Home Business-Who Benefits

Most businesses, industries, and individuals would call 2010 a “down” economy. 

One industry flourishes while seemingly all others suffer.  That industry is Network Marketing. 

This is a time when people realize:

  • There is no such thing as job security
  • Nobody is irreplaceable
  • There is someone waiting and willing to do your job for less
  • Traditional businesses are expensive
  • Network Marketing has low start up costs
  • There is no discrimination
  • Home business thrives when the economy is “down”
  • Trading hours for dollars will never allow you to get ahead

This is also a time when more people enter into the industry for the first time so it’s worth explaining some of the benefits and differences compared to “traditional” business. 

Not long ago the names of new companies were a secret from state to state until it grew into the tens of thousands but now with the internet a new company is announced daily.  Reaching millions of people with a click of a button is easy with an online press release or other internet communication.  When a new hot company is announced the word can spread like wildfire in cyberworld.  Unfortunately this has also led to more scams promising get-rich-quick, Ponzi Schemes, and Pyramid Schemes posing as legitimate Network Marketing opportunities. Easy mass communication leads to mass scamming.

Don’t blame it on the wrong person or industry…

This is no different than a conman selling you a watch for $1,000 and claiming it’s a real Rolex and you find out it’s a fake only worth $40.  The conman posed as a jeweler or watch collector but he was actually not a jeweler at all…but a conman.  Does that make jewelers phonies? 

The black eye of this industry has started to fade as it has been endorsed by famous business men like:

  • Warren Buffet
  • Donald Trump
  • Richard Branson
  • Robert Kiyosaki

The industry has also undergone a cleanup process by the FTC, Attorney General, and other government entities as they continue to implement new research and discovery processes to fight scams.

“Why so many bogus opportunites” you might ask.

With nearly 50 Million people worldwide and Billions of dollars in revenue and the easiest startup for any aspiring entrepreneur, it only makes sense that scammers would target that group and pretend to be a legitimate Network Marketing company.

A Quick History

In the 1940’s a small company recognized that most of their sales were coming from friends and family of the current salesforce.  These individuals were mostly interested in getting the product at wholesale.  The company took their new discovery further by adding a compensation plan to motivate their current salesforce to look for new customers and distributors.  Then they realized that they were able to grow revenues faster with a large distributor base with everyone selling a small quantity rather than a small salesforce with each person having to sell high volume. 

Other companies came along and tweaked it so it gave the average person more selling power with company-made materials, scripts, and training. 

Network Marketing is born…but who benefits the most?

Do you have anything to add?  Please share your opinion below. 

Distributor Benefits in MLM.

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