Updated: July 14, 2020
At some point in your life, you must have been invited to join a multi-level network marketing company, I know I have – as well as almost everyone I’ve asked.
So did you join? If yes, did you lose your money or did you make some?
If I invited you now to join a network marketing company, would you consider becoming my downline or would you become turned off and never come back here again?
Truth be told, there are really a lot of people who have lost money in these companies. But I wouldn’t entirely blame it on the network marketing company.
While some are indeed pyramid and ponzi schemes in disguise, there are however, a handful of network marketing companies that have produced multi-millionaires.
I am not a member of a network marketing company (you’ll find out why later), but that does not mean that I don’t like them. Actually, I do encourage people to try it out because it is really a proven way of becoming rich.
And so for those who are “allergic” to MLMs (like I used to be), and for those who are actually thinking of joining one – I now give you some big myths and facts about Multi-Level Network Marketing programs which I hope you would find useful.
Big MLM Myth:
Start-up MLM companies are better because its market is not yet saturated.
Fact: Saturation does not exist.
Ms. Rhea Horrilleno, a Nu Skin Blue Diamond member, explained it well by saying that if there is saturation in network marketing, then it follows that there is also saturation in other careers as well. This means that new doctors, new lawyers and new engineers should not be able find jobs today – but most of them do (if not in the country, then overseas).
Moreover, you can just simply look within your social circle – how many of them are active members of a network marketing company? Chances are there is none or only one or two.
FACT: Since there is no saturation, then it follows that it’s better to join established network marketing companies.
While I have nothing against new MLM companies, I do have a bit of bias towards network marketing companies which have been in the industry for decades because that’s proof that their compensation system is strong and sustainable – pyramid schemes usually last only a few years.
Big MLM Myth:
You have to be one of the first to join so you can be on top and be able to make the most money.
FACT: The amount of money you earn does not depend on when you joined or where you are in the geneology graph. It depends on how productive and effective you are in selling and recruiting.
I have personally met two people who have experienced tremendous success in network marketing. One is a distant relative of mine and the other one, the mother of a friend. Both have joined in the early 2000’s and are now financially free.
What’s important to note about them is that, they actually earn more than their direct upline and the MLM companies they joined started in the Philippines way back in the 80s and 90s.
Big MLM Myth:
You don’t have to be a salesperson and you can do this on your spare time.
FACT: If you want to be successful at this, then you have to be a salesperson or at least be able to learn and develop sales techniques.
There are three things you actually sell in network marketing: the products, the income opportunity and your success. If you don’t know how to sell at least two of these three, then you’ll fail at it.
FACT: This will take up most, if not ALL of your free time or more.
As I’ve said in my previous post on The Basics of Multi-Level Marketing – joining an MLM company will involve setting-up and attending regular meetings and marketing schedules.
Moreover, you will likewise be spending a lot of time generating leads and following up on prospects, and not to mention attending more seminars to enhance your sales techniques.
And this is the main reason why you should not go into network marketing – because you won’t be able to give it time priority as you are already busy with other endeavors.
Big MLM Myth:
It’s easy to become rich in network marketing.
FACT: Network marketing is NOT a get rich quick scheme.
Again, according to Ms. Rhea Horrilleno, a network marketing business takes five years to mature. I’ve met many who quit within a year and leave feeling they were tricked into joining – now I know why.
Many considered MLMs as a way to make some quick bucks. Lured by the prospect of earning millions, they become disillusioned and disappointed when one by one, their prospects reject them and their friends start to avoid them.
A network marketing business is at the most basic level – a business. Which means it’s something that you should nurture and grow, with patience, determination, passion and focus.
How about you? Do you know any more big myths and facts about multi-level network marketing? Do share them below.
Moreover, one question that many readers have asked me – how do you know if a network marketing company is a good one?
You can learn that here: How To Choose The Right Multi-Level Network Marketing Company