What is Network Marketing?

What is Network Marketing?

Have you ever been asked, “What is network marketing?” I’d love to know how you responded.

Here is my definition: Network marketing is a teamwork focused, word of mouth, sales system that leverages the distribution revolution (manufacturer/provider to consumer) to sell products and/or services. Unsalaried participants, frequently called independent distributors, are paid a commission, not only, for their own personal sales, but also for some of the sales volume generated by their sales force (downline team). Network marketing products/services are often presented as an amazing opportunity.

Q: Is network marketing really an “amazing opportunity”?
A: Whether you call it network marketing, multilevel marketing (MLM), direct selling, relationship marketing, word of mouth marketing, referral marketing, or pyramid selling, you need to understand it’s risky business. Network Marketing businesses have been steeped in controversy for fifty years.

Why is there controversy? The following quotation provides a succinct, bottom-line answer, “Studies by independent consumer watchdog agencies have shown that between 990 and 999 of every 1000 participants (i.e. between 99.0% and 99.9% of all participants) in MLMs in fact lose money.”

Tip: Before joining any network marketing company, do an online search for:

  • FTC vs Company Name
  • FTC vs Owner’s Last Name
  • FTC vs Top Distributor’s Last Name,
    you might be surprised by what you discover.

For many more tips, my recommendation is to read ‘Network Marketing Heads Up.’

Network Marketing Wife

network marketing housewife

Are you an exasperated network marketing wife? In the early days, you were delighted to see your husband excited about something. Times have changed, haven’t they? How many times have you watched his company and product videos? Are you sick and tired of hearing about that gal who is earning $100,000 a month? Do you have shelves full of samples, magazines and brochures? Is your husband on the phone or at the computer, all the time? When your credit card bills arrive are they a lot bigger than his commission checks? Have you lost any friends?

Did you know that your husband has probably been told that a good network marketing wife is someone who never watches TV and who unconditionally supports his dreams? Are you finding that tough to do that now that your family’s finances are circling the drain? By the way, when network marketing companies and upline team members say “supportive” it’s often code for what they hope you’ll be, a docile, submissive, unquestioning, fifties-style housewife (see image above). Remember, his upline team wants to see your husband on autoship indefinitely. That’s how they make money. To be fair, his upline team would prefer to see your husband succeed, but that rarely happens.

I’ve never met so many divorced people.

Remember when you scrimped and saved for ‘Convention’, but you could only afford to send your husband. Has the expense of flying him to corporate events paid off for your family? Has your husband mentioned some of the impressive women he has met at those hotel meetings? We’re grownups, so let me be blunt, I’ve never met as many divorced people as I did when I was a professional network marketer.

Q: Why are there so many divorced network marketing couples?
A: Tragically, most network marketing wives feel trapped watching their family’s finances get worse and worse.

Have you ever wondered:

  • has my husband been brainwashed?
  • will he ever see the light?

If you’re a disillusioned partner, don’t divorce him, instead, I recommend reading, ‘Network Marketing Heads Up’. After reading my ‘Heads Up’, get him to read it too and then discuss what’s next.

Afterthought: I suppose I could have written about the ‘Network Marketing Husband’, but in my experience women consult their husbands, value their opinions, communicate effectively and generally make better choices.

Network Marketing Extra Income

Network marketing extra income - gold bars

What’s with the photo of the gold bars? Must be network marketing extra income, paid in gold, right? That’s been done, but, no, I simply wanted your attention, for long enough, to make an important point about the allure of network marketing.

Q: “Is network marketing extra income a fantasy, or something you could actually benefit from?”

I’m sure we can agree that ninety-nine percent of us could use some extra income and, bluntly, some people need a huge pile of cash, in a big hurry. Typically, a network marketer’s backstory starts something like this:

  • your spouse/partner is already working
  • your credit cards are maxed out most of the time
  • your line of credit is ringing alarm bells
  • you’ve cashed in your whole-life insurance policy
  • your RRSP/401(k) savings are long gone
  • you’ve sold a lot of your stuff
  • and you’re watching a lot of TV to avoid thinking about your real world problems.

Now, imagine that you were about to enrol in the Real Estate Salesman’s Course when an acquaintance of yours asked you, “If you knew for sure that there was a way you could, legally, earn over $100,000 a month and retire in three years, wouldn’t that be something you would, at least, like to know more about?”

Q: Is your acquaintance’s $100,000 income claim a possibility?
A: Yes, she/he is correct, it is possible to earn $100,000 per month; a surprising number of people are doing it right now.

So, to learn more about his/her $100,000 a month opportunity, you’ve agreed to attend a home business presentation. You can expect to meet at least a couple of enthusiastic optimists. Unsurprisingly, your meeting will paint a very rosy picture of your acquaintance’s company and that company’s products. Because enthusiasm is infectious, you’ll find the get-together, at least a little, exciting. At the end of the presentation you will very likely be told that the next step is to attend a hotel meeting. When that meeting happens, you’ll meet some more amazing people, maybe even one of those $100,000/mo. legends. Right about now, you’re probably feeling hopeful, even exhilarated. Although I’m excited for you, this is the perfect time for me to give you a ‘Heads Up’.

Earning $100,000 per month is not typical, it’s a very rare occurrence. You need to ask yourself, “How can I generate a significant profit if I become a network marketing distributor?” My recommendation is to invest $5 before you attend the hotel meeting. Definitely do it before joining the company. You owe it to yourself to, “Know the game you’re in.” A five dollar eBook could save you thousands of dollars, or, alternatively, it might help you earn a significant fortune.

Learn more here…

Network Marketing Billionaires?

network marketing billionaires

Are there any network marketing billionaires? I’m not asking about billionaires who earned their money elsewhere; I’m wondering if there are any distributors (IBOs, team members, brand partners…) who accumulated a billion dollars within the network marketing profession? Was Mary Kay Ash a billionaire? What about Dexter Yager? How about the other MLM legends? I’m dubious, but please comment if you know the answer.

Q: What got me thinking about network marketing billionaires?
A: The recent kerfuffle with Herbalife™ and the quarrelling billionaires.

My understanding is that hedge fund billionaire, William A. Ackman, alleged that Herbalife™ is a pyramid scam and ‘shorted’ their stock. Unsurprisingly, Herbalife™ denied his allegations. Another well-known hedge fund titan, Carl C. Icahn, disagreed with Bill Ackman’s allegation and weighed in by purchasing Herbalife stock. I gather these guys don’t like each other, so it’s tough to tell if principle is involved or if this is nothing more than another big-money/ego vs big-money/ego clash.

I’d love to believe that Bill Ackman is genuinely concerned about financially-unsophisticated network marketing distributors. I’ve already admitted I exhibited poor judgement when I joined the network marketing profession. That’s why I wrote ‘Network Marketing Heads Up’.

Before Joining

Network marketing before joining signature image

I wish I’d been able to read ‘Network Marketing Heads Up’ before joining my first MLM company.

After many years of skepticism, I suspended my disbelief and embraced the profession’s paradigm. Decades later, I’ll reluctantly confess that I exhibited poor judgement when I joined this ‘industry;’ specifically because network marketing is not a good way, for most people, to build a new stream of income.

Q: Why do you feel it was poor judgement?
A: Although there is a genuine financial opportunity for a minuscule fraction of one percent of network marketers, over ninety-nine percent of networkers, will never reach their financial goals.

When I wrote my eBook, I made a sincere effort to be balanced and fair. Don’t make the mistake of surmising that my book will be a sour grapes diatribe from a frustrated, failed distributor. I personally enrolled thousands of team members (customers and distributors). I wouldn’t have persisted for decades if there weren’t a good number of things to appreciate about the profession. Rather than petulance, you’ll discover that my eBook is a straightforward ‘Heads Up’. It’s an overview that anyone can read before joining.

Q: Will reading your eBook be worthy of my time and $4.95?
A: Absolutely, it really could save you thousands of dollars.

Finally, and please forgive me for repeating this, but, “I wish I’d been able to read ‘Network Marketing Heads Up’ before joining.&#8221 It’s your turn now, if you’re seriously considering a network marketing career, you need to read my eBook. You’ll be glad you did.

Network Marketing Heads Up – Table of Contents

  1. Overview
  2. Introduction
  3. A New Stream of Income
  4. “One of Those Things”
  5. The Pitch
  6. Network Marketing
  7. The System
  8. Compensation
  9. Expectations
  10. The Expenses
  11. A Typical Story
  12. Heads Up
  13. My Story
  14. Recommended Instruction
  15. The BS
  16. Appendix