Common Network Marketing Misconceptions That Scare New Marketers

We’ve all heard these things some point in our Network Marketing careers. Sometimes there are very good arguments that actually make you think, but most of the times the arguments that people make against Network Marketing are just founded from fear.

Here’s three of the biggest complaints or misconceptions about the wonderful industry of Network Marketing.

Network Marketing Doesn’t Work

First, let’s have a look on the Direct Selling Association website, and note that there are almost 200 direct sales companies. While Network Marketing is technically only a subset of the Direct Sales industry, for all intents and purposes the companies on this list are all Network Marketing companies.

So, this leads me to the following question. If Network Marketing doesn’t work, then why does so many Network Marketing companies exist? You can’t make the argument that it’s because those companies can’t sell their products in retail stores, because for the most part it’s simply not true. These companies have chosen to use the MLM model because they see the benefits in it.

Second, according to DSA, estimated retail sales reached $34.5 Billion Dollars in 2014, a 5.5% increase from 2013. With these kinds of numbers, something must be working right.

And lastly, while not everyone becomes a millionaire because of Network Marketing, there is a small percentage that does.

But let’s not forget that success isn’t measured on if you become a millionaire or not. If being a millionaire is the measure of success, then most people who work a normal job are failures. By design, most people work in this business on a part-time basis, and some just use the products at discount. Either way, there is an argument that can be made that because someone doesn’t become rich in the Network Marketing industry doesn’t mean that they’ve failed or it doesn’t work.

The Market Becomes Saturated

It’s easy to think this, with over 18 million people selling Network Marketing products last year. The truth is that it is practically impossible for the market to actually become saturated because of a changing population. You may think that with so many people already in the industry, that there would be no one left to recruit. Every day people either change companies, add another company to their portfolio or come of selling age (18).

Furthermore, if you look at it from a product standpoint, it may be easy to think that you would run out of people to sell to, due to so much competition. Again, you have to factor in the changing landscape and how attrition plays a part. More so, just because there are a reported 2 million reps in your company that may be selling the same products, doesn’t mean that they are all active.

Another way to look at this is like saying that the automotive industry will fail because it has become saturated. If that was the case, then none of the car manufacturers would still be in business. Cars being removed from the population, new drivers, and multiple car owners all affect the industry, just as some of the same type of factors affects Network Marketing.

Network Marketing is a Pyramid Scheme

There is a big debate going on between the proponents and opponents of Network Marketers, when it comes to this misconception.

Rational argument, is that Network Marketing is no more of a pyramid scheme than any other business. In fact, there is more of a ceiling on your income, then there is working a traditional job. You also have more of a chance of making the man on top rich, than you would in Network Marketing, where you can actually outperform members of your upline.

Arguments from the other side state, that it isn’t the same type of pyramid that they are talking about so saying that all businesses are pyramids doesn’t count. Well, in that case, then it’s still false because according to the FTC, a Pyramid Scheme is based on the behavior or intent to make money through recruiting, versus making money selling a product.

Now, to be fair, it can be hard to tell a legitimate company from a Pyramid Scheme, but that doesn’t change the fact that Network Marketing isn’t one.

Network Marketing isn’t perfect, but neither is any other industry. In fact, it’s biggest advantages is also its biggest weaknesses. With all of the misleading information going around on both sides of the argument, it’s best to experience it for yourself and make the call.

What it does represent is an opportunity, for the person who otherwise wouldn’t have one. You can achieve success if you gain a solid understanding of the industry, choose to get training and work on your mindset, and commit the time and effort needed to grow a business.

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