What do most people think? I recently started a business in network marketing and am trying to come up with the best way to tackle this question when asked. What is it that people are afraid of -- I just don't get it. The start up cost is minimal and the reward is based on your efforts. It's your time that's the biggest investment. My 70 hour a week advertising job never rewarded me based on my efforts.
I love my new work and the company I represent but often feel like people think I'm trying to get them into some crazy scheme. Any insight would be much appreciated!
I found this article tonight but it's a few years old... I wonder if sharing something like this would help me.
Is Network Marketing Just a Scam?
There's a huge difference between network marketing and pyramid schemes. Learn the truth here.
By Michael L. Sheffield
December 25, 2000
Q: Some friends continue to try to recruit me into network marketing deals that seem like some type of money game or pyramid. Other friends tell me they're illegal and I'll get into trouble. How do I know what's legal and legitimate?
A: To help you understand what network marketing is, I must first explain what it isn't. First, network marketing isn't a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.
Network marketing is a legitimate business. First, it's based on providing people with real, legitimate products they need and want at a fair price. While some people do make a lot of money through network marketing, their financial benefit is always the result of their own dedicated efforts in building an organization that sells real products and services.
Pyramids are illegal and are based on taking advantage of people. For a person to actually make money in a pyramid scheme, someone else has to lose money. But in network marketing, each person can multiply his or her efforts, skills and talents by helping others be successful. Network marketing has proved itself as part of the new economy and a preferred way to do business here and around the world.
Network marketing isn't about taking advantage of your friends and relatives. Only a few years ago, network marketing meant retailing to, and sponsoring people from, your "warm list" of prospects. Although sharing the products or services and the opportunity with people you know is still the basic foundation of the business, today we see more people using sophisticated marketing techniques such as the Internet, conference calling and other long-distance sponsoring techniques to extend their network across the country.
Network marketing isn't a get-rich-quick scheme. Of course some people do make large amounts of money very quickly. Many would say those people are lucky. But success in networking isn't based on luck. (Unfortunately, money won't sprout wings and fly into your bank account no matter what someone has promised you.) Success in network marketing is based on following some very basic yet dynamic principles.
Now let's discuss what network marketing is. Network marketing is a serious business for serious people. It's a proven system where the design, creation and expense the corporate team has gone through becomes a road map for your own success. Just follow the simple, proven and duplicable system that the good companies provide.
The real key is this: Network marketing is all about leverage. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning a small income on their efforts. J. Paul Getty, who created one of the world's greatest fortunes, said "I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts." This very basic concept is the cornerstone of network marketing.
For example, most successful people building a network marketing business do so in an organized method. They work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process.
By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business. You leverage your time by helping others be successful and earn an income from all their efforts.
With network marketing, there are no big capital requirements, no geographical limitations, no minimum quotas required and no special education or skills needed. Network marketing is a low-overhead, homebased business that can actually offer many of the tax advantages associated with owning your own business. Network marketing is a people-to-people business that can significantly expand your circle of friends. It's a business that enables you to travel and have fun as well as enjoy the lifestyle that extra income can provide.
Hi T.!
Congratulations on your new endeavor! I, too, am involved in network marketing. Yes, people sometimes have a negative thought associated with "NM." Get yourself educated on HOW you make money and be comfortbale with it. As you get more comfortable with what you are doing, so will others that you speak with. Start out with your family.
A great book is "Your first year in Network Marketing" It really helps with what to tell people and Nm vs pyramids (so many people think its the same thing).
So, to answer your question, I think NM is a wonderful career. Believe that it is! There is always goign to be a "nay sayer" but just learn to have thick skin and don't let them bother you. It sounds like you have started your business venture for all the right reasons.
Best of luck to you!!
B.
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A.A.
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As someone else already mentioned, make sure you first believe in the products/company. I am partnered up with a wellness company and believe that it is the best company out there and that the products are second to none! Make sure they also have a reputation you can be proud of, there are many starter companies out there and you just want to be in a company that you aren't afraid to talk to anyone about.
And again, someone mentioned this but you will hear more no's than yes's to either buy or be a part of, depending on how the company is run. Luckily I don't stock products so I won't be hurt with unwanted inventory. :)
Good Luck to you!
A.
www.myfamilyathome.com
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F.J.
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Thank you for helping all SAH/WAH Moms with direct selling business'. This is some great info and I am sure we all tackle these questions and these are great answers!!! Good Luck on your new business I am certain you will be successful!!
I too had a job in advertising for MANY years and decided to do this to SAH! What a great opportunity for us! Thanks for helping me tackel the toughest question I get!! Oh yes and if you want to check out my website.
No, I don't think it is a scam, though, I don't think it is for everyone. I have been involved with numerous network marketing companies, all of whom have great products, but it was not the type of work that I personally found very rewarding. I felt that the products were great but there was usually a comparable product on the market that wasn't as expensive and didn't come with a monthly minimum to buy. I ended up buying way more than I needed and spent much more than I earned. Like the mom who commented before me, know the ins and outs of how you make money, what your contribution (out-of-pocket) is, and understand that not everybody is going to be receptive to it. It helps if you can get a bunch of friends to work with in your endeavor (locally). Your upline is probably great, but really, if you stop recruiting, they stop "wasting" their time on you. The same will probably happen with you and your downlines if they aren't being productive. You can only help as much as they want to be helped and you can't do it for them. One thing, if you don't really and truly believe in the products your company sells, people will see through that, and won't be receptive. Also, network marketing does carry an image that may not soon go away. That article may help with helping others to understand just what it is that network marketing is. It helps to find like minded people and make certain that the company you are with is all that they say they are. Do your research.
Also, it is really important for you to define for yourself what you want in life. What are your goals? What are your passions? Try to do the things that are in line with what you love to do. If you work at things that you don't love to do, just because it makes you money, then you may not stay at it long. Yes, it is important to make money, but that is not the only thing in life that's important. I truly believe that things you are passionate about, you can make a living at. If network marketing is right for you then be passionate about the products and the company. If you are not, you won't stay long with them. Again, look at your goals, why you are choosing this career. Obviously, you want to be able to stay at home with your kids. Do you need a full income, or just supplemental? How much time are you willing to devote to this? Make a plan of action.
It seems you have an entrepreneural spirit. That's important to starting up any type of business, whether it be network marketing or your own business. Understand that many people do not have an entrepreneural spirit. It is safe to work for others. They don't want to get out of their comfort zone.
