Network Marketing as a businesses
Lies and truths
By Mark Piper


Network Marketing, Multi-Level marketing, and Direct Selling companies are multiplying rapidly. Every day more and more people are jumping on board as associates, hoping this is the vehicle that will help them fulfill the “American Dream.” .

According to Statements made by a representative of the Direct Selling Association during the May 8, 2007 Ways and Means committee hearing, the direct selling Industry sales represent 30 billion dollars US.

The problem is many of the recruiters in this industry use, what I refer to as, “Dream Marketing” rather than following approved marketing techniques. In fact, these practices are exactly what have brought the worst of these recruiters to the attention of the FTC. Approved marketing techniques allow for exaggerations—you can even make false statements as long as they are so ridiculous that the average person would not believe them. However, if your advertisement is written in such a way that a person reading it would believe the benefits or results promised if action is taken, when it is likely that they will not occur, then this is considered false and misleading advertising. These recruiters will often justify themselves by putting some form of disclaimer in very small print. However, these types of “hidden disclaimers” are usually not a sufficient defense should the FTC come calling.

The Lie:

It was hard to determine what the number one lie in the Industry is, but I have to go with false monetary promises. These usually take the form of emails advertising pay-for-click ads promising thousands of dollars of earnings in the next weeks or months. Please beware, the only one who will be making thousands of dollars is most likely the person who sent the email or placed the advertisement.

Truth be told, usually there is a way to reach the earnings promoted. The catch: you need to be able to invest thousands of dollars in leads and a system—one usually using the same or similar advertisements like the one you responded to!

A good example of this is a “power line” system. My personal research proved that it is only possible to reach the promised rewards if you qualify for the “recruiting” bonuses. The only way to make the bonuses is by loading the “engine” with prospects—either purchased or by inserting an existing list that you have.

If you cannot invest the money or you do not have a pre-existing list, then you will most likely not achieve the promoted earnings. Statistically, according to industry experts, the average new opportunity seeker will only stay involved for 3 months, and this is what these recruiters are counting on. They are not interested in creating a long time customer.

How common is the use of false earnings used in advertising business opportunities? A recent search on Google, using the keywords “network marketing,” had the number one add promoting, “$20k/month. Automated Home Business NO Sales Calls Ever! FREE Training.” It boggles my mind that people actually believe this nonsense and invest their time, money, and most importantly their dreams. In my opinion, advertisements of this genre cater to desperate people who are out of work, or fear that they soon will be. In other words, targeting the people who can least afford to make a poor investment decision.

You can usually defend yourself from this illegitimate opportunity announcement by reading the entire message carefully to make sure it is in compliance with FTC regulations. According to the FTC website, if an advertisement claims buyers can earn a certain income, it must also give the number and percentage of previous purchasers who achieved those earnings.

Look carefully, and if the information is not there, move on to the next opportunity recruiter. At this time I feel I must state, that the companies represented in these advertisements may be perfectly legitimate, and might just be unaware of this persons recruiting methodology. So if the product or service really excites you, then by all means contact the corporate office and speak to the people there.

The Truth:

According to the U.S. Small Business Administration, roughly 50% of small businesses fail within the first five years. What are the top 2 reasons? The SBA website, which paraphrases, Michal Ames, lack of experience and insufficient capita are the top 2 reasons for small business failure.

Here is the good news, the paper entitled “Redefining Business Success: distinguishing Between Closure and Failure” by Brian Headd, which can be found in the Office of Advocacy section of the SBA website, states that, “…home based businesses, because of their low startup cost, have less of a closure rate than individuals starting a small business following the traditional business modality.” Notice, the paper stated, “low startup costs.” You should be willing to invest the cost of 3 months worth of the opportunities, product or service. You should also have several hundred dollars to invest in educational material, books or tapes. The concept of, “Power is based on knowledge and makes use of knowledge,” is true. You need to invest in your own education.

This paper also points out that, “… more resources tend to lead to better odds of survival.” These additional resources are a benefit that professional opportunity recruiters or companies provide.

For you to be successful, it is imperative that you choose an opportunity that provides a proven marketing system, coupled with a good product or service. One rule of thumb—to determine if they have a proven marketing system, find out if they been in business for more than 5 years. If they have, then they are past the curve and must be doing something right. Next, try the product. If you wouldn’t recommend the product or service, then your chances of success will be much less. However, it is important that you realize that it is only with a combination of a proven marketing system and a good product success (in that order) that you will have the best chance to succeed.

The last part of this truth is that earning expectations, after a startup period of 3 months, should be 100 – 200 hundred dollars in additional revenue a month, and that’s only if you put at least 4 hours of work per week into building your business. This leads us into the second most told lie.

The Lie:

No work, NO Sales Calls Ever, etc.
Short and sweet: No way, No how! There was a time when the Internet was new, that by throwing out millions of emails filled with false promise, and by “throwing enough new prospects against the wall,” you could actually have success using an automated system. Wake up. Those days are gone. Also, most of the marketing tactics used to create this wealth are now illegal. The idea that you can make money without any work is not worth spending much time on. The only possible way I know of to earn money without “work” is by investing money in stocks or other companies. It’s a risky business; one I would still work at. Still, the work in this is the study time I would spend before making my investment. If you are not willing to talk to people, and do the things required to get new prospects to look at your opportunity, product or service, then you will not be successful.

So should you get involved in a home-based business? I found this in the SBA’s website. Its intent was to advise people just like you, and I don’t believe I can state it better.

It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

• You will be your own boss.
• Hard work and long hours directly benefit you, rather than increasing profits for someone else.
• Earning and growth potential are far greater.
• A new venture is as exciting as it is risky.
• Running a business provides endless challenge and opportunities for learning.
• You will be your own boss.

I know I am the “right person” are you? Because I am the “right person” for this industry, I consistently invest in furthering my industry knowledge. Most of the time I feel like I really didn’t learn any knew information or that the information was poorly presented and/or self-promoting. I was recently informed about 7 free educational videos being promoted by Mike Dillard. I signed up for this program and found them very informative. There is absolutely no reason for you not to take advantage Mike’s free offer like I did.

What’s the catch? Mike Dillard not only provides free information to people in this industry, he also provides well written, easy to follow, valuable information at reasonable prices. That’s the catch; you will be informed about a system called Magnetic Sponsoring.

I was so impressed with the free videos that I invested in the booklet called Magnetic Sponsoring by Mike Dillard. I was thrilled with the information and the way it was presented. I honestly believe that this was the best book I have read, so far, that was written by an author who was strongly associated with the network marketing industry.

If you believe that you too are the “right person” for this industry, then you need to invest in yourself and get this book, for no other reason to determine for yourself if this industry is truly for you. I strongly believe that if you do not agree with the principles outlined in this booklet by Mike Dillard, then this industry is not for you, and you may be on the path to wasting your time and money.

This link will allow you to sign up for the free 7 videos. After that, a window will open that will explain Mike’s magnetic sponsoring system and give you the opportunity to take advantage of it. Again, if you are considering this industry for the first time, or have been trying to be successful but have not been able to get it together, I truly believe the information in Mike’s book will be extremely helpful. I would suggest getting it right nownformation in Mike’s book will be extremely helpful and I would get it now.

When I read the booklet, even though many of the principles and conclusions Mike shared were conclusions we held in common, it was so well written and interesting that I read it in one sitting. Do yourself a favor and at least read Mikes explanation of the system and its importance to your success in this Industry. Click on the image of the booklet and you will be given the opportunity to learn about “Magnetic Sponsoring.” Regardless of your decision today, you will receive the 7 videos, which are full of useful information.