Kind of off the topic we have been covering, but it’s on my
mind today. The good, bad and ugly about
Network Marketing Companies. These types
of companies go by many names- network marketing, multi-level marketing (MLM),
direct sales, and pyramid schemes.
Except the last one, they all have a similar concept.
*side note- pyramid schemes are illegal. Only people at the top have any possibility
of money. These companies, while many times called pyramid schemes are not.*
Here’s a basic overview:
- Someone finds a company they like- either for the product
or the business structure. They join
this company, usually for a fee, and then they are distributors or ambassadors
or coach or whatever the term the company uses.
They will often get a discount on products or a welcome bundle at this
time which makes it lucrative to join.
- If they want to make money- they share it with their
friends and family with the idea of them joining the company and sharing with
others, or just buying the product where the distributor/ambassador/coach gets
credit from it. This looks different
depending on the company- some host parties, some do clothes where they try
them on, some just message and call.
-If someone joins under them- they will encourage that
person to share. Network marketing is
not a pyramid as discussed- it’s a tree that can grow with many branches. The more your tree branches out, the more
income you typically can make. This does
depend on the business structure. Often
as they get people under them the company has ranks that they move up also,
which can lead to various bonuses and incentives. Therefore, many people say they are
pyramids- because as you move up the company you get more bonus and incentives.
Pros to these companies-
-
Have basically unlimited income potential
-
Usually make your own schedule and be your own
boss
-
If you love the product you can usually get a
discount and make money off something you like
Some cons to these companies-
-
You must be dedicated and committed to do the
work- no one will make you do it.
-
No guarantee of success. Results of success are completely individual.
-
Some have big investments, inventory or
more. Need to research before signing
anything.
-
Some have quotas and minimums.
-
If you make money, most if not all of these are
1099 tax forms- which means you have do to taxes as a self-employed person.
Tips before joining a company-
-
Do your homework- ask questions.
o
How much
will it cost?
o
What kind of inventory?
o
Any quotas? Minimums?
o
Any perks?
o
What kind of pay structure?
-
Make sure you actually like the products. Most can’t sell what they don’t like.
-
Be prepared for the haters. They are out there. You will find them and quickly. If you can’t take it, you may not want to be
with a company like this.
-
Be ready to hear the word no. Most people say no. This is normal. If you can’t handle hearing no, a sales
position, especially like this, won’t be very pleasant.
I will tell you honestly- I have failed at a few companies
like this and swore I never would do one again.
I signed up for one for a discount, and now sell despite saying never
again. Why? Because I LOVE THE
PRODUCTS. I totally believe in
them. It doesn’t hurt my feelings when
people say no, because they’re saying no to my products…not me. I tell people about them out of wanting to
help others. I have made really good
money for not much work because this particular company is very generous! I can also make myself do the work.
I still wouldn’t do another company. If I ever stop talking about the company, I’m
with I won’t be switching to another.
It’s not easy to do this kind of work.
But it is SIMPLE. So if you can
handle the cons, and the pros apply to you- Network Marketing may be a good
place for you.
Subscribe to my email to learn more about the business I
work with and how it’s structured!
Blessings in Health and Happiness!
No comments:
Post a Comment