Let’s be honest. When it comes to networking marketing, you find that it is a concept that people either love or hate. Network marketing, also called mlm or multi-level marketing can illicit a wide range of emotions and discourse with any audience. It is important to step back from extreme views on this subject, and to simply acknowledge that this is a business model that you can use if you so desire.
What I hope to accomplish is to give you a working knowledge of HOW the network marketing business model actually works.
There are essentially two reasons that some people seem to have such negative reactions, simply at the mention of the words network marketing. The first reason is that they have tried it themselves, and because a lack of training and coaching, they failed. The second reason is that they belong to a group of people who can’t get beyond the idea that mlm = pyramid scheme.
This second misconception is easy to unravel. First and foremost is the legal reasoning. Pyramid schemes are illegal in nearly all jurisdictions. It would be impossible for large multinational companies to operate year after year on an illegal operating structure. Eventually they would be closed down by governmental regulatory bodies. Secondly, this view on network marketing reveals ignorance of the true workings of business and an ignorance of the network marketing industry itself.
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News Flash! Corporate America is a Pyramid Scam?
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Here’s another thought on the idea of a pyramid in general. Consider any company that operates today. The company will probably have a CEO, president, vice presidents, middle management, a sales force, and hourly employees. The guy at the top, the CEO, is going to make the most money, with the compensation level decreasing all the way down the ladder. The only way to obtain a higher level of pay and move up the ladder is to eliminate someone else from their spot.
Plus corporate management seeks to squeeze every ounce of performance out of their employees for the lowest price possible. In all honesty, this is more like a pyramid than network marketing. All of the people in the traditional company work hard, but ONLY those at the very top have “permission” to make great amounts of money.
In network marketing the basic concept is that it is of great benefit to everyone to help those who are new reach the top. In fact the whole business model is built around this idea. The only way to become really successful as a network marketer is to help others do the same. There will always be a mathematical limitation to how large a network can become, but in today’s global marketplace, there is usually plenty of room for everybody. A network marketing company can easily diversify and find new markets, just like other companies do.
What about the dismal statistics of network marketing, the over 90% drop-out rate etc.?
This statistc can primarily be attributed to the simple fact that most people are not adequately trained to do network marketing correctly. Some network marketing companies are responsible for this themselves, because they provide very generic business building ideas and very little in the way of mentoring and coaching.
Most people don’t fully understand that network marketing is a business of marketing and promotion. Unfortunately most network marketing businesses are being undertaken by people who have NO IDEA how to either market or promote.
Read the above paragraph once more and let it sink in…
If you are serious about network marketing you need to develop a proper mind set and acquire the appropriate skill sets.
When you learn to do this business right:
* You don’t have to “sell”
* You don’t have to ask people to join your business.. They ask you!
* You don’t have to post “work at home” flyers!
* People will PAY YOU to prospect them
When you boil it all down, the network marketing business is not about the Vitamins or product your company is selling. In fact, this is one of the single biggest mistakes people make in network marketing. The truth of the matter is that network marketing is all about YOU. Your ability to market yourself as a leader and source of inspiration is the true foundation of the network marketing business.
