Exposing 7 Top Myths and Misconceptions About Network Marketing
"Everyone who wants to be an entrepreneur should take a look at a network marketing business. Some of the biggest Fortune 500 Companies, such as CitiBank, Avon, Levis, and Smith Barney, distribute their products through a network marketing or direct sales system.
Chances are, you have been approached by a friend or family member encouraging you to try a new product they’re selling.
Did you immediately shut them down? Or worse – avoid them completely?
If you think about it, it’s an odd response – especially if they are a trusted family or friend. Would you react with the same apprehension and abruptness to anyone else in sales?
That is why I wanted to clarify some common network marketing myths and share the surprising realities.
A Pyramid Scheme Paradox
This is one I hear a lot. That network marketing is a pyramid scheme. But there’s a distinct difference between the two.
- Pyramid schemes focus on recruitment fees without genuinely emphasizing products or services.
- In contrast, legitimate network marketing involves the sale of tangible goods or valuable services, with commissions earned through sales and team building.
The Top-Tier Triumph
Contrary to popular belief, success in network marketing is not solely determined by one’s position in the hierarchy. Just like any business, leadership has its advantages. The key to success is like most jobs – hard work, effective sales strategies, and the ability to build and lead a team is necessary to advance, grow, and learn.
Get-Rich-Quick Scheme
Success in network marketing is just like any sales or commission-based position. You need to be dedicated, persistent, and have a desire to improve continually. They are not a get-rich-quick scheme. Any sales or commission position takes genuine time and effort.
You should be very careful if ANY business promises you instant wealth – network marketing or otherwise.
Recruitment vs. Product Sales
Legitimate network marketing companies prioritize a balance of product sales and recruitment. If you look at any business, they recognize that sustainable success requires balancing team growth and moving quality products. Any company that neglects product sales in favor of recruitment should raise red flags.
Legal Clarification
We hear about shady and illegal business practices in all industries and professions, yet we don’t paint all similar businesses with the same brush. It’s important to understand that network marketing is a legal and established business model. However, bad actors within the network marketing industry – and every other industry – who engage in unethical practices have contributed to a negative perception.
I can’t emphasize enough that when looking at working for any company, we must make an informed decision. That means doing research. Choosing a company or employer with a solid reputation, ethical practices, and genuine products or services.
Only Introverts Allowed
Many people assume that network marketing is only suited to extroverts. But the reality is with both network marketing and any other sales-based position (see the pattern?), introverts bring valuable strengths in this field. People buy from people they like – not those who intimidate them. Self-described introverts succeed as they often appear authentic, good listeners, and thoughtful communicators. The diversity of personalities within the network marketing community – and any sales position, enriches their industry.
"Network Marketing isn't for everyone. But if you have an entrepreneurial bone in your body, it's certainly better than other ways of getting into business for yourself."
The Pricey Product Perception
Often, there’s this perception that the pricing of products in network marketing is high. But look around! You can find low and high-priced versions – and everything in between – for any product. It isn’t restricted to network marketing.
Like all manufacturers, several considerations go into determining their retail costs. That includes evaluating the value, uniqueness, quality, commissions, bonuses, incentives, and customer support offered by the company. That’s the key to determining the worth of any product – network marketing or otherwise.
We must understand the true realities of network marketing.
No matter the business or industry, valuable employees, revenue, and profits are essential for being sustainable for everyone.
So, we can purchase from a big retailer, where the owners, executives, and managers reap the rewards. Or you can have an open mind next time your trusted friend or family member wants to talk to you about a product they love. You might just love it too!
Want to know more?
If you’re interested in finding out more about Network Marketing as a side hustle, check out the 7-Point Checklist to see if this type of side hustle is right for you.
