Why is network marketing considered a scam?



Network marketing scam


network marketing scam


It seems there are a lot of critics and naysayers out there that are have no problem calling network marketing a scam. If network marketing is so great, if it is a better way, then why are there so many people out there saying that it’s a scam.


Let’s first look at what a scam is.


Dictionary.com defines a scam as: A confidence game or other fraudulent scheme, especially for making a quick profit; swindle.


I would define a scam as an intentional act that is designed to defraud or cheat people out of their money or property.


Let’s just say, for the sake of argument, that network marketing is nothing but a scam. Who is it that is responsible for travesty? Is it the girl next door, who is trying to sell makeup to her friends? Is it the guy around the corner who is trying to recruit his brother in law? Is it the new distributor who has never own a business before? Is it the top earners in whatever company you’d like to think about?


Or is it the network marketing companies themselves?


Why network marketing is bad


When the very first network marketing company got started, did they know that they were about to rip people off? Did they mean for it to be a scam? Was there an evil person who plotted on how to take people’s money from them by promising them the world and more?


Or did they have good intentions? Did they think that this was a way for the average person to own a small, home based business and enjoy the benefits that it could provide? Did they really want to help as many people as they could?


In the beginning …


Did you know that Avon started in 1886? I had no idea. Was Avon started as a scam? Did the founder say, “I’m going to take a bunch of money from these women!” Or did he think that he was providing a way for women to generate an independent income.


Were Rich DeVos and Jay Van Andel, who started Amway, just thieves looking for a sneaky way to steal money from an unsuspecting public?


Did all of the other network marketing companies that have followed think to themselves, “We have to do this! It’s such great scam.”


The truth about network marketing


truth about network marketing


Personally, I believe that most network marketing companies are trying to help people. Yes, I know that not very many people are helped by this business opportunity, but I’m not sure that it’s all the fault of the network marketing companies. I believe that they do bare some of the blame.


I think that the top earners bare some of the blame, as well. I’ve read articles that say that the top earners have said that they need to keep their distributors excited and dumb. Yes, a few of their distributors might end up making a lot of money, but for the most part they want a whole lot of product buyers.


I think that the unsuccessful network marketers bear some of the blame too. I don’t know of any statistics that show how many distributors joined and never talked to a single person. Or how many people quit without giving the business a real shot. Network marketing, like any other business, requires a lot of hard work. Apparently, not many people are willing to do that much work, for themselves.


Scams abound


You can go to Las Vegas to gamble and lose a lot of money there. Very people walk out of town having made money gambling. You can buy stock in a company. Most people who invest in stocks lose money. You can buy a lottery ticket in hopes of hitting the grand prize. How many people do you know that have won a lot of money in the lottery?


The average small business owner, with no employees, generates a gross revenue between $25,000 and $40,000 per year. That’s not what they get to keep, that’s how much money they bring into the business before expenses.


All of these ways of making money are legal and yet no one says that they are scams. When was the last time you read that the FTC was doing a study on why some small businesses can generate $2,000,000 per year while most small businesses struggle to bring in $2,000 per month?


Network marketing is not a scam

network marketing success

I’ll be the first to say that not many people are making money in network marketing and that something needs to be done about that!


Network marketing isn’t perfect … nothing is … but it would nice if more people were successful or least if most people made money or at least didn’t lose money.


I have to admit that network marketing sure seems a lot like a scam. However, it’s not. At least not in most cases.


Will you find network marketing success?


Only if you work hard and don’t give up!


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