The Death of Network Marketing

Have you ever been "invited" out by your friends for a drink and at the next moment you know, he asked you to follow him up to a building? He starts telling you stories about his friends who are making a five figure income per month and that interest you!

He asked you the golden question, "Do you want to earn that kind of five figure income that my friend is earning?" Well, why not? Your answer probably was yes. The next thing you know he took out a stack of paper and start explaining the earning potential with his network company. He went on to explain to you about their products in detail. You are overwhelmed with information and all you want was to get into the business quick.

In no time, you join the company and were all ready to make some big money. But three months later, you find yourself going no where, you seem to be at the same spot where you started. Instead of making five figure incomes which your friend claims that you can, you are losing money on advertising and promotion. You are really lost and were in the verge of giving up.

In the end you gave up, you are very disappointed with the company and your friend. You felt being cheated and conned. You begin to think that network marketing company are scammers and you go around telling people to avoid and not to buy from such and such company.

So what actually happened? Is network marketing really a scam?

I did a research and found out that most people who condemn network marketing companies have never been involved with network marketing before. So why are they so negative about it? Did their friends tell them that network marketing was a scam? I believe so.

In the recent years, network marketing companies have grown popular and there was a significant increase in such companies. It was a trend. People are joining these companies because of the earning potential. Most companies realize the growing popularity and were going all out to attract new members.

I have understood why most network marketing companies fail because of two simple reasons. Sad to say, most companies have designed their compensation only to benefit those who are at the top of the organization and not for the masses. Members who join later will eventually leave and spread negative comments about network marketing simply because they cannot succeed.

The second reason which I noticed was companies were not providing sufficient support to their new members. The new members have to struggle and work their way through trial and error. They are new to network marketing and most of them don't know how progress or even get started. Adequate training and support is needed to help them members grow and I personally feel that it is a must in any network marketing companies. A lack of support will result in a high percentage of members dropping out. Similarly, those that dropped out tend to spread negative comments and thus gave the networking companies a bad name.

These are the two reasons which I feel was why people have a bad impression about network marketing companies. A poorly designed compensation plan which only benefits the people at the top and the lack of support to new members, both is probably the cause of the bad impression.

Then again, there are legitimate and honest network marketing companies out there. Statistics shows that 3% of companies in the network marketing industry succeed and the 97% that failed was probably because of either one of the reason I discussed earlier. If you are skeptical about network marketing, I hope this article clarify some of your doubts and improve you understanding about why people have a bad impression about network marketing.