Network Marketing – Why the Bad Rap?

Network marketing is a very successful business model that has existed for decades and is now a multi-billion dollar industry. Multi-level marketing has gotten a bad rap in recent years and the term MLM is not being used much anymore, because it is also known as the dreaded Pyramid Scheme.

It is unfortunate that this industry has had such a bad reputation in the past just because of a few unscrupulous people who are now suffering for their own greed. MLM is not a bad business model – that would be like saying that all golfers cheat on their wives!

When you see how successful Amway, Mary Kay, Avon and Tupperware, to name just four of the most successful network marketing businesses, you must appreciate that they have been doing everything legal for many years and they still continue to thrive.

Why is that? Primarily it is because of the products they sell and secondly because they offer everyday people the opportunity to earn a good income. It’s true that many starting out in the network marketing industry fail, but that is for a number of different reasons, it certainly is not the business model itself that failed them.

When a company starts out, they have a number of different approaches to marketing their products. They can open conventional bricks and mortar stores, they can choose to become an internet-only business like Amazon.com, or they can choose to save money on rent and overheads and offer a network marketing system. For this to be successful the product has to be good and also priced right, with a percentage of the price factored in which is the distributor’s commission.

One reason people fail at network marketing is that they don’t have a clue about the product they are selling. In face to face marketing it is essential to know, use, and like the product you are promoting. If you don’t, your potential customers and anyone you try to recruit into your downline will find that out immediately, and probably label you as a fraud and dishonest and subsequently bad mouth the whole network marketing industry.

If you are enthusiastic and knowledgeable about the product you are selling it will shine through. Too many new network marketing companies recruit warm bodies and send them out with either a shoddy product that isn’t worth the money, or they send their reps out without a clue about what they are doing – another bad representation of this great industry.

If the product is great and well priced and you are enthusiastic about it you’ll close the sale, otherwise you will struggle and give up. Some people can sell anything, they are amazing to watch, but most people interested in joining the network marketing business should learn at least the basics of selling, if they have not done so before.

A good network marketing company should offer thorough training to all it new reps and ongoing training to experienced reps. That way when it comes the time for you to recruit your downline, you will be able to show them a product they too will like, they will see how well you are doing, and you will also be able to help them into a system that works really well.

What are the main reasons you think that the network marketing industry is so maligned by so many? We would love to hear your comments.


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One Response to Network Marketing – Why the Bad Rap?

  1. Ira says:

    Hi Gabriele,

    One thing I observed in most MLMs is that the members are more inclined in recruiting more people to get their commission. I know this is needed for networking. But they should know that this is not all about recruiting members. They have to focus on promoting and selling the product too because that’s where money truly come from.

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