Network Marketing

[seek_first]

I recently got involved with a network marketing company (it only cost me $45 bucks and a single sistah with no kids nor property needs all the tax breaks she can get). I still don't know enough about network marketing (even though they tell me over and over again that they are different from a pyramid) and I was wondering what others' thoughts or experiences with network marketing have been. What should I look out for and the like? Thanks in advance.

[mrandmrsmer]

What's the name of this company? What is their initial plan to help you make some money? Are they selling a particular product?

If their initial plan is for you to find three other people to join, then help each of those three people find three more people to join, it's a pyramid scheme or what is known as an "MLM", which stands for multi-level marketing. The people in the upline make money from the people in their downline, and usually unless the people in the downline work really hard, they won't make any money, and the cycle continues to go on.

I signed up with Excel Communications years ago. They sell long distance, cell phones and other telecommunications services. They've since merged with Verizon, if I'm not mistaken. At any rate, the MLM didn't work out for me, but for some, it did. I paid $245 to be an "Independent Consultant", which involved my finding three more people to be "under me", then help them each find three people to be under them, and so on and so on (You know, like a Breck shampoo commercial! :lol) so I could advance. I never got past "Independent Consultant". In the meetings we had, some of the "Excel leaders" were telling people to quit their jobs to do Excel full time because they were so sure Excel would work out. Then, when folks were losing their homes and cars because they weren't turning a profit doing Excel, the tune changed to, "Don't quit your job until you're making money with Excel". It was a trip!

Do your research on your particular MLMs. You might not know what you're getting into until you're deep into it and can't get out. PLEASE DON'T QUIT YOUR JOB no matter what they say! Be sure that this is what you want, and if you find down the road that it's not working for you, don't let others coerce you into staying into it or "working harder". Leave with both your sanity, dignity and bank account intact.

HTH

Mrs. Mer

[mrandmrsmer]

One more thing: If you do become more involved in this MLM, and you find yourself spending more money to keep up with their products, services and "tools to better your business" than bringing money in/turning a profit, it's time to quit.

[seek_first]

Originally posted by mrandmrsmer@Mar 31 2004, 01:10 AM
What's the name of this company? What is their initial plan to help you make some money? Are they selling a particular product?


Thanks so much for the detailed post.
The company I'm with sells more than one product and their products covers 12 industries. Although they do encourage you to "get" two more people into the business, that is not the only avenue they have for me to get paid in the business. I definitely am not planning to quit my job (I love my job) but thanks for the warning just in case. :)

[tangytic]

do your due diligence. Check out network marketing watch dog sites.

[LOCSOFAST]

Originally posted by seek_first@Mar 30 2004, 10:11 PM
I recently got involved with a network marketing company (it only cost me $45 bucks and a single sistah with no kids nor property needs all the tax breaks she can get). I still don't know enough about network marketing (even though they tell me over and over again that they are different from a pyramid) and I was wondering what others' thoughts or experiences with network marketing have been. What should I look out for and the like? Thanks in advance.
1. How long has the company been around?
is it a ground floor company?
is it publicly traded?
how did it get started?

2. Is there a need and a market place?
3. Is there a true product?
are they just knock ‘offs’ that help you launder money among friends?
are the products unique or do you have to convince somebody to switch from something they are already using? (competition that is better?)
Do you have to fill your ‘garage’ with it? (anything you have to stock your self is a liabilty if you reap no benefit before you sell-it (move-it)?
4. Is the timing right?
even if it is a good price, what would be good timing, before or after it is mainstream?
i.e.-8 track tapes for $1.00- Good price, good product, bad timing
i.e.- compact disks sells- Good industry, good product, bad timing (saturated)
i.e.- microwave oven industry- good product, strong market place, bad timing

5. What about the Compensation?
Do you send that company, $50.00 and only get back ten? or do you send them $10.00 and get back $50.00
Is it a pyramid? (they are illegal)
Do you have to get people involved to make money? (if so, ALL of the above don’t matter)
What do you get for your investment? just another job?

[ChiChiKinks]

I've peaked in on two Network Marketing business but decided that it was not for me. They both involved finding 2 to 5 people to get under you and they also involved getting people to change what they are used to, which is a very hard thing to do. Yeah they tell you or draw up on the board how much money you can make but the only ones making that money are those people who started it. Also they want you to put too much time and energy into it by attending meetings after meetings.

Bottom line I didn't trust it and funny thing is that, the lady that put me on to one of those Network Marketing works in my same office building and she was telling me at the time, how much money she was making and how she was going to quit her job within a year. She posted her retirement date all over her office and you know what, 3 years later she's still here working in the same office doing the same damn thing.