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~ Volume 13 : Issue 20 : July 03, 2014 ~
Celebrating Over 13 Years of Publication!
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Hello Fellow Entrepreneur!

Welcome to all new and current subscribers! Thank you for being an integral part of YOUR ezine!

This week, we will be focusing our attention on Network Marketing.

It's true... network marketing has gotten a bad rap over the past few years. The real problem with it is not that it's MLM itself, but some of the people it attracts. Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.

We've all experienced the Ponzi scheme, or pyramid scheme. These are illegal. Unfortunately, the very business model that these are based on, is the same business model as is used in Network Marketing. This same business model is also used in every part of our society... from the family, to the hospital, to the burger joint, to the multi-billion dollar industry! They are ALL pyramids!

So what makes them different from the illegal schemes? We will discover this and much more.

So, without further adieu... go grab yourself a cup of coffee, relax and read on...

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The Real Problem with Network Marketing and Multi-Level Marketing (MLM)

By Scott Allen

It never ceases to amaze me the extreme polar views on the topic of network marketing and MLM. Some people are passionate about it in the extreme, and there are even top celebrity authors like Robert Allen, Mark Victor Hansen, and Robert Kiyosaki doing it and advocating it. Yet, in many circles, you might as well declare yourself a leper as admit to being in network marketing.

So, what is the problem with MLM and network marketing?

Maybe it's the pyramid structure? But you can't really take issue with the tiered compensation structure—almost every large sales organization in the world has that. Salespeople get commission, and sales managers get overrides or bonuses on top of that, and sales directors on top of that, and VPs on top of that.

Or maybe it's the fact that you have to pay to participate in it? But that can't be it—that's a standard franchising model. And I assure you, the franchise fee of most traditional franchises dwarf the sign-up cost of any MLM program by comparison.

Now certainly, there are illegal pyramid, or "Ponzi", schemes. This is where the money is all being made off of signing up other people, with little or no real product ever being delivered. But in spite of whatever perceptions people may have, the fact is that Amway, Excel, Meleleuca, PrePaid Legal, USANA, and many others have sold millions upon millions of dollars of products to happy customers, many of whom are NOT also reps. So, there may be a perception problem here, but if so, the perception is out of line with the reality.

But surely the bad reputation MLM'ers has some more basis in fact than the occasional illegal pyramid scheme?

The real problem with MLM is not MLM itself, but some of the people it attracts. Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.

But those same things that make it attractive make it attractive to many who are NOT really qualified or prepared to become business owners. The salient characteristics of MLM make it attractive to people who:

- have not done well in their business or profession and have little money saved up to invest
- have no previous experience owning or running a business
- have no previous experience in sales
- have little or no experience developing business relationships other than that of employer/employee/co-worker
- are not satisfied with their current level of income
- have unrealistic expectations of the amount of work involved compared to the revenue realized

Don't get me wrong—I'm not saying that there's anything wrong with any of these things, or that this describes even a majority of network marketers—only that it describes a disproportionate number of network marketers, and that many of them never do anything about it.

As a result, many network marketers end up:

- over-selling the opportunity
- inappropriately discussing business in social situations
- coming across as desperate
- over-focused on new recruits and neglecting existing customers as a result
- being either inaccurate or deceptive when talking about their business

Again, I'm certainly not saying that this describes a majority of network marketers, but it does describe enough of them to tarnish the reputation of the rest. To pre-judge someone based on the basis of a small minority of people in that group is horribly unfair, but we must realize that most prejudices have some basis in reality, even if it has been distorted.

So what's the solution?

There's a first time for everything. And network marketing/MLM is a great opportunity for people to have their first business, their first sales role, etc. My point is this—recognize it for what it is: it's a business, and you are a business owner. And if you've never owned a business before, if you've never done sales before, if you've never networked before, you need to learn about how to do so, not just from the network marketing/MLM experts, but from established experts in those fields.

Network marketers who are serious about building a business should be reading and learning about business fundamentals, the latest sales and marketing techniques, strategies for networking and business development, etc., not just swapping tips at your team's weekly or monthly meeting. Act like a small business owner, and people will treat you like one.



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Network Marketing - Is It The Wave Or Is Network Marketing Here To Stay?

By B Skipper

Network Marketing is quite a sensitive topic. Often one that gets bashed and tossed around like a 'hot potato'. Some can handle it and some cannot. And there are reasons for each side of the argument. But if one evaluates Amazon.com, eBay.com or even Netflix they will discover that they obviously started vial Network Marketing and grew to the size that they are today and some continue to grow and grow. One has to agree that Network Marketing existed prior to the internet obviously.

It was just a different way to access that network for development of projects. If a building contractor needed a plumber to do the plumbing in a two-story garage then he called his friend on the phone or met him at his local meeting place. A face to face conversation took place, bids were placed and then often times I have heard that ''many business deals have been made on the golf course''. So with that quote that implies that Golf has its own individual network. Not to mention similarities that exist. Similarities you say? Sure why not? One swings a bat when attempting to knock the ball out of the park so they can travel around the "sand diamond'' with ease while another tries to knock the small ball into the hole in one swing.

A very similar concept. The same applies to network marketing and purchasing. If someone wants to travel, buy brand x or just need that special pair of jeans or the Fossil watch, they go online. Fossil has networked with Facebook who is linked with over a billion people and their chance of finding someone in that particular "similar'' network market is relatively high. So one cannot discount the methods that are in use today. In fact, one could appreciate the network marketing online system especially if they have to order those special parts for their truck or car.

Maybe they want to send their Mom and Dad a Maine Lobster while they live 1700 miles away from home, just to make Mom and Dad's night a little more special. The network allows that to happen. So to summarize: one must not cringe when they hear about network marketing because in the big scheme of things, this 'thing' has allowed us to reach out into different areas of the world because we can't travel there but we can see it from the "Google Earth" and take a tour of the world that exists around us. But then Again I could be wrong



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Michelle Hoffmann
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