What is Multilevel Marketing or Networking ?
It depends on who you talk to.
I’m serious!
Talk to someone who joined a network marketing opportunity, learned the ropes, took action and went on to build a wildly successful business that pays them a solid six-figure, even multiple six-figure annual business and they will tell you:
“Network marketing is the greatest opportunity in the history of mankind for the average person without a lot of money to invest to become financially free.”
Talk to someone who has joined a few different opportunities over the years but who never really got in and “did the work” required to build a business and they might say something like this:
“Network marketing doesn’t work. The only people who make big money are the people who get in early.”
So who is right? And if you think about it, neither really answers the question: “What is network marketing?”
What is Network Marketing? According to Wikipedia, network marketing is way of doing business in which a sales force earns a commmission not only for sales of products and services they personally generate, but also for the sales of others they recruit and bring into the business, which creates a downline of distributors and a hierarchy of multiple leveraged levels of compensation.
What is Network Marketing? Think Franchise! Consider a franchise operation like McDonald’s.
McDonald’s is one of the largest fastfood organizations in the world. They have more than 33,000 restaurants that serves more than 64 million people in 118 countries each day.
More than 80% of MacD’s restaurants are owned and operated by independent business owners or contractors.
Now if YOU owned the mother-ship corporation, you not only earn money by selling burgers, fries and shakes from the 20% of the restaurants YOU personally own and operate… you also earn a tiny percentage on all the sales made by the entire organization including the other 80% you do not own or operation. Meaning you are now earning a LEVERAGED income generated by the time, talent and energy expended by the other business owners on your team.
Now, to make it simple and clear, MLM or network marketing is just a business model and a distribution channel, nothing more and nothing less.
What are the difference of a legit networking to a scam?
In my own point of view, the main difference of a scam or any ponzi pyramiding versus a legit networking business are:
1. PRODUCTS- Scam or any ponzi pyramiding doesn't have decent one atleast.
2.AUTHENTIC LEGALITY CERTIFICATES FROM S.E.C, B.I.R and D.T.I
3. They don't have a main/head office.
Now DSAP(Direct selling Association of the Philippines) together with DTI made a simple 8point guideline on how to differentiate Legit MLM business from pyramiding(scam)
1. Is there a product?
2. Are commissions paid on sale of products and not on registration/entry fees?
3. Is the intent to sell a product not a position?
4. Is there no direct correlation between the number of recruits and compensation?
5. If recruitment were to be stopped today, will the participants still make money?
6. Is there a reasonable product return policy?
7. Do products have fair market value?
8. Is there a compelling reason to buy?
If the answer to all the questions is YES, then the company being evaluated is a legitimate company. But if the answer is NO, then there is a high probability that it is a pyramid scam.
Why join in a Multilevel Marketing Business
Do you realize you will never get rich working for someone else? Or if you will, it would really take time for you to be able to get an increase or else aquire a great skill and knowledge for you to outstand in your line of career.
What are the beauty of Multilevel Marketing?
- Lowest cost of investment compare to any other business.
- You can pick the people you work with.
- You can work from home part-time in your spare time.
- You can pick the hours you work and how much you work.
- You can give yourself an IMMEDIATE raise through tax savings.
- You have the chance to literally set yourself financially free.
Different kinds of Businesses
1. TRADITIONAL BUSINESS- Owning or renting your own place wherein you sell your services/products.
ex. computer shop, convenience store, laundry shop etc.
2. FRANCHISE BUSINESS- Buying and operating a successful business model firm. Here in the Philippines we have long list of franchise business from small time like business carts selling finger foods up to fast food chain.
ex. master siomai, reyes haircutters salon, Jollibee etc.
COMMON FACTOR of these 2 kinds of Business model
You need to have a huge amount of capital.
For what?
For expenses like:
- rent
- monthly bills
- employee salary
- legal permits
- products and materials to be use
3. Multilevel Marketing Business- "The business of the 21st Century"
- Anyone from different walks of life can start-up a business with a low-cost of investment.
- You can do this anywhere you want.
- Opportunity to earn residual income, you can earn passively once you've build your network.
Now if you can do all of these, why not? The more the faster of you becoming rich. But If you don't at least you have an option to choose from.
Why does Networking has a negative image
For those who are already a networker, you can answer this by yourself. But for those who are not or a new blood in this field, aside from those issues of people who were doing the business in unacceptable or illegal way, I think this is mainly because of those people who didn't succeed in this business, they spread their failed personal experience wildfire and what do you expect? Of course most of us will listen since most of the people are afraid to fail. Social conditioned. Let me enumerate what could be the reasons of their negative thoughts about networking.
1. They we're scammed. The company that they have joined is not a legit networking company.
2. Their previous MLM company closed. (Not because the owner scammed the money but because of some misfortune,bankruptcy or mismanagement)
3. Nothing happened in their venture. Didn't even profited & there could be a lot of reasons why. . .
- Experienced rejections so they quit.
- Frustrated because of the thought that he/she will be earning a lot of money within a few months but didn't materialize so they quit.
- Burned out because of working so hard but still no one is joining so they quit.
Things to consider if you are planning to join in a Multilevel marketing Business
There is no doubt that some people make a lot of money in MLM Industry.
If you ask me, what is the best MLM Company? Of course my answer is the company that I am currently in. Same as for example you buy mangoes from side street and then you asked, “are these mangoes sweet?” What answer do you expect from the vendor?
The answer is that there is no best mlm company! Ask 5 people from different companies and you will get 5 different company names. Of course everybody is sure that he is on the best mlm company!
So, there is no unique answer!! Actually it’s not important …Why? There are a lot of good companies and your question should be no what is the best mlm company, but what’s the best mlm company for you.
These are the most critical things to consider upon joining an MLM business.
1. Is this the right MLM company for me?
2. Are the Owners, BODs and leaders here are capable and credible?
3. Does this company have quality products?
4. Does this look like a company that will be in the market for the next 10-20 years?
These questions are necessary if you want to build a solid network, and true residual income as far as MLM Industry is concern.
But if you are just after “quick money” then you don’t necessarily need to consider these questions in mind.
