there may be a perception problem here, but if so, the perception is out of line with the reality.

But surely the bad reputation of MLM has some more basis in fact than the occasional illegal pyramid scheme?

The real problem with MLM is not the concept itself, but some of the people it attracts. Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.


But those same things that make it attractive , attracts many who are NOT really qualified or prepared to become business owners. The salient characteristics of MLM make it attractive to people who:

• have not done well in their business or profession and have little money saved up to invest
• have no previous experience owning or running a business
• have no previous experience in sales
• have little or no experience developing business relationships other than that of employer/employee/co-worker
• are not satisfied with their current level of income
• have unrealistic expectations of the amount of work involved compared to the revenue realized

I'm not saying that there's anything wrong with any of these things, or that this describes even a majority of network marketers, only that it describes a disproportionate number of network marketers, and that many of them never do anything about it.

 Many network marketers end up:

• over-selling the opportunity

• inappropriately discussing business in social situations

• coming across as desperate

• over-focused on new recruits and neglecting existing customers as a result

• being either inaccurate or deceptive when talking about their business

 I'm certainly not saying that this describes a majority of network marketers, but it does describe enough of them to tarnish the reputation of the rest. To pre-judge someone based on the basis of a small minority of people in that group is horribly unfair, but we must realize that most prejudices have some basis in reality, even if it has been distorted.

So what's the solution?

There's a first time for everything. And network marketing/MLM is a great opportunity for people to have their first business, their first sales role, etc. My point is this; recognize it for what it is: it's a business, and you are a business owner. And if you've never owned a business before, if you've never done sales before, if you've never networked before, you need to learn about how to do so, not just from the network marketing/MLM experts, but from established experts in those fields.

Network marketers who are serious about building a business should be reading and learning about business fundamentals, the latest sales and marketing techniques, strategies for networking and business development, etc., not just swapping tips at your team's weekly or monthly meeting. Act like a small business owner, and people will treat you like one.
Learn how to do it from the Icons of the industry

The Biggest Mistake in MLM Business

It’s incredible how the vast majority of people I speak to on a daily basis are making this one SINGLE mistake that is seriously damaging any chances of them having success in their business.

Want to know what it is?

Every single one of them are promoting their Network Marketing business from the front end. Both online and offline.

Let me clarify.
You have joined a Network Marketing/MLM business and believe that it is the best thing since sliced bread and in order to make the business viable, you are making a long list of your friends and inviting all of them to some sort of business presentation where they can get to know the business and product.
If you’ve been doing this for a while and are wondering why you are still broke even though you’ve been churning and burning through lists of people you know and listened to exactly what your upline told you to do, it’s because you are making the biggest mistake that 95% of Network Marketers make!
This is a massive problem that almost all Network Marketers face at one point or another in their career.

Let’s break down why this is a dire strategy for growing a Network Marketing business:
1. Your friends and family are NOT entrepreneurs and don’t want to build a business
2. They have different dreams and goals and rarely have the same beliefs that you do about Network Marketing
3. They are an untargeted group who need to be educated on what Network Marketing even is in the first place
4. You have a limited number of people that you personally know and can call on
5. When you have spoken to all your friends, you will need to hit the cold market to continue to grow your business
6. Hitting the cold market requires thick skin and top notch salesmanship in order to capitalize on
7. Most people will fail miserably at sales
8. You will need to train your team to go through this same excruciating process
If you think that these points don’t apply to you or your business, then you’re either in denial OR you are born to be a salesmen and have skills that 95% of this industry will never have. In that case, this post does not apply you.
However, if you’re anything like me or the other 95% of people out there then read on…

So now that you’re all disillusioned about what to do and are asking yourself why you even joined this industry in the first place, don’t worry, I have good news!
There is still a way to market your business, get the results you are really looking for, and skip those horrible 8 points that most marketers end up going through.

The trick is to combine 2 vital components.
The Internet + Attraction Marketing

This powerful combination has single handedly killed the problem of sponsoring and having to be the super-salesmen that it is near impossible to be.
The main goal of Attraction Marketing is to FIRST build a relationship and trust with people on auto-pilot, before you even ask them to buy into anything. Since Network Marketing always has and always will be a relationship business, people tend to join people that they like, trust and respect. And if you learn how to do this, then you will be churning out new recruits like you’ve never seen.
Incorporating this idea with the Internet allows you to cross borders and hit a massive amount of people that you can now “target”. This along with certain “tools” will help you to create leverage in your business to allow you to scale out your business and get you to your goals more quickly.

So if you want to stop being that person that calls your friends and family 10 times a day trying to get an answer or the person that everyone ignores because they’re afraid you’ll pitch them about your business, then all you have to do is click here for some real NETWORK MARKETING SECRETS.