Why Network Marketing IS A Scam!
“It’s that ‘pyramid selling’ thingy isn’t it?”
“My ‘friend/brother/next door neighbour/cat’ tried this and they lost a fortune!”
“Only the people in at the ‘top’ make money!”
Sighs… if I had a penny for every time I heard comments like those when telling people about network marketing (MLM – multi-level marketing – same thing!), I would have been a very rich man just from that source of income alone!
Fifteen to twenty years ago, this was a really hard (and common) objection to handle. The problem was that with a couple of notable exceptions, not enough legitimate network marketing companies had been around for long enough to establish their credentials. And some of those had gotten themselves a bad reputation because of the often misguided efforts of their poorly trained distributors.
OK – as you can see I’m going to write an article that does NOT agree with its headline. Be honest, would you have started to read it if had said “Why network marketing is NOT a scam!”? When I first came across the network marketing business model I was the biggest sceptic you can possibly imagine! I was EXACTLY the type of person I now train my new people to walk away from as quickly as possible!
I was utterly convinced it was a scam! Every fibre of my being told me it HAD to be! I believed ALL the negative comments above and had many more in my repertoire!
But a friend taught me a long time ago about alligators!
Yes alligators! You see an alligator which has that HUGE mouth full of razor sharp, very nasty teeth that will literally rip you to shreds, has a brain the size of a lima bean that limits thinking to eat, bite, fight and mate! Now, when it came to what I thought about network marketing, I really did NOT want to be an ‘alligator’!
So I decided to educate myself and be intelligent about what I had been so scathing about. I went out and borrowed and bought any books I could find that would properly explain what network marketing is (e.g. ‘Just What Is Network Marketing’ by David Barber).
Self-evidently, I transformed my opinion of network marketing – education and facts are wonderful things when intelligently applied – something a true ‘alligator’ could never do!
Now, first of all you are going to be thinking, well ‘he would say that wouldn’t he!’ – after all – I am now a committed and passionate network marketer. So I’ll keep this article brief and instead urge you to do your own due diligent research. Some points to consider though…
1) How did a ‘scam’ get so big! The MLM industry is conservatively valued at over 100 billion dollars a year in turnover!
2) Look at the MLM companies over 10 years old – if they are ‘scams’ why aren’t the directors all in jail? My own company has an annual turnover exceeding £2.5 billion dollars – you’d think the authorities would have noticed by now – wouldn’t you?
3) How come if it’s a scam, the industry is regulated by laws and its senior companies are respected members of the Direct Selling Association?
4) Why are ‘noted’ businessmen like Donald Trump and Robert Kiyosaki advocates of network marketing? They have reputations to protect! CLICK HERE to see an article by them (requires Adobe).
5) Consider carefully when you read ‘negative’ website stories from disillusioned distributors – was it the fault of the business ‘model’ or were THEY the writer, lacking in some way? I’m sure there ARE people out there who WERE scammed, but the reality is, a good, reputable network marketing company does NOT teach its people to be scammers either intentionally or unintentionally!
6) You WILL find plenty of people who say they ‘failed’ at network marketing. You will ALSO find plenty of people who have failed at retailing, plumbing, building, auto mechanics, holiday reps, real estate agents – in fact the world is FULL of people who for a huge number of different reasons have ‘failed’ at a particular profession – network marketing is no different! No magic chalice! ….
7) To succeed in network marketing you MUST learn your trade – JUST LIKE ANY OTHER SERIOUS business!
8 ) There ARE bad network marketing companies out there! There are also bad companies in other business models! E.g. the banks that caused the current economic melt-down!And further back, Enron, American Savings and Loan etc.
9) There IS such a thing as ‘pyramid’ selling! It IS a scam and it IS illegal! Fortunately, network marketing is NOT that! – Please get that clear in your mind! Let me say that another way… Network marketing is NOT ‘pyramid selling’, that’s ILLEGAL – and we don’t do ‘illegal’ – Period!!! If you are curious exactly what pyramid selling is – DO YOUR RESEARCH! I had to – and it was easy to find! So I’m sure you can too. A clue? Basically, if you are being encouraged to hand over money and no obvious product/service is being provided to an end consumer or if the price keeps going up, the further down the line you go, then it’s most likely a pyramid scheme! Fortunately, network marketing does NOT do that! OK? Got it?…. No? That’s fair enough, PLEASE find out for yourself – then YOU will KNOW! – Try searching for ‘Ponzi schemes’ – that’ll bring up a hornets nest of dishonest, illegal scams for you to enjoy and get ‘suckered’ into!
10) If DESPITE the ‘facts’, after you have done your research, (read some books, got information from ‘authority’ websites etc) you STILL think it MUST be a scam. That’s ok – you’re entitled to your opinion! I don’t understand it. I don’t agree with it. And from my own experience, I KNOW it’s not true. But I DO respect your right to be an alligator! – Do you like your steak well done or very rare?
Let me know how you got on with your own research.
Remember, if you want change in your life….
The change begins with YOU!
Robin J Emdon
Coaching you to the top in marketing!
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P.S. I’d love to hear what you think about this, please comment below!