Before moving on to answer the question posed as this article's title, there are just some things that need to be quoted in order to find a take off point for this whole issue.
"A network marketing company is one that supplies the product and partners with a network of independent representatives" The company handles research and development, finances, etc "In network marketing, information is shared and personal and professional contacts are developed. In network marketing everyone is the CEO of his or her own independent organization."
With this kind of pitch, it is no wonder so many have jumped into the bandwagon in the hopes of having these promises fulfilled. And since hindsight always has 20/20 vision, many come to regret ever even giving ear to such recruiting spiels.
Of course, there are the few individuals who have done well for themselves by being involved with network marketing. But just like with most everything else, one size doesn't necessarily fit all. Chances are, those who made the fit realized some things about network marketing that many did not. And one of these is knowing how this kind of business could suck and then finding ways to avoid it.
Ok, so why does network marketing suck?
Notice that you never hear the word "sell" in this spiel. Of course you won't because the mere mention of the word gets people out the door faster than you can spell it. But in truth, there is a product and it needs to be sold. By whom? You. If not you, then the people who will be part of your network will.
It's simple economics. For you to get money, you need to get someone else's money. And since you'd like to stay on the straight-and-narrow, you need to offer that person something that will make him/her give you their money. Ergo, selling.
Those networking schemes that claim that no selling is required whatsoever should raise some flags right away. If indeed, there is no product to sell, and what is being asked of you is merely an "investment" into the business, and asking others to do the same, chances are great this is a pyramid scam and is deemed illegal.
Legitimate network marketing companies will offer a product,
although they will not push the sales aspect of the business on you because they know this turns prospects off. But you need to realize this point and the sooner you do, the better. If the idea of selling doesn't work for you, then perhaps you should consider trying something else. If this poses no problem for you, that's great. But even then, you should still be aware of other issues surrounding network marketing.
As the name suggests, network marketing requires you to build a network of people, who in turn will build their own network. This is where the "personal and professional contacts are developed" part comes in. To develop these contacts, you tap on your existing network and if you're like most people, your network would pretty much comprise of your family and friends.
Ok, there's nothing really bad about it, until you realize you need to NOT come off as a recruiter (but let's face it, you really are!) and make the whole thing sound as if it's a great business opportunity too good to be missed. Unless you yourself are truly convinced of this fact, going into network marketing may find you giving half-truths (which is basically lying) to people you love and whom you call your friends.
Furthermore, many network marketing recruitment programs strongly suggest taking prospects out to a setting that makes them feel relaxed and open to what you have to tell them. More often than not, that means taking them out to dinner or drinks (maybe even both).
Two downsides can come from this. The more obvious point is the cost. At best you can take out 3 or 4 people at one go. Any more than that and it really looks like a recruiting scheme. If you need to talk to 100 people, that would mean going out for dinner or drinks at least 25 times!
The secondary downside, which is probably more costly than the point just mentioned, is the tax on the relationships between people you want involved in your network. Yes, your friends and family are probably the easiest to contact and talk to. But they'll also be the easiest to offend when it dawns upon them that you're taking them out because you want them to make money for you.
Now that you're aware of these potential pitfalls, network marketing can still work for you. You just need to address these issues and try to work around them. Your real success doesn't lie in how much money you can get people to make for you, but how you'll manage your network and maintain your relationships with your friends and family. Even if don't bring in a ton of money, that's something that simply cannot be bought.