Network Marketing, or Multi-level Marketing, can be as controversial as politics. Most people have some sort of preconceived notion of what they think it is, based on years of misinformation and negative stigmas. A seasoned network marketer knows that in order to succeed, one must be able to educate people on the real value of this business. The good news is, more and more people are waking up to the fact that the 9-5 system is broken and are leaving corporate jobs to pursue businesses at home. Even top financial media institutions like Forbes are writing about this industry. With changes in the economy, and today’s technology there has never been a better time to be a network marketer. But to succeed, we all need to do our part to debunk those myths and re-brand this amazing profession.
So, let’s cover the main objections about network marketing and get to the bottom of these myths once and for all:
1) It’s a Pyramid Scheme
Another form of this objection is “only the people at the top make all the money.” Pyramid schemes, or Ponzi schemes, are money games in which the initial people who invest are paid from the subsequent investments of other people who later join the scheme. No product changes hand, no real investment or profit is generated, just money coming and going back to the people above, until the scheme collapses, and the little people at the bottom lose. Pyramid schemes are illegal. Legitimate network marketing companies are completely different. They sell real products and services that are actually in demand and competitively priced. The business model uses independent representatives to sell their products through word of mouth marketing vs. traditional advertising and retail distribution methods. The biggest misconception about network marketing is that the person who sponsored you is in a permanent position to ride your coattails all the way to the bank. That is entirely false. In most compensation plans, if your efforts outshine your sponsor’s, you can surpass their earnings, even advance to a higher rank. And unlike corporate America, which is the REAL pyramid scheme in my opinion, all network marketers start at the exact same place, with the same opportunity to advance or fail, but anyone has an equal opportunity to make it to the top. For some people it takes months, for others it takes years. Either way, it has nothing to do with when you sign up or who referred you.
2. You have to get in early to be successful
I often hear people say that if they didn’t get in early, then they missed the boat. This is just plain not true. Many of the top earners of network marketing companies are people who got in decades after the company was established. A high percentage of MLM companies fold within their first few years so I would be weary of getting involved too early. Besides which, unless everyone you’ve met is already buying from or already involved with the exact same company, and you have no plans to ever meet new people, and unless all of your friends are financially secure and happy with their employment situation, there is no such thing as too late. There are millions of people in this world and not all of them can be aware of a brand, and still not use it. If you have a good product you are passionate about, there will always be people willing to take a look.
3. I don’t have time
This is actually quite funny given that we all have the same 24 hours in the day. There’s no such thing as not having enough time for network marketing. If you have time to tell your friends about something you love, you have time for network marketing. If you have time to complain about your job, you have time for network marketing. If you have time to play on Facebook, or watch Dancing with the Stars, you have time for network marketing. And if you are so pressed for time that you can’t do network marketing, you need a solution that will give you more time. That is network marketing.
4. Most people don’t make money in those things
Your friend, your cousin, your neighbor – most people know someone who tried network marketing and failed. Those statistics are true, and the failure rate is high, but those numbers don’t tell the whole story. The fact of the matter is, some people are just not qualified to be good at this. Network marketing may be simple, but it’s not always easy. Like any profession, if a person is not willing to learn some new skills, he or she will not succeed. It can take months or even years before the investments in network marketing really pay off. Sadly, most people who join network marketing companies have a get rich quick or lotto mentality and are not willing to do the work it takes to succeed here, nor do they have the character and work ethic to succeed in any industry. Second, the only way to truly fail in network marketing is to quit and the majority of the people quit way too soon. It’s those same people with the get rich quick mentality that get involved, only to discover that it actually takes time, work and patience to make money and then quit. When they do, they tell the whole world that network marketing doesn’t work. It does work. It just didn’t work for them.
5. I don’t have the money to get started
Show me one successful venture that does not require some sort of initial investment. As far as start-up costs go for a traditional business, network marketing businesses rate really low on cost to get started. In most cases, for $500 or less you have the ability to create a million dollar asset. If you want something bad enough, you will find a way to make it happen. If not, you will make excuses. If you really can’t find a way to find the money, then I suggest you go back to that dead end paycheck job because a broke mentality is not going to get you very far in network marketing.
“This business is not without its share of detractors. And it has had its share of hucksters and scam artists – unethical people trying to make a quick buck. But by it’s very nature and design, network marketing is a strikingly fair, democratic, socially responsible system of generating wealth.” – Robert Kiyosaki
“When network marketing is done the right way, it’s not the same industry as the one most people are criticizing.” – Tim Sales