Does network marketing work?


 Network marketing



I was out in the network marketing groups that I belong to. I really like seeing what other people are doing with their businesses. Who knows, Maybe I’ll pick up a good idea, here and there. Today, was not one of those days.



network marketing is tougher then it looks



The second article that I read really got me going. I almost feel sorry for the person who wrote the article. They probably didn’t see me coming.


The article was titled, “Network marketing doesn’t work!”


It started off by saying that the statement, network marketing doesn’t work, was a misinformed statement. The author went on to compare the success rate with the success rate in professional sports. They also compared it to traditional businesses. This last comparison is probably the closest to a real comparison.


I do have to admit that the premise, that there is very little success most things, was intriguing. On the surface it seemed to be a reasonable assertion. The more I thought about it, the more it bothered me.


Anyway, here is the total text of my response.

(I have edited the text slightly from the original.  Okay, I made a few spelling mistakes and grammatical errors.)



I read your article. It’s an interesting take on the problem. I think that, for the most part, that you are comparing apples and oranges.


My background in MLM? I’ve tried about 7 different network marketing opportunities. I’ve done network marketing, off and on, since 1981. More off than on. I did reach the top of the compensation plan in the company before the one that I am in now. Unfortunately, after a year of hard work and a lot of money spent on advertising, one the principals of the business, embezzled all the money and they went out of business. Bummer, huh?



I've tried 7 different network marketing companies



Anyway, your argument that network marketing works is based on the fact that not many people are able to play professional sports. Comparing any business to any sport is like comparing apples to oranges. To play professional sports, one needs a fair amount of natural talent. Pretty much, you need to be freakishly large, as well.


I’m not sure that it takes talent to run a business. Certainly, running a business doesn’t take the same kind of physical talent as it takes to play professional sports.


You did compare running a traditional business to running a network marketing business. That may be the fairest comparison. You say that 1 in 10 traditional businesses will last 5 years. That may be a realistic number but, I’m not sure.



traditional business vs network marketing



A better comparison would be to find out how many businesses are started and how many of them make $100,000 per year. I picked $100,000 because it seems like that is the amount most network marketers strive for.


I have no idea what that percentage would be. From my research, I have found that the number of people who enter network marketing and those that who end up making $100,000 per year is about 1 in 10,000.


Since no network marketing company will release those kinds of numbers, I’ve had to extrapolate that number. It may be worse than that, I think.


I wrote an article, on my blog, that shows how I came up with those numbers. Here’s the link:


Do people really make money in network marketing?


Does network marketing work? For some, it does.  But not for many!


I do agree that there are certain skills, in network marketing, that most people never even know about, let alone get taught by their sponsors. I call this “the blind leading the blind.” Unfortunately, most people who come to network marketing, don’t have any idea how to run a successful business. They have an employee mindset.



the blind lead the blind in network marketing



Maybe even worse, are the ones who make it to the top and care more about selling their network marketing books, tapes and Facebook marketing courses, than they do about helping people. There is a top network marketer out there who just sold their Facebook marketing course and one of the next videos they released said that Facebook marketing still works but, the network marketing niche is over crowded now.


Do you think that they were willing to sell “their secrets” because Facebook wasn’t working so well anymore and they wanted to get every penny that they could, from those who are “followers” of theirs?


Wow, that was a rant, huh?


Learn the skills that are needed to run a business, before you give up. Yes, 98% of you that read this will quit the business, faster than you think. Sorry!


I do wish everyone the best of luck! I do wish that there was a 10% success rate in MLM … I’d take a 1% success rate!


Thanks for letting me vent a bit here. The gurus have me in a tizzy lately!




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