Misunderstanding Network Marketing

Posted at September 15, 2009

Network marketing has a terrible reputation. Most people attribute MLM, which stands for multi-level marketing, with words like “ponzi” and “pyramid” scheme. What people don’t realize is that thousands of Americans make a full-time career with network marketing, and they can do it on their own time in the comfort of their own homes.

Statistics show that most people that have gotten involved with a network marketing company did not succeed the first time around, and therefore, become bitter toward the industry. Like everything else in life, hard work and dedication is needed in order to be successful. Chances are, these people jumped into an opportunity without the prior research and experience needed to excel.

The best way to analyze MLMs is by looking at their flexibility. My friend and business partner, Greg Rollett, runs a blog on the topic of Lifestyle Design. Most of the topics are focused around being your own boss and living the life you want to live. In order to completely partake in lifestyle design, one must either participate in affiliate or network marketing (among other occupations, of course) – which arguably are one in the same. Within each of these models, the marketer simply collects leads and sells someone else’s products or services for commissions.

Although I don’t have much time to involve myself in the world of network marketing, I am able to sit back to understand and appreciate the value of the industry. For all of you that are currently bitter, I encourage you to change your attitude and give it one more shot. This time, however, go into it with the mindset that you are starting your own business. With that much at stake, you are destined for indefinite success.

Here are some of my favorite MLMs around today:

Poker Training Network

ExFuze

Prepaid Legal

Finally, I have to mention my favorite affiliate network:

Clickbooth

Business, Entrepreneurship

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  • While I agree that network marketing gets a bad rep, I think the people in network marketing need more education on the process and the way that their business is built. Much like the affiliate marketing and info marketing industries needed a reality check, network marketing needs the same. There are some great programs out there and there are also some awful promoters and money hungry reps who will do what it takes to build their downline. I would rather have customers and clients who love me and who I love to work with, not just someone to make that quick buck (like your post yesterday).

    Glad to see you writing more often.
  • Greg,

    Thanks for the comment, bud. I wanted to namedrop your blog in some way and when I thought about this topic, I thought it was relevant.

    I agree that a lot of network marketers are inexperienced and lack the wherewithal to understand the boundaries of over-aggressiveness. However, I know a lot of people that do this everyday and it pays off immensely.

    I have a few friends that are involved with multiple MLMs simultaneously and have made it their full-time career. They are older and still do everything the old-fashioned way. They buy leads, invest in an auto-dialing system, and cold call people all day. They even use phone scripts (YIKES!). Somehow, though, it ends up working for them.

    The newer versions of network marketers have thrown all of that out the window and have went to the internet to generate leads, make contact, etc. This has created an interesting divide between the old school and new school and a mastermind conversation involving each style can make for a very powerful and advantageous strategy.

    That's the brilliance of MLMs. You will recruit people that offer strategies different from your own. And if you hustle and work hard to find results, you are inevitably going to win. Just like everything else.
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