The problem is we’ve attracted the wrong people to network marketing for decades: the desperate, needy, bored and non-committal.
What if tomorrow’s network marketing millionaires were the talented, motivated, entrepreneurial personalities stuck in management or director level jobs?
Here’s how to find out if you’re one of them:
(1) Deconstructing the pyramid
The first thing people do when they don’t understand network marketing is that they write it off as a “pyramid scheme”. Ask them what that actually means and few come up with a valid explanation. The irony though is that a corporate hierarchy is positioned more in the style of a pyramid. You have the MD at the top who earns the most, the senior director team, then managers and then support staff below them. All earn salaries in a downward spiral. There is no residual income should you stop working for a period of time.
Network marketing on the other hand, is simply and purely a means of distribution. You’re using your existing and growing network to promote and distribute a company’s products. Network marketing companies spend no money on traditional advertising and distribution, and this is how they’re able to share a greater portion of their sales revenues with their distributors. There is residual income when you have built a team.
Part of the taboo is that people treat network marketing products with scepticism because they don’t have exposure that advertised products do. However, have you ever bought a product which has been recommended to you? Sure you have. This is the entire premise of network marketing. Think of it as “direct to consumer” – a fresh approach in an age of ever-increasing online shopping and a shrinking high street.
(2) What about franchising or starting up on your own?
What are the alternative routes to entrepreneurship? Franchising seems like a tried and tested route, but what if you haven’t got between £10,000 – £2m cash to start off with to pay the franchise fee? And would you earn money if you stopped actively selling?
And then there’s starting up alone. You need an idea, business plan, funding, marketing and it’s all in unchartered territory. I completely encourage and applaud those who take the startup leap of faith, but there’s an important gap that network marketing fills to entrepreneurship. More than three-quarters of people who start a career in network marketing start part time. This gives them the confidence to eventually take the plunge and leave their full-time job. The investment in time need only be spent on improving sales skills and building your network – everything else is taken care of.
The average cost to gain your first set of products starts at anything from £150 to £1500 on average. Outlay is minimal, as is the risk. With revenues of nearly $200bn across the globe the best advice is to start by researching a network marketing company whose products and proposition most appeal to you.
Continue on the next page for how to free the intrapreneur.
Share this story