Network Marketing - 4 Reasons Why They Have Such A Bad Reputation

Why is it that businesses which pay other people to sell their product to friends and family have such a bad reputation when marketing experts agree that the most powerful advertising out there is word-of-mouth?

Well, as I and others have observed in the last twenty years in the industry, there is a trend that very well may be causing this bad wrap, if not at least a major player in contributing to it.

I call it DEFAULT.

This is something that has been experienced by us all in the industry. We get into a program and set it all up just right. What a blessing it is! We have money coming in that we never knew possible. The birds are chirping and the blooms of the day fill us with awe and wonder. The, suddenly and without warning, everything diverts back to DEFAULT. Storm clouds close in. Appointments are missed, all decisions are delayed, hours are lost, emotions run on high, and a ton of other things go wrong. Simply because of DEFAULT.

Nearly all businesses run on the pyramid plan-not just MLM types. At the top is the CEO, the president, the great leader. He or she has a few trusted associates who help run the show. These operate at the second level of operation, and usually receive a slightly lower pay. They, in turn, have others who report to them. And on it goes until at the very bottom, and at the lowest pay scale, rests the largest group, the factory workers, laborers, cleaner-uppers. To get from the bottom to the top of the pyramid is very rare in conventional business. But everyone knows that this is just the way businesses are run.

But then a neat network marketing businesses comes and changes everything up, at least that's what they say.

They sit down and draw circles all over a piece of paper while they croon to you. "If you just follow our easy plan, you'll be able to take vacations whenever you want to, live like a CEO, travel all over the place, and have tons of family time. We have the best business plan out there!"

All goes well... for awhile. Then one dark, dreary day you realize your American Dream, with all the fine-tuned settings you have struggled so hard to make, has gone into DEFAULT. And you find yourself again on the bottom of the pyramid, just like in conventional businesses.

Most people don't realize that nearly every network marketing plan is designed with a DEFUALT button. This causes it to go back to the old pyramid style of big CEO at the top racking in the cash and little guys on the bottom scrounging around for whatever little money they can make. This DEFAULT system works with various methods. They're called by a variety of names, but we'll list only four here. I think you'll recognize them.

1. Jump-start: knowing that many will never get beyond their initial "buy-in", they push you to "tell everyone" you can about the opportunity. This gives the company free advertising and some quick profits from the "introduction package" you just bought.

2. Breakage: when the company keeps the money because you've not met a monthly goal so you have to give up your "points" or "bonuses"

3. Break Away: When you're promoted to a higher level, you have to leave behind some of your earning potential that you worked hard for. The company will keep that money for their own pockets.

4. Exhaustion: The company wears you out by requiring constant new "enrollees". They know you won't stay long because you'll get so tired of finding new people to sign on. When you leave, they keep all those enrollees and make money off them, without having to pay it to you!

So that's a brief description of some of the systems that most network marketing programs use. They actually intend to cause your business to DEFAULT back to the conventional business pyramid "scheme".

The good news however is that not every network marketing company does this. There are some that actually are designed to help the "little guy" not make money off of their demise.

Article Source: http://www.search4allinfo.com

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