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Not only has work at home network marketing been around a long time, but it is at the very core of every marketing strategy for every business. Today, insurance, stocks and bonds and real estate are all businesses that utilize network marketing in their business model. In all of them, people get paid based on their own production, and the production of their sales team. So, why all the fear, concern, reluctance, paranoia and confusion about network marketing today?
Back in "the old days" when network marketing was known as multi-level marketing, it was new, mostly unregulated, and the favorite playground for scams. I grew up in Florida and remember when Glenn Turner was doing "Dare to Be Great". It was a classic pyramid scheme (more on this later), and for some attorney's general, it became the standard by which such illegal schemes were measured.
OK, so what's the difference between a work at home network marketing company and a pyramid scheme? At the most basic level, the difference is that network marketing is a legal alternative business model and a pyramid scheme is an illegal scam. Let's look at the scam first.
There's nothing wrong with the pyramid shape itself, our government, corporate america, most civic organizations, churches, charities and committees are that shape. There is a single person at the top, President, Chairman, Executive, etc. who is responsible to carry out the mission as outlined by the Board of Directors through the organization. Each level going down has more people in it. It's not called a pyramid scheme because of its shape, but because of the fact that the lower in the organization you are, the less your likelihood of making any money.
In fact, the true pyramid scheme scams people because the only way you can make money is to always be able to find other people and there is a theoretical level based on 2 who get 2, who get 2, who get 2, etc. and pretty soon, the entire planet is in the company - not a very real possibility, so the last person to get in has no one else to sign up.
By contrast, work at home network marketing is just an alternative business model. One might ask, "Why would a legitimate company choose a network marketing model instead of a traditional sales model with a sales force?" OK, you're a brand new telecommunications company offering long distance service in competition with all the big boys. If you choose the normal business model, then you have to set up a call center to support your sales staff, recruit and hire a multi-state sales force, train them, print sales materials, provide resources for your sales force, advertise, etc., all BEFORE you sell even one long distance plan, and at great expense up front.
BUT, distributing your services via a network marketing company means that all you have to do is collaborate with an existing network marketing company. Network marketing companies are at least national with independent representatives (reps) in every state and many are international with independent reps around the globe. This sales force already exists and includes a compensation plan, communication and distribution system, tools and resources and replicating web sites to aid the reps in selling the company's products and services.
Since this huge sales force and resources already exist, it requires very little effort on the part of the network marketing company to simply add a new product or service to its product line and it fits neatly into the compensation system already in place. And - here's the very cool part for our fledgling telecommunications company - no commission is paid till something is actually sold and delivered. The savings in up front costs can be staggering! As a result of these up front savings, the telecommunications company can afford to pay very high commissions which results in very lucrative compensation for the reps.
In today's high tech world, it is much easier to communicate and therefore much more difficult for dishonest folks to hide. Both the Attorneys General in each of the 50 states and the Federal Trade Commission are very aggressive in their indictment and punishment of "white collar" crimes. And, in fact, both groups have a lot to say about multi-level marketing scams and provide resources, education and contacts to help avoid such scams.
So, how do you tell the difference between a reputable work at home network marketing opportunity and an illegal scam designed just to take your money? Here is a list of red flags and things to look for in discerning the genuine opportunity from the scam: CLICK HERE.
In any business, it is important to understand the basics of the industry. Some of the work at home network marketing realities include:
- 97% of those who start a work at home network marketing business FAIL - that is they spend more money every month on their business than they make
- 88% if the 97% quit in the first 90 days
- Every work at home opportunity is looking for two different kinds of people; customers (retail) who use the products and/or services on a regular basis because they like them, and business builders (wholesale) who not only use the products and/or services, but also want to join your team and earn an income like you do
- Work at home network marketing isn't for everyone, but if it's for you, then you'll love it! It's like camping. Some enjoy camping and will go every chance they get no matter what the weather may bring because they love the adventure, being outdoors, etc. There are others who spent the worst day of their life inside a tent - hated it! - and will never go again. There's nothing wrong with camping, it's just not for everyone.
- This is a business, not a hobby (if you want a hobby, collect coins instead). Like any other business opportunity it requires working capital (money) for marketing, tools and resources.
- There are no short cuts to success in a work at home network marketing business opportunity. Success requires consistent action. That is, every single day you have to get out of bed, roll up your sleeves and do something that moves your business closer to the goals that you've established for it.
- Success is dependent upon a steady stream of customers. When you stop talking to people, your business begins to die.
- Sales success in a work at home network marketing business is different than face-to-face sales. Skills development is the key to success and, like any other profession, mastery of necessary skills is essential.
- Most people begin their work at home network marketing business part-time, but i f you don't have a minimum of 10-15 hours per week, then this opportunity isn't for you and you should never start.
- There is no magic formulae, system, web site, or lead resource. This business isn't hard, but it does require passion, patience, diligence, focus, ability to communicate effectively, a genuine fondness for people and tenacity with the right attitude.
- The right coach, mentor, team and company will make all the difference in your success, how much time it takes to get where you want to go, and how much fun you have along the way. Adventures are always more fun with the right companions.
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