Network Marketing

Alright, so for some reason (my appearance, personality, whatever) I have pretty much been approached by every network marketing company in the business. I’ve heard the spills and seen the presentations for more companies than I care to name! I found a really interesting page with information relating to this and my thoughts and figured I’d post some of it here.

To: All Frustrated Network Marketers

Dear Friend,

Let me ask you a couple questions… and be honest when you answer them.

  • #1: Do you despise bugging your family, your friends and people who are just praying that you won’t bring up your “business” opportunity?
  • #2: Are you tired of hounding prospects who you know couldn’t care less about your business?
  • #3: Are you sick of being told to “Just do more of it!” when it’s obvious that what you’re supposed to be doing more of never worked in the first place!?
  • #4: Have you been hard at it for months (even years) without seeing any real, significant results? (Some in our industry would call this “delayed gratification,” but I’ve got a different word for it and it’s a lot shorter… )

You see, the odds are very good that you’re banging your head against a wall right now trying to build your network marketing business. The odds are also very good that you’re needlessly doing so.

Almost Everything The Network Marketing Industry Teaches You About Prospecting, Recruiting, And Sponsoring People Is Completely Useless.

Not only is it useless, it’s actually destroying your business and any chance you have of success.

Don’t believe me, just look at the stats.

It’s plain as day to anyone who’s willing to take a look that over 97% of mlmers never make any money with their business.

Why?

As I discovered, it has nothing to do with network marketing itself

And EVERYTHING to do with the way network marketing is done.

I learned this the hard way in 2002 when I threw myself 110% at building a new opportunity that I was sure was going to be “the one.”

I was serious this time so I devoured everything I could get my hands on about network marketing. I…

  • Read all the books…
  • Listened to audios non-stop in my car…
  • Never missed a company training…
  • Was on every team call and attended every opportunity meeting…
  • Went to ALL the events…
  • Milked my upline for every drop of wisdom and advice I could get from them…
  • Plastered my house with goal cards and pictures of all the stuff I wanted to do when I was “making it”…
  • And… most importantly… I did everything I was told to do, exactly the way I was told to do it.

Made my names list… contacted everyone on it… showed the plan… called some leads… drove all over creation… did three way calls… passed out videos… set coffee appointments at Caribou (hey, at least it’s a business expense!)… called some more leads… did home meetings (lots of them)… SHOWED THE PLAN… brought people to hotel meetings (the people you pick up show up, right?)… passed out business cards… showed the plan some more… prospected everyone with a pulse… used the referral approach… practically wore the numbers off my phone calling more leads… the whole deal. (Did I mention I showed the plan?)

Even became the top retailer for my company in my state not once but twice! (One month I sold over $3,000 worth of retail product. And that was A LOT in this particular company… ) I was a real “go getter.” You know, the kind of distributor you’d kill to have in your organization.

There was only one minor problem.

After 18 months of busting my tail, I wasn’t any closer to producing a “leveraged income” than I was when I started! Imagine that.

Sure, I had a small organization going. But nothing to stand up and cheer about. I’d cashed a few (pathetically small) commission checks but I wasn’t even remotely close to breaking even.

I could not, for the life of me, understand why it wasn’t working! I was doing everything they told me to do and then some!

At the end of 18 grueling months I was…

  • Disgusted by the “fake it ’till you make it” Thursday night hotel meetings where everyone puts on a happy face even though no one’s going anywhere.
  • Fed up with my upline telling me to just “talk to more people” or “call more leads” when I knew that wasn’t the real problem.
  • Frustrated that no matter how hard I tried to lead by example my people just wouldn’t duplicate me. And…
  • Had spent myself into a hole buying opportunity leads that might as well have been numbers straight out of the phone book and then shelling out for expensive corporate “training” that did nothing but “pump me up” and talk about how great the company was.

Any of this sound familiar?

I had hit a massive brick wall and the best advice my upline had to offer me was “run through your names lists again.”

Sorry, but 4 times is quite enough thank you.

This next page pretty much sums it up for me:

The real problem with MLM is not MLM itself, but some of the people it attracts. Network marketing is just a business model, and it really amounts to “micro-franchising”. Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.

But those same things that make it attractive make it attractive to many who are NOT really qualified or prepared to become business owners. The salient characteristics of MLM make it attractive to people who:

  • have not done well in their business or profession and have little money saved up to invest
  • have no previous experience owning or running a business
  • have no previous experience in sales
  • have little or no experience developing business relationships other than that of employer/employee/co-worker
  • are not satisfied with their current level of income
  • have unrealistic expectations of the amount of work involved compared to the revenue realized

Don’t get me wrong—I’m not saying that there’s anything wrong with any of these things, or that this describes even a majority of network marketers—only that it describes a disproportionate number of network marketers, and that many of them never do anything about it.As a result, many network marketers end up:

  • over-selling the opportunity
  • inappropriately discussing business in social situations
  • coming across as desperate
  • over-focused on new recruits and neglecting existing customers as a result
  • being either inaccurate or deceptive when talking about their business

For more information and to see full pages of borrowed text, see:

Renegade Network Marketer

Problems with Network Marketing

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Categories: Network marketing, Uncategorized

Tags: , , , , , , ,

4 replies

  1. I admire your ability to describe your experiences in pursuing a network marketing career. I agree with you entirely. Although I had a brush with a company “JewelWay” in the early 90’s, I have avoided these part time jobs that destroy your sole like the plague. When my Sue got roped into one of these (Quixtar) while visiting from Ohio to Southern California about 2 years ago, I have began making a study of MLM, and more specifically the 700 lbs. Gorilla, Amway.

    I have recently launched my own blog called: Quixtar Cult Intervention at:

    http://quixtarisacultintervention.blogspot.com

    I have also been using what free space I can find to provide consumer warnings against getting involved in a Biz which requires so much (as you put it) Delayed Gratification. Most people will learn that this delayed gratification is so much mumbo jumbo. Many of the people who’ve already gone jewel success in their different MLMs what discovered there is much less money there than they were brain washed into expecting.

    I hate to see people get fleeced in the Biz. I hate to see family members get into this, get fleeced and lead others into getting fleeced. Sues daughter and son in law managed to fleece Sue out of several thousands of dollars and we still have the evidence of “inventory stacking” sitting on the porch today. The fleecing of family for time spend watching the grandchildren and other-wise supporting the Biz indirectly can be very tiring on family.

    I am so very disheartened to learn that distributor parents are becoming strangers to their children. I am disheartened by cult like training tactics the tool kingpin use, especially the instructions to have nothing more to do with persons who decline involvement in the business like I have.

    I dislike the way these misguided people paint themselves into a corner and become the canon fodder for their up-line. They get roped into paying for a never ending amount of mostly worthless tapes and books, and have to foot the bill for junkets to rah rah business conventions.

    What you didn’t make very clear, is whether you are still doing the Biz or not? Doesn’t the system make it very difficult to just quit?

    Like

  2. Thanks for your comment! I am not currently in the biz anymore and I avoid getting involved again. You’re right, it is very difficult to quit because the people you leave behind try their hardest to convince you that you’ve made a lifelong mistake! I know some that even try to convince you they are making it by flashing a few things (clothes, car, etc) but don’t reveal that either they are struggling trying to “look rich” or have money coming in from alternate sources.

    Like

  3. Hey Rick,

    First of all, brother it’s great to see you blogging and doing things with WordPress. I am really impressed because there aren’t many of us out there doing this.

    Second, the article posted was an outstanding find. I can relate to it and really think that the money is in building your own thing.

    Anyway… man I am beginning to see a different side of you that I didn’t know. Great job here.

    Otis

    Like

  4. I had to comment on this post.
    Rick, If you can recall “Neil” from High School ran the “Money Pyramid”

    If you put in $5 you received $20.

    This taught me a few lessons.
    1- People who join these types of ventures at the beginning are paid very well.
    2-As the market penetration increases, the ability to make money diminishes, to Nil.
    This taught me that Multi-Level-Marketing companies can be an excellent opportunity, however one still not for me.

    I used to be “Very” Critical of MLM firms. Because I realized from the Neil Pyramid that at one point, it will be a very hard sell to get new customers. However I learned that this MLM process somehow gets people thinking with an entrepreneur mindset (which is very beneficial). Some of the Pre-Paid Legal sales associates have left and pursued their own ventures, which is great.

    My word of advice to MLMers is always “Why can’t you do this yourself”. I once argued with a MLM representative, that he should start his own business and his workload/payout would be a lot greater. I think he liked buying the whole package instead of doing the legwork himself.

    There are millions of companies that will let you represent their company and their products, Make Commissions, Earn Residuals, and get this, with little or no startup cost. I just think it takes a little imagination. I started selling “Credit Card” Processing, very lucrative.

    Like

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