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What is Wrong with Networking Marketing?
by moderator on Mon 09/04/2006 01:13 PM |
Network marketing is a marketing paradigm wherein theinterconnection of the market actors and the transactions aregreatly stressed. The terminology networking marketing inpopular usage is a synonym for multi-level marketing or MLM.Sometimes, it is also mistakenly considered as the pyramidscheme.
Many are enticed with the promises of network marketing. Whowould not be? The idea of making instant money and not requiringany special skill or any form of investment is very appealingespecially to those who are with an immediate need for it.However, there is also a down side in this kind of businessmodel. A short list follows just to give you an idea of the darkside of network marketing.
Network marketing or multi-level marketing are doomed by design.
If you consider that there is a possibility of succeeding bybelieving that the product is saleable without a doubt. Thenonce again, you are mistaken. All products and even serviceswill only have partial market penetration. Not everyone wouldwant to drink filtered water, or wear a particular shoe style,or avail of a service or product. In the real world of business,there is no such thing as an infinite market need for anyproduct.
After all, if the MLM product is such a hit, is it notquestionable that it is not sold in the customary marketingsystem as known by human society for over a thousand years now?It would not need any special kind of marketing scheme like theMLM. That is something to really think about.
Looking at the MLM design on a mathematical perspective, youwill see the very obvious geometric flaw in the entire setup.Multi-level marketing works through geometric expansion. It isone vicious cycle of people recruiting people recruiting morepeople. This kind of business model leads to market saturationand it is inevitable. And sadly, the unfortunate person at thebottom of the chain ends up as the loser. It is because all thatis generated are false hopes and money is lost in a senselessmanner.
The organizational issue of a pyramid structure is ìwhere doesthe money come fromî? Don't you wonder about where the moneycomes from for the people at the top of the pyramid? Well, fromwhom else but the losers at the bottom of pyramid who believethey will see the money soon.
But if you are still thinking that multi-level marketing is thebest way for you to earn the quick money, better startexploiting people early while the exploiting is still good.
Family and friends are to be treated as such and not seen asmarks for exploitation.
Basically, the network marketing business grows by exploitingpeople's relationships. MLMs reward their people to recruitothers. Often, the first targets for MLM recruitment are theso-called "expendable" friends. But if all else fails, somepeople jaded by the blinding promises of MLMs or as a result ofdesperation may end up recruiting family, even their mothers.And when the business fails, relationships are tampered.
But you are still convinced that network marketing is you greatbreak to achieve that elusive success. Here are some helpfultips for wannabe MLMers. After reading of the dark side of thenetwork marketing business model, it is best to know what youare getting into early on.
In selecting a network marketing company to participate in, pickone with a reputation of high integrity.
Select one that offers products that you can be passionateabout. After all, how can you get someone to believe in theproduct you are selling if you yourself are a non-believer?
Be sure that the commission scheme of the business is laid outin black and white, and one that is fair. It is a business, andpeople get into it to make money. If you believe that theexisting moneymaking scheme of the multi-level marketingorganization you are eyeing at is not favorable to you and yourgoal, then look around for a more viable opportunity. With thetons of network marketing businesses around, for sure you willfind the one that best suits your need and fires up your driveto success.
May this help you in your quest for network marketing success!
About the author:
Daegan Smith the owner ofNet MLM Articles and the leader of the fastest growing teamof successful home business enterpernuers on the net. Find outhow we're creating financial freedom all across the globe andhow to get in on the action FREE =>http://www.comlev.com
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