The Truth About Network Marketing


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The Truth About Network Marketing

  1. 1. ==== ====Powerful internet marketing Check out this site: ====Network Marketing (also known as MLM) is sweeping across the internet. Each month tens ofthousands of people worldwide begin their first attempts at earning money online through networkmarketing programs. But is network marketing for real? Is the internet the key to networkmarketing success? In this article we will pull back the curtain on network marketing online so youcan see how it began, how it works now and whether or not true success is actually possible.First, lets consider the network marketing method itself. Some people think MLM is a scambecause you usually have to pay a little something to get started whether it be buying the productyourself or buying a kit or website fee. Some people call it a scam because it emphasizesrecruiting others to sell/consume the products in addition to selling them yourself. Most of thepeople I know who call MLM a scam do so because at some time someone tried to convince themthem they would get rich by joining their company. They were led to believe they would make easymoney by simply "sharing the plan" with others, who would share it with others, etc. and thenmoney would just flow in. However, once they joined they found out MLM is really just anotherform of sales that requires a lot of work and patience they felt betrayed the business wasnt morehonestly explained to them. Rightfully so, because honesty should be at the foundation of anyrecruiting efforts but often is not. However it is erroneous to consider a business opportunitydishonest simply because it requires selling and work or because the person presenting it wasdishonest to you.It always amazes me how quick people are to call something a scam because they dont makemoney at it. Sure there is plenty of dishonest junk out there but if a marketer does his/her researchproperly up front they will be better prepared to recognize a scam. The ugly fact is that ANYbusiness will COST you money to start. Ugly fact number two is that ANY business will cost youmoney to maintain. Most MLMs will have an initial cost to get started, whether it be buying theirintroductory business kit and/or monthly product or service purchase. Often with MLMs there is amonthly fee for your personalized company website or web store. Even free opportunities, likeaffiliate marketing will cost you something to market. Be prepared to spend some money beforeyou will see earnings.Too many people online are looking for a quick score. The truth is many people are so desperatefor money they fail to see (or ignore) the flaws with something. They need money, they want it fastso they take stupid risks. Just look at how many people are still falling for the latest incarnations ofthe Nigerian e-mail scam even today. Then when these people do finally join a legitimate programthey get all upset when they dont see instant cash flow or heaven forbid, it actually costs themmoney! They dont seem to understand there is no free ride. You have to do the work and youhave to spend some money before you will see results, plain and simple. The important thing is tokeep your spending managed and learn to maximize the results for the dollars you spend.
  2. 2. Now lets take a closer look at internet based approach to network marketing.The advent of the internet certainly did open up a whole new marketing channel for the networkmarketing industry. At first MLM distributors started building their own websites to recruit or marketproducts. Eventually all the major companies began to provide their members with replicatedwebsites so every distributor could have an internet presence. Usually the intention of thesecompanies was to provide a convenient way of providing information or allowing online ordering tosupport the distributors offline efforts. No longer would a member have to physically pass outbrochures or audio recordings to offer more detailed information to their prospects. Now they couldjust send them to the company website to learn more, order product as a customer, or even signup as a distributor themselves. In time what began as a support tool for offline effort became formany a total online business marketing system.While many of the grand old companies of MLM still primarily cater to the offline marketing face-to-face approach others have embraced online marketing and have moved their internet approachbeyond just being a support tool. Some companies remain locked into the old-school methods andare highly restrictive of the online marketing efforts of their members. Such companies continue toinsist that network marketing is inherently a face-to-face social marketing method that should notutilize the internet as the first line of approach to prospects. Perhaps that is the primary reasonwhy MLM companies began referring to Multilevel marketing as network marketing (referring toselling to ones social network) a few years ago. Factor into that a lot of people hate direct sellingand the negative perception some people have of multilevel marketing and you can see why thebig change in terminology. However even if these companies hold that MLM must involvemarketing to ones social network cant a persons social networks be built or cultivated online?Isnt that the whole concept behind all the major online social networking sites so popular today? Ibelieve any company not taking full advantage of web marketing by providing their members withinternet marketing training and resources is doing a serious disservice to their business and theirmembers.Enter the internet based MLM companies...As the internet grew and savvy entrepreneurs began to see the potential of online marketing, totalinternet based MLM companies began to spring up everywhere. Imagine being able to have all thecompensation advantages that MLM offers without the rejection of face-to-face selling thatdestroys so many people in the industry. It seems to be a marriage made in heaven, as they say.Now nearly every business opportunity online has an MLM payout structure of some kind. Ofcourse many of these still fail since anyone who can afford the software can start an MLMnowadays. Few operators of these grass-roots start up companies have the experience orresources to build anything of lasting substance so potential members need to be selective in whatthey chose to join and promote. Other operators are just plain scam artists who never intend tolast beyond their fleecing of the masses as quickly as they can for as much money as they can. Ofthose legitimate companies that so survive attrition continues to be the bane of the industry,however.Personally I like the whole idea of network marketing companies totally internet based. There area lot of advantages here. Since many of these companies promote products that are digital orservice oriented the overhead for the company is much lower and product management simpler.Additionally such products offer the option of international expansion for the company as the
  3. 3. complications of shipping and monetary exchange is all but eliminated. For the member this allowsfor international recruiting and less reliance upon the strength of a single nations economy forsales. Also since these companies are totally internet based they tend to be better at providingmore online marketing tools and resources for their members than the older traditional productbased companies. The problem with such business opportunities of course is new members oftendrop out because their expectations for fast income arent met or they find they are unable tocompete online with internet gurus who quickly saturate the web with the replicated web pagesthese companies offer.Internet based network marketing is not easy even when you have a website or marketing systemalready in place for you to plug into. But then again no form of internet marketing is as easy as thegurus would have you believe. The advantages however and the potential for an ever increasingrecurring income keeps me interested and involved with online MLM. While the standard approachto internet marketing is generally reliant upon making a single sale for commission, MLM offersongoing residuals. Typically online marketing requires you to constantly research and test newproducts whereas online MLMs have plug-and-play products and services already researched andpackaged. Usually when marketing if you find a good product that produces a decent income foryou, you need to keep it a secret or everybody will jump on it and compete with you, but MLMrewards you for telling others about your product and the best way to market it. Get the picture?One little known secret of many of the the more famous internet marketing gurus is theirassociations with MLM companies. When I first became involved with internet marketing Ipurchased tons of guru courses and e-books. Most of them were about making big money onlineby being an affiliate for digital products others had created. I wondered how anyone could sustaina sizable income just making one-time sales of e-books. In my own experiences I found that oftenit will cost more to market such products than you earn on them. So how did these guys and galsdo it? So I began to dig.Firstly, I found that the movers and shakers in the internet marketing industry had not only self-produced multiple products of their own, they had set up affiliate programs so others would incurthe expense of marketing their products for them. Do you know what the highest selling digitalproducts are? Its downloadable products (e-books, videos, etc.) about how to make money on theinternet. Such books are produced and promoted by these same gurus, who themselves areaffiliates of other gurus make money online products.Secondly, I discovered nearly every one of them were major earners in network marketingprograms (and often they are in several of them). This association with MLM companies providethem with a steadily growing ongoing residual income separate from their other marketingventures. It also provided them with an ever growing list of people they could carefully cultivate forpromotion of their other ventures and products.Finally, theres the list. Whether they advertise a new digital product or an MLM program theybegin by announcing it to their list of email followers. This is BIG as it positions them to makemoney almost instantly by just sending a promotional email to their list subscribers. Its fascinatingto see how quickly a guru can become a top leader in a new MLM practically overnight.So the bottom line of all this is, like it or not, network marketing online is a very real way to a longterm income online. Other forms of marketing on the internet are certainly valid but few will offer
  4. 4. the residual pay or long term potential as MLM. That is why I include MLM opportunities in mypersonal business portfolio and encourage others to do so as well. Of course there are somecautions and potential pitfalls to these programs so you must be selective in the companies youchoose to associate yourself with but suffice it to say MLM is here to stay and should beconsidered as a part of any internet marketers business plan.Ernie J. Geeting is an internet marketer and writer. He loves helping people to experience moresuccess in their lives. You can see his blog and get free access to an internet marketing GettingStarted course at http://earnonlineincomenow.infoArticle Source: ====Powerful internet marketing Check out this site: ====