Granted, the mlm business is not perfect, but the business concepts are without a doubt the best.
No business is perfect. In Big Corporate environments, helping others succeed does not occur. What occurs are people trying to secure their own position, and they feel threatened by others below them in the organization that are aggressive, do well, and want to move up. It is commonplace for people to be promoted based upon levels of incompetence.
I have spent many years in a Big Corporate environment whereby we sold products to large retailers, which shall remain nameless. Each year, these huge retailers make more money than the year before, and demand from their suppliers lower prices, better and more service, and longer payment terms. We had lost huge chunks of our market share because a competitor lowered prices by a few percentages. We were stuck with huge inventories and no one else to sell the products to. People were laid off, and those that stayed were given more responsibilities for the same pay.
These tactics by the large retailers are forcing companies to sell their products through different distribution channels such as multi-level marketing. Under the Networking Marketing channels, distributors pay all the costs of advertisement. Under Big Corporate, the large retailers and suppliers pay for the advertising, and as a result, 60 percent of product costs are advertising. And, under normal Big Corporate channels, their are numerous levels of markup. There are substantially less number of levels of markup in network marketing channels, which keep prices affordable.
There are many other alternatives people choose from Big Corporate in order to make a living. Many open up franchises, and other type of businesses. However, most of these take a large investment, and result in borrowing a large sum of money for no guarantee. And many of them take years to turn a profit due to the large investment.
The Network Marketing business does have its flaws. 75 percent of network marketers quit within three to four months and 97.5 percent of network marketers quit within one year. This is completely due to lack of training. Old methods like contacting friends and family are still used as a mainstream method of training downlines. Network marketers must realize that it takes very little investment to be a distributor. You get no customers, and no training. It takes time to grow a customer base. You must look for long term payback and not immediate.
Building a network marketing business is not easy, and certainly not fast. Every day, more and more people want to take control of their destiny. It is estimated that 11,000 home based business are started each day. Individuals are tired of being told how many days off they are allowed to take, and when and where they need to be on a daily basis.
So what is wrong with selling products direct? Nothing. In network marketing, we are just selling products directly to whoever wants to buy them. They can be a customer or another distributor...it does not matter. For many of us that sell natural health products, we are delighted to get our products in the hands of people that need them. For many of us that also sell technology products, we are happy to get them in the hands of people that love using them. It is good business to diversify, even in network marketing especially when the products complement each other. If they want to make a business out of it, that's excellent. Then I will train them to properly grow their business.
So, before you go ahead and downgrade network marketing, realize that individuals are tired of working for corporations for 25 years, and being laid off at 50 and having nowhere to go. And manufacturers are tired of having to reduce prices each year to retailers and increase service levels. Network marketing is not perfect, but it is much better than the alternatives.
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