Shattered dreams and broken promises of network marketing
It seems that most people are familiar with MLM, multilevel marketing or network marketing. This type of business model is based on recruiting new distributors into the business. You, me 6-4-3 is a common battle cry of the average network marketer. It means that someone sponsors me into the business and I just need to go out and recruit 6 people who each recruit 4 people and all of those recruit 3 people into the business. If I can just do that, I’ll be making some pretty decent money. That is however you decide to define decent money.
What they don’t tell you is that it’s not as easy to recruit people as they say it is. With most MLM companies, there are autoshipments of products that must be bought every month in order to stay qualified to receive commission checks. That is if your group has a high enough volume to get commissions, in the first place.
When you think about it there isn’t a better way to sell products than through MLM. At least it’s great for the MLM companies. Upwards of 98% of all distributors will never make any money from network marketing, but those 98% of distributors will be buying products every month for the entire time they are in the business. They buy products in hopes of ever getting a commission check.
It’s crazy to think that there are 10s of thousands of distributors in every network marketing company buying the products and never making any money. Those people are the 10s of thousands of customers that the company needs in order to stay in business and to be profitable.
Did you notice the Warren Buffet, one of the rich men in the world, bought a network marketing company. He didn’t sign up as a distributor! There must be a reason for that, right?
When you are approached by a would be sponsor, you should be aware of these things.
Someone who is interested in sponsoring you into their business probably has no idea of how to run a profitable business. Yet they will be there to convince you that not only will they be successful, but that they will help you to be successful as well. This kind of gives the impression that it must be easy to do. How else could you be successful in something that you have no idea what to do?
I can remember back to the first time I joined a network marketing company. A friend called me up and show me “the plan.” It was going to fun and easy. We were going to be rich! I was 1 of 3 people that he tricked into the business. As for me, I never recruited anyone into that business. I never got any real help with that, either.
If so many people never make any money, why do people keep joining network marketing? For me, I’m very competitive. I don’t like to admit defeat in any thing that I do. I’ll keep coming back because I know, that at some point, I will be successful in network marketing.
I can’t speak for everyone else, but I think it has a lot to do with the lottery mentality. It only costs a few hundred dollars to give it a try and see what happens. Ask a few people to join and if they do, you keep going. If they all say no, well, you give up and wait for the next thing to come down the pike.
Am I bashing network marketing? Yeah, probably a little. It kind of deserves to get bashed every once in a while.
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