Posted on July 20, 2008 - by Jeffrey

Should you ever try Network Marketing?

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If you are really in business then you must of herd of something called network marketing. Probably one of the first and most popular companies in this space was AMWAY, you may have herd of them on TV or even in some movies. For instance the Movie “GO” had a scene where the policeman and his wife were trying to convince the gay actors to join the company under them, among other things.

What is Network Marketing?

It is commonly referred to a pyramid scheme and most of them are, even if disguised as something else. The concept is simple. There is usually some sort of product or system that the company pushes as this new niche which is only available to them. I call this part the story, “our founder worked under some of the top ____ for years and now he has started this opportunity to allow you as an individual to get in on the action”, Right…

Then they tell you the breakdown on how you will make money. This is the real pitch of the opportunity and it always looks like a sweet payoff. There are many different ways to join, sometimes there is a fee other times you just need to become a customer. Whatever way you look at it, they are asking you to give them something to join and this is where they make the money. You will be told that the real money is in you becoming a successful distributor, in most cases this is false. This type of business organization relies on more and more people being a part of it to build it up. Getting people to join is the main focus of activities (with their weekly feel good meetings) and putting these people under them is where they get the residual.

It’s quite smart actually, they are selling the dream and all you have to do is get someone to believe it after you fell for it. As humans, we tend to justify our actions once we have taken them, like in a negotiation, no matter what happens we tend to agree with our choice as a way of feeling like we made the right decision. You bought the dream, why wouldn’t someone else?

Can you make money though?

The answer is a simple Yes, but at what price? This is the main problem I have with Network Marketing. You can make money with Network Marketing but it will usually cost you some friends. If you are constantly pushing people to join something (because that’s what they tell you to do) then your friends might just turn the cold shoulder on you. Not to mention the fact that Network Marketing has a huge negative reputation.

The only people who usually make money in these organizations are the ones who devote their entire life to it. I am talking about the person who you bring out to a social event and ends up pitching all your friends and making you look weird. The best example I can give is from the movie “Garden State”, they are in the hardware store to return something on his last day in NJ and they are approached by the weird guy who wants to talk to them about an “opportunity”.

Would I recommend Network Marketing?

Surprisingly my answer to this question is Maybe; not for the making money aspect though.

The only reason you should ever try network marketing is if you are shy and have a problem talking to people and being rejected. It is a business that allows you to see and feel the rejection of starting a business real quickly. You can think of it as a test on how well you can handle people telling you your ideas suck or are garbage. I know that sounds harsh, but it’s a normal part of being a business person and a lesson you will eventually learn anyway.

In closing:

I have tried a few Network Marketing companies when I first started out and these are my feelings towards the industry. While it may work for some people, true business people would only be in Network Marketing if they were the ones creating the company (network). I see Network Marketing as more of a religious cult type business and it kind of creeps me out.

On the other hand, if you need some good rejection to toughen up your skin for the real business world, it can be used as a tool to help you get past this.