Three Reasons Why Network Marketing Has A Bad Reputation

According to Google, network marketing can also be named as pyramid selling. Some people also say that the network marketing industry has produced a lot of millionaires. Before I talk about the reputation of this particular industry, I want to discuss what the network marketing industry is all about.

What is Network Marketing?

You can define it as a type of business model in which a distributor is responsible for getting products and services directly to the masses on behalf of the opportunity the distributor is affiliated with. Every opportunity is not the same and they all offer different types of services and products.

These types of business have become popular to people who are looking for part-time work or flexible businesses. These programs require a low upfront investment. Most opportunities pay distributors monthly. In addition, you can also introduce anyone to the opportunity as your business partner if you want to multiply your income.

Why does this industry have a bad reputation?

This industry has a bad reputation because of three reasons, in my opinion. The first reason is because of poor marketing practices. Most opportunities try to teach distributors the “warm market” technique. The warm market technique is basically selling to people in which you already have a relationship with, like family and friends. This technique is highly ineffective because most family and friends are not interested in anything you have to offer. To see success, you have to find demand and fill it with supply.

The second reason is poor quality of products and services. A successful marketing technique is half the battle. People have to like your products and services. Most opportunities, especially the new ones, have a bad habit of offering poor quality products to the masses. Before joining an opportunity, I would recommend that you try what they have to offer for yourself to see if the product is worth selling.

The third reason is the distributors are unmotivated. Great products and great marketing techniques are not enough to experience financial success. If you choose to get involved in these types of businesses, you will have to put in the time and effort. You must develop a passion for what you are selling in order to have success selling it to other people.

What needs to happen to fix the reputation of the network marketing industry?

In my opinion, you will have to become more educated. If you want to experience success, you will have to surround yourself with the people who have been in the arena before. You must also build a relationship with your up-line, or the people who introduced you to the opportunity.

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