I have always been skeptical and very negative about the concept of networking. My understanding is that this business is a clear fraud where people who joined first gets “all” the money”. Now, this pyramiding scams are back in the newspaper and news headlines where people are Misusing it.
For this reason, I am writing this note to share my knowledge and personal experience. I hope this will clear your mind of all the misconceptions and guide you to identify if the company is a fraud.
This year, I attended several financial and personal development trainings in the Philippines. The network marketers from different companies caught my attention because majority of them are are earning more than I do (despite me being an OFW in Dubai) at such a young age.
With my curious mind and auditor’s hat, I bravely joined one of the companies as a distributor to fully understand how the business work. I also did an extensive research on the subject to learn more of what makes this business unique compared to the other traditional business.
Because it my purpose to share my knowledge, let me explain to you what my extensive research says about network marketing:
- According to Wikipedia it is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit
- The recruited sales force is referred to as the participant’s “downline”, and can provide Multiple levels of compensation
- It is also called as direct selling, multi-level marketing, referral marketing,word of mouth marketing and relationship marketing
- This marketing strategy was started by Avon and Amway in 1950s. Watch this video to learn more http://www.youtube.com/watch?v=bACweCwXxCo&feature=youtu.be
- In 2012, it is the industry with the highest global sale of $167B higher than combined revenue of video gaming & movie industry
- Experts and big names of the business of various industries are supporting it. Even President Clinton and Noynoy Aquino supports the same.
To know the other persons who are supporting network marketing, please read this link, Famous Supporters of MLM
Check my Page to Learn More What I’ve learned about this business that has ChAnGed so many Lives.