How To Avoid The Label Of A Network Marketing Scam

by Duke Romkey on September 30, 2011 · 1 comment

How To Avoid The Label Of A Network Marketing Scam

Let’s be honest, people either don’t know what network marketing is or they think network marketing is a scam. Quite frankly, I don’t blame them or their skepticism. I was skeptical and a little hesitant once too. To coin a term used by my friend David Wood, network marketing should be renamed to “social franchising.” That’s really what it is. Everyone has their own personal franchise of the company that they joined. They own it, promote it, decide whom to hire (or work with), and sell a product or service. Now this is where it gets easy to see why people think it’s a scam when they don’t know all the facts.

Compared To A Franchise, The Network Marketing Scam

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So how does the network marketing scam match up to a franchise? If you bought into a franchise with a “Golden Arch” on it then you would pay around $1 million dollars, you also need to get the land and structure in place, attend a $100,000 course on how to actually run it, pay $10,000 a week to workers, and then manage all the high school kids that you employ with the hopes of breaking even in 5-6 years.  So if someone approached them saying that they could make the same amount of money or even more with an investment of only a couple hundred or a couple thousand dollars, no land or structure needed because you can do it at home, and not have to hire an workers then yah, it would sound a little too good to be true and probably get labeled by them as a scam. Which is understandable since their alternative sounds terrible compared to it.

So How Do You Avoid The Network Marketing Scam Label?

Tell the truth. Don’t hype it. There is no need to, look at the alternative we just went over. You don’t need hype to show the benefits of it. So what is the truth? The truth is that yes, there is the opportunity to make 5 figures or more a month after working the business for less than 6 months, but it certainly isn’t the norm and there is a lot of hard work and long hours in the beginning to achieve that type of money in such a short time span. Network marketing is a business, and for a business to be successful it requires hard work in the beginning as any other startup. People think it is a scam when they are told and made to believe that if they work only 10 hours a week, then they will be making $100,000 by the end of the year. Could it happen? Yes. Is it the norm and something to be expected? No. The leaders that have accomplished that feat took massive action everyday and spent long hour’s working day and night in the beginning to do it. Some of them struggled with different companies of years before they had that breakthrough period of 6 months when their income skyrocketed.

 What Happens When You Tell The Truth?

Your business will grow. Why? It’s simple for two reasons…

1)   You match their expectations with reality – $10,000 in 9 months sounds good, but not if you were expecting to make that after 3 months. More realistic expectations in the beginning will lead to less disappointment and frustration which = improved retention rates

2)   Respect – People respect people that tell them the truth, and that’s who people want to join. They don’t want to work with people that only tell them what they want to hear and not what they need to hear.

So don’t sell the hype, there is no need to. There are a lot of people that would be ecstatic to make $20,000 a month in two, three, or even five years. Just look at how long it took them to get to where they are at today.


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  • Alfred Jones

    Very true. My IM has always been more hobby than BIZ, giveaway more of my developments, than I sell. Great software, graphics packs, books and trainning videos are to be had, but a long learning curve still exists. However, investing $10-$100 in IM still beats $10K – $100K investments in small brick an mortar BIZs, most of which fail.

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