Network Marketing, Direct Sales, Home Based Business?
What is it that interest people so much in working for a Network Marketing company, Direct Sales as their Home Based Business? What are the pros and cons of Network Marketing? If it’s so good then why aren’t more people doing it? How can people be successful in one.
It isn’t "so good" — the people who fall for it are either stupid or desperate. What hooks them is promises of massive payouts for next to no work; what keeps them is the fact that they at least want to make back their "investment" in the scam and walk away even. In the end, they lose even more. It’s a combination of greed and naivete that gets them into trouble, and evidently there’s no shortage of that in the world because the scams keep popping up.
Finally they fail, and just get a normal job like they should have done in the first place.
I believe what interests people the most are the sales pitches. That is, the unrealistic belief that "anyone can be a millionaire" simply by following a "formula" for success. The reality is, while some are hugely successful, the vast majority will make no money or will even loose money. By vast majority I mean 70%+. The other attraction is that one can get started with such a minimal investment. Those that are risk adverse or who don’t take the time to learn about starting and operating a business will gravitate to this type of opportunity. You know, the something for nothing mentality.
In a nutshell, you get what you pay for. As for your comment, "why aren’t more people doing it?"…..the reality is that a lot of people do it. The problem is, very few actually make a living at it.
Good luck!
References :
It isn’t "so good" — the people who fall for it are either stupid or desperate. What hooks them is promises of massive payouts for next to no work; what keeps them is the fact that they at least want to make back their "investment" in the scam and walk away even. In the end, they lose even more. It’s a combination of greed and naivete that gets them into trouble, and evidently there’s no shortage of that in the world because the scams keep popping up.
Finally they fail, and just get a normal job like they should have done in the first place.
References :
I have an actual business.
I read the other two comments to your question and it appears to me that they either have never been a part of a legitimate direct marketing company or they did not work the business and failed at it. There are many legitimate companies, the granddaddy of them all is Amway and there are many others.
If you interested in receiving the names of some representatives in a legitimate company you can email me.
Good luck!
References :
Any human being on this plant has only 24 hours and in that 24 hours one can work maximum upto 12 -14 hrs a day. In this, we are exchanging our time for work. But, only few big heads leverage their time. Leveraging hear means that they hire people who will work for them. i.e, suppose 100 people working for 8 hrs a day for his boss, then his boss will get 800 hrs working hrs. This system is utilized in Network Marketing.
For second part of the question:
I hope you been in school…. In a class of 30 – 40 people why do you think only couple of them score high marks, few average and rest below average. Its not like the syllabus is bad\vast. It depends on individual dedication and concentration. The one who dedicates, will learn\earn good in his life, no matter if its studies or profession.
References :
Some of the pros of network marketing:
Low start up cost and low overhead
Learn on the job as you earn
Work from home
Flexible schedule
Your income is not limited by someone else’s wage scale
You won’t suddenly have your income cut or lose your job or income because of the greed or business mistakes of some corporate CEO
Your time is leveraged by the efforts of your team
Residual income pays you multiple times for something you do once
You can gain a lot of personal growth if you are willing to learn
You are in control of your own life!
Cons of network marketing:
You need to do your research and pick the right company, profit margin and products.
Some companies are oversaturated with reps
You need to pick your products carefully. Pick something that is competively priced and that most people buy use and then buy again. It helps if the products are unique and are in step with current buying trends but not a passing fad.
(Personally, I’d also stay away from nutritional supplements and health elixirs – there are way too many out there!)
You need to work and put in the effort
You need self-discipline and self motivation
You will need to step outside your comfort zone
You can’t fire your boss (you) and sometimes your boss will be an idiot! (You will make mistakes!)
Most people need to work on personal growth to be successful
The reason more people don’t get involved with network marketing is that they don’t want to do what it takes, and some people think it is a "pyramid scheme" but actually it’s not.
In network marketing you can’t be successful without building a team and helping other people to be successful, too. Your income rises with the income of the others on your team.
More and more successful mainstream business leaders like Robert Kiyosaki, Donald Trump and Warren Buffet have become supporters of the network marketing business model.
A true "pyramid scheme" is corporate America! Think about it! – the top executives make wages hundreds of times more than most of the other employees and the CEO wages come from paying the other employees as little as possible.
To be successful, you have to be willing to learn marketing and interpersonal skills, work hard, be persistent and build a team by helping other people to be successful. And don’t expect to be an overnight success. It takes 3 to 5 years for most people to build their business to where it will provide a good income.
References :
There are lots of great reasons to work with a NM company.
1. They have the products already
2. They take the orders, money, ship the product, handle customer service, etc.
3. Its a group effort and people love helping people
Why aren’t more people doing it? They are. There are millions of people doing Network Marketing around the world.
Another problem is that people are misled about it. They are hyped up to think that their friend will want to do it and they will make a couple thousand a month in a matter of months.
Then none of their friends don’t want to. It gets discouraging and they think it doesn’t work.
How can people be successful?
People can make money but they have to think like a business minded person and/or more like a sales/marketing person/manager.
Forget what the company tells you how to build your business. Just don’t break their rules.
If you break their rules, they can fire you and then keep your customers and not have to pay out any money for them. All profit for them.
MLM compensation should be only 1 method of making money. If you only rely on the money from the company, you can lose it in 1 day. There are other ways to make money and these are developed during your marketing.
Let’s say your MLM has an excellent weight loss product. The company says, go call your friends, neighbors, family, and so on, and tell them about it. Don’t do it. Forget they exist.
Your marketing campaign should begin targeting people that want to lose weight. You can create online presences all over drawing people, not chasing them. You could create videos teaching people what they need to know. You could create informational products that you can sell. You can have people sign up for an online email list. Then you can also sell them the product.
This is, in part, how to run your business more like a business and have You in control of what is happening. If you MLM company fired you, so what, you have your email list and people coming to you from all over the internet.
References :
http://blog.mlmlivesupport.com/
http://blog.mlmlivesupport.com/2009/04/mlm-lead-source-free.html