When the salesperson knocks on our door to sell his company product, many times we look through the window and express our attitude towards marketing that now we don’t need the product. This shows how far we believe the guy or the product or the company.
Most of the time the salesperson will not get a chance to explain his product. We always feel that the salesperson is here to flatter us to make a sale and we always think twice about whether to hear him or to avoid him.
This misconception about networking still exists in our country. People misunderstand network marketing that it is not worth money and it is totally waste of our time and effort of ours to make money for the marketing company. They generally have an attitude that there is no benefit for us even if we work hard to earn a profit rather the company earns a profit with our effort for any sale to happen.
In this article, will see some myths about Network Marketing and will also see the truth behind all the myths which will help you to come out of those misunderstandings or misbeliefs of Network Marketing.
The Truths & Myths About Network Marketing
Below is the list of myths about Network Marketing and will discuss the truth behind each and every myth.
Myth #1. Organizational structure is an illegal pyramid structure
Myth #2. Only the topmost person will make a profit.
Myth #3. Network Marketing utilizes people for their business.
Myth #4. Network Marketing will not work out.
Myth #5. It reaches a saturation point.
Myth #6. Never get rich through Network Marketing
Myth #7. Overpriced products are promoted and no big demand for it.
Myth #1. Organizational structure is an illegal pyramid structure.
There is a fine difference between an illegal pyramid scheme and a legal MLM business. People frequently confuse legal
MLM with illegal pyramid structures.
In an illegal pyramid scheme companies exploit your money by recruiting downlines with it. They merely want you to recruit more distributors without providing you with a higher profit margin. However, in a legal MLM firm, the main goal is to sell their goods directly or indirectly to clients by paying distributors a commission.
MLM business benefits both the owners and the distributors. An illegal pyramid structure in MLM enterprise is prohibited in the majority of US states.
Many people believe that all legal MLM businesses follow an illegal pyramid structure . This is because normal legal MLM business follows a pyramid structure in which the highly authorized person is at the top, middle-level management reports to the top person, and working people report to middle-level management. There is a fine line of difference for such a structure to be called a pyramid scheme
Pyramid scheme is a scheme by which companies scam their members by exploiting the money paid by members in the downline to those members in the higher levels of the company.Those distributors in the lower levels often get scammed and never get compensated as they expect.
Truth :- Look into the MLM business not into the structure to decide whether it yields a profit.
Myth #2. Only the topmost person will make a profit.
Even though network marketing benefit only those at the topmost level of MLM businesses ,many people are drawn to it
This myth implies that network marketing profits are only made by the company’s owner, CEO, or President.
We can’t always answer, “Yes, that is correct.” We can’t just assume that no one else is going to make money through network marketing.
Not only the primary distributors profit from their efforts, but their downlines do as well, but for that they need to be better trained and more focused on the business .
It totally depends on how you promote the business or product to earn the commision
Truth:-We have to put our own efforts to make money for any kind of business.
Myth #3. Network Marketing utilizes people for their business.
When consumers misunderstand the structure and the earning potential of Network marketing, they wrongly assume that it just employs people to run their firm. Having more potential recruits isn’t enough to ensure your success. For the business to change, you must continually contribute your time and support. People believe they should talk to their friends and family and use them for their business.But this is not something most people around us would enjoy. Network marketing is more than just relying on your friends and family.
Truth:- The real fact is that for any business you may need to advertise or promote the product or service to the maximum and of course it is not limited to family and friends or not just simply making use of them.
Myth #4. Network Marketing will not work out.
As you can see from the myths listed above, this fallacy indirectly ties to the myth that Network Marketing is not for everyone. Any business requires you to really commit your time and effort, and if you do not, you will definitely fail. But that’s not to say that the business won’t work out for someone.
Some people may not be interested in the network marketing business since they do not want to put in extra effort. Such people don’t prosper in any business, not only in Network Marketing.
Truth :- Hard work is key to success for any type of business.
Myth #5. It reaches a saturation point.
Reaching a saturation point in network marketing is highly impossible. Daily new customers are entering the market to buy innovative products . The way you do marketing is important and it is not based on your product
For example, Almost everyone is having T.V, refrigerators, mobile phones nowadays. Does it make any organization like electronic manufacturers to stop their business? No.
The customers always look for an updated version or high-quality product. So they decide to have a change in their product by buying the new one. In this way, old customers will continue to be your customers and new customers are daily born.
Truth:-Reaching a saturation point in any business market is not possible until there is always a new customer born and old customer looks for a change of product.
Myth #6. It is a myth that Network Marketing can never make us wealthy.
For some, becoming wealthy means achieving a goal; for others, it means outperforming other business members in terms of profit.
Getting successful in any business requires consistent effort and time.
Be more focused and self-trained on the company and its offerings.
Truth:- You can be stabilized with your financial profit or income.
Myth #7. Overpriced products are promoted and no big demand for it.
MMost people have the misconception that in Network Marketing, they would end up selling pricey things with no demand.But in a reputable MLM firm, they advertise high-quality, deserving products, and clients only place fresh orders if they truly enjoy the product. They try to repurchase the goods because of their high quality, thus the price may be raised based on demand and supply.
If there is a higher demand, supply will be reduced. The price has been raised in order to accommodate client demands.
Truth:-Prices are only inflated to meet the quality of the product if there is a demand for it.
Myth #8. Network marketing is all about using innocent people to one’s benefit
Mentors will be available to assist you at every stage of the network marketing process. People compete with their coworkers in the corporate world
In network marketing, one’s success is largely determined by the progress of members recruited by them. This guarantees that new members receive the required assistance from their mentors at all times. There are numerous examples of people who have made a fortune in network marketing by assisting others.
Truth:- Network marketing is about helping others for everyone’s benefit.
Studies show that 90% of start-ups fail in the first five years.
In any business, success and failure are inevitable, and network marketing is no exception. It has nothing to do with the company’s business approach. Hard work and dedication are required for a business to survive and succeed
Truth:- NNetwork marketing organizations, like any other business, can flourish or fail depending on how they are run.
Myth #10. Network marketing is a cult
If you have ever been in a network marketing training session or a major event organized by any network marketing company, the passion, and energy shown by many members can look like fanaticism to an outsider. But the truth is that network marketing does not require fanaticism and it is not a cult.
Truth:- Network marketing is not a cult.
Conclusion
Hope you all came to know about the Truth and Myths about Network Marketing in this article. This will surely help you to start or join the Network Marketing business by isolating all the Myths and by following all the truth about Network Marketing. Finally, you need to invest your consistent time and effort for any successful business. How you do marketing is really more important than what business you do. Some lethargic people have the attitude that Network Marketing is not a good business to start with and they came up with all these Myths. Hope now all the Myths regarding Network Marketing are flushed out of your mind.
November 22, 2024
john wenham 