Are you interested in network marketing but don’t want to introduce your family members and friends to this money-making opportunity? Especially in Asia, being in sales has a rather negative impression.
History of Network Marketing: Multi-Level Marketing (MLM)
It is a very powerful sales model (it still is) that was eventually abused and exploited by companies selling anything that could even be of no value for a premium.
Basically, you can profit by recruiting people known as your “down-lines” to sell products. When they sell, you get a percentage of the commissions. When they recruited their own “down-lines”, when their “down-lines” made a sale, you get a share of the commissions too.
This goes down multiple levels, thus the name multi-level marketing. Depending on individual companies’ commission models, you can profit a number of levels down.
With this model, usually people associate this to a pyramid scheme as the product usually are not of any concern. pyramid schemes generally do not have tangible products to sell.
Why it was renamed to Network Marketing was because it was so bad that people are turned off at the mention of “MLM”. And Network marketing companies will be quick to disassociate themselves from MLM and pyramid schemes as they are considered illegal in many countries:
- USA’s FTC on Multi-Level Marketing Businesses and Pyramid Schemes
- China’s Regulation on Prohibition of Pyramid Selling
- Singapore Multi-level Marketing and Pyramid Selling (Prohibition) Act
How Network Marketers Recruit Others?
Usually, network marketers will invite you to their company’s “recruiting grounds”, Once you are there, their up-line/senior (especially if they are new, just starting out) will apply their “high-pressure sales tactics” on you to join them in this money-making opportunity. Generally focusing more on the potential profits you could make than the quality of the products.
The first customer would usually be yourself, as you need to be the “buying proof” to convince your prospects of the product you are selling. Your up-line will “sponsor” you part of your payment through their commission. Then they would recommend that you approach your family members and friends, sponsoring them similar to what your up-line did.
The problem lies here as family and friends are mostly not interested in these money-making opportunities. And chances are “they do not understand it” and most likely relate it as a scam, which the up-line network marketers tend to strain the relationships with their hustling.
How To Succeed At Network Marketing With An MLM Sales Funnel?
Check what Russell Brunson, CEO of ClickFunnels, has to offer by harnessing the power of the internet so that you can find like-minded people online to start your network marketing success without the need to approaching your family members and friends.
Do sales funnels work for network marketers? No network marketer should be without this FREE book:
Alternatively, if you are serious about Network Marketing, do check out Russell’s previous right-hand-man Steve Larson’s Secret MLM Hacks Presentation (102mins) and his offer: