What is wrong with Network marketing business model?
It's have been almost 7 years when I first got involved with Network marketing business concept. And guess what? It was one of the greatest things what happened with my life. Maybe you are not fan of Network marketing concept but it can totally change any people mindset. Just hear me out.
Years ago I hadn't any vision for my life, I was struggling what I will do in my life. I always wanted to do things in life what matter's and daily job in some market or something just wasn't my thing. So yeah, then I was introduced to Network Marketing idea and vision.And it really did a great job for me and I guess for lot of other people who really give it a shout — it gives you hope and life vision that you can be and achieve what ever you wan't in this life. Network marketing really gives you hope that you can be something more than average. For that reason, I hope more and more people at least try one Network marketing company with who they feel connection (let's say from product perspective)
So what is wrong with Network marketing business model?
To be honest, it took me long time to really figure it out and understand why so many companies are shutting down, called as pyramid schemes etc. So here it is — most companies are forcing and paying most money for recruiting new ''marketers'' not customers. Imagine a business where there is 80% marketers and just 20% customers. Something just don't seems right.
Yeah, of course companies are claiming that thous ''marketers'' are customers as well because they are forced to buy products to get paid. But if they wouldn't need to buy anything to be part of compensation plan, how dramatically statistic could change?
Network marketing industry need to change
Time a go, another company called Vemma almost got shut down. And who knows if they can make through it because tons of this ''marketers''left company. And reason was — Vemma was focusing they're business model to ''recruit new marketers and you will make lot of money''. It's just wrong.
Main value in any business should always be — product. And Network marketing business model shouldn't be exception.
There are few companies who understand that. And guess what? This companies are making tons of cash, they're ''marketers'' are proud to be a part of company and no one is calling thous companies as ''scam, pyramid schemes etc''
One last suggestion — if your company is focusing they're business action plan on ''invite x number of people who buys starter package and help thous x number do the same etc'' — run away. It's just matter of time when things will dramatically change from law perception and all thous companies will going down. Mark my words.