Is Network Marketing A Scam? Yes It Is (for some people)
Over the years, misconceptions about network marketing have increased dramatically. These false presumptions have been passed on from one inexperienced network marketer to the other, all the more adding misguided information. So how are these incorrect notions different from the truth?
To address these challenges, I wanted to answer a few common questions that many people have regarding the industry, giving you valid insight into whether it’s fact or fiction. And share how you can address these common questions if you’re also being asked them on a regular basis.
Some of the common questions that I often get from others are:
– Is network marketing a scam?
– I just signed up with an MLM company; will I get rich in a month’s time? (that’s what i though)
– Are those in my warm market really my ideal prospects? (Didn’t like to call friends and family)
– Should I approach any individual looking for extra income, with my business?
Fallacy: Network Marketing is a Pyramid Scam
Fact: Though there are many companies out there, posing as MLM business models, the Network Marketing industry is not a pyramid scam. Although Pyramid Schemes do exist, they are defined as companies that are established solely for the purposes of recruiting people into the organization without the exchange of goods and services or selling of any products.
With the freedom of the Internet, it isn’t hard to create a magnificent website, put a comp plan together and begin marketing a company. However, it doesn’t take much to sniff out these types of schemes.
The easiest way to determine if a company is legit or not is to seek out a customer service number and call to see how they have the support lines set up. You can also sniff out a fraud when they don’t have a headquarters. No legitimate Network Marketing Company will be void of having an actual company headquarters.
There are additional ways that you can determine the legitimacy of a company by doing more due diligence. But the bottom line is this; before you join any MLM company, spend time researching the people behind the management team, the leaders history and track record and the professional structure of the company. Not only will doing this save you money, it will also prevent you from wasting your time. Click here to read my article:
The 5 Point Checklist – How To Choose The Best Network Marketing Company For You
Another great resource is the Wall Street Journal which will give you a detailed insight into the network marketing industry. In the year 20120 alone the sales in this industry topped more than $125 billion in over 125 countries. Click here to download the Wall Street Journal.
Fallacy: I can get rich quickly by joining a network marketing company
Fact: Money doesn’t come easy. Not even in network marketing. It takes a lot of time, marketing effort, and sales to be extremely successful in this industry. Like any other traditional business, you have to put forth some level of effort in order to generate profits. The major difference between a Network Marketing business and a traditional business franchise is that it takes less time and less investment to get started, and you don’t have to work twelve hours a day to generate profits. By utilizing effective marketing strategies and techniques, you’ll be well on your way to success in a much more rapid time than it would have taken you in a traditional business setting.
Fallacy: Your warm market are your best prospective leads (At least that’s what most of the companies and your upline leaders tell you)
Fact: Your warm market may be your ideal prospects initially, but they’re also simply your starting point. Many people feel like “they don’t know enough people” to build a successful business. But it’s a fact that each person knows at least 30 people (really its way more than that). You start off with your warm market and you begin to ask for others that they know, amidst meeting new individuals in places like your church, salon or barber shop, community service, pta, kids soccer or basketball games, etc.
You don’t want to put all your hope in your warm market being your ticket to wealth. Often people in your warm market will tell you that MLM is a scam and does not work. So they’re simply a starting point to get your engine revved up, and once you’ve connected with them, you build through their referrals and new connections.
Often times the methods our upline teach us will not work for the majority of us. If they did, then the Network Marketing business success rate would be above 10%, not below.
From my personal experience i can say:
Hard work, alone, will not work for you if the methods you are taught do not work for you.
-You really shouldn’t try to sell everyone, and yes, it is selling!
-It doesn’t really matter how much belief you have; although it helps.
-The product you represent is not as important as you think it is.
-Not everyone is a good candidate for a Network Marketing business.
I believe Network Marketing is changing rapidly and the future is already here. You DO need to learn not only to recruit, but learn how to recruit effectively using online marketing. Click the banner below and enter your best email address to unlock the secret to recruiting reps and selling products ‘at will’, all online, without ever picking up the phone…
Fallacy: Network Marketing is ideal for any individual seeking an additional source of income.
Fact: Not all people can warm up to the idea of network marketing and many of them may not see the industry as an ideal source of profits. Some people have their minds tainted with misconceptions while some are simply not part of the niche that the company caters to.
Before you start convincing your prospects to join your company, make sure that they have a fresh outlook on the industry and that they’re the ideal person for the business.
Conclusion – Is Network Marketing A Scam?
Let’s look at some numbers to find out:
- 90% or more “FAIL” in network marketing basically because they don’t take action
- The remaining 10% of people are not guaranteed to succeed even if they take action, because they are either taught the wrong way to market or they don’t know how to market
- You have to invest time and money before you start seeing any actual results, and this can take up to a period of 2 to 3 years
- Network marketing is NOT a get-rich-quick scheme (I really wish it were!)
- Most people you share with about your business will NEVER join you just because it ISN’T for them
- Network marketing is HARD, if anyone told you it’s easy – You’ve been lied to
So Yes, for some people network marketing is a scam because there is no guarantee that you will ever succeed in it. It’s a home-based business and 90% of businesses or start-ups fail within the first 3 to 5 years. The question you have to ask yourself is this:
Does Network Marketing offer a better way than working 40 years for someone else, for 40 hours a week and then to retire on 40% what you could not afford to live on in the first place? For me the answer is a YES! Network marketing is not perfect, but it’s beats having a job any day of the year! Just take a look at this image below and make up your own mind.
To your success
Dennis Koray
Skype: denniskoray
email: info@denniskoray.com
P.S.: If you are Network Marketer, click on the banner below NOW, enter your email and learn how to make money blogging about your MLM.
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