Wednesday, September 30, 2009

Network Marketing: Scam Scheme or American Dream? You Be the Judge



Anyone who has looked into owning a home based business has undoubtedly come across Network Marketing at some point. Why is it that those two words spark such a heated debate? Why has Network Marketing received such a negative view? When asking people this very question I usually get three or four common answers. "Network Marketing is a scam", "Only the people at the top make money", "Its just another pyramid scheme right?", or "I had a friend that tried that once and they didn't make any money". Notice how most of these answers are more like statements. After getting this response I ask another simple question "Why do you feel that way?". Occasionally a few people will recount personal experiences with a company like Avon or Amway. Others will simply say that that's what they have always been told about network marketing. My next question to everyone would then be " If it such a scam, why would some of the smartest investors in the world be endorsing Network Marketing as a system that allows middle class people to achieve upper class wealth." (or as I mentioned in my previous post, a system that allows people to move to the right side of the cash flow quadrant). Investors such as Donald Trump, Warren Buffet, Robert Kiyosaki, and George Soros all endorse Network Marketing. 
First lets discuss what Network Marketing really is. Simply put, a Network Marketing is a system. A system that pays a royalty to people who refer others to the company they are a part of. If you think about it, we already participate in network marketing on a daily basis. How many times have you told your friend about a good restaurant you ate at or a good movie you saw? Did you ever get paid by that restaurant for referring your friend there? Have you ever gotten a check from a Hollywood production company because your friend watched their movie after hearing how great it was? One of the biggest mistakes people make in choosing which Network Marketing company to join is that they don't research the product or services that the company is offering. They get too excited about the compensation plan and end up promoting a bogus product or service that people either don't need or like. I will get into more of that later. For now, lets compare Network marketing to a typical 9 to 5 job. 
Employees that work a 9 to 5 job usually are told what days they have to work, what hours they can work, how many sick or vacation days they have each year, they must promote in order to make more money, bonuses may or may not be paid due to the current strength of the economy, and in a bad economy those lower on the totem poll are subject to downsizing. If you stay with that company for 30years you may be able to retire and receive a pension or collect from your 401k.
 Now lets take a look at Network Marketing. You can work from home, you create your own hours, you are paid based on the effort you put into building your business (you control your income), You help others become successful by helping them build their business, After working hard at your business it is possible to "retire" after a couple of years and live off of the residual income you created. 
After seeing the differences who wouldn't want to retire in a couple years vs 30 years? Yet even after pointing this out, most Americans look down on Network Marketing. Since it holds the organizational form of a pyramid it must be a pyramid scheme right? If that were true, we would be blowing the whistle on most of corporate America today. If you look at the typical traditional company, you have a president or CEO at the top. Then you have the vice presidents and advisers, regional presidents/managers, asst managers, supervisors, and employees. Looks kind of like a pyramid huh? Do you want to know whats really interesting? In the traditional corporate structure it is impossible for someone holding a lower position than you to make more money than you do unless they promote. In the network marketing system its not only possible for someone below you to make more money than you, it happens all the time. That's because in Network Marketing, you are paid on your effort and productivity not your position. So, which one would you prefer? 30 yrs of an every day 9 to 5 or the opportunity to take life into your own hands and create a better situation for you and your family? If the latter is your choice visit our website at www.theantiagingtruth.com/rhyatt and call me at 520-307-5153. We are currently looking for 5 to 10 leaders in southern Arizona to launch the Tucson/Sierra Vista area. Seize the Day!

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