Is Network Marketing A Scam? | The TRUTH Behind MLM
Network Marketing or MultiLevel Marketing (MLM) has been around for years and it's not going anywhere anytime soon.
But, why are there still so many scam claims about it and what are people not telling us?
Here's the truth about network marketing.
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Let's clear the air before we dive in. There's something everyone needs to know before we can even discuss this topic.
What's The Difference Between MLM And A Pyramid Scheme?
A network marketing company is a legitimate business model. They use the power of multi-level marketing to get the word out about their products and services. This allows personal reps to benefit from sharing the company's products and services and also recruiting new reps into the business.
A pyramid scam uses multi-level marketing to grow the business however, there is no product or service in a pyramid scheme. a pyramid scheme simply moves money around from new investors and puts that money into previous investors pockets.
So What's The Problem With Network Marketing?
The biggest problem we see today in most network marketing companies is that they are not teaching the Reps how to build a business by using the power of online marketing.
I think we can all agree that the internet has revolutionized the way we do things today. But with that being said why is it that so many network marketing companies still to this day only teach the Reps how to build their business by Word of Mouth?
I'm not saying that starting a business by talking to your friends and family is a bad thing, but what I am saying is that this way to build a business is not scalable and honestly, I don't believe it's marketing at all.
How To Build And Scale Any Business
The most powerful way to build any business, to include network marketing, is to use the power of the internet. now there is a couple of different ways you can go about using the internet to grow a business.
If you're building a network marketing business, you can use the internet to build your network instead of talking to your friends and family. this works up to a certain point but even growing your network using the power of the internet is not scalable.
The best way to grow a business online is to produce valuable content to your target market and grow a brand. when you grow a brand online you build trust with an audience and if you can build trust with an audience you better believe they will buy anything you have to offer, which can include joining you in your network marketing company.