The truth about network marketing, also called mlm or multi-level marketing. Right from the beginning I will say that there is no need to have extreme views about this, it is simply a business model that you can use if you wish.

However, it is crucial that you understand HOW the business model of network marketing works.

I think there are basically two reasons that some people seem to be almost electrocuted, simply by hearing someone mention the word network marketing. Either they have tried it themselves, and because they didn’t have a clue on how to do it they failed miserably. Or they belong to the group of people who can’t get the idea that mlm = pyramid scheme out of their heads.

This second misconception is easy to debunk. Pyramid schemes are illegal almost everywhere, do you really think large multinational companies could operate year after year on an entirely illegal basis?

Secondly, this view on network marketing shows that the speaker is ignorant. He or she hasn’t done an ounce of homework on the various businesses that are available to each of us today, and they are ignorant of the industry itself.

This means they aren’t serious. It means they “would like” to make more money, but have no intention of making it happen. They continually “look” for home businesses, which is enough to satisfy their minds that they “did everything they could”, but everything they find out there is flawed and are “scams”. They are looking to buy “hope”, not a business.

There is a Chinese saying that goes something like this:”If you spend too much time thinking about your next step, you will be standing on one leg for the rest of your life”. Yes, there ARE scams out there, but mlm is not a dirty word and it is not a synonym for scam. Get over it!

As for the comparison to a pyramid in general – think of any company that comes to mind. The company will probably have a CEO, president, vice presidents, middle management, a sales force, and hourly employees.

It goes without saying that the guy at the top, the CEO, is going to make the most money, and the compensations continue to decrease down the ladder which starts at his cushy leather chair. The only way to get paid more and move up the ladder is to boot someone else out of their spot – and this is what people call okay and normal!

Not to mention the fact that the corporate slave masters seem to have no problem with working people to the limits…and then kicking them out the door before any of the benefits kick in. (As always there are some exceptions, of course). How is this any less pyramid than network marketing? All people in the company work hard, but ONLY those at the very top has “permission” to make a lot of money.

Now, in network marketing the basic idea is that it will be of great benefit to everyone involved to help people who are new reach the top. In fact the whole business idea hinges on this idea – the only way to become really successful in the long term is to help others. Of course there will always be a mathematical limit to how large a network can become, but with todays global marketplace, and a suitable compensation plan, there is usually plenty of room for everybody.

A network marketing company can diversify and find new markets, just like all companies have to.

But what about the miserable statistics of network marketing, the over 90% drop-out rate etc.?

This is mainly caused by the simple fact that not that many people know how to do network marketing correctly. And I must admit that some network marketing companies are responsible for this themselves, by providing useless ideas like making a “100 list” etc.

You see, this is a somewhat unique industry. Most people don’t realize that network marketing is a business of marketing and promotion pursued by people who have NO IDEA how to market and promote.

Read the above paragraph once more and let it sink in…

If you are going to be involved in network marketing you need to develop both the right mind set and acquire the right knowledge (no, they usually don’t teach this in college).

You must learn that when you do this business right:

* You don’t have to “sell”

* You don’t have to ask people to join your business.. They ask you!

* You don’t have to post “work at home” flyers!

* People will PAY YOU to prospect them

You should learn that this is not at all about the Vitamins or whatever product your company is selling. In fact, this is one of the single biggest mistakes people make in network marketing.