What’s Wrong With Network Marketing

This could be a touchy topic for some, especially for old-school networkers who prefer to network the traditional way. But as time passes, the issues and controversies surrounding network marketing should be acknowledged, addressed, and somehow corrected.

What’s Wrong With Network Marketing

Now some people might believe that there’s really nothing wrong with network marketing – but only actual networkers understand that. As for everyone else, there are several elements in network marketing that seem to raise red flags in the ordinary course of business. Let’s tackle these one-by-one:

The Over-Hype

Whether network marketers like to admit it or not, most company events are just hypes. It’s loud, fun, and extravagant, but at the end of the day, most of these events don’t really give recruits proper skills-based training, and this is a huge problem.

Since new recruits are not properly trained, networking businesses become overrun by mediocre, unprofessional and unscrupulous individuals who are there just to one-up people. This creates a problem, because it gives network marketing a bad name – not just to newly recruited members, but to the general public as well.

Recruitment-only activities and centers.

This is actually related to the first one. Most networking company events are just centered on recruitment instead of actually training people. But aside from that, most companies put recruitment first rather than actual selling and generating customers. This essentially raises red flags and makes networking companies look more like a pyramid scheme.

Any networking company that focuses solely on recruitment is not a good one to join in anyway. You can only recruit so many people and then you will eventually hit a hard wall. Sure, the numbers might be good at the start, but soon enough, it will dwindle. By that time, you will have downlines who will be struggling to make any money from either recruitment or sales – and this will only make the problem worse. On the other hand, training members to sell the products or services will be a more sustainable business strategy.

Thinking or Saying That it is a Business

Many networkers make the mistake of telling potential recruits to “join the business” or even think about networking as a business. In reality, networking is not a business. In fact, it is more of a profession – just like being a doctor or lawyer.

It is not a business because you don’t get to own anything. You don’t own or develop any of the products, and you don’t own the brand name itself. At the very least, you are an independent contractor who can build a team (via downlines) and become a top product distributor of the company.

Understanding this setup will help shift your focus. It will help you realize that the business itself is out of your control, but you can still work on your personal brand by developing yourself as a trusted and credible authority when it comes to networking in general. This can build up trust with your downlines, and remove the notion about top earners that are only out to one-up their downlines and other recruits.

Toxic Environment and Pettiness

When it comes to networking and business in general, there are several ways and processes to make more sales and become successful. Sure, there may be proven and tested methods, but these are not always exclusive and constant because consumer behavior and preferences periodically change.

But in most networking companies, there are always top earners who believe that their strategies are “the absolute way”, and they refuse to explore or acknowledge any other strategy that might actually work for other people. This creates a culture of pettiness and breeds a toxic environment in the company. The bigger the earnings, the bigger their ego seems to be. This should not be the case. Like every entrepreneur, networkers should always look for ways to improve sales and keep up with ever-changing markets and consumer behaviors.

Despite all these wrongs, network marketing does bring opportunities to the table. Most network marketers already know this, but it is also worth repeating for people who only see the wrongs in network marketing.

Low cost, but with high-income potential.

Anyone who wants to become an entrepreneur knows that aside from a business plan, the very first thing you need is a capital investment. Setting up your own business will require huge capital, but going into network marketing will not need much. You only need to pay a one-time or yearly membership fee, and you are good to go! And the best part is, you have the potential to earn big – just like owning a business itself.

Culture of Personal Development

Although some networking companies focus too much on recruitment, an incidental advantage of that is the drive for personal development. Because of the desire to recruit and sell, people are driven to become more outgoing, creative, and somehow competitive. Of course, this should also be done and tempered in the right way – and the focus should be redirected to selling products too, rather than simply recruiting more downlines.

It serves as a gateway to entrepreneurship.

Network marketing is actually a perfect alternative for aspiring entrepreneurs who don’t have enough capital to fund their dream business yet. Even though networking is not like being an entrepreneur, still you get to learn the basics of attracting and retaining customers, how to deal with low sales and returns, and how to develop business strategies. It’s a great starter for those who want to be an entrepreneur.

It is important to see all the good and bad sides of network marketing. Looking at its good side will help you explore the possibilities and opportunities that networking can bring you. Looking at its bad side, however, is also a must. These negative impressions should be acknowledged first so that you will know how to address them correctly, and how you can possibly create new strategies that veer away from these negative practices.

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