Network Marketing

The pros and cons of network marketing (or Multi-Level-Marketing) could be an entire course by itself (check the MLM/CDM articles under the Creating Income section of this website), but since this sector of the economy creates billions of dollars in sales each year - we need to touch on the marketing aspects of it here.

Choosing a network marketing company has to take into account many of the same aspects of opening a brick-and-mortar business. You have to access your skill set, survey the market, do revenue analysis, create a strategy and build your team. The biggest difference between a conventional business and a network marketing business is that in a conventional business, the product or service is where the money is made. In a network marketing structure, your big money comes from building your team.

Unfortunately, most people come into the network marketing industry out of desperation (they lost their job), excitement (what an awesome rally I just went to!), or just hope to make a better tomorrow for themselves and their kids. Because business ownership is being pursued by people who have never been business owners, most do not have the discipline and skills necessary for success.

They joined and operated purely on emotions. They start out with all kinds of excitement and as they start getting no, no, no,, the excitement starts dying until they finally quit and tell everyone what a horrible product or business that was. Then they find another company, get all excited until the same process happens again and they quit. I've seen people do this dozens of times, never figuring out it is not designed to be built the way a conventional business is - but if you think that is the what you want to try - then you need to learn how to market it.

Because the team is where the money is, network marketing is mainly a people business. The more people recruiting people in your organization who all buy a little, the more commission you make. And since this is a people business, there are a few things that are pretty common when it comes to dealing with them.

  1. Most people are lazy. We now live in a world of increasingly instant gratification. People want it faster, better, easier, and cheaper.
  2. Every action or decision in life is based on attaining pleasure or avoiding pain. Everyday things as simple as check the mail. You received a check (pleasure) or you received a bill (pain). Companies capitalize on this. They hold huge rallies that pump everybody up. It feels great, until it wears off and you need another dose.
  3. The desire to avoid pain is greater than the desire to attain pleasure. People will make every rationalization in the world to avoid a chance at a negative response. Logically, we know that it is ridiculous to feel that way, but it seems to be part of the human fabric of life.
  4. People will do almost anything to avoid or cure pain. That is why educational marketing works so well. We take away the things that most people feel so uncomfortable doing, like making lists, cold calling, trying to sell products, etc. and replace it with no-pressure teaching.
  5. People love to learn how to do things, but few actually do them. This human trait has made a fortune for the HOW TO book and seminar industry. It's also why so few succeed.
  6. People want what they don't have. I guess that is why we are so fascinated by celebrities and billionaires. People who don't have things gravitate towards those that do have. The people they consider experts/leaders. The human race is so hungry for leadership that they often act like a bunch of sheep waiting for someone to stand up and tell them where to go, even if it's over the cliff.

While education marketing will not help the person who won't get off his sofa or miss her favorite soap opera, it will help overcome the basic pleasure/pain scenarios we've discussed above.