We may often hear words like pyramid scheme, secret society and other names associated with MLM but is it really all that? MLM industry has become very misinterpreted or misjudged. This creates a bad impression of the industry which has been operative for more than 50 years. The billions in sales made in sales is overlooked due to this stereotype mentality that the industry does not work and even with the many success stories, it is still believed to be untrustworthy and unreliable. There are a lot of honest businesses in distribution of products and services legitimately even the ones that seem too good to be true. Their customer service and quality of products might not be deserving of the misinformation and bad reputation.
The business is a human capital industry which gives people financial freedom and independence that would otherwise not be achieved doing regular jobs. This may be the reason why network marketers may not make money effectively as they find it difficult to approach people to become part of their business. People who have the wrong idea of the business don’t know much about the business and have a bad perception and mindset of the business. The information passes across from one unsuccessful and inexperienced marketer to another and that creates a pattern of misjudgment.
Some stereotypes like the industry is a get rich quick scheme should not be misread. To be a successful marketer one has to invest a lot of time, training and marketing. In this industry money does not generate that easy and quick as commonly thought; to generate profit, effort is key. Some people have the notion that MLM business is short-lived and profits can be made only when products are fresh in the market. This might not be true as any business requires to be run properly and keeping the foundation of the business will ensure it runs for a very long time.
This business requires a lot of hard work for products to be sold and a certain business model to be followed but if a company pressures its members to do more recruits than sales then it could be a pyramid scheme. It is not true that you have to be a sales person to get into this business. However, skills like being able to talk to people and selling are essential. The idea is to look for people who share the same vision of building their own business. It however doesn’t necessarily mean that family and friends are your only source of leads. They can be your initial prospects as they help you get more leads from the people they know.
The person who earns most from the business is one who talks to more people to sign up. The business compensates its members for the sales and from the number of leads and sign-ups a marketer generates. There’re businesses that have used network marketing strategy for so long like Amway and Tupperware and it is only fair to give them the credit they require. There are few that are shams but the misconception should not be generalized to the whole industry.