Multi Level Marketing and Network Marketing explained - vital information for the potential new MLM recruit.
ARTICLE SERIES: The MLM Spin Doctors
"The "5" Reasons Why Network Marketing Will Never Fail"
By Patrick W. Higgins (rebuttals by Peter A Blood)
Did you know that there are five proven reasons as to why network marketing will never fail? It's true. I featured them in my first book entitled "The Future Is Knowing Network Marketing." These five reasons are irrefutable, iron-clad simple truths. I believe in them so much that I challenge you to try to poke holes in them. To date, no one has been able to do so. Shall we?
1. Everyone is getting involved:
Network marketing is rapidly becoming one of the most powerful ways to reach consumers. In fact, it will be one of the leading industries to help usher us into the 21st century. Network marketing is no longer limited only to entrepreneurs or broke people, and as a result, everyone is getting involved. This includes doctors, attorneys, business owners, professors, teachers, preachers, engineers, professional athletes, actors, bored millionaires, builders, architects, busboys, truck drivers, factory workers, etc. The greatest thing about this is that we're all coming together and building something as a team. Talk about fellowship! Doctors are befriending busboys. Under normal circumstances, this would never happen. I think this is incredible.
1a. Everyone is getting involved Rebuttal
In MLM, "Reaching consumers" is all about the COMPANY, not the DISTRIBUTOR. Each distributor must talk to many people to gain a customer base, and a great many more to gain a well-stocked downline. The industry is "powerful" only for the COMPANY (and for the 0.05% of those distributors who become financially successful).
How is such a "leading industry" measured? By money? No one can possibly doubt that. But it is the money in the COMPANY'S bank, NOT in the majority of DISTRIBUTOR'S bank accounts that makes it so. And it is the newly recruited distributors who finance this company growth, not the general public, who are supposedly the target market for products.
It's terribly cynical, I know, but the truth is that doctors and attorneys do not mix with busboys and truck drivers in MLM for any other reason than to MAKE MONEY! The idea that MLM is a great basis for friendships is not even close to the truth - which is that every 18 to 20 months the ENTIRE downline of the average distributor is effectively replaced with new distributors!
Building something as a team? A TEAM?? A team concept surely demands that each person fills a defined role to achieve a given group goal. The MLM goal is therefore the enrichment of all individuals in the "team". Only MLM would ask a recruit to help their competition in their business! New recruits generally do not realize that their competition INCLUDES THE PEOPLE THEY RECRUIT! That's some team concept.
2. It works everywhere.
One of the great things about network marketing is that it doesn't matter where you start; it only matters where you finish. In other words, it doesn't matter whether you live in a town where the population is 500 people or in a city where over 1,000,000 people live. The reason? You are not limited to your own hometown. The bottom line is that you can build your business anywhere. In America alone, the population is around 260,000,000. Once you are involved, you have access to every one of them. If your company is international, that gives you an even wider base to plug into. The neat thing is that you do not have to pay a licensing fee to operate nationally or internationally. After you join, you are free to build wherever your company goes. What an awesome benefit!
2a. It works everywhere Rebuttal
Why is it so great that 99.95% of all distributors in MLM finish out of pocket? A paltry 0.05% make SOME money. It's true then, that it doesn't matter where you live, because the same loss percentage applies universally.
America is big, but so are the traditional companies that provide products and services to it. MLM competes with these companies, which is a major factor as to why so many very, very small distributors "fail". Sadly, MLM turnover is pathetically small in comparison with traditional retail business.
MLM does not work everywhere, as a matter of fact. Check out the chaotic results of the introduction of MLM into India and South East Asian countries, or the failure to introduce it into China, where it is described very accurately as a "...social evil".
3. Network marketing is fair to everyone:
This industry is not prejudiced toward race, age, gender, nationality or religion. Sure, some of the people who are involved may be prejudiced (to their discredit), but the industry itself isn't. How many women out there have a job and work as hard as the man does, only to earn less money? Too many. It's ridiculous! How many people out there are being taken advantage of because of the color of their skin? Too many. That too is ridiculous! How many people out there have been on the job for many years, yet they know that the owners of their company are reserving the top positions for their own family members? Too many. Again, ridiculous! How many of our older citizens are being told they are too old to continue functioning in the workplace? Too many. This one is probably the most ridiculous! I can assure you this will never happen in network marketing. The products, services, and compensation plans are exactly the same for everyone. So if you have been looking for equal opportunity to no avail, you can plant your flag in network marketing's soil.
3a. Network marketing is fair to everyone Rebuttal
Unfortunately, it is also true that each distributor will be equally discriminated against by inevitable MLM circumstance.
4. It just makes sense:
J. Paul Getty once said, "I'd rather earn 1% on the efforts of one hundred people, rather than 100% of my own efforts." He also said if you want to make a fortune, you have to have a product or a service that no one has, everyone needs, is priced for sale, is priced for profit, and is reusable. I don't know about you, but I think he was prophesying about network marketing. Think about it, this sounds like network marketing to a tee. We offer products and services that most people do not have, yet they need. They are priced for sale. They are priced for profit. They are reusable. In fact, I can't think of any other industry that offers all this. Truly, we are at the tip of the iceberg!
4a. It just makes sense Rebuttal
The world is already serviced with re-useable, sale priced and profitable commodities. J Paul Getty did quite well without network marketing. He started off virtually nowhere, as we all do, and ended up "owning the company". Reality says that no matter how hard you might work in MLM you will not end up owning the company.
5. There is hope:
I believe this industry is proven. It's been around for over a half century. It is a multi-billion dollar industry that is currently growing by leaps and bounds, with absolutely no signs of letting up. If anything, it's getting bigger. Average people are getting involved and becoming "above average" in no time because we are actually trained by people who are successful - people who are doing the same thing as us with the same company. Talk about on-the-job training. You can't get any better than that. I believe that gives all of us hope. And with hope, anything is possible.
5a. There is hope Rebuttal
Proven as what though? It has been around for half a century or more but it has been responsible for more failed entrepreneurs than successful entrepreneurs by a factor of at around 2,000 to 1 in that time.
It is a multi-billion dollar business that is NOT growing in leaps and bounds. Yes, it is recruiting more distributors, but those distributors are in fact earning less and less individually before they make the decision to pull out. (See "World Figures").
Well, there you have it. Those are the five reasons why network marketing will never fail. Can you poke any holes in them? If not, this should come as a breath of fresh air to you. I can tell you with conviction that ever since my book was released back in 1996 and I started teaching these five reasons, countless thousands of networkers worldwide have had their belief level towards network marketing raised. With so much negativity out there, we need all the proof we can get. Without a doubt, these five reasons should bolster your confidence in this industry because they do offer proof.
Proof is contained in evidence, not opinion. There is not one shred of evidence in the above to assist anyone to make an informed decision about MLM - just the opinion of a typical MLM spin doctor out to make a dollar.
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