The Real Truth About Network Marketing-It Ain’t Easy

Hard Work
Image by Christolakis via Flickr

As we head into a new year many of you are thinking about what to do next, how to make the extra income that you need to pay the bills, go on vacation, pay for your child’s school trip or football dues. Many of you reading this are already aware of network marketing and have been working hard to be successful at it. Some of you have been in network marketing and quit because it just wasn’t for you (your words not mine). And then there are those of you who have no clue what network marketing is and assume that the nice gentleman who just left you a message is a telemarketer and works for some large corporation that pays him by the hour.

Network Marketing (the Denise Lee definition)

Network marketing is a business model based on the tell-a-friend concept of marketing. A company has a product or service to sell and instead of spending millions on Super Bowl commercials or glossy magazine ads, they enlist people like you and I to spread the word about their product. We are paid a percentage of the sale price for our services. We go out and find customers by calling leads, advertising online and offline, and marketing via Twitter, FaceBook and other “social media” avenues.

The second (and honestly probably the most important) part of network marketing is building your team. The idea here is that instead of you personally going out and selling a million dollars worth of product, you build a team of ten or ten thousand; this makes achieving that million dollars in sales for the company a whole lot easier and then the company rewards you by paying you a percentage of your teams’ sales too.

Well that all sounds pretty darn pedestrian and maybe you still can’t see why anyone would want to do MLM instead of a job. The third and most exciting component of network marketing is residual income. There is usually a monthly fee or minimum auto ship requirement that each person on your team must fulfill to remain active. One part of your residual income is the percentage that you get from this monthly payment. The other part comes from your customers who are also paying a monthly fee for your services or are on auto ship with your products.

Between selling, recruiting and residual income you can see how/why there are people making anywhere from 500 to 50K plus dollars a month just doing network marketing. No wonder network marketers are so damn passionate about what they do. Husbands buy wives their dream homes and wives have been known to bring husbands home for good!

Network Marketing – The Good , The Bad & The Downright Ugly

The truth about network marketing is that (even for people who have spent years being successful in sales) it just ain’t all that easy. Network marketing is a huge paradigm shift because if you act like an Encyclopedia salesman and bully, cajole, or force people into buying your product or joining your business – the next month, poof, they are gone and so is any possibility of earning residual income from them.

This is a true people business and you have to provide value to your team members and customers in so many ways – from having a viable product that does what it says to providing training and support to your team. Network marketing is all about faith and if you don’t believe in yourself, your company, or the product and service you market – then you will FAIL.

I’ll cover more about the bad and the downright in part two (you know I hate posts that go past 500 words LOL) but as the New Year approaches and you start thinking about getting into network marketing (or getting out of network marketing) remember this it may not be EASY, but if you are consistent, persistent and downright tenacious – it is most certainly WORTH IT.

Reblog this post [with Zemanta]

6 thoughts on “The Real Truth About Network Marketing-It Ain’t Easy

  1. Denise, I agree with you 100%. I have read Kiyosaki’s book on network marketing, and I agree that it is a great school for training on how to become an effective business owner. The difficulty I faced was that some of my friends were a bit put off by my enthusiasm in the past. Having said that, if you have the people skills and tenacity, it will pay off, provided you choose an ethical product and company.

  2. i have visited your website, i would like congratulate u on building such a valauble site.very informative, many will benefit from this.!!!

  3. I spent several years in a valid network marketing organization and made a bit of money but nothing like the spectacular stories you always here about. My primarily drive to to help others succeed. I was retired and pretty much financially set. I built an organization but over time came to the realization that a vast majority of those who I or my downline signed up for the business failed. Not only did they lose their initial investment they also had their dreams explode in their face.

    With much thought I have come to the conclusion that those that really do succeed in MLM’s are doing it on the backs of their friends and their downlines’ friends who have failed. I don’t know the exact numbers of failure but my guess is that approximately 90% of the people who sign up fail to make any appreciable sum of money and most will end up discouraged and quit. You’re trained to believe this is a numbers game. If you build an organization with enough “numbers” (people who sign up and mostly fail) sooner or later you will find a “rabbit” who will help you succeed but once again it will be at the expense of many many friends that have bought into the “system” and failed.

    Bottom line virtually anyone’s success in MLM comes at the expense of a huge and vast number of people who put their money up and got absolutely nothing in return beyond an loss of money and unfulfilled dreams.

  4. Thanks. Just as a bit of background I had kind of left the whole MLM behind my entire thought process probably almost ten years ago but this week a close friend tried to recruit me into a “new” opportunity.

    I kept an open mind and met with him and we talked for quite a while. He’s new to MLM and is thoroughly convinced he can make big money for himself, family, and of course, his friends. I tried to remain positive and not rain on his parade but I also wanted him to get a perspective as the way MLM really works.

    That is what led me to your web site last night. I was curious as to whether anyone was sharing with others what the real truth is about MLM. Sorry I jumped the gun on your second part. Good luck and let’s hope at least some people will objectively research the “opportunity” before getting hurt financially and perhaps more importantly psychologically.

  5. Pingback: Network Marketing - Knowing The Cause Of Your Ignorance

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>