Pyramid Scheme or Proven Business Model?
What are your feelings on network marketing? Do you feel like it’s a pyramid scheme or a proven business model not for the faint of heart?
Whatever your feelings might be, network marketing has been around for years. The California Vitamin Company, now known as Nutrilite, first started back in the 1930s with this exact model, and decades later the company still stands. Then of course one of the most famously known MLM’s Avon was founded by a door-to-door salesman named David H. McConnell. Mr. McConnell began Avon once he decided to sell perfume door-to-door instead of books and voila, Avon was born.
I believe that multi-level marketing is a sword that can be wielded by the right Sales Samuari. It takes the right ingredients to make this business model work for the right person. Let me break it down.
- Product-Salesperson Fit
You have to find the right product for you. Mr. McConnell changed his product from books to perfumes. After slanging books for a while, he probably made some astute observations and decided that perfumery and cosmetics were more his styles or he had more lady clients. Whatever the reason might have been, he pivoted. He still wanted to sell but he just chose a different product. A product that fit his success.
2. Do Your Research
Maybe this should have gone first, but either way, do your research! Look up all the youtube videos that are going to tell you all the pros and cons. Trust me, I know that most of the videos are going to give you doomsday, victimhood stories, but also look for videos that tell you something factual and positive. And be proactive about looking for that information because not everything is a bouquet of flowers and not everything is a pile of sh*&%. Excuse my French. Another important thing to look at is the stock market. Is this company a publicly-traded company? How long has it been around? Two years, 10 years, 50 years? Who is their CEO? What do their employees at headquarters have to say about their company on Glassdoor or Indeed? What do their sales reps, ambassadors, and clients have to say about it.
DO YOUR RESEARCH!
3. Do not expect to get out what you don’t put in
Simple. What else can I say to make this more clear. A good MLM will be honest with you and tell you that this is work. This is a business. You will have to hustle. You will have to talk to people whether it’s online, over the phone, in person. You will be uncomfortable. So, if you are not ready for that, then be honest with that person presenting to you, and be honest with yourself. Telling someone no is better than leading them on. That brings me to my last point.
4. Do not feel pressured
If the opportunity does not pique your interest and you know it’s not for you, then say no. We hear no all the time. It’s okay, you will not hurt our feelings. If anything you’re giving us more data to analyze so we can work on our pitch or decide to talk to other people that might want to know more.
While I am sure there are more negative experiences than positive experiences out there, I still stand by that MLM’s are proven business models that are not for the faint of heart. If they were so bad and so “scammy” then why are they still around? Why do many use it to make extra income or start their own business? Could it be that it’s not the business model but the person executing it? If anyone out there is reading this, I would love to know your thoughts and feedback. Yours truly, financially curious, Vera Financial.
