Showing posts with label network marketing mlm home business. Show all posts
Showing posts with label network marketing mlm home business. Show all posts

Monday, July 20, 2009

Is Saturation In Network Marketing Today A Myth


Thousands of people are joining network marketing today. Even as these distributors join the network marketing mlm home business , they are usually very much concerned about the saturation point of such a business model like mlm business opportunity network marketing. There is a fear that one day soon, everyone in the whole wide world will be involved in a network marketing mlm home business and that there will no longer be a market from which they can attract people into their organization as their downlines.

So is it true that saturation in network marketing today is a myth? Will there be a day where it will be impossible to attract any new downlines into your organization due to the overwhelming competition in the whole wide world? If that were the case, then with network marketing as a business model for the past fifty odd years, the market would be pretty saturated by now. However, it is far from being so.

Saturation in network marketing is a myth and should not be a cause for concern. Here are a few reasons as to why this is so.

• Firstly, due to the natural life cycle of a human being, the network marketing business will not be saturated. There will always be people who will reach the legal age where they can join a network marketing business opportunity. These people will age and get married and form a family as well and their kids will soon reach the legal age to join a network marketing business too. This simply means that at any point in time, there will always be people who will be out in the so called job market and these are the people who will be the next generation to join the network marketing business.

• People are always on the lookout for better opportunities. As network marketing business offers people a change in lifestyle and the ability to be able to live their dreams, as long as you are able to offer the right opportunity to the right people at the right time, there will be a market for you. Especially for those who are in their jobs and who are most unhappy and disgruntled with the situation they are in, these are the people who are looking for an opportunity which is able to offer them better hope and lifestyle and a way out of their unhappiness. Or you could have people who, for certain family reason, need to stay home and work from home. These would be your target market.

• With the rate or attrition in the network marketing industry, this also helps to avoid saturation. Through experience, there will always be people who will drop out of one network marketing company and join another as they are looking to join leaders who are able to help them succeed. By positioning yourself as a leader, mentor or trainer, this will allow you to attract a wider target market to you and may even attract those from other network marketing companies who are not doing well in their current business opportunity.

Network marketing saturation in today’s context is therefore a myth. As long as the company is a legitimate company offering products and services that have appeal to customers, there is nothing to worry about and you can enjoy the mlm business opportunity network marketing that you are representing.

Saturday, March 21, 2009

Network Marketing Scams – How to Protect Yourself


For the self employed, navigating the topic of multi level marketing (mlm) business opportunity network marketing can be a tricky one. Although many network marketing mlm home business companies are legitimate and can be a good way to make money, there are others out there that cost you both financially and legally. How can you tell the difference? There are two major red flags to watch out for when it comes to mlm businesses, and if you can keep an eye out for them, you will be able to effectively protect yourself from the network marketing scams.

First things first, however: what is network marketing or multi level marketing? In many ways, multi level marketing is a lot like the franchise set up that many of your favorite chain restaurants operate under. The difference is that rather than being limited to a single location, representatives of mlm businesses perform sales on a roving basis – they move around and sell any place they can, rather than setting up a single shop. These representatives, also often called “down stream reps,” buy products from the parent company and then sell them on to stores or private individuals. The exact nature of the financial arrangement between the parent company and the downline mlm network marketing can differ from group to group, but usually there is a profit split on a pre-determined percentage basis. There is usually also some incentive for downline mlm network marketing to recruit new downlines, and they often receive a percentage of the sales made by anyone they recruit.

It is this last part of mlm businesses that can be the first red flag. Although most mlm businesses do provide this kind of recruitment incentive, some companies rely exclusively on recruitment to make money. Downline mlm network marketing recruit new representatives, and collect a joining fee from them (or collect money by selling them merchandise that they are supposed to then sell on), and then no actual selling of products happens. The whole business thrives on the recruitment of new members and the collection of membership fees. This is called a pyramid scam, and it is illegal. If you are investigating a company and it seems like you are unlikely to make any money from actual product sales, stay away.

The second red flag has to do with the product prices you get from the parent company. Some scammers set themselves up as mlm businesses and present products to their downlines at prices that would never allow them to clear a profit. If the prices you are being offered by the parent company are extremely high, and you doubt that you will be able to mark up the prices at all to resale the goods, you’ve likely stumbled on a scam. These scammers typically collect all the money they can from people – often not even delivering the goods that their “downlines” purchase from them – and then they close up shop and disappear, usually reappearing under a new name a few weeks later to perpetrate the scam again. Essentially, multi level network marketing is a business like any other, and if it sounds too good to be true, it probably is.