Is Network (MLM) Marketing Evil?

Posted on March 26, 2008
Filed Under Income |

Everyone loves to hate Multi Level Marketing (or Network Marketing) schemes. I remember back in the 70s when I was invited to a party that turned into an Amway presentation. Talk about leaving a bad taste in your mouth. Ugh.

But are they all really bad? There are a host of Network marketing companies that are well respected and sometimes even household names. Who hasn’t heard of Tupperware? And I bet most households even own some. What about Mary Kay? Again, it’s a very common and accepted product line with well respected products.

One of my alternate streams of income is from a network marketing organization. I made over $1000 in bonuses last year with very little effort. I had two in home presentations all year and did not even try to convince any of my friends or family to sign up as distributors.

Forget for a moment all the slick, negative and outright dishonest tactics that have been used by some companies in the past, and let’s look at the theory behind network marketing. When a company comes out with a new product, they spend millions of dollars promoting and marketing it to the general public. Even products that have been around for awhile are constantly being marketed for millions of dollars on tv, magazine and newspaper ads.

It has been well known among marketers that the best advertising is word of mouth. You like something, you tell your friends. You hate something, you tell more friends. That is why companies have been adding those annoying little surveys at the end of every phone call.

In theory, Network Marketing takes the millions of dollars that would be spent on advertising and marketing and puts that money where the mouths are. They give it back to the people who actively promote the products. Sounds like a great deal doesn’t it?

What Network Marketing isn’t is a get rich quick scheme. If someone is telling you that you can make $5000 a month with little or no effort, it’s a lie. It isn’t going to happen that way and that’s why Network Marketing gets a bad name.

Is it possible to make $5000 a month? In most network marketing organizations, yes. If you put as much effort into your “business” as you would put into a job, it is possible. I know people who have done it but it does take work.

If you are considering a Network Marketing business, there are a few things you should consider before you jump into it. Check out the products. If they are food supplement or food related, do a search on google and put Name of company + FDA. You will get a list of any complaints that have been listed with the Food and Drug Administration. You can do the same thing with FTC and get a list of any complaints that have been registered with the Federal Trade Commission.

This simple search will tell you quite a bit about the reputation of the company before you get involved. You will also want to find out how long they have been in business. Most importantly of all, try the products. Make sure that they are something that you believe in and will stand behind and that they give value for the price.

My own personal belief is that the products should sell themselves and when people use them for a period of time they may choose to get involved. My main method of marketing is called the Remote Control Simple System and it consists of sending out a flyer or postcard every month to about 100 people. I don’t ever bring it up unless they ask me about it and even then, I only give them the information they request.

Overall, I think that MLM or network marketing is a legitimate consideration for an alternate stream of income if the company is chosen with care and your business is run and promoted honestly. As with any business, you will get out of it what you put into it. I put about 15 minutes a day into mine and earned $1000. I think that is a pretty good return on my dollar.

Help keep me awake to write by buying me a cup of coffee! .

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Comments

9 Responses to “Is Network (MLM) Marketing Evil?”

Canny Granny (3 comments.) on March 26th, 2008 9:39 pm

This post (which I get by email from your feed) went straight to my s p a m folder. I have had to add you to whitelist again. It must be the title that my filter picked up
CindyS on March 27th, 2008 5:09 am

Hmmmm. Must be the title. I was trying not to be spammy. That’s why I didn’t put the name or a link to the organization I am with in the post. I was just looking at my income and determining where to best put my efforts.
Rachel @ Master Your Card (6 comments.) on March 27th, 2008 7:49 am

What a great article. I must admit that I normally run a mile when I see MLM but the way you have explained it makes it seem to be something that anyone can have a go at - you don’t need to be a pushy salesman.
CindyS on March 27th, 2008 2:10 pm

Rachel, I am soooo far from a pushy salesperson it is not even funny. That said, I love the products I sell and wouldn’t be without them and some of that enthusiasm does show through.
Lindsay (17 comments.) on March 27th, 2008 5:31 pm

Hmm, interesting idea to think about. Thanks!
LeisaWatkins (1 comments.) on March 27th, 2008 8:34 pm

I think Network Marketing is a very legitimate form of business. It’s just the bad experiences and a lack of understanding about the industry that leads to the bad taste in people mouths.

Network marketing truly has changed our lives. It has been a major blessing to our family. Now I know that isn’t always the case. We went through quite a few negative experiences. But then have had the most wonderful experience.

As you say, the advertising medium is the people. I’d rather hear about something from a person I know and trust than a faceless corporation or advertisement. I think it is brilliant marketing.
Slacker (1 comments.) on March 28th, 2008 12:54 pm

I don’t like MLM’s. One of my friends is seems to always get caught up with one of these things and always tries to rope me in.

No matter what the pitch is it always ends up costing her money without her making any money.

So far she’s done the travel agent thing, the beauty supply thing, the kitchen product thing, the automagic website thing, on and on.

Anytime the how’s and why’s about getting paid are complicated you should be wary. There is no get rich quick, just pyramids with a lot of people who will hold the empty bag at the end.
CindyS on March 28th, 2008 1:12 pm

Slacker, I would agree with you that a lot of people get involved and don’t make money. They end up quitting early. That’s why I think it’s really important that you use the products for awhile and make sure you think they are good value. I would also agree that there are some MLM scams out there.

But, you have to realize that network marketing is like any other business. There is a very high percentage of new businesses that fail within the first year for whatever reason. That doesn’t make starting a business a bad idea. It just means that you should probably expect to not make a living from it for the first year or two.
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