September 22, 2010

Network Marketing- EXPOSED! Here We Go Again

Oh, I’m sure this article is going to make some people mad… but what the heck! I’m writing my opinion, so here it goes…

Today I was reading several posts on an MLM message board, allegedly designed to discuss Scams- one of which, of course, was about Network Marketing Industry as a whole. After reading several pages of posts, I decided that I had had enough with the trash-talking about how all MLMs Companies are scams.

Actually, I believe that less than 10% of network marketing companies are truly "scams".  Below is some highlighted reason why this industry has such a bad reputation. Most of it is due to the marketing methods used by many in the industry.

What methods?
  • The glossy brochure or video that highlights people making six-and seven-figures a month, driving around in luxury vehicles, standing in front of their mansion, sailing in their yacht, boarding their jet, or showing off their diamond Rolex while
  • Telling people that all you need to do is talk to everyone you know about the business, take them to a hotel meeting to hear someone talk about the millions they've made, and that's it- then you’ll start raking in the BIG BUCKS as well.
  • Sharing how THEY got the HUGE bonus in just 2 months…and if you can just get 3 people who get 3 people who get 3 people, etc., you will make the HUGE bonus too.

Let’s be honest here…the vast majority of people won’t achieve those kinds of results. In fact, I believe that the marketing style above is one of the very reasons why there’s a high turnover rate in network marketing.

You ask Why?

Well, that form of marketing primarily appeals too two types of individuals, who:
  1. Are in a desperate Financial Situation
  2. Want to make a Quick Buck.
In my opinion, neither one will stay in the business for the long haul, and here’s why:

Type (1) Desperate Financial Situation People:

Network Marketing is a business not a job. Businesses take money to grow. PERIOD!

I don’t care what anyone else says, to grow a business you need money.

Yea, I know….there are SOME exceptions to that statement….but I’m not talking about that small group of individuals - I’m talking about the vast majority.

I believe that you need some money to make money.
(Note: I didn't say you need a ton of money, I just said some)

And by the way…if you don’t have ANY money, you won’t be in business for very long. So my suggestion is, get a job or keep your current job because your chances of succeeding in this industry increase if you've got some cash flow coming in!

Most of the Type 1 people end up dropping out because they:

  • Didn’t know it would take money after the initial sign up fee to buy leads, advertise, buy marketing materials, buy training materials and/or pay for training courses. 

These people make up, approximately 50% of the people who drop out of the business.

Type (2) “Make A Quick Buck” people:

In addition to requiring some money, businesses take time and effort to grow.

A major problem with our industry is that many leaders don't tell people that their friends and family might not see the business for the great opportunity it is.

They also don’t tell people that when that happens, they either must talk to every person they can about the business, purchase business opportunity leads, or generate their own leads.

To introduce the business to a lot of people takes time.

What REALLY makes me MAD is when top earners are quick to tell people that they made the HUGE $100,000 bonus in just 6 months, while conveniently failing to disclose:

  • The number of companies before this one, in which they tried and failed.
  • The REAL reason they got that BONUS in just 2 months was because they brought a downline of 500+ over from another company, which took them YEARS to build.
  • That they sponsored one SUPER-STAR who brought in a boat load of people.
  • That they have a list of 50,000 people that took them years to build or cost them a ton of money!   
This lack of information gives most opportunity seekers a false expectation of the time and effort it takes to succeed.

Typically Quick Buck people quit shortly after the reality of the time commitment and work it takes to grow their business.

These people represent the other huge portion of people who drop out of the business.

To eliminate these results, I firmly believe it’s my duty to tell people who are interested in joining any MLM business, what I believe it really takes to make it in the business. That’s why I’m sharing this information with you.

I don't want a single person to join my team without knowing my views on what it takes to succeed based on their particular financial goals.

You’re probably wondering… is this guy going to share anything good about Network Marketing?

Well of course!

Unlike traditional businesses, which take a lot of start-up capital (anywhere from $10,000  up to millions of dollars) for things like rent, insurance, inventory, legal fees, licenses, etc., Network marketing allows people to have their own business for a fraction of the cost.


  • It's the most affordable way for someone who wants to be his or her own boss, to start a business.
  • It gives the little guy a chance to make way more money than he or she could ever earn on a 9 to 5.
  • It gives people a better chance at living the American Dream than a lottery ticket.
  • The best part is, there are TONS of average people like YOU and I, making MILLIONS in network marketing. It’s a real possibility, if you’re willing to do what it takes to succeed.
Consider this before signing up with any network marketing company:

What are you willing to do to grow your business once your contacts or “warm market” has been exhausted?

In my opinion, you’ve pretty much got three choices:

1. Talk to everyone in a 3-foot radius about your business, place drop cards all around town, pass out flyers, etc.

You must be willing to talk to people day-in and day-out for months or even a year in order to get a significant amount of money coming in consistently. And, yes, I’m aware that there are exceptions to the rule too….but I’m not talking about them, I’m talking about what MOST people can expect.

B. Purchase Leads.

This means you'll make hundreds of cold-calls to business opportunity seekers, a large percentage of which will be rude and hang up on you. This method has been proven to work, but it’s truly a numbers game. 

C. Generate Leads Online.

This method takes time and of course, some money. 

But, if you want to market your business on the Internet, you must accept the fact that for the vast majority of people, it takes several months or more of consistent hard work, learning and implementing to lay a foundation before you even start seeing consistent results.

It takes time to get your presence out on the Internet. Although with Blogs, Twitter, Facebook, MySpace and YouTube, and some other online tools- if used properly, you can get your presence out much faster than ever before.

You also must be willing to invest time and some money in educational materials, if you’re new to this industry and/or this style of marketing.

After all of this, you’re probably wondering why I’m being so brutally honest about what I believe it takes to succeed in Network Marketing.

I'll bet a lot of Network Marketing veterans who use the “traditional methods” of marketing will be pretty mad at me for writing this article. They’ll say that I’m scaring people off. I may be. But, the people who do make the choice to join my Network Marketing Company or any other MLM company, will at least go into the opportunity with their eyes wide open- as opposed to dropping out and then bad-mouthing the industry and writing on those obnoxious forums about how my Network Marketing Company or any other MLM company has scammed them.

My other reason may be a little selfish….

I don’t want to waste my time personally mentoring people who are unwilling to do what it takes to succeed. I’m not afraid to tell someone “NO” if I don’t think they are right for my organization.

That’s because I am looking for a team of entrepreneurs who:
  • Are serious about building their own business;
  • Acknowledge that it takes time, effort, and money to grow a business; and are
  • Willing to do what it takes to reach their goals.
If I haven’t scared you off yet, then you’re the kind of person I want on my team!

Because I'm so straight forward about what I believe it takes to succeed in this business, I know that the people who join my team are true entrepreneurs, and that’s why I'm happy to dedicate my time and resources to help others achieve their goals.


Dante Walker

To connect with me Click Here

To find out more about me  Click here

(Portion of this article was borrowed from a fellow entrepreneur - Ms. Nassar)

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