Network Marketing Exposed
The Truth About Network Marketing
A few people will ask if Network Marketing (or a specific company) is a Pyramid Scheme. In order to determine, we must begin by defining what a pyramid scheme is. According to the dictionary, it is defined as:
“a form of investment (illegal in the US and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.”
Let’s note that these scams, as stated above from the dictionary, are illegal. Therefore, if the opportunity you are considering is in fact a pyramid scheme, it will not withstand the test of time. I’d advise that any opportunity you invest in is with a company that has a proven track record. If you’re looking at a company with multiple years in operation and a strong Better Business Bureau (BBB) rating, you’re most likely not being scammed.
For example, Isagenix International, a network marketing company, has been in operation since 2002 and has an A+ BBB rating. 17 years in business with an A+ rating is a sign that this is a legitimate company and not a pyramid scheme.
Secondly, with an actual pyramid scheme, you’re giving up money that is given to those before you and you do not receive a good or service in exchange. So, if someone is asking you to give money and you’re not getting anything in return except for the hope of more money coming your way….run. However; if you’re giving money and receiving a product/service and you believe the good/service is of value to you, then it’s simply capitalism. Ask yourself, does the product or service make your life easier, save you money, make you feel better, etc?
Using Isagenix International as an example, commission is only paid out if money is exchanged for wellness products. The company continues to thrive because consumers cannot find equivalent quality products for the affordable price anywhere else.
In addition to those evaluations, here are a few other things I would look out for when determining which company to partner with:
Do I need to stock inventory? With some companies you do require inventory. With Isagenix, you do not keep inventory. You simply set each new customer up with their own online Isagenix account that they order products from. They never buy anything from you, but rather directly from Isagenix which is why it’s often called “referral marketing.”
Can it be done online or do I have to host parties? To be successful with some companies, you do. However; Isagenix produces significant visual and emotional results that can be shared via social media. This makes it simpler to attract new customers to what you’re doing. A sophisticated social media marketing approach is sharing success stories that inspires people to make a change in their life. A non-sophisticated approach (that I wouldn’t recommend) is posting pictures of products or spamming people. Make sure you’re partnered with someone that isn’t teaching you to spam people but rather teaching you the nuances of attraction marketing.
Can you actually create a residual? With some companies, it’s much harder than with others because residual income comes into play when you have customers that love the products and continue to order every month. With Isagenix, it’s food! People are going to eat food anyway. So, you can show them a place to order healthier food delivered to their door that helps them reach their health goals. Because they love them, they continue to order. Every time they re-order, you are paid a commission. I have people that have been ordering (purely as customers) every single month for the 4 years that I’ve been doing this! Not all products and companies can produce this type of residual. For instance…I love oils and clean skincare. But I buy those once in a blue moon, not every single day/month like I do nutrition/food.
Do I only recruit distributors? Some companies do not have a viable product. So they rely on hype and overselling an opportunity and only focus on recruiting other people to make money. With Isagenix, about 80% are purely product consumers. About 15% will share occasionally with friends and family. And 5% choose to create a significant income and are committed to growing the skills to do so.
Do people have to keep ordering? I advise you to ask if there is autoship program and make sure it’s easy to customize/delay/cancel future orders for customers and that customer service is A+. With some companies, you don’t have a choice and have to order every single month and they will chose what to send you. With Isagenix, customers have complete control over orders. They can easily delay/cancel shipments or cancel the account entirely without any fees - it’s all done conveniently online or over the phone if you choose. They can also completely customize what they want in each order. Additionally, I always say customer service is better than Nordstrom. They bend over backwards to make customers happy so you never have to worry. They have your back!
Are there quotas that I have to reach? With some companies, there are. With Isagenix, you do not have a minimum or a maximum to how much you make. It’s completely up to how much time and energy you’re willing to put in.
Lastly, I’d like to leave you with this visual. If you think about the typical 9-5 job corporate business, it is a true pyramid model. You have the CEO at the top (who makes the most money), the management team below (whom make the next most income) and then the employees at the bottom (that make least). With Isagenix, it doesn’t matter when you begin your journey, your experience or your background. You can actually out-earn the people that have been around for longer than you. And there is a team-based structure to pay. So the people that join me benefit from me just as much (or sometimes even more) than I benefit from them. Teamwork is a beautiful thing <3
So if you are considering a side-hustle opportunity, and specifically network marketing, make sure you have a discussion about these key areas with the person you’re speaking with. Don’t buy into hype or be influenced just because other people are doing it. When working with the right company and the right mentor, Network Marketing is a legitimate profession and can produce an income asset that gives you both more income and more time flexibility. But, just like you would in considering any other job, you must do your due-diligence.
Happy side-hustling! <3