Network marketing is a type of business opportunity that is very popular with people looking for part-time or flexible businesses. Nevertheless, the business comes with its own myths and tales. We will be addressing these myths with full disclosure below.
Myth #1: Network Marketing Is an Illegal Pyramid
The first biggest misunderstanding people have with this type of business is the very structure. Somehow, people tend to be very cynical when it comes to the pyramid structure. If this structure was illegal, most businesses and organizations, including the government would be illegal because they all have a pyramid structure. In traditional business, you have the CEO/MD at the top of the pyramid, followed by heads of department which are followed by the rest of the management and the supervisors. This similar structure is also followed by the governments of various nations.
Myth #2: It is a scam for your family and friends
Now we have the argument of whether this business is ethical and if there are any relationship costs when talking to your family and friends about starting a business with you. The problem isn’t the business, the problem is how you do the business. Which translates into the way you initiate the business with the people you know. Many times the problem starts when people “trick” their friends into hearing about the business. They will ask them to meet up at home or catch up at a coffee house and then suddenly launch in to a business opportunity. That just turns counterproductive and is not advisable at all. This is what gives the industry a bad name. There’s no harm in just being open and honest and letting people decide for themselves if this is right for them.
Myth #3: Only the man at the top gets all the money
Before we get into this argument we should make one thing clear- income is related to effort, not position. This myth suggests that only the people who get in early make money, which isn’t true. Many ground-floor members make nothing while many who come in years later make a fortune. The truth is, in good network marketing companies, members can make any amount regardless of their position. Further, members of MLM companies can earn a greater income and rewards based on their effort which means that no matter when you join or where you are in the organization, you have an equal chance as anyone else to do well if you do the work.
Myth #4 : It Doesn’t Work Due To Market Saturation
Saturation is impossible because there isn’t a finite number of people. Every day new people are born or turn 18, thereby adding new potential network marketers to the pool of prospects. Some people seem concerned with the fact that network marketing doesn’t work because the numbers don’t add up- which means that when everyone in the country has a business, then there is no where else to go and it will all fall down. Very simply, if this were true, it would have happened years ago.
Myth #5 : No One Really Gets Rich in Network Marketing
It’s true that not everyone succeeds in network marketing. The 2-10% of network marketers earning big money are the same 2-10% who work consistently in their businesses. But getting rich shouldn’t be how network marketing should be judged. If getting rich is the measure of success, then many other homes and small business owners, and the majority of employees in traditional jobs are big failures. Instead, network marketing should be measured by the number of people who reach their goals. Many people in network marketing find success when they earn enough to stay home with the kids or pay off debt.