Network Marketing--Part 2

Why do a few people get so obscenely rich doing Network Marketing? And why do most people hardly make any money at all? All of the people I know who have acquired wealth through Network Marketing have worked very hard at building their business, exactly as is the case with any successful business person in a more traditional business model–retailing, manufacturing, or providing services, for example. They are doing what people in other similar businesses do–retailing, usually. They are actually independent business owners who handle a product supplied by a manufacturer or distributor. So far, this seems very ordinary and familiar. Furthermore, they have many satisfied customers. Otherwise, their business could not continue. They continually update their education regarding their products, and they work on refining their management and sales skills. They educate other people about their products. They earn rewards and bonuses through sales volume incentives. Still nothing remarkable here. That’s what most successful people in similar businesses do. Wealthy network marketers have made their money by selling products and finding other people who are interested in selling the same products. The same is usually true of wealthy people using other retail or manufacturing business models. The people who do not work hard, or who work hard in ineffective ways do not acquire wealth in a network marketing model or in a traditional business model.

It’s hard to swallow, but most people who work all their lives as wage-earners in someone else’s business may acquire enough income to live comfortably, but often, finances are a life-long struggle. It takes some kind of leverage to get beyond the struggle level. This leverage can take many forms. I’m not business-savvy-enough to know many of them. If you’re business-savvy, you already know them. If you’re like me, you know only about the obvious ones like compounding interest and investing in appreciating assets. Network Marketers sometimes employ leverage tools too–by duplicating themselves as sales people. If leverage is unethical, a lot of financially successful people in traditional businesses are in this unethical tent.

Aren’t the products often ridiculously overpriced? I honestly don’t know. If the exact same product is available elsewhere for less money, if the product does not do what the manufacturer or seller says it will do, if you do not need the product, or if you don’t need the services offered with the product, then yes, any product sold through network marketing could be over-priced–for your purposes at least. Bear in mind though that every value-added product you buy through traditional means has a huge markup that includes a cut for many people along the supply chain. You don’t escape this reality by avoiding the network marketing model. Specifically, network marketing companies depend on word-of-mouth educators and representatives to grow their market. More traditional businesses accomplish this through their advertising budget. Often they pay people in the printing or media world to advertise for them. Is it unethical for people in a network marketing company to receive payment as a reward when their “advertising” results in sales? Media outlets expect payment regardless whether or not their effort results in sales. Insight into these facts was my first clue that Network Marketing might be as ethical as the more familiar models.

What’s with the cult-like hype and high-drama meetings that are often involved? I have not been to many such meetings, and I could certainly do without the loud music and pumped-up, over-the-top rah rah expressions. Thoughtful and sincere and quiet people do a lot more for me. It’s true that in a conference, there is usually some variety, and part of it is much more to my liking than other parts. I’ve felt the same way at Christian School Conventions. Some Network Marketing companies have a strong Christian culture. This is certainly to be appreciated. However, an occasional worship service following a company convention is no substitute for consistent involvement with a local church body.