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Network Marketing – the real deal?

Whether you are in the Network marketing industry or not, I’m  betting  you have come across many varied and some strong opinions about it!

There is a lot of misunderstanding and myths about Network Marketing. Since the 70’s when there were a lot of unethical money making schemes out there, the whole industry has been tarnished with a scam reputation. Odd really, as every industry has its bad eggs and we accept that.  But not with Network Marketing it seems. There is this over exaggerated fear, yes FEAR of NWM. Like the aliens came down and kidnapped those involved and injected them with a virus which if you get too close you might catch! To be serious, the not so ethical out there play the get rich quick card and some people get taken in with the promise of riches without having to work for them. Nothing is going to just make you rich without you doing anything at all. These “scams” are not genuine Network Marketing companies. There really is a BIG difference and I urge you to do due diligence on any company before you get involved. Why wouldn’t you, whether you are investing $50 or $5000, checking things out first is paramount. (see my free download, “top 10 things to look for in a good Network Marketing company that will save you 1000’s”).

It really isn’t scary at all, no more scary than persuading your best friend to become a partner in your candy cart business! (Except that is possibly financially and emotionally more risky, another subject for another blog! “Being business partners with family or friends”).   The fear comes possibly from a lack of knowledge, leading to a lack of understanding, it also comes from believing the haters and it comes from poor guidance from within the industry. To be perfectly honest, the strongest anti opinions tend to come either from those that feel they failed at network marketing, or know someone that got “persuaded” to get involved and thinks they have joined a cult! Or have an axe to grind against someone they once worked with, or a company that didn’t agree with their methods and cut them loose! You see this in every type of business, the disgruntled employee that slates a company because they got the sack or made redundant. What’s different about NWM? Human nature is such that you will always have the naysayers and negative opinions about everything. There are ALWAYS two sides to every story, we don’t have to believe everything we see/read on the internet, anyone can add content…just anyone can write an article or blog seeming to have an expert opinion! Me included! I don’t claim to be an expert, but I do have an opinion based on my personal experiences and journey from massive sceptic to a Network Marketing Professional.  (see “my journey from sceptic to Network Marketing Professional” blog!)

Firstly, lets look at the two words in a different way.  Network Marketing. Marketing via a Network. Each company has a product (s) or a service, every business is product or service based. More often it is a high quality product or service and I will explain why further on in this blog.

The method of distribution is not the traditional method used by the large stores and shops, it’s a more direct method. I am not saying either way is best, they both work and both have their place in the world of retail.  Direct sales and Network Marketing are more cost effective and give a source of income to many more people along the way as well as a chance to have their own independent business. How does it work?

Rather than relying on a supply chain and then huge advertising campaigns, expensive premises and shops. They supply their product wholesale and direct to independent business owners, who supply the product direct to the customers in their own network. Very often, they own the whole process, from sourcing the ingredients, the production line, the distribution centres and every step from conception to consumer.

 

Cutting out the middle men, who all rightfully take a cut of the profits, (they all need to be paid for their part in the chain), means the company keep more profit to go back into making superior products and the Independent business owner earns their own profit plus a bonus paid by the company for their part in expanding the turnover.  Millions of people around the world run their own home based business in this way. They aren’t conning anyone, or running a scam, they have a small well run, sustainable business, which supplies a product or service to their own small customer base, giving each customer the best service and thus creating an income for themselves and their families to live on. It really is as simple as that. No scam, just genuine business owners.

To increase your income, you have the option, and it is only an option and never compulsory, to introduce the business to other people that are interested in having their own home based business. The misconception is that as you introduce people you take a cut directly of what they earn every month and you earn huge incomes on the back of other people! In actual fact, no-one can earn more from your business than you.  That type of business is called a franchise. In a franchise the franchisee pays a fee and a percentage of their profits back to the main franchise every month on top of the 1000’s they originally paid for the lease of the franchise.  It may take years to realise a decent profit whereas in NWM you can be in profit in your first month. It really is a simple system and not to be confused with companies that want you to pay to join, then you find people who pay to join and there is no product and no service involved and it isn’t sustainable as a business. That isn’t genuine Network Marketing.

The other misconception is that the person who introduced you always earns more than you. Well again, it doesn’t work like that. As I said earlier, no-one can earn more than you from your business. Everyone has the chance to earn what they want, it really is down to how much work you are prepared to put it. For example, (hypothetical) Jane wants a small business with an income of a few 100 per month to help with her household bills,  her brother is very ambitious and he wants a large global business and a 6 figure income so he can retire at 40 and travel the world in luxury. As his business is in Jane’s network, she get’s paid a small % of his monthly turnover (a commision) for introducing him, which means he earns substantially more than Jane, and always will. The people with the largest incomes are the ones that work the hardest and put a lot of time and effort in, consistently. Regardless of who introduced them and whether they came in at the beginning or 38 years later!

I hope I have been instrumental in helping your understanding of a bona fida business model that continues to be a very popular and successful way to work from home, own your own business and earn whatever you want, dependent on putting in the time and effort required. Which is of course, no different to any other business. I wish you every success on your chosen path, whether it be a traditional job, business or marketing via a network.

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