For any of you that follow my ranting you obviously will know that in the past few days I was addressing the myths surrounding MLM and the Network Marketing industry. As a result of that writing and some discussions I have had with business partners since that writing, I felt compelled to address one of my all time favorites: The claims that I am involved in a Pyramid Scheme.
For any of you that are over the age of 40 there is a good chance that you grew up with your mom or one of her friends holding Tupperware parties. Do you remember the Tupperware parties that moms used to hold? How many of you guys remember that your moms primary source of skin care and makeup came from the Mary Kay or Avon lady? Those were some of the pioneers of the MLM business trend, and they certainly were not accused of being part of a pyramid scheme, were they?
The main concept of being in a Network Marketing business is that you cut out the middleman from the picture by going straight to the supplier, giving them direct access to the market without many of the marketing costs associated with typical product distribution. In doing so, consumers get their products at a lower cost without compromising the quality of the items and the customer gets their questions about the product features/benefits answered in person. This all ties back to the fact that Network Marketing is all about Relationships. These things mentioned above are the key targets of the MLM business - that is to say, quality products that offer a great value marketed through the relationships of the companys distributors.
To set the record straight, a true Network Marketing or MLM Business, not a pyramid scheme, is a legitimate that can and should be a viable business plan for creating long term financial freedom. These businesses are built on a strategy where one person who is selling a product builds a network of like-minded entrepreneurs (the downline) and draws commission from his/her sales as well as overrides from the sales of their organization. MLM businesses have never been a bad idea, because they provide a flexible business model, accessible to almost anybody who is willing to invest in their financial future (typically a minimal investment is required and their academic background does not matter), while providing quality products at competitive prices for the consumers.
While deciding which business opportunity is right for you can be a tricky thing with all of the choices that you have available I feel confident in saying that there is very viable option for everyone. On one hand, it is very tempting to want to make big money with a least amount of effort which is what the pyramid schemes that pretend to be legit MLMs are taking advantage of this, a legitimate MLM business will take time and effort.
This is where 90% of network marketers go wrong by having the wrong mindset going into the business and expecting immediate results with little to no effort. Starting off with the wrong mindset is the single biggest contributor to the majority of failures in the Network Marketing industry. Once someone has failed they feel compelled to justify their failure, so when questioned they tell everyone they know that network based marketing is a pyramid scheme. This combined with the true pyramid schemes that play on peoples greed and desire to get something for nothing has lead to the MLM industry getting a bad stereotype over the years.
To make matters worse often times these people that are already leaning towards starting with the wrong mindset hear of someone who just quit their job and is making $20,000 per month in a Network Marketing business. Or they are attracted to an opportunity by another network based marketer who told them that building an MLM business is easy, part-time work that would make them thousands a month in no time etc. If you are a smart network marketer or business owner, then you know that this get rich quick talk is a load of crap.
What's ironic is that most people that give up on network marketing or never start is that they are working in a corporate environment. Think about the typical corporate environment that is structured just like a pyramid, but unlike network marketing, people are stuck at the bottom of a corporation's pyramid, typically have no way to the top.
In most corporations you have a CEO or president at the top, other executives right below him/her, and then you typically have layers of presidents, vice presidents, and assistant vice presidents of different departments. Within each department there are multiple levels of management. Finally, you have supervisors and regular employees of the company. Starting to sound like a pyramid to you?
As I hope you can see, corporate environments are multi-leveled too, except the top positions are reserved for people who have been there forever or know someone at the top. The income variation within the corporate pyramid is staggering and, unfortunately, no matter how long or how hard you work at the bottom you will never even come close to living the lifestyle of the guys/gals at the top.
Are you seeing my point? The typical corporate pyramid locks you in with little to no room for advancement from level to level, while the people at the top of the pyramid are making millions off of the efforts of everyone in the company. Now, which is more of a pyramid scheme, network based marketing or the corporate job environment?
A Network Marketing business is more rewarding than the typical corporate environment because your income is unlimited or at least only as limited as you want it to be. You get rewarded by how smart you work, you can make money while you are sleeping, and your business can double or triple in size (and income) year after year. You have more control over your schedule whereby can spend more time with your family, volunteer with your favorite charity, travel and work when you want, you can DREAM as big as you want. Basically, you can have and do whatever it is that you want (financial freedom). The next time someone tells you that Network Marketing is an MLM pyramid scheme, ask them what they do for a living and explain to them the true structure of their job. To Your Success!
For any of you that are over the age of 40 there is a good chance that you grew up with your mom or one of her friends holding Tupperware parties. Do you remember the Tupperware parties that moms used to hold? How many of you guys remember that your moms primary source of skin care and makeup came from the Mary Kay or Avon lady? Those were some of the pioneers of the MLM business trend, and they certainly were not accused of being part of a pyramid scheme, were they?
The main concept of being in a Network Marketing business is that you cut out the middleman from the picture by going straight to the supplier, giving them direct access to the market without many of the marketing costs associated with typical product distribution. In doing so, consumers get their products at a lower cost without compromising the quality of the items and the customer gets their questions about the product features/benefits answered in person. This all ties back to the fact that Network Marketing is all about Relationships. These things mentioned above are the key targets of the MLM business - that is to say, quality products that offer a great value marketed through the relationships of the companys distributors.
To set the record straight, a true Network Marketing or MLM Business, not a pyramid scheme, is a legitimate that can and should be a viable business plan for creating long term financial freedom. These businesses are built on a strategy where one person who is selling a product builds a network of like-minded entrepreneurs (the downline) and draws commission from his/her sales as well as overrides from the sales of their organization. MLM businesses have never been a bad idea, because they provide a flexible business model, accessible to almost anybody who is willing to invest in their financial future (typically a minimal investment is required and their academic background does not matter), while providing quality products at competitive prices for the consumers.
While deciding which business opportunity is right for you can be a tricky thing with all of the choices that you have available I feel confident in saying that there is very viable option for everyone. On one hand, it is very tempting to want to make big money with a least amount of effort which is what the pyramid schemes that pretend to be legit MLMs are taking advantage of this, a legitimate MLM business will take time and effort.
This is where 90% of network marketers go wrong by having the wrong mindset going into the business and expecting immediate results with little to no effort. Starting off with the wrong mindset is the single biggest contributor to the majority of failures in the Network Marketing industry. Once someone has failed they feel compelled to justify their failure, so when questioned they tell everyone they know that network based marketing is a pyramid scheme. This combined with the true pyramid schemes that play on peoples greed and desire to get something for nothing has lead to the MLM industry getting a bad stereotype over the years.
To make matters worse often times these people that are already leaning towards starting with the wrong mindset hear of someone who just quit their job and is making $20,000 per month in a Network Marketing business. Or they are attracted to an opportunity by another network based marketer who told them that building an MLM business is easy, part-time work that would make them thousands a month in no time etc. If you are a smart network marketer or business owner, then you know that this get rich quick talk is a load of crap.
What's ironic is that most people that give up on network marketing or never start is that they are working in a corporate environment. Think about the typical corporate environment that is structured just like a pyramid, but unlike network marketing, people are stuck at the bottom of a corporation's pyramid, typically have no way to the top.
In most corporations you have a CEO or president at the top, other executives right below him/her, and then you typically have layers of presidents, vice presidents, and assistant vice presidents of different departments. Within each department there are multiple levels of management. Finally, you have supervisors and regular employees of the company. Starting to sound like a pyramid to you?
As I hope you can see, corporate environments are multi-leveled too, except the top positions are reserved for people who have been there forever or know someone at the top. The income variation within the corporate pyramid is staggering and, unfortunately, no matter how long or how hard you work at the bottom you will never even come close to living the lifestyle of the guys/gals at the top.
Are you seeing my point? The typical corporate pyramid locks you in with little to no room for advancement from level to level, while the people at the top of the pyramid are making millions off of the efforts of everyone in the company. Now, which is more of a pyramid scheme, network based marketing or the corporate job environment?
A Network Marketing business is more rewarding than the typical corporate environment because your income is unlimited or at least only as limited as you want it to be. You get rewarded by how smart you work, you can make money while you are sleeping, and your business can double or triple in size (and income) year after year. You have more control over your schedule whereby can spend more time with your family, volunteer with your favorite charity, travel and work when you want, you can DREAM as big as you want. Basically, you can have and do whatever it is that you want (financial freedom). The next time someone tells you that Network Marketing is an MLM pyramid scheme, ask them what they do for a living and explain to them the true structure of their job. To Your Success!
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