A different and more efficient model

I find that with all the information at people's fingertips today, many still refuse to do their own research and instead rely on other's opinion (whether informed or not). Before you get turned off because you think I am about to spout a political opinion, let me stop you. I am not.

I am talking about individuals and professionals who should know that there are several business models and various ways that products enter the marketplace. Most are familiar with the standard and most popular model. Brick and mortar stores is everyone's idea of commerce. Which, thanks to the internet, is struggling to put it kindly. E-commerce is the trend and today's corporations are having to get creative with costs and revenues to stay competitive.

A company with a large facility, thousands of employees, anywhere between thousands and millions of dollars in inventory, in turn spends millions of dollars on advertising through different media to let the public know about their product or service. 

A less common model is when a multi-million or billion-dollar company decides to not advertise and instead grow through word of mouth. The most effective of these strategies is when they allow everyone who wishes to do so, share in a portion of that unspent advertising cost by marketing the products on the company's behalf. 

I have just described to you, Network or Multi-level marketing.

The companies in the Network Marketing profession are simply using a different and ethical, legal and moral business model that has been authorized by the Federal Trade Commission of the United States government as well as other governmental agencies outside the U.S. The fact is professional networking provides the lowest barrier to entry for the average person to start their own business. Most companies don’t require large if any inventory, high upfront costs and most offer free training.

Traditional, brick and mortar businesses don’t reward you for helping other businesses succeed. They also severely limit your geographical reach by sheer logistics. However, the best advantage to Network Marketing is that there are people who will lock arms and actually partner with you to create success because it is the only way that everyone advances.

Let me address the most common, false objections to this 60-plus year-old business model.

Only “the Guy” at the Top Makes Money.

This argument more accurately describes a “job.” How often does a minimum wage worker become the CEO? Many quality employees never get the advancement and financial rewards their quality of work deserves.

This argument suggests that only the people who get in early make money, which isn't true. The truth is, in good network marketing companies, members can make any amount regardless of where they are in the organization. Income is related to effort, not position. No matter when or where you join, you have as equal chance as anyone else to do well if you do the work.

Network Marketing Uses People

Many people who complain about Network Marketing say they don't like the idea of "using" their friends and family to make money. However, network marketing doesn't reward people for using others. Success in Network Marketing comes from helping others reach their goals. A person cannot earn income from the efforts of their recruits without investing time in assisting them to earn income, as well. If someone only makes money on the recruiting end and no product or service exchanges hands then yes that is a fundamental characteristic of a pyramid. That’s why the leader in an organization that introduces you to their company is basically saying “I am willing to invest in you until you succeed, if you commit the same level of effort to that success.” Will your job or any other business you can start ever offer you that level of partnership? Additionally, you can far surpass your “enroller” or “sponsor” in income.

The products don’t work

As the father of modern personal development and financial education Jim Rohn says, "If you are bringing value to the marketplace you will excel." Gary Vaynerchuk (known by many on social media as “Gary Vee”, the chairman of Vayner Media feels likewise, "The marketplace only rewards quality and will spit you out if you aren’t bringing it." Therefore opinions don't dictate whether a product/service works, the people who continually buy or don't buy it decide it's effectiveness and worthiness.

Eventually, the Program Will Get Saturated

Saturation is impossible because there isn't a finite number of people. Every day new people are born or turn 18, thereby adding new potential network marketers to the pool of prospects. Tim Sales, in Zig Ziglar’s book, Network Marketing for Dummies, offers the best argument against the saturation myth. He asks, “Do you know anyone who doesn’t have a refrigerator? No? That doesn’t stop GE from selling more of them.”

Network Marketing Doesn’t Work

According to the Direct Selling Association, in 2015 the direct sales industry, of which network marketing is a part of, grossed $36.12 billion in retail sales in the United States. Worldwide those numbers skyrocket to in excess of $180 billion every year. By comparison, one of the most successful American businesses, the National Football League, generates around $10 billion annually. Further, over 20 million people in the U.S. are involved in direct sales. These numbers indicate that network marketing can work. Success or failure has less to do with network marketing itself, and instead, is determined by the amount effort one puts into their business. Many bloggers, eBayers, and other home business owners don't do well or quit too, but you don't hear people saying blogging and eBay don't work.

No One Really Gets Rich in Network Marketing

It's true that not everyone succeeds in Network Marketing. The 2-10% of network marketers earning big money are the same 2-10% who work consistently in their businesses. Plus, the average worker is 5 times more likely to earn a $100,000 a year in Network Marketing as in their job. But getting rich shouldn't be how network marketing is judged. If getting rich is the measure of success, then many other homes and small business owners, and the majority of employees in traditional jobs are big failures. Instead, Network Marketing should be measured by the number of people who reach their goals. Many people in Network Marketing find success when they earn enough to stay home with the kids or pay off debt.

Nevertheless, misconceptions and myths persist. Don’t let these false beliefs stop you from considering a Network Marketing business. You can achieve success in a Network Marketing venture if you avoid common mistakes, gain a solid understanding of the profession, choose a company carefully, find a quality sponsor, and commit time and effort to your business.