That’s a no-no, in network marketing
The lure of easy money can make a lot people do things that they would, normally, never do. Unfortunately, when distributors do these things it gives the network marketing industry a black eye.
I think that network marketing can be a great industry to be in, but there are those people who would use tactics to build their businesses that makes it hard to believe that network marketing could ever be considered great.
I know that the promise of making a lot of money in your own business is tempting to say the least. If you have to fib here, bend the rules there and make yourself into a pest to get it, then so be it. Personally, I don’t think that you have to do any of those things to make money in network marketing.
You can be an honest marketer and do well in this business. I think that it is time that all of us, not just some of us become honest marketers. It’s time to clean up this industry!
Here is my list of 7 things that a network marketer should never do
Making income claims
If you happen to be talking to your best friend and you tell them that you’re making an extra $400.00 per month, in your business, you’re probably not going to catch the eye of a federal regulator. However, if you starting telling people that you are making $10,000.00 per month, even if you are making that much money, that’s another story.
That actually happened to my 20 year old son.
A friend of his was trying to recruit him and they brought in the guy’s sponsor. The sponsor told my son that he is making $5,000.00 per month and that the sponsor’s sponsor is making is making over $25,000.00 per month.
Needless to say, my son’s eyes got as big as saucers.
By making income claims or actually showing someone a check, that distributor is enticing a prospect to join. That will catch the eye of the regulators.
You are allowed to show the compensation plan with the numbers that it contains. If you start making income claims or showing checks, you’ll get yourself in trouble, eventually.
Chasing people to join your company
When you sign up with a network marketing company, you are told to go out and be fruitful and multiply. Well, you’re told to go out and recruit others into your business. They tell you that you will get rich if you are able to do this.
It’s no wonder people, who are a little too enthusiastic, are willing to make themselves into pests in order to recruit people. This may be the activity that hurts the industry the most.
Have you ever tried to approach someone about your business and they ran the other way? You have to wonder who ruined them.
Making exaggerated claims about your company’s products
Aside from investigating a company for being a pyramid scheme, the second favorite thing the Feds like to look at are the exaggerated claims about network marketing products. I’ve read the complaints about many companies. The distributors are telling people that the products are able to cure this disease or that disease.
Distributors can not make any medical claims about their products unless the claim has been approved by the FDA. These kinds of actions not only put yourself at risk, it also puts your company at risk!
I my opinion, the compensation plan as that we show our prospects are misleading. They show a “perfect world” example of how distributors can make a lot of money with only a little work. How hard could it be to recruit 6 people? Obviously, it is not illegal to do this, but I do believe that it is misleading.
Trying to convince a prospect that it is easy to make money, in this industry, is also misleading. It can be fairly easy to make money, for some people, but for most it is nearly impossible.
Not playing by your company’s rules
All network marketing companies have their own set of rules and regulations. They also have their policies and procedures. These are the rules that a distributor is supposed to play by. There are some people who don’t seem to mind bending or even breaking these rules, to get what they want.
It has been my experience that some companies don’t enforce their rules at all or don’t enforce them equally. Frankly, I think this encourages people to play fast and loose with the rules.
If you want proof of this go to Amazon, Ebay or Craigslist and how many of your company’s products are for sale. More then likely, selling the products on these sites is against the company’s rules! How are they getting away with this?
Talking bad about other companies
There is no need to talk badly about any other company or distributor, for that matter. You just make yourself look bad and petty.
Stealing distributors or downlines
I’m not suggesting that you can’t talk to distributors in other companies about switching. That happens every day and it’s actually a good way to recruit. I’m talking about specifically targeting another distributor or a particular company as a primary means of recruiting.
I’m all for recruiting distributors from other companies, if the distributor is not happy with their current situation. There are 98% of all distributors who are not making money with their current company. I would have to think that you could find an unhappy distributor to recruit, without targeting.
I wish that writing a blog post about this would, in some way, help to “clean up” this industry. I’m not that naive. It would take everyone getting involved to “police” network marketing. I wish that the people who do some or all of these things would see the light and start to self correct. It makes it so much more difficult to build a business when the public perception of this business is so bad.
Thank you to Todd Falcone for bringing this subject up to his audience!
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