Is Network Marketing A Pyramid Scheme?

From The Desk Of Joey Fratantoni, Online Marketing Pro

***Attention Network Marketing Researchers: Be Sure To Stick Around For A Special Gift You'll Get Access To Just For Stopping By Today.

Hello friends, welcome to my article!  This article is going to talk about why many people consider network marketing/ MLM to be a pyramid scheme.  The information you are about to read will uncover the truth and expose the real reason why this business model would appear to be a scheme. 

What's The Deal?

So what is the deal with network marketing? Can you make money with it? Is it a real business model?

Let's break down what exactly network marketing is.

First and foremost network marketing is a genius business model. Companies that use this model are creating a win-win situation for themselves as well as their distributors.

By implementing this business model the company is able to cut out most of the intermediaries aka middle men you will see in most businesses selling retail products.

These middle men include:

-wholesalers
-distributors
-shippers
-retailers

By eliminating these people the company is able to make more money when they sell product. The distributors that sell for the company are able to start a business with low captial and earn commissions on other distributors sponsored and product volume sold each month.

The business model works on what would appear as a pyramid model. When you join a network marketing company you are at the top. Distributors you sponsor are now part of your direct organization or on the bottom of you. This is also called a leg or level. Compensation structures can vary slightly from company to company. The more people in your organization the more residual commissions you will be paid each month. For each member you sponsor you receive a commission. As your organization grows so does your income. You have leverage now. Everyone that comes in has the same opportunity to build their organization or down line.

So Why Such A Bad Reputation?

Network marketing is considered a pyramid scheme and spoke of in a negative connotation because most people do not experience success in this industry. The problems lies in the recruiting stages. Many of the conference calls and other marketing methods employed by distributors target your emotions. They get your hopes up with all this talk about starting your own business and becoming financially free. Then reality sets in. You are now in the business and find it hard to sponsor people and make sales. The emotional rush begins to fade and you are faced with the realization that this is going to be more difficult than you expected because it is an actual business.

Network marketing is a real business. The people who actually do well treat it just like a business. The bad reputation comes in because people who found it difficult to build their business gave up and then slandered the entire business model.

There is a specific process or formula to do well in network marketing. You have to master skill sets like:

-recruiting/ sponsoring
-lead generation
-marketing (the product and yourself)
-selling

Most people are not born salesmen, recruiters or marketers. So when they fail immediately at network marketing they don't blame themselves, they blame the entire network marketing industry. Millions of people each year join network marketing companies with the hopes of creating a full time income, but it's the people who actually learn the necessary skills to obtain this goal.

So the next time you hear someone say network marketing is a scheme or it is not a legitimate business model you can just laugh. People actually do make money with this business model and some make serious unfathomable income.

The choice is up to you when you join one of these companies. Are you going to do what it takes to make it? Or will you just try it for a while and if it doesn't work out in two weeks you take a dump on the whole concept completely? If starting a business was easy we would have more millionaires, but it takes effort and a firm commitment to be successful in any occupation. Remember that.

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