Common Criticisms Of Network Marketing

By Author: S.Babu
Total Articles: 5
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The odds are very high that you would have heard a lot of criticism of multi-level marketing business when you were searching for one yourself. But the truth is that multi-level marketing is just like any other business. The real trouble starts when people start treating it as a fly by night scheme which will make them millions overnight. The best thing for you to do is to take a hard look at these criticisms and understand what their legitimacy is. You will find that while some of these criticisms are valid, others are not so accurate and still others are ones that you can overcome easily. We look at a few common multi-level marketing criticisms and analyze them.

1. All multi-level marketing schemes are fraudulent: Nothing could be farther from the truth; multi-level marketing businesses are just a type of business model like any other business models. There are a lot of legitimate companies practicing this and some of them are clocking revenues in excess of a million dollars. The prime example of this is Amyway, which is an old and well established multi-level marketing company. By shunning all multi-level marketing ...
... companies, you are just turning away from legitimate business opportunities. While some of these may really not attract you, do not shun them simply because people say all multi-level marketing schemes are scams.

2.The payment schemes of multi-level marketing plans are hard to understand: This has some truth to it as there are some multi-level marketing companies that have complex plans that are not very easy to understand. There is a lot of fine print and in some cases you if you don't meet your sales target, you may even lose your position in the hierarchy. The best way to cut through the fine print is to ask pointed questions to the distributor who is trying to recruit you to the multi-level marketing company. Ask how much you will make if you make a $100 sale? What will happen if you don't make any sales at all for six months? What will happen if you recruit 10 members in one month? Start questioning and that will lead to more questions which will help you uncover all of the fine print of your multi-level marketing plan.

3.The distributors of multi-level marketing plans oversell their product: This is a very fair criticism as most of the times the multi-level marketing plan subscriber oversell and present an overly optimistic picture to you. Fortunately it is easy to overcome this problem. You have to keep in mind that the scenario that you are listening to is an optimistic scenario and not the realistic one. You should also keep in mind that when explaining the multi-level marketing to potential prospects, you do not paint a very rosy picture yourself.

4.Multi-level marketing is not really a business: While this criticism is untrue it spawns from the lack of knowledge that most people (even subscribers) have of the multi-level marketing plans. As you will notice most subscribers of multi-level marketing plan are not business owners. Perhaps that is the reason why most subscribers fail to see the similarities between a multi-level marketing business and any other business, especially a franchise business. Simply overlook this criticism and know that you will need all the skills, determination, hard-work and discipline that are needed to make any other business successful in your multi-level marketing business also.

5.Multi-level marketing business makes you unpopular: All of us have heard jokes about how people shun multi-level marketing subscribers, because all that comes out of their mouths are sales pitches! This is a fair criticism and rises from the fact that a lot of new comers to the world of multi-level marketing get too absorbed in their business and try to sell them at any given point. This results, in them, trying to sell their businesses in social settings also and earn a bad name for the entire community. The way to avoid it is to recognize that social gatherings are not meant for you to make a quick buck.

6.Multi-level marketing did not deliver what it promised: This is another case of an over-enthusiastic subscriber promising you the moon and ignoring to tell you about all the hard work that is required in order to reach the moon. Keep in mind that the reason why multi-level marketing will fail is that like any other business it was not carried out with business savvy. And too much was expected by doing too little. When you are hearing a multi-level marketing pitch, you need to ask only three questions to get a realistic idea of how much money you are going to make. First, how much money will you be able to make by selling one unit of the multi-level marketing product? Second question is how many units do you see yourself selling? And third question is how many subscribers do you think you can get and how much can they sell? Once you answer these questions your expectations from the multi-level marketing plan will be realistically set and you will not be disappointed.

These were some of the major criticisms of multi-level marketing plans. As you can see most of these criticisms don't really occur because the plans themselves are bad. Most of these occur because sometimes the recruiting subscribers get overly enthusiastic and are not able to distinguish between reality and hype. At other times it is because of poor execution. If you are willing to put in the hard work that is required and stay away from the pure scams, multi-level marketing is a great business opportunity for you.