Everyone loves the Network Marketing industry, right?
There is plenty of misinformation getting shared and passed around on the web that paints MLM companies in a negative light, or perpetuates false rumors that have been busted time and time again.
Enough already! Let’s Debunk these 4 common Myths once and for all:
MYTH #1: Network Marketing companies are pyramid schemes.
Not even close! Just because the shape of the business model begins at an upper point and extends diagonally on both sides does not make it an illegal organization.
Once upon a time, illegal pyramid schemes were allowed to parade themselves as legitimate MLMs. They did not offer valuable products or services. Instead, the schemers charged naive dreamers good money to take part in an “opportunity” that never materialized…and left them broke and broken hearted.
Thankfully, there are now very strict laws and statues in place on both the federal and state levels that protect consumers from pyramid schemes. MLMs are required to back up any income claims by posting their financial reports, and they cannot accept payment for new recruits unrelated to the sale of products or services. There is also a buyback requirement, which requires companies to allow distributors out of their contracts and repurchase any inventory at 90% the original cost.
And let’s not forget that in this day and age, anyone can do a quick Google search to investigate a company and products. You can find other people’s personal experience with the company, or look them up on the Better Business Bureau or Direct Sales Association websites.
There is no reason to discredit any opportunity because of the unregulated pyramid schemes of yesteryear.
MYTH #2: Only the first handful of networkers who joined the MLM will be successful.
Actually, 89% of all direct sellers rate their personal experience in direct selling as excellent, very good, or good (Source: 2002 National Salesforce Survey, Research International, Inc.). That includes veteran and new recruits alike! A network marketing career is unique because there is no cap to your income. No boss to limit your potential! No glass ceiling!
It IS often true that the networkers at the top will often be the MOST successful (depending on the compensation structure). We cannot deny that. Nor can we deny that the CEOs and senior-level executives of any company will have the highest paychecks. But that doesn’t mean the newcomers can’t have a financially rewarding career!
If you’re looking for an MLM opportunity, make sure you speak with recruits who have joined the company within the last year or 6 months before you sign up. Ask them how fast they were able to achieve rank and earn higher income.
If you’re a network marketer looking for new recruits, remember to provide a fair explanation of the commission structure and give a few examples of what the new networker can expect.
MYTH #3: Network Marketers push away all their family and friends.
Ok, sometimes this can be true. We all probably know someone we had to hide on Facebook because of the incessant self-promotional posts, or an aunt you had to start avoiding because she’d try to talk you into buying more trendy jewelry you just don’t need.
Some networkers and direct sellers have never learned how to isolate their message to their target market. But it’s not a successful business model, and it won’t get them very far.
Of course, this scenario is certainly not true of the network marketers who achieve lasting success. They find out how to attract warm prospects and fine-tune the sales approach to their niche market. They start using the right tools for the job, and reserving their energy and time/money investments for people who are actually interested in the products or opportunity.
For more info about Prospecting & Attraction Marketing, check out these articles:
- Attraction Marketing with Flying Man
- Replicated Websites – 4 Reasons You Need Them!
- How to Make Your Distributors Likable (and why it matters!)
MYTH #4: The market will eventually run dry for every MLM.
In case you haven’t noticed, we live in the 21st century, where we carry devices in our pockets that connect us to the entire world. Our Smartphones, tablets, and computers are the best PR Manager we could ever hope for! We have the potential to touch the lives of thousands – even millions – of people on social media. We can optimize websites so interested buyers can find us, no matter what time zone they live in.
You are not limited to your hometown. You’re not limited to your friends, friends of friends, or even to 6 degrees of separation. You have NO boundaries to how far you can expand your business! As long as your products are relevant, you know who your market is, and you know how to attract them to your valuable piece of online real estate, you’ll never reach the end of the market.