Over the years, misconceptions about network marketing have mounted dramatically. These false presumptions have been passed on from one inexperienced network marketer to the other, all the more adding misguided information. So how are these incorrect notions different from the truth?
To address these challenges, I wanted to answer a few common questions that many people have regarding the industry, giving you valid insight into whether it’s fact or fiction. And share how you can address these common questions if you’re also being asked them on a regular basis.
Some of the common questions that I often get from others are:
- Is network marketing really a scam?
- I just signed up with an MLM company; will I get rich in a month’s time?
- Are those in my warm market really my ideal prospects?
- Should I approach any individual looking for extra income, with my business?
Fallacy: Network Marketing is a Pyramid Scam
Fact: Though there are many companies out there, posing as MLM business models, the Network Marketing industry is not a pyramid scam. Although Pyramid Schemes do exist, they are defined as companies that are established solely for the purposes of recruiting people into the organization without the exchange of goods and services or selling of any products.
With the freedom of the Internet, it isn’t hard to create a magnificent website, put a comp plan together and begin marketing a company. However, it doesn’t take much to sniff out these types of schemes.
The easiest way to determine if a company is legit or not is to seek out a customer service number and call to see how they have the support lines set up. You can also sniff out a fraud when they don’t have a headquarters. No legitimate Network Marketing Company will be void of having an actual company headquarters.
There are additional ways that you can determine the legitimacy of a company by doing more due diligence. But the bottom line is this; before you join any MLM company, spend time researching the people behind the management team, the leaders history and track record and the professional structure of the company. Not only will doing this save you money, it will also prevent you from wasting your time.
Fallacy: I can get rich quickly by joining a network marketing company
Fact: Money doesn’t come easy. Not even in network marketing. It takes a lot of time, marketing effort, and sales to be extremely successful in this industry. Like any other traditional business, you have to put forth some level of effort in order to generate profits. The major difference between a Network Marketing business and a traditional business franchise is that it takes less time and less investment to get started, and you don’t have to work twelve hours a day to generate profits. By utilizing effective marketing strategies and techniques, you’ll be well on your way to success in a much more rapid time than it would have taken you in a traditional business setting.
Fallacy: Your warm market are your best prospective leads.
Fact: Your warm market may be your ideal prospects initially, but they’re also simply your starting point. Many people feel like “they don’t know enough people” to build a successful business. But it’s a fact that each person knows at least 30 people (really its way more than that). You start off with your warm market and you begin to ask for others that they know, amidst meeting new individuals in places like your church, salon or barber shop, community service, pta, kids soccer or basketball games, etc.
You don’t want to put all your hope in your warm market being your ticket to wealth. They’re simply a starting point to get your engine revved up, and once you’ve connected with them, you build through their referrals and new connections.
Fallacy: Network Marketing is ideal for any individual seeking an additional source of income.
Fact: Not all people can warm up to the idea of network marketing and many of them may not see the industry as an ideal source of profits. Some people have their minds tainted with misconceptions while some are simply not part of the niche that the company caters to.
Before you start convincing your prospects to join your company, make sure that they have a fresh outlook on the industry and that they’re the ideal person for the business.
Well, This is a starting point for some of the facts and fallacies in network marketing. If you are ready to learn what it really tales to become an effective marketer no matter what mlm or business you are promoting.
All the best!
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