Network Marketing, also referred to as Multilevel Marketing (MLM) or Direct Selling, is often misunderstood and considered an unimportant or strange business carried out by salespeople out there to make quick money. And others look down upon it as a part-time home-based business. With the onset of the Covid-19 pandemic, most companies have acclimatized to the Work from Home (WFH) norm but, Network Marketing continues to be demonized. This write-up demystifies all the myths about Network Marketing and helps you to understand the truth. It will go a long way in instilling the most required confidence in you to step into the lucrative business of Network Marketing.
MYTH-01: Network Marketing is a Fraud and Does not Really Work.
TRUTH: Network Marketing works. Success and failure are determined by the effort one puts in.
Network marketing is a part of that the Direct Sales Industry. In India, it has been boosted by several initiatives of the government – for example, Make in India, Startup India, Women Empowerment, etc. According to ASSOCHAM, the Network Marketing Industry in India poised to reach INR 15,930 crores in value by the end of 2021. According to the World Federation of Direct Selling Associations (WFDSA), India’s direct sellers are set to touch the 18 million by 2025. In the United States, more than 6.2 million people were involved in direct sales. Doesn’t these numbers speak for themselves? It only indicates that Network Marketing can work. As with any other business, the success or failure in Network Marketing is also determined by the marketing strategy you devise and the consistent effort you put into your business.
MYTH-02: Network Marketing is Illegal based on the Pyramid Model.
TRUTH: Unlike the Pyramid model, Network Marketing programs offer quality products or services.
ou should very well know that the Pyramid business model does not involve any real products or services for sale. The Independent Representatives earn money solely by recruiting new individuals. On the other hand, Legal Network Marketing programs involve quality products or services. The Independent Representatives earn lucrative commission by selling them and recruiting new members known as their downline. Legitimate Network Marketing companies adhere to laws – they publish income statistics and offer refund options. So, it is not true that Network Marketing companies are illegal and based on the pyramid model.
MYTH-03: Only the Person at the Top of the Network Makes Money
TRUTH: No matter at what point you join a network; you have equal chance if you do your work.
This myth is like imagining a daily wage worker becoming the CEO of a company overnight! Further, do all hard-working employees get the financial rewards they deserve for their quality work? It is totally false that only those who get in early into Network Marketing make money. Many instances wherein many joined in early but not worked smartly have made little while those joining even after them have made a fortune. So, to put it rightly, the real truth is, Independent Representatives can make big money irrespective of their position in the network of the organization – it all depends on your efforts.
MYTH-04: The Network Marketing Program Will Get Saturated and Stop One Day.
TRUTH: Saturation is impossible as Network Marketing comprises an infinite number of people!
Just consider a scenario, when all of the population owns a television, it does not hold back television companies, say Samsung, from selling more television sets as the demand keeps rising. Similarly, so many people join the Network Marketing business daily. How can it then saturate or stop if the new pool of Network Marketers gets added to the pipeline each day? Be assured; the Network Marketing program can never saturate.
MYTH-05: Everyone Cannot Get Rich in Network Marketing.
TRUTH: Network Marketing should be Judged by the people percentage who reach their goals.
Yes, it can be true that not everyone gets rich by just joining a Network Marketing Company. To succeed, one has to put in consistent efforts and devise an effective and smart marketing plan. You cannot simply join a company and become rich. There is an umpteen number of people who have succeeded in earning enough money to stay home or pay off their debts. Therefore, it is wrong to believe that you cannot get rich. You need to judge and measure Network Marketing joiners by measuring their numbers who have achieved their goals. And you will be delighted to learn that most become financially independent and their own boss too!
Make an Informed Decision and Join the Direct Selling Company of your Choice with Confidence!
It is also important for you to make an informed decision before finalizing the Direct Selling company with who you wish to partner. Having busted above the myths surrounding a Network Marketing company, you should now be confident to step in and collaborate with one. Today, many entrepreneurs think out-of-the-box ways to have a profitable business platform. And further, countering any economic slowdown is all possible – Thanks to the Network Marketing business. You may either do so to earn your livelihood or work on a part-time basis to earn that extra money. All the best.
