Network marketing is an advertising technique that allows you to market your products whether you are in your office or your family bedroom. The main idea here is that you, as a network marketer, have to recruit two other people, and each of them has to recruit two more people separately, and so on.
At one point, it is an acceptable concept since you get to earn money without going anywhere. You can text some friends and say, “Hey, avail these products or sell them to folks that you know. I’ll give you a commission for everything you manage to trade.” You ideally need to pay a small amount to start making dollars through the scheme.
Despite the perks that network marketing offer, though, it is not a secret that even the legitimate companies receive criticism from the skeptics. After all, there have been scenarios in which the recruited individuals go after the person who got them involved in it, asking for reimbursement.
If you want to know why, here are the ten problems with network marketing.
As mentioned above, this form of advertising follows a pyramid structure wherein someone has to branch out to two individuals who can invest in the products. For the latter to earn anything from it, they have to start recruiting people too. Because of that, the belief that the person at the very top of the pyramid is the only one making money tends to be an issue for many.
Another problem is that network marketing is often associated with the word ‘scam’ these days. When you meet a friend and find out that they have been victimized through pyramiding, after all, it seems effortless to generalize that everyone who promotes it is not worthy of your trust.
There are some who dive into network marketing because they think that it generates cash faster than a 9-5 job. Well, the truth is that you have to work hard for the money even when you do pyramid selling. Otherwise, nothing will happen.
Although you do not need to have a huge capital to start network marketing, it is not entirely free. You still need a decent-sized amount to be able to do it. And that’s something that folks may not be willing to take away from their regular budget.
Lack Of Determination
To succeed in network marketing, you have to recruit as many people as you can. Having zero determination to ask around or even talk to your friends and family members over the phone can never do you good.
Jaded Potential Recruits
Sometimes, no matter how hard you try, you can’t achieve success in marketing. That is especially true if the ones you sell the idea to are the folks who have been scammed before by another network marketer. Years may pass, but the anger and pain that those people may have felt due to the fraudulent scheme may remain fresh in their hearts and minds. Thus, you merely have to respect their views or keep on proving to them that you are not a fraud.
Say you have proven to everyone, including your family and friends, that network marketing is not a scam. However, problems may arise when you deal with incompetent manufacturers who do not deliver the goods on time or often produce subpar products. If you do not fix this immediately, you might have to face the wrath of the individuals who invested in the scheme.
When you are selling just about anything, your drive may dampen whenever someone declines to get on board. Nevertheless, if network marketing is honestly what you want to do in your life, do not let the rejections affect you. Your aspirations will come to fruition someday, considering you continue recruiting investors.
Long Waiting Time
If you are someone who does not have a lot of patience, you may want to think twice before trying this form of advertising. Earning a lot of money through pyramiding may take years, you see. You have to build trust and reach out to a lot of folks to see six or seven figures in your bank account.
In the end, no matter how many recruits you get or the products you sell, you are still working for someone and earning through commissions alone. If you cannot manage to make people sign up to the scheme, you may not get paid. Hence, the flow of income is not steady.
If you want to start a networking business, you should know that gaining the trust of your target market will not be easy. You may have pure intentions, your scheme may be plausible, but this type of advertising honestly does not have an excellent reputation. It may be wiser to opt for social media marketing to get the word out there regarding your products and services.