Network marketing is all the rage. Even Donald Trump is getting on board with network marketing. Actually, he’s re-entering the realm of network marketing. He was involved in a network marketing venture years ago, but there were some “issues” with it. Now he’s back with another network marketing venture. Hopefully this one will do better than the last one. It is, after all, the Donald’s name on the line!
Many people are involved in a network marketing or multi-level marketing businesses. Some network marketing businesses just don’t work. As a small business owner it can be a great way to make income or extra cash, but you don’t want to lose your shirt!
Multi-level marketing or network marketing is not a new concept. Back in the 1980s, a company called Amway (still going strong) was and still is a very well known multi-level marketing company. There are countless others that have been formed since that time. But, all network marketing companies are NOT created equally. You must understand the dynamics, otherwise you could lose more money than you make.
Pros
- A great way to make extra cash. If you’d like to fund your small business or make money on the side while you do freelance writing then network marketing could be for you;
- You get to be your own boss. It’s up to you if your investment in a network marketing venture will be a success. You set your hours and how you’d like to run your business;
- It can be profitable. If you sell your heart out and really, truly believe in the product then you’ll make money. You can also engage in online marketing of the product if the company allows it.
Cons
- Poor leadership at the top. Unfortunately, many network marketing companies have poor leadership at the top. Some of the people at the top forget what it’s like to be starting out. Plus, they’re NOT in touch with the trends and styles of today when it comes to business;
- Could be a shady business. Before you sign on the dotted line, make sure you know EXACTLY what you’re getting into and how you can get out of it if it doesn’t work. Sometimes people don’t reveal ALL of the pertinent information;
- Most network marketing companies use the “pyramid” technique. You sign up under a person, then you MUST sign up at least 2 or 3 people (or more), then those people sign up people, and so on. The person that signed you up will make money off of you and your people. However, if you don’t meet the monthly criteria you LOSE your spot and people. Yep, that’s right. There are some network marketing companies that will “drop you off” if you don’t meet the monthly obligation.
- Presentations can be lengthy and boring. Yes, some people still believe a two or three hour presentation is necessary. These presentations are usually playing on peoples desire such as “own your own home” or “buy that sports car” along with other outdated techniques. They’ll even create a 75-minute video and expect people, especially younger people to sit through it. They haven’t heard of short-form video;
- MLM or network marketing has a negative connotation. It’s true. When people think of MLMs or network marketing they often associate them with a “used car salesperson” or a scam;
- The people. Your time is valuable. Some members will tell you anything to get you to a presentation. They embellish and misconstrue the business. Before you know it, three hours go by that you cannot get back.
If you’re considering getting involved in network marketing, get the facts. The money can be useful to fund your small business or to supplement your freelance writing. Research all network marketing opportunities before signing up. It will save you time and money in the long run.
What attracted you to the network marketing phenomenon? How successful are you? What’s stopping you from jumping on the band wagon?