Rod Nichols: Multi-Level Marketing
Network Marketing: Answers to Your Top 5 Questions
Our expert explains the most common myths about this misunderstood business.
By Rod Nichols
| May 22, 2006
URL:
http://www.entrepreneur.com/bizopportunities/networkmarketing/networkmarketingcolumnistrodnichols/article159394.html
In my 27 years of involvement in the network marketing industry,
I've heard tens of thousands of questions. Network marketing is
an often misunderstood business, and so often the questions have
allowed me to help someone gain a greater understanding of it.
In this article, I'll introduce the top five
information-gathering questions and the typical answers I give to
them. Since there are many other questions that can and will be
asked, I highly recommend that every network marketer sit down with
an upline leader and talk about the typically asked questions and
how to answer them. Those who learn how to answer them will succeed
in business.
Here are the top five questions about network marketing:
1. Isn't this a pyramid?
Pyramids are illegal in all 50 states, and the business I'm
involved in is a legal network marketing business. The primary
difference, according to the Attorney General (this information is
available on most State Attorney General websites), is if this were
a pyramid, you would get paid a fee to recruit people into your
business. In my business, I only get paid if products are sold from
the company to someone within my network--either a customer or
associate. Also, in a pyramid scheme, the only people who make
money are those who get in first, but in my company everyone has an
equal opportunity to make money and become the top income-earner in
the company. Can you see how this isn't an illegal pyramid?
2. Do people really make money doing this?
Yes, but the only people who do are those who treat this like a
business and work at it every day. Money is made when products or
services are sold within your network, so if you want to earn a
solid income, you'll need to recruit a network of people who
are buying and selling products or services. The company provides
excellent training and will be there to help you succeed, but
ultimately the success or failure of your business is up to
you.
3. Does this require sales?
Do you enjoy sales? If not, that's great, because you don't
have to be a salesperson in order to succeed. This is a business of
sharing information, and there are great tools that'll help you
present the products/services and business to your candidates. All
you do is work with those who are interested.
Now, if you like sales, that's also great; people who are
good at sales often do very well in this business.
4. How much time does this require?
That'll depend upon your goals. If you would like to make a few
dollars a month, you could probably invest five hours a week or
less. However, if you want to develop a full-time income so that
you can fire your boss and enjoy more freedom of time, then
you'll need to invest at least 15 hours a week. The great part
is that there are tools to help you leverage that time.
5. Do I have to talk my friends and family into network
marketing, too?
This can be a life-changing business. Those who succeed enjoy
complete time and financial freedom, and you should only offer this
business to those who want the benefits.
Rod Nichols is Entrepreneur.com's "Multi-Level Marketing" columnist. He has
been involved in the network marketing industry since 1979 as a
consultant, trainer and author. His articles, bi-monthly newsletter
and books can be found at his website, www.RodNichols.com.
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