What we do: The facts
The opportunity we found was a health product that we love, which is distributed by network marketing. At the time, we had no idea what network marketing even was. Now we realise it's such a BETTER WAY of life.
If you're thinking of getting involved in network marketing, you need to do some research to get the right opportunity for you. Hopefully we can help with that! Let's start by dispelling a few myths and correcting some common misconceptions.
GOOD & BAD THINGS SAID ABOUT NETWORK MARKETING THAT ARE LIES
BAD THINGS THAT ARE LIES
Don’t confuse the network marketing industry with pyramid schemes. Pyramids schemes ARE scams and have been illegal in the UK for decades. Often in these schemes, people were paid to recruit distributors for non-existent or useless products. Some people were left with nothing but debt, others with a huge amount of stock which they couldn’t sell. On the other hand, network marketing is a legitimate, regulated industry which distributes products by recommendation & word of mouth. Companies that distribute products through network marketing, pay distributors for recommending new customers to their products. The companies pay distributors with money they save by not having to pay for endorsements, advertising and massive retail costs. With the advent of social media, in particular, network marketing has become a much more efficient way of getting products direct to the consumer.
The network marketing industry has been around since the 1930s and is now worth an annual $167bn, of which $185M per day is paid to distributors in commissions.
Unlike traditional business hierarchies, some of the people at the top of network marketing aren’t making very much money and some of the people way, way down the structure are making fortunes. The difference between the more traditional business hierarchies and network marketing is that in network marketing, ANYBODY can make a successful business and make it to the top level – irrespective of background, education, qualifications and time in the company.
The person who signs up a distributor DOES earn some commission from any orders processed by the person they sign up to the business. This commission is a reward for finding and mentoring a new recruit. Most times, the person who processes the order receives far more commission from that order whilst the person who recruited the distributor gets a much smaller amount. The secret to earning big money in network marketing is to build a big team of distributors, each with many customers. That way you get paid a small percentage A LOT OF TIMES!
Again, this varies from company to company but the one we work with has a franchise fee of just £50 and no minimum order quantities, no stock to buy, etc. In order to make profit, distributors need to get £50 in commission. Many, many people do this in their first month.
The maximum you can “lose” is £50. And that is if you do nothing!
Many people who fail in network marketing blame the company or the product or the industry. Often it is more the lack of effort, ambition and direction of the person themselves that is to blame.
If anything, signing up in the early days of a network marketing company is a bad thing. Around 50% of new companies fail in the first five years – and network marketing is no different. Our advice is to choose a company with heritage, a track record of success and established, relevant products with a broad target market.
Most network marketing companies have a presence in many countries around the world. When the world is your marketplace and the internet allows you to access that marketplace, your potential customers are EVERYWHERE.
GOOD THINGS THAT ARE LIES
Only failure can be guaranteed, if you quit!
Success comes as a result of working on the right things consistently. A successful mentor should be able to teach you the best way to success. Replicate what the successful people do and you’ve got a much better chance. Many people fail. That’s not down to network marketing, it’s down to them not trying hard enough, doing the wrong things or giving up.
Whatever the network marketing company, if you sign up and do nothing, you’ll get nothing. That’s the beauty of network marketing, you get what you deserve. Put the effort in, get results, get paid. Better results, better pay.
It can be done, but it’s rare. The highest earners in network marketing are there because they’ve been consistent and have done it for years. Some a few years, some many years. Think about it though. If it takes a few years to become successful and to be your own boss and own your own life, that’s better than spending decades is a regular job, making a company more money, right?
The first few years of working hard, the pay can be good but if you stop, your business will slow down. After years of doing the right things consistently, of attracting lots of customers, lots of distributors and creating independent leaders in your team, there may come a point when your business grows with or without you. That’s beach money, a growing business whilst you relax on the beach!