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, interestingly there are some who have been in the industry for a good twenty years or so, including myself, who have seen a trend that just may be the cause, or at least a good share of it, to this bad reputation.

We'll call it DEFAULT

It's something we've all experienced. You get into a program and specifically fit it your needs. How wonderful everything is! The birds sing in the bright sunny sky. The blooming flowers fill your nose with lovely fragrance. Then suddenly, one day something terrible happens and all your settings are returned to DEFAULT. Frustratingly, there's no way in the world to get your old settings back except by starting everything entirely over again. You lose hours, miss appointments, delay decisions, feel stressed out, and everything goes to pot. Why? 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.

"Just stick with us, and we'll show you the best business in the world. In our business, you don't have to stay on those bottom levels and get paid less that the president. You can enjoy living like a CEO, have vacation whenever you like, travel the world in style, and even have oodles of time to spend with your family" and on and on and on they tell you. They draw circles all over a piece of paper and who you how it's possible.

And so you try it and everything goes incredibly wellfor a short time. Then suddenly, a dark day dawns and you find that everything you've worked so hard to set into motion is gone, all gone, and everything has turned back to DEFAULT. You find yourself again at the bottom of the pyramid just like if you worked at your local retail store stocking shelves.

An interesting thing about nearly every network marketing plan out there is that it's created with a DEFUALT button-something that makes it revert back to a normal pyramid business plan similar to Wal-mart with the top making big bucks and the bottom people basically overworking trying to make ends meet. This DEFAULT system is done by a variety of methods. I'll only list four here. Although you may hear them called different names, I think you'll recognize what I'm talking about.

1. Jump Start: The company knows most people won't go beyond the initial "buy-in". So they sell you a package and gets profit from the "introduction packet" they sell you and free advertising you give them because you are "pushed" to tell everyone you know and to do it fast.

2. Breakage: if you don't meet your monthly quota then you have to forfeit your "bonuses" or "points" and then the company keeps the money.

3. Break Away: when you "graduate" to a new level, some of your earnings that you worked hard to get is left behind. The company gets to keep that money

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!

This is a short description of some of the ways network marketing companies make the big profits. They are designed to cause your own businesses that had lots of earning potential to DEFAULT back to you being the little guy on the bottom of the conventional business pyramid.

But the good news is that not all MLM opportunities do this! Look for those who specialize in helping the "little guy", who don't use the mechanisms mentioned above.

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

R.E. Bloom has studied network marketing companies for more than 20 years. He recommends checking out BioGenX as an industry first alternative to the bad rap of MLM's. Visit BioGenX today!

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