An insiders View on Network Marketing
August 23, 2007 | Author: Eve Lester | Filed under: Business Advice
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This is a guest post written by John Murphy. I asked him to write this post after his comment on my post on Direct Sales. He pointed out to me that not all network marketing schemes are scams. Because I do not have the experience that he does, I felt he would be the best person to offer some inside information. Thank you John. I look forward to hearing everyones opinions on Network marketing.
I recently wrote a comment on one of Eve’s posts where she suggested that all MLM companies were untrustworthy. In my comment I made the point that as in any industry (I chose builders) there are a few ‘bad apples’ that give the whole industry a bad name and so it is with MLM.
In fact the acronym MLM is now being given a wide berth because of this association and the business is more commonly referred to as Network Marketing. Both Robert Kiyosaki (author of Rich Dad, Poor Dad) and Donald Trump have publicly stated that if they were starting in business again that they would do it through Network Marketing as they believe it is a very strong business model. And I agree, when you delve into it more deeply the validity of Network Marketing is apparent.
So, what do I mean by Network Marketing? Perhaps an example would make things clearer. Let’s say you enjoy eating out and you find a restaurant that provides great food, good service and all at a reasonable price. One day as you talk to a good friend they bemoan the lack of good places to eat. With your previous knowledge you tell them about the restaurant you’ve found and recommend they try it. Some weeks later you meet your friend again and the first thing they utter is a huge thank you for the restaurant recommendation. They liked it so much they’ve told other friends of theirs.
The question is how much did you receive from the restaurant for the recommendation? That’s easy to answer…nothing!
Well what would happen if you made similar recommendations about something you use but this time you actually get paid for the recommendation. In it’s simplest terms that’s what happens with Network Marketing.
The bad press that arises happens because many companies tell you that to be successful you should approach your friends and family and urge them to join you in your business. This is where things start to go wrong. Whilst some of them might be interested in the product you have to offer they could be put off by your emphasis on them joining the business. You end up frustrated and may even risk losing some friendships.
To avoid this situation you need to spend time learning how to properly run a Network Marketing business. You’ll learn that being successful is understanding more about people than products and which businesses are set up to provide benefit for both you as an associate and for the company itself.
My name is John Murphy and I am a member of Mentoring for Free, an organization that provides free training to anyone who is interested in building a business in Network Marketing. By downloading the free ebook, Success in Ten Steps, you will learn how and why some Network Marketing businesses succeed and some don’t and what you need to know to be successful.
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13 people have left comments
Hi there,
I myself failed at the Network Marketing. I tried several different avenues. I spent quite a bit of money that truthfully I didn’t really have to spend. I followed the directions to the letter and didn’t see much in the way of results. I may not have made any money the way some companies make you think you will but, I did learn a lot about Marketing. There are things that I am using now in my new adventure that I would not have known how to do. I guess my point is that if people realize that the majority of them are not going to become rich with this avenue but, that they may find useful information for a real legitimate venture down the road. There are no get rich quick schemes. You have to put forth the effort and the money to succeed in Network Marketing. I actually found a FREE Business. This hasn’t really cost me anything. It is something I am not ashamed to share with family, friends, or total strangers.
Nice Blog Too.
Ann
www.NicksPowerMall.com
Thanks for sharing that Ann, I suppose it is different for everyone. I am glad you found something that works for you.
Ann, Not to many people say the things you said in your above comment. I am also struggling in my first MLM experience, but I have learnt so much and have truly enjoyed the experience of the journey. May be some day with little more patience I will reach my destination. Like you, at least I would also not blame MLM companies as many people did made tons of money and successful career with them. Successful people have already paid the price earlier. And those still willing to pay the price will definitely succeed in their current venture or later in life. Cheers!
sounds like you are both on the right track! Thanks for the great comments and feedback!
Thank you for your exceptional blog and this post in particular. I recently addressed the same topic in my blog, sharing my earlier experiences in MLM and the negative perspective I carried about network marketing for years afterward.
My story did end on a happy note. I realized that like everything else in life, there will be lemons and snakes. Thankfully, Robert Kiyosaki encouraged me to re-evaluate my thinking and take another look.
Once again, years later, I am involved in network marketing. It wasn’t planned, but when a particular opportunity was presented to me, I approached it with an open mind and had to admit, it perfectly complemented my existing business and provided an additional revenue stream.
Like all industries, there will be rotten eggs, but I think it’s important to keep an open mind.
Forbes Magazine is quoted as saying that in the next 3-5 years, 79 million Americans will start their own home-based business - many of which will be in network marketing.
Whether network marketing is loved or not, it will be a permanent piece of the business landscape. I think it all boils down to doing your due diligence, making an informed decision, and if you decide to proceed, find a mentor who demonstrates integrity and produces the results you want, then model him (or her).
It’s certainly not for everyone, but I think it provides a great opportunity to those who want to pursue entrepreneurship.
Laurie Hayes
www.thehbbsource.com
It’s great to see that people are learning a lot from Network Marketing and as Laurie says the future is very encouraging in terms of growth. In my mind that makes it even more important to make sure that you make effort at the beginning (before even joining a company) to learn what works and what doesn’t.
Use the knowledge and experience of others to help you avoid many of the mistakes they made when starting out. That way you get true leverage on your effort.
Thanks for sharing your stories, I am learning a lot!
Thanks you guys, I am learning so much through this!
[…] income is through network marketing, John did a wonderful guest post on network marketing called An insiders View on Network Marketing. Later in the week I will outline so network marketing business, to help you see some […]
Glad to have found this; looking for a little inspiration! So much negativity out there about network marketing, which personally I believe is a way out of economic slavery. But it is key to find a good one, with a good product and great training. So far I’m extremely pleased with what I’m doing, but I’m still pretty new so we’ll see. VoIP is a utility so that made a lot of sense to me. Anyway thanks again!
Aloha!
[…] An insiders View on Network Marketing […]
[…] An insiders View on Network Marketing […]
I stumbled on this blog through a facebook connection. Pretty well said on the subject of network marketing. I too tried MLM but it was not for me. Not because of the bad press but because my full time job was demanding enough. An MLM business takes time and focus, seven days a week if you are truly serious (at least in the beginning).
Where I think most people fail is they jump into the recruiting phase and forget about the purpose of the business, and that is to sell a product. An MLM that pushes recruiting over selling a product will only get you into trouble as recently witnessed by a travel company MLM that is facing legal batttles. Not knowing your MLM business and recruiting just doesn’t work.
I have been involved in business for over 25 years and have learned that any business needs a vision and a well thought out strategy to be successful. If you are new to MLM, learn about your business from the top down so you can deliver the value that earns your living in MLM. Without knowledge of your product and business, what exactly do you fit in the value chain that makes sense to your customer that results in them parting with their hard earned money for your product?
Good luck to those who pursue what I feel is perhaps the toughest business to start and be successful. The concept of MLM is sexy and has tremendous appeal (freedom to be your own boss). Any new business venture, like MLM, that requires low capital to start typically requires a lot of sweat equity to reach some level of success. At the end of the day, those that work their business smart will see success, just like any other business model.