Multilevel Marketing: Scam or Not?

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First of all, let’s establish one thing. If there is something genuine, there will also be a fake. The opposite is also true – if you someone is being conned, it’s because there is some believability to that thing. And believability is derived from truth or fact.

I want to address Multi-level Marketing, otherwise known as Network Marketing.

Some people say it’s a business and some say it’s just a scam and they have their reasons for saying so. I won’t attempt to elaborate too much on this and will get straight to my point. I will be speaking from my own experience as a network marketer.

Network marketing is indeed a business model that has some unique principles. One of the core principles of this type of business is that it is, in the words of Robert Kiyosaki, a consumer-distribution business. Most network marketing companies call their associates “distributors” but actually they are first and foremost consumers/customers of these companies’ products and services.

The second principle of network marketing is duplication. I learnt this one from Mr. Randy Gage. The business is really about show and tell, about sowing and reaping. Whatever you want to see in your business, you will need to model it and break it down to bite-sized chunks so that anyone on the team can do it as well as you or even better.

Thirdly, Kiyosaki called it a personal franchise business. By this I understood that as a person,one has to develop a business system (or use an existing one) to move products and services to the customer first, and having done that successfully, pass this success down to others.

So, making real money in network marketing is actually about offering leadership. Mr. Gage called it a teaching business.

Any network marketer who tries to circumvent these principles, will end up being a perceived as a scammer. If you’re a network marketer and you don’t want to end up a scammer, here is my candid advice:

  1. Make sure your company has a track record of integrity and that its management team have a track record of successfully building network marketing businesses before transiting to the corporate side.
  2. Ensure you join the team of someone who has proven integrity (i.e. your sponsor).
  3. Massively use the products and services of your company i.e. be your best customer.
  4. Share (i.e. promote) the products or services of your company and stick to the system taught you by your (trusted) sponsor.
  5. Only sign up a person if you are committed to mentor them. If you don’t do this, they will fail and you moight be accused of scamming them.

Of course, negative people won’t see any good in any business regardless of what you do. Pay them no mind – just make sure that you doing what is right for people always!

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