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In light of these economic times, more and more people are exploring home-based businesses. With many of these individuals having limited business experience and limited funds, multi-level marketing (MLM), also called network marketing or direct sales, becomes the opportunity of choice. With everyone from Main Street to Wall Street (and even some celebrities) singing the many praises of MLM, you would think direct sales businesses would be better received than they are. However, in some crowds, admitting you're a network marketer could be akin to a stake through the heart. I guess you're asking, "What's so bad about?" Well, that can be a loaded, yet relative, question. There are a number of things that are perceived to be bad about network marketing. Here are a few: "It's a scam!" - Even though most of these companies are legitimate businesses, the average consumer just doesn't understand the business model, he/she just deems it "a scam." "That's a pyramid scheme!"- I don't dispute the fact that schemes do exist. They do. But to label any company as a pyramid scheme because the few people at the top make more than the masses below them, is unfair. This concept is mirrored in just about any company. "They just want my money!"- There are very few endeavors in life that don't require money. As an employee, you probably have costs associated with that job- like uniforms, professional license fees, background checks, etc. As a business owner, you should anticipate some costs being associated with you starting a business. So, I guess you're still asking, "What's the worst thing about network marketing?" The worst thing about network marketing is the NETWORK MARKETERS! Yes, after many years in the industry, I have come to the conclusion that MLM is not a scam or pyramid scheme and that any upfront money requested dulled in comparison to starting a franchise (or other traditional business model.) The major issue with the industry is not the model, but the representatives themselves. Since MLM generally has a low threshold for entry (normally the only requirement is the ability to pay the fee), it becomes attractive to all types of people- qualified and unqualified alike. And it's those unqualified persons, who seem to be setting the stage for the negative MLM image. Now, I guess you're asking, "What's wrong with them?" Well, let me follow the 80/20 rule and paint a picture of 80% of the representatives out there. These 80% probably: have had no or very little success in their careers have no sales experience have had little or no training in entrepreneurship do not know how to build business relationships (or network) still is operating under an employee mindset disappointed with their current financial picture do not have much money totally underestimated how much sweat equity it takes to make a livable, full-time income These traits individually, should be no cause for concern. However, any person who exhibits three or more of these characteristics may be your next network marketing disaster. But he won't know it. He'll continue to "recruit" and "train", so that others can join the 80% club, too. This keeps the cycle going, thus continuing to feed the notion that the worst thing about network marketing is none other than--- the network marketers. If you're a network marketer, examine your business ethics and strategies. Make sure you're not a part of the 80% disaster club. Take steps to make sure you are operating your business properly. Erika C. Harris is a licensed agent who teaches clients to use insurance as part of a holistic approach to money and business management. Visit our website for resources and tips to help you grow and protect your home business.
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network marketing, mlm, multi-level marketing, home business,
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