Why Network Marketing Makes Sense
As I mentioned previously, Network Marketing has been around since the 1950's. Companies that use this model are quite low-key compared to the traditional corporate world, but that does not mean it is not completely legitimate and a viable option for those who think outside the box and want to be in business for themselves. The traditional corporate world is what we are used to only because those companies spend millions of dollars each year flooding every media outlet with their latest products. Companies that use the MLM model are largely unseen and rely solely on word of mouth to distribute their products or services. There is no better referral than one that comes from a friend or family member rather than one that comes blaring at you through radio, print, and TV shoving something down your throat and bashing the competition.
Large corporate entities employ many millions of people who are either salaried employees or hourly wage earners. The company leverages the employees' time and energy to grow the business. In Network Marketing your goal is to grow you own franchise by helping others to do the same. They will be replicating whatever you are doing if they are trained properly and motivated. By doing this, your efforts are being spread over a network of like-minded business leaders and you will leverage their time and effort as well as your own, growing your business exponentially. This is how many people have had staggering success in a number of MLM companies. In the corporate world everyone is assigned a position and has a ceiling to what they can make, other than a select few at the top. In Network Marketing there is no limit to what you can achieve if you persevere and truly build a large organization. Due to the nature of how this business model is structured just as you are growing your network, you are ultimately part of someone else's above you. Their success is dependent on your success so the team members above you in the overall network will always be there to provide you with help.
Often people wrongly refer to this philosophy as a ''pyramid scheme''. In fact, the term pyramid scheme is used so loosely I really wonder if people know what it means. If it means a company where people at the top make all the money, you have to look no further than any “traditional Company” (CitiGroup, GE, IBM, GM, Microsoft, ExxonMobil, Boeing, Wal-Mart, Pfizer, American Int'l Group, etc…) where the Chairman, CEO, VPs and Board of Directors sequentially squander the bulk of profits while salaried employees work hard, get taxed to death, and make the select few at the top rich while struggling to stay afloat. In extreme cases like EnRon and more recently Freddie Mac, Fannie Mae and a host of others on Wall Street, many hard-working people lost their entire savings while top executives continued to collect their multi-million dollar salaries and bonuses after the companies claimed Bankruptcy. Painful examples of “the house always wins”, and the house is indeed a “pyramid”.
In any licensed Network Marketing company people start out at the same level and have an equal opportunity at success so long as they do 2 simple things. 1) acquire customers to share the products/services the company offers and 2) grow a team of representatives to duplicate your success. You work for yourself by building your own business within a business and have a solid support system from other independent reps whose long-term success is totally dependent on yours. So, people actually help one another, unlike the corporate establishment where people will do anything to step on you if it will benefit them, even in the short-term. Commissions are paid by the Network marketing company and NOT directly by reps in your team or clients you have acquired. This is by no means a “get rich quick” scheme but an endeavour that will require anywhere from 3-10 years of hard work and sacrifice, 5-20 hours per week, so don't be in any rush to quit your day job unless the residual income from your business is firmly in place. Success awaits those who work very hard and consistently but just as much chance of failure for those who do nothing. Yes, there have been horror stories in this industry but no more than any other. MLM is, admittedly, an unorthodox Business Model and throughout history people have been afraid of what they do not understand, leading to uninformed stereotypes. I’m just seeing it from both sides, which is what anyone seeking the truth should.
Gopal (The Musical Mad Scientist and Entrepreneur)
About the Author:
I am the musical mad scientist. I have a Masters in Biochemistry, drum in the rock band "the Integral" and have my own Marketing Company. Nice to meet you!
Article Source: ArticlesBase.com - Why Network Marketing Makes Sense