How To Avoid The Negatives In Network Marketing: The Pros & Cons
By David Lazear
The old approach to network marketing is dead! It’’s time to weigh up your options and take a new look at this powerful industry.
The numbers of large, multinational companies who utilize network marketing as the primary means of moving their products and services is growing daily. They use network marketing to find and get new customers worldwide. The opportunity to partner with companies like these is huge, AND what it can mean for your financial situation is staggering.
What brought me to network marketing in the first place was the lure of financial independence and financial security.
I”ve been in business for myself for over 20 years now, and I love everything about it: the time flexibility, being about to work with whomsoever I want to, the residual income I”ve been able to create, not having a boss or anyone else (but myself!) to answer to, the ability to take time off whenever I want.
One of my biggest learnings from these years of self-employment is that we all need multiple streams of passive, residual income flowing into our lives if we are to truly gain financial independence.
The best definition I”ve ever heard for the elusive dream of financial independence is “. . . being able to live the lifestyle you desire without having to work or rely on anyone else for it.” (I got this definition from T. Harv Eker in his workshop, “The Millionaire Mind”.)
NETWORK MARKETING — The “PROS”
One of my businesses that is providing me with a nice stream of income is a network marketing opportunity with which I got involved several years ago. I personally love network marketing for a lot of different reasons:
* I”m a “people person”. Network marketing is a people-centered industry. I love nothing more than working with my business partners to train them, empower them, and help them grow their image of themselves and what they can do. I love to work with people who are chasing their dreams!
* There is an awesome income potential IF you do it right. In an excerpt from a book by Donald Trump and Robert Kiyosaki (author of Rich Dad, Poor Dad) they talk about network marketing as the best chance available for ordinary people to gain financial freedom.
* Network marketing provides total time flexibility. You can work your business around your life rather than having your business control what you can and can”t do and when you want to do it.
* It offers you several forms of leverage. Leverage allows you to get a lot more done in a shorter time frame than without leverage. Network marketing gives you financial leverage, time leverage, technology leverage, and people leverage
* It gives you an opportunity to help people change their lives. People look for a home-based business for a lot of different reasons, but it’’s ultimately about solving problems or challenges they are facing in their lives.
* I love helping people find solutions so they can realize dreams and goals they never thought possible. I love seeing people grow beyond what they thought they could be and do.
* You can work the business online or off-line, or, what I do, both. 95% of my prospecting (or working with leads) occurs online. This is quick, efficient, and effective because I can put a great deal of this on automatic pilot.
The off-line part of my business involves training potential customers on the products I”m selling and coaching or mentoring my business partners on how to run a successful home business.
* A little work can produce dramatic results. This is another vote for leverage, which I mentioned above. When you teach your business partners to duplicate the few simple things you do to create success, AND they start doing it, also creating success, you exponentially increase the results of your efforts.
NETWORK MARKETING — The “CONS”
OK, having said all of the above, I also need to share with you that I have been badly burned by network marketing as well.
When I was being recruited to work with my current company, the last thing I was looking for was another MLM! I fact, I was so full of skepticism and resistance and doubt that my sponsor almost cut me loose. I”m so thankful today that she didn”t.
What I”ve learned is that there’’s a right way and wrong way to run a network marketing business. I learned the wrong way first.
Close to 97% of the people who get involved in network marketing make no money and quit fairly soon after getting started.
This can often be directly linked to mistakes network marketing distributors make. I was almost one these casualties; but I”m SO glad today that I stuck with it.
Here is a list of things you may be told, by your upline or company, that you must do to be successful in your business. BEWARE! Do not buy these. They are lies and will inhibit the growth of your business!
1. Make a list of everyone you know and tell them about your business opportunity and get them started on the products you represent.
– The truth is that your family, friends, and other casual acquaintances will most likely not be interested in your business. Continuing to press them to become a customer or join your business team will result in alienation a “distancing” from them.
2. Purchase both business opportunity leads and product leads immediately. This is your advertising.
– The truth is that purchased leads, for the most part, will not bring you people who are serious about creating a serious home business. Often they only gave their contact information because of some incentive (e.g. coupons towards free stuff, a free iPod, free CDs or DVDs, etc.) or they are not “fresh” because they have been sold several times before you got them.
3. Keep calling your leads until you get a “yes” or “no” from them.
– The truth is that harassing your leads will not produce a “yes”, but will definitely produce a “no” or even worse, they will simply vanish, not return your phone calls and not respond to your e-mails.
4. Attend every company or organization-sponsored event, no matter where it is and no matter how much it sets you back financially.
– The truth is that company and organization-sponsored events are extremely important for getting to know your company better, to understanding the “corporate culture”, for meeting the company’’s “super stars”, and to give yourself a boost in belief and motivation.
However, the actual training which occurs at these events is fairly repetitious and myopic. Rarely do you learn about business marketing strategies and practices which are effective in the real world beyond the network marketing industry.
5. If your business is not growing as fast as it should (according to your upline!), buy more leads and spend more time on prospecting calls, recontact your “warm market”, and get on more conference calls. Get up earlier in the morning. Work later in the evening.
– The truth is that doing more of things which aren”t working already, faster, for longer hours, with more commitment will not produce success.
If it isn”t working stop doing it! Look beyond network marketing and learn what is working in non-networking marketing industries. We can learn a great deal from other business models and apply them to network marketing
6. The key to your success is to clarify your “Whys”. Why did you get involved in a home business in the first place?
– The truth is that your “why” is a very important to help you keep focused when things get tough in your business, and they will get tough!
However, equally as important is the “HOW”. The how of building a successful home business is more important than the why once your reasons for getting started in the first place are crystal clear.
7. Don”t reinvent the wheel. Follow “the system” precisely as it’’s laid out.
– The truth is that a system is simply a system, a tool. It’’s not the be-all-end-all of a successful business.
Far more important than a magic system is your marketing plan that will attract interested people to you — people who are genuinely interested in working with you and your business opportunity.
It is at this point that any system kicks into gear and helps you train your prospects and business partners and coach them in how to build a successful business.
When you hear or read any one of these lies from a business opportunity you”re considering, dig deeper before you make your decision. Get statistically verifiable data which supports the claims being made so you don”t get duped!
In my experience network marketing’’s promise of financial freedom is real, when it’’s done right. If you avoid getting sucked into these lies you will be well on the road to success beyond your wildest dreams.
About The Author
David Lazear, author, trainer and business coach, provides a wide range of training resources and services for home business entrepreneurs, coaches, and trainers. Find out how to turbo-charge any training, mentoring, or coaching you provide @ Home Business Smarts.
