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Companies that fall under the Multi-Level Marketing umbrella are sprouting up like weeds every day.  They  have a ridiculously bad reputation in the business community.   Over the years I’ve been heavily recruited by several network marketing entities.  I’ve been told that I fit the bill as a “top performer”.  I’m  athletic, intelligent, articulate, I can spell my name backwards, and my soon to be fiance thinks I’m oh so dreamy!

In my efforts to be support friends and/or be open minded I’ve exposed myself to 4 network marketing environments.  Fortune Hi-Tech Marketing, Acai Berries, YTB Travel Agency, and another that was too ridiculous to remember.  I’ve never invested in one and its highly unlikely that I ever will.

People who have been burned directly or indirectly consider network marketing the sinister half brother of Satan.  Fortunately, I’m not on that ship.  What follows is a synopsis of my likes and dislikes with regards to the network marketing industry.

Things I Dislike About Network Marketing

Dishonesty

Few things in life make me angrier than when someone looks me in the eyes and tells me a lie.  Especially when that person extends his/her hand to me for a partnership.  I’ve had 2 particular instances in which I’ve been swindled into a network marketing pitch session.

In a previous life I was a business analyst at Home Depot.  After much consideration I decided to establish my own business and leverage my public speaking talents full time.  In my last days at that company a friend invited me to lunch.  I trusted this person so I assumed it would be nothing more than a goodbye lunch.

How can I say this and be nice about it?

I was wrong.  During my lunch hour I was treated to a diagram, a pamphlet of material about miracle juice, a kindergarten like look at financial freedom complete with squiggly line, and the “heavy hitter” in the room showed me his tax return.  That’s a nice lunch if I say so myself.

A few weeks later I attended a networking event for professionals in Atlanta.  Several interesting people were introduced to me that night.  During the normal course of networking I was handed a business card with a $100 bill printed on the outside.  The person who gave it to me wanted to connect the next day to discuss business.  Being open minded and friendly I accepted this invitation.

The next morning I researched the organization.  Turns out that it was an MLM company! I didn’t fret because I am always open to training MLM clients.  My goal was to make this abundantly clear to him.  We set a meeting time and connected later on that week.  For 2 hours we discussed his business, the needs of his subordinates, and how I could help them with their presentation skills and motivation to thrive in their own business.

A few days later I am invited to attend a meeting.  Naturally I assumed we were meeting to further our relationship.

Once again I was wrong.

I was treated to the standard network marketing presentation.  They explained how their model brings in truckloads of money, they provided testimonials from people who had made truckloads of money, and then again they reiterated the fact that I could bring in my own 18 wheeler full of money.

When it was all over the person who invited me turned and said “Dude, I think you would be great at this”.  I exhaled softly, counted to 10, and proceeded to explain that I had other obligations.  He persisted in his stance and I persisted in mine.  The conversation and possible partnership ended with us going separate ways.

Recruitment Techniques

Lets be realistic for a moment and I mean very realistic.  In network marketing you need to leverage several people.  In most cases that means one or more of the following:

1. You are incredibly well connected when you join
2. You posses a hardcore salesman’s mentality
3. You are comfortable with MASSIVE amounts of rejection and generally negative attitudes about what you do
4. You possess the business acumen to leverage the experiences and know how of other people

The majority of the people in those meetings don’t possess these skills.  These skills can be taught.  I’d imagine that it is difficult to learn and be patient when you carry around a card with a $100 bill on it.

Social Proofing/Pressure

I’m not one for hour long high pressure sales pitches.  If you can not make the point in 5-10 minutes, then I don’t need your product.  The pressure in network marketing meetings reminds me of the high school cafeteria.  I’m always waiting for someone to say “All the cool kids are doing it, what’s your problem?”

Things I like About Network Marketing

I’m not 100% against network marketing as I believe it is rich with potential benefits.

Exposure to Business Ownership

There is not a man alive who has not daydreamed about owning his own empire.  Books like Rich Dad Poor Dad, Millionaire Mindset, Instant Millionaire, and the nearly 40,000 other millionaire books drive our desire to attain more.  Unfortunately, there is no popular TV show or book that talks about the realities of business ownership.

Starting an MLM business quickly exposes a person to what the world of business is all about.  For $299 and $40 a month you can experience the pain and pleasure that others have sacrificed their lives for.  There are countless examples of much more costly and disastrous business endeavors.

Freedom to Earn Income Based on Your Effort

A great job is typically defined as one that pays a good consistent salary.  From a security standpoint this is great.  You can rest easy knowing that your paycheck is coming…regardless of your work quality.  In network marketing (or any other business for that matter) you have to produce in order to be paid.  This alone can inspire and invigorate creativity and savvy in a person that will otherwise goes untapped.

Provides an Opportunity for Success

Some people lack the creativity and discipline needed to see a business through to success.  Network marketing presents a pre-defined framework and system that can work for a person.  For that fact alone, I tip my hat to the creators of that universe.  Any venue that provides hope for a better life has my support.

Conclusion

Network marketing has always stifled me.  In my left hand I hold a strong dislike for their deceptiveness, recruitment tactics, and  the social pressure they place on people to join.  In my right hand I hold admiration for their ability to place a business system within everyone’s reach.

If I could wave a magic wand the network marketing community would do 2 things:

1. Be upfront about their business to new recruits
2. Invest in sales and public speaking training to drive a higher success rate for their recruits

So there you have it.  My unbiased impression of the network marketing environment.

written by Marcus A Smith \\ tags: Network Marketing