[Question] Network Marketing

[Agelfreedom]

Hi All

I am new to the forum.
I have been involved with a number of the larger retail institutions as a merchandise planning/manager and left the corporate world a year ago to open a business with one of my colleagues.
We now supply one of the major chains with footwear. We have been trading for around a month, and it has been pretty positive. I took the risk and its seems to have come off.

I was also introduced 3 weeks ago to this new product and opportunity in the network marketing field that i thought was brilliant. It is a great concept and an excellent product, and most importantly it is new in South Africa, so great potential to grow.
The problem is no one i have chatted to seems to share my enthusiasm or optimism. Why is this? Is network marketing such a bad thing?
I still am optimistic, maybe i have been talking to the wrong people? It also seems like a have a contagious disease when i bring the network marketing concept up???

Just want some input and the general feeling and views about this!

Thanks

D.

[Karenwhe]

Hi Agelfreedom,

I think you hit the nail on its' head. MLM is some what of a dis-ease.

Its roots are not so healthy in terms of peoples perceptions. Without going into the whole history, too many people that were not supposed to ever join an MLM or EVER own a business for that matter have been conned and convinced into MLM by friends and family.

I wrote once an article about this explaining exactly the reasons behind this, and what really MLM is when to take all the nonsense out of it. Amongst other thing I do, I am in a business that is multi-tier direct marketing (you can always call it MLM), but funny enough, I don't care about the MLM part of it (in other words sponsoring anyone) but only the services that are sold to the clients.

I have background in direct marketing and for me, if it is multi-tier (e.g. downline/upline) or not it is irrelevant to me.

If you want to be in MLM or not, if you got a product that sells you can sell it, if people want it they will buy it. It is as simple as that, stop worrying about the downline / up line and the rest of the stuff and get products and services sold and you will make money no matter how you wish to look at it.

Occasionally you will come across people that will want to also sell that product or service then you can "sponsor" them and they will do well. Simply because they want to do it - not because someone convinced them to do it.

MLM focuses far too much on dragging people into a business rather than just selling products and services that people really, really, really WANT and making a fortune along the way.

In short, I know and have seen many business people that miss massive opportunities simply because they have discomfort and dis-ease with certain words in the marketing world like MLM, direct marketing, network marketing.

If I was to guess the probabilities of the future, I would go so far as to say that if you give it long enough people will also have dis-ease with affiliate marketing. Because milti-teared affiliate marketing is pretty much like MLM like in smaller scale and right now too many people are being sucked into affiliate marketing to make an online living that in my humble opinion do not know what they are getting themselves into.

Later down the road if they get distaste from it and disillusioned with it, they will also say the same things they say today about MLM.

In short, start selling products that people WANT if you are good at direct marketing (which by the way is MLM and an organization should be a member of the Direct Marketing Association - DMA if they are doing a successful and legal MLM).

Forget about the "sponsoring" side of MLM, along the way you will find people that are interested in the business, in the mean time if the product and service is good you will make money and that counts to the bottom line.

Hope this helps.

[Dave A]

I think you've hit a crux test for a "healthy" MLM program, Karen. There should at least be a reasonable living in moving the product through retail or direct sales. Maybe I should go into exactly why I stopped my MLM activities one day, but that lay at the core of it.

If I was to guess the probabilities of the future, I would go so far as to say that if you give it long enough people will also have dis-ease with affiliate marketing. Because milti-teared affiliate marketing is pretty much like MLM like in smaller scale and right now too many people are being sucked into affiliate marketing to make an online living that in my humble opinion do not know what they are getting themselves into.

I remember so well a guy who absolutely ripped into MLM and their marketing techniques in an e-newsletter, and in part two of the same mail was promoting a storm for Insider Secrets, complete with affiliate link. I was going "What's the difference?" Pretty relieved to see someone else who sees the similarities.

A question, though. Just what style of affiliate programs do you see as a problem?

To me these rent-a-clone online supershop deals have the potential to generate some problems down the line, but pay-per-purchase deals are just a variant of PPC and PPV advertising programs which are generally considered perfectly acceptable.

[Karenwhe]

I have never done MLM, or Network Marketing to be quite honest, but I have been in direct marketing. I am doing now multi-tiered direct marketing with Phonet.

The problem is not with the affiliate programs nor with MLM nor with Network Marketing.

The problem is with people convincing people about results, what people believe and what people are sold.

Any direct marketing, MLM, Network Marketing or Affiliate Marketing can and will work extremely well if people are:

1. Not forced to join (usually by friend and family and harassment until the give in)

2. The right people do the business that understand business

3. They have a product that people WANT.


The emphasis is on WANT not Need.

There are simply too many people that are told that the products "sell themselves" because people need them.

Lets face it, people need a whole lot of things that does not mean people WANT them. We all NEED supplements, but we do not all WANT them.

The last problem is with the convincing that this is for everyone. Sure it is, if the person knows and understands that it is a business and does not expect results that are not realistic. If the person is not sold the "jack pot" and understands that it needs work.

So the problem is with peoples perceptions and then usually with th products that they tell people will "sell by themselves".

Trust me, nothing sells by itself. Therefore you need real business people to do the work. And you won't get real business people to do the work if you try to convince people into stuff it is not for them.

That is my opinion of course.

I personally never liked MLM because I saw more opportunity in business without the necessity of MLM or Network Marketing.

The only reason I am doing now multi-tiered direct marketing for one service is because there is NO other way for me to provide this particular service, it needs a massive company behind it and the service is something people WANT.

So, I put two and two together and it made sense. Otherwise, I can buy dog food at Pick n Pay I don't need a network marketeer to sell it to me. If you know what I mean.

Hope this helps.

[wynn]

My experience with MLM is that the more successful you become the more stock you have to buy to supply your downline.

The only way to realise monetry value from your hard work is to stop ordering and wait to be paid for all the product distributed in your downline.

Unfortunately you have to start all over again if you wish to earn some more because by then there are large gaps in your downline as they are doing the same liquidation thing as you just did.

[Karenwhe]

Wynn I completely agree. Though some MLM do drop shipping and since we are talking about drop shipping and if you know how to do drop shipping very well and sell very well you don’t really need MLM.

The only time you would need MLM is when you can’t possibly find GOOD suppliers to sell something that people WANT without MLM.

Second reason I never did MLM is in your last sentence.

Unfortunately you have to start all over again if you wish to earn some more because by then there are large gaps in your downline as they are doing the same liquidation thing as you just did.

If you want to sell something that will ensure success in your future, especially if you are like most people and want to optimize life to the max with least effort, sell something that does not need re-ordering ever.

That is the “secret”. You sell it once and it is used over and over and over again, just like water and electricity in your home. Think about it .

[cathi1]

Hi All

I am new to the forum.
I have been involved with a number of the larger retail institutions as a merchandise planning/manager and left the corporate world a year ago to open a business with one of my colleagues.
We now supply one of the major chains with footwear. We have been trading for around a month, and it has been pretty positive. I took the risk and its seems to have come off.

I was also introduced 3 weeks ago to this new product and opportunity in the network marketing field that i thought was brilliant. It is a great concept and an excellent product, and most importantly it is new in South Africa, so great potential to grow.
The problem is no one i have chatted to seems to share my enthusiasm or optimism. Why is this? Is network marketing such a bad thing?
I still am optimistic, maybe i have been talking to the wrong people? It also seems like a have a contagious disease when i bring the network marketing concept up???

Just want some input and the general feeling and views about this!

Thanks

D.

Hi there

I have been having exactly the same problem with the business I am involved in - I also totally believe in the product, have seen the results myself but am not sure how to get people to share my viewpoint. Let me know if you come up with anything interesting.

Take care
CATHI