MLM Dichotomy

Network Marketing is an interesting business model. On the one hand Distributors are there to provide a sales channel to the Company they sponsor and on the other they are there to fulfill the obligations of the Compensation Plan.

One could argue that there’s no point doing the former if there’s little or no chance of achieving the latter, but how do you know when you start?

This is the dichotomy of Network Marketing; often undertaken by those in society who want a better, debt free life and yet historically there are too many instances of failure.

This has caused a massive rift in society and tarnished the name of Network Marketing. In response, certain countries are trying to enforce rules that seem to do little more than make the Distributors’ job more difficult or worse case, eradicate the Industry totally.

Of course, everyone involved in Network Marketing has a different agenda. The Market is an amalgam of hundreds of Manufacturers and Fulfillment Engines including Distribution (Logistics), Network Marketers and Customers all seeking to profit from these arrangements.

  • The Manufacturer want to profitably make product and sell it on
  • The Fulfillment Engine wants to physically distribute product and manage the process profitably
  • The Network Marketer wants to make money and needs volume as well as a network to
  • he End Customer wants the benefit of the product

What is key for Network Marketers is that all of us stand a good chance of success, otherwise why do it?

After many years in the Industry it’s obvious that the market is broken and the process of ‘network development’ simply doesn’t happen to the required levels. Because of this, the Law is trying to intervene to make business processes more efficient through loose regulation.

So, what can individual Network Marketers do about this?

Without Network Marketers marketing and to a greater or lesser extent, consuming the products and services they sell, Network Marketing wouldn’t exist.

Originally the Industry came about to distribute products where there was no existing supply chain; however, today, Network Marketing exists primarily to provide network Marketers with a secondary or primary income.

If Network Marketing is primarily a source of additional income, then it’s obvious that Distributors need to find ways to optimise the process that leads to income generation – in other words the development of a cohesive network that enables qualification for larger numbers of people than it is today. Period.

The question is how does this affect the market and the Industry in general and where could it lead to?

It is obvious that Governments around the World are servants to debt and that their ability to drive change and prosperity is challenging to say the least when very large amounts of our tax is paid in debt interest. But this is for another day.

Let’s get back to Network Marketing and challenges we face as individual Distributors looking to pay off our mortgage or at least save for a new car!

The key to Network Marketing success is in the name – network – add to that qualification and volume. Those three words mean everything as long as they sit in a legal framework of activity, in other words the purchase of reasonable quantities of product to themselves and 3rd party consumers.

We should not forget that the moment we sign up to a Network Marketing company and begin buying and promoting product our costs are already amounting to somewhere between £600 to £1200 a year, so it is imperative that these costs are covered and the business put into profit within several months or the business will forever be loss making and we shall continue to see the levels of failure apparent today.

These are the realities of Network Marketing that no amount of hype can overcome. In short, Distributors need to become business savvy and put into place strategies that enable profits to be realised sooner. This must come on the back of qualification and network development, not just for one person but for as many as is feasible.

It is clear when you do the mathematics that there are not enough people in the World to fill every network appropriately. Same applies to every other Industry in the World today. This doesn’t mean Network Marketing is bad, it just means we are not making the most of it, nor organising ourselves to benefit from it.

Our World has grown up over many thousands of years, we’ve built into our business processes inefficiency and our desire to keep control and focus on competition has not provided everyone with a good standard of living.

There are no easy answers to the challenges we face, it’s all about perspective and understanding followed by the development of different courses of action that get us to different and hopefully better outcomes.

If we like the way we do business today then let’s keep everything as it is. If not, then we know that change is our only option.

If you’re interested to learn more about the possibilities then please have a closer look at the MLM Buyers Guide from MLMBuyer.Com?

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