I thought I would do a blog on some of the misconceptions / myths of network marketing that are sometimes spoken about. Thought I’d give you some answers.
For me personally I don’t mind answering any questions in relation to what I do. My job is never to convince people, I wouldn’t be comfortable with that. Just simply provide the information for that person to make an informed decision just as I did.
I love people who really research the company and the industry before getting started. Within network marketing there are a few myths I guess that people who just haven’t had the right information or have watched from afar tend to sometimes think.
So, I’m going to answer those myths right now.
Myth 1 – Only a very small percentage of people actually make any money
As the figures in myth two show its a huge business. But is it true that a tiny percentage make good money? First of all lets address the nature of network marketing. It’s a VOLUNTARY business. Just like going to the gym is voluntary. I always compare it to this. No one joins network marketing looking for another boss to crack the whip if they’re not doing enough work or to tell them their figures aren’t high enough. You won’t find that here either. This is YOUR business.
So just like the gym, people start out enthusiastic and if they don’t see results quick enough then they quit. But we all know that it’s not a get rich quick scheme. It’s not a scheme at all. It’s a highly regulated industry that is an honest work from home opportunity that you can achieve the income goals you want.
It’s the same as university. Do we look at those figures. How much money is invested? How many people drop out in the first year or later. Those who fail, give up or don’t get a job in what they qualified for at the end of it. Do we look at those figures?
This is not unique to our industry, this is life.
There are millions around the world within our industry that are making just a few hundred a month, a few thousand, just enjoying the benefits of the products at discount and there are some who make incredible incomes. Just like if you’re in banking, there are cashiers, morgage / loan sales, team leaders, heads of departments, bosses above those and so on. The reality there is that you can’t rise higher without somebody else moving. With network marketing you don’t have to wait for a space to earn a higher income you simply work harder / smarter and you create the promotion yourself.
In my opinion, a much fairer way of working.
Myth 2 – It’s just a little business selling some products from home
The network marketing industry has a global turnover of $178bn. Not much? Compare this to what you think are huge business’ and industries.
McDonalds global turnover is $28bn, The music industry at $15bn, The worldwide movie industry at $80bn and even $142bn from general electrical sales.
Are we a small industry now? Absolutely not. What’s really attractive is that on average companies pay back 40% of their annual sales to business owners. That’s over $71bn annually which is over $200m PER DAY being paid out to business owners.
It’s a highly regulated, ethical business where people all over the world are reaping the benefits.
Myth 3 – You have to get in early to succeed
What was I looking for when I started a business alongside a network marketing company?
I was looking for a company with a history I could research. That was the whole myth of being first in to earn money out of the window for me. I didn’t care about that, I now that hard work brings success not timing. I wasn’t after a quick fix. I was looking for something that had stood the test of time. The company Forever Living Products had been around since 1978. I started in 2013 so the company had been going for 35 years. I was not in at “ground level” as they call it.
I was a Police officer after all. I treated my research like a police investigation. I read the for and against arguments. I read all about why it was a “Scam” vs why the industry had the most “millionaires than any other industry”. I read about people who felt they had be scorned by the industry, people who had been successful and raved about it. I wanted a really balanced view.
I quite literally read and watched everything and I made my own informed decision. I was from a family of successful entrepreneurs and I could quite happily of joined one of those business’. Why didn’t i? Because life is about purpose and passion. I never felt that with any other business I had researched. I felt passionate about Forever when I saw and used the products and when I researched the marketing plan.
I don’t have a whole host of academic qualifications but I do have a business mind and a ridiculous work ethic. What I saw was not just a fantastically fair marketing plan but I saw a training and support system that I wouldn’t get in any other job. With a small investment of £199.75 which i earned back within 4 days. Well what kind of business can you start that you are in profit in 4 days? In addition have all the tools and training on offer to build a business as big as you like. It simply depended on the time and effort I put in.
So, the fact is that 35 years after the company started I joined. If it was new I wouldn’t have been interested. I wanted something with longevity because lots of companies that come into the industry leave just as quickly after the hype of “get in now to make loads of money” has gone. If it doesn’t have a long history how can you know the stability of the company, that it will stand the test of time? I have met many people who have been part of those type of companies who have then been here today and gone tomorrow. That was not what I was looking for as I’m sure it’s not what you’re looking for.
After 2 years in the company I was one of the TOP 10 business’ in the world with #eaglesteam. I received the 5th biggest end of year bonus $490k & that dispels that myth. Everyone starts with the same business box. There are no quick entry to higher positions you have to work for it following a simple cycle. The more you work the cycle the more you get paid and the more you get rewarded. It’s not about when you start it’s about when you start to work. I saw the opportunity and thought why not me?
Myth 4….. People lose money
I genuinely have zero idea how it is possible that anyone can lose money. Network marketing offers minimal starting costs. Within my team anyone who i’ve ever worked with will tell you that I always say your starter box for £199.75 is enough. You do not have invest a single penny more to achieve what I did in my first year. Now, after that massive amount of work I did go and do some leadership style training that I paid for. It wasn’t overly expensive £750 I spent in my first year but in that year I earned over £123k back on my £199.75 investment so this is relative. This was also not a necessity just my personal choice for my own development.
The company I work alongside don’t have any autoship option. With some companies you have to subscribe to a monthly order in order to remain a distributor. With our company you don’t have to do that. To remain as a business owner you simply have to place one order per year to remain “active” that could be as little as £1.99.
If you start your business you have 14 days to send your box back and get a FULL refund or if you have products which you have years down the line (although you never have to buy stock before you have an order) then the company will pay you back 90% of its value. You really can’t get fairer than that. High street stores don’t offer that.
There are of course events but the most you will pay if you choose is £25- £30 per ticket and these are once every other month and through your own choice although I do encourage it – it’s your business and it’s up to you whether you go or not. Anyone within my #eaglesteam will tell you the same. I would only encourage this through profit earned unless you’ve just started. I think it’s a great start to see what you’re really a part of. I wouldn’t want anyone within my team paying out more than is needed and certainly not before profit is made. This is a business of making money not spending it.
Myth 5 .. Leaders earn money through trainings not through business
Over the last 4 years i’ve never made a penny on any training I have done nor would I want to, The trainings I’ve invested my own money into in order to keep ticket prices down for my team. I have a responsibility which I take incredibly seriously to help the team who have joined since I started. We have a team website which there is a small subscription. The money goes towards paying for the website, events so the ticket prices can be £15 rather than £30 to cover costs and will also go towards monthly incentives for the team to keep it fun such as weekends away, spa days, a contribution towards our £5,000 incentive and quarterly £1,000 incentives etc.
So, if others are making money from trainings in other companies maybe. But I certainly never have nor would I. It’s 100% morally wrong.
Myth 6….. Network marketing is the same as a pyramid scheme
This is actually really common. I actually thought this myself before I researched. Of course I did a lot of that being a police officer, I needed to know exactly what I was looking at. So I can understand how through lack of knowledge someone may initially think that. When i’ve asked people what they mean by a pyramid scheme the answers vary & I can address the common ones i’ve heard..
- “Well the people at the top earn all the money” – This is quite a common misconception. It’s of course not true. You can grow a bigger business than the person who introduced you if you want to work harder than they do. I have done this and so have lots of other people – it’s just not shouted about because why would you want to. But with a fair marketing plan like ours you can absolutely have a bigger business than the person who introduces you. So that’s that myth sorted.
- “You earn your money by recruiting not by selling products? – This is a product based industry, if there is no movement of product there is no income. This is why i think our starter pack is fantastic. It gives us chance to use the products, feel the benefits in order to then share them honestly with others.
- “If you don’t recruit you don’t earn money” – This is not true, I work with thousands of people who simply want to earn an extra income promoting products and they do exactly that. Without product movement there is no stable income.
Myth 7 – It’s easy
Of course if you learn the skills required in any industry it’s easy. If you apply the skills on a daily basis and perfect those skills you’ll get better at what you’re doing. But anything in life really worth having is not easy. It takes hard work, consistency and self motivation. Nothing is easy, this industry is no different.
I hope I have helped give you just a little bit more information and possibly answered a few of the questions that you may have or may have heard people talking about. Hopefully I’ve given you a clearer vision of what network marketing is not. Keep up to date with my blogs to find out more about what network marketing is.