MLM is among the most misunderstood industries today. One of the main reasons that can be attributed to this fact is the exponential rise in unethical MLM businesses that make a lot of noise when they finally go bust. These dubious establishments are bringing bad name to the MLM community, which has led to an increase in blatant lies about the system as a whole. Here are a few myths about MLML, and why they are wrong.
Pyramid structures don’t work
Truth: They do. They are among the most secure, and promising organizational structural hierarchy in the world and are used in every sector. Consider a business- it has a CEO at the top, below him are a few managers, below them are heads of departments and below them are workers. Consider the government- You have a President, below him are his advisors, and under them are the MPs and so on. The reason a pyramid scheme is so popular is because it works!
Myth: MLM companies are a scam
Truth: They are not. The government registers ethical MLM companies. The MLM industry is strictly regulated, and has been around for decades. People tend to confuse MLMs with Pyramid schemes when they arrive at this conclusion. In a pyramid scheme, there is no valuable service or product involved. The initial investor’s money is paid off by the investment made by new recruits. In an MLM however, the investors are expected to work at marketing a product/ service that is of actual value to the users.
Myth: MLMs breed selfishness
Truth: It is actually selfless. Why do you go to a restaurant or a theme park? Is it out of pity towards the employees and the management that runs the place? No, it’s because they offer you value to the money you spend. This is what MLMs try to do- offer value to the investors. Like any other business, MLM aims to better a person’s life and gives due thought about the client/ investor’s benefits as well.
Myth: MLM executives burn close relationships
Truth: not necessarily. You will face some resistance from your close ones if you push your product on them fiercely, especially if they do not belong to your key demographic. When going about a network marketing prospect, do not bank on your family and friends as initial investors. Once they see your success, the will opt to join the company on their own.
Anyone can easily criticize the aspect of MLM, backed by half-baked theories and common misinformation. However, learning about the truth and realizing how network marketing works is essential in understanding the successful nature of MLMs. With these tips in place, you can fitfully gauge the companies that are good for you.