An Honest Way to Describe Network Marketing

The following is adapted from Manipulated by Mark Davenport.

This is a lie I’ve heard in every network marketing company I’ve ever encountered. It usually unfolds like this:

“Have you ever been to a movie?” the salesperson asks.

“Yeah, sure,” the prospect replies.

“And you talked about the movie with your friends afterward, didn’t you?”

“Absolutely.”

“You told five people, and then they probably told five other people. Isn’t that interesting? That’s twenty-five people who heard about the movie. Then those twenty-five people probably told five people, which is 125. By the fourth level, 625 people have heard about and possibly bought a ticket to that movie, all because you talked to your friends about it. That’s networking! Now imagine you got paid a little for each ticket someone in your network bought — that’s network marketing. Doesn’t that sound good?”

The prospect might shrug and reply, “Yeah, I guess so.”

“Great,” the salesperson says, extending his hand for a hearty handshake. “Welcome to the team. If you can recommend a movie to your friends, you can succeed in this business.”

Of course, in reality, network marketing bears no resemblance to the scenario the salesperson just shared. First, just because you tell five friends about a movie doesn’t guarantee they will tell anyone else. They might not care enough to tell anyone, or they might be too lazy to bother. They might not even have five friends.

Sticking to the Facts

None of these lies are necessary. On the contrary, network marketing companies can achieve tremendous success while constantly telling the truth.

If you’re an industry leader, recruiter, or distributor, break the trend! If you tell the truth, you become invincible. Nobody will ever complain that they were tricked into the business. Telling the truth shifts the burden of responsibility for success from the salesperson to the distributor. If you tell the truth and a friend joins the business, you still have a commitment to them, but they aren’t entering under false pretenses. They know what they are getting into and what it will require to succeed.

This business can work, but rarely does it work like recommending a movie. Even when it does, that approach is only effective for “fans” of the product. Fans will naturally talk about a product they’re passionate about. They don’t approach it like a business; the passion is sincere.

“You look great,” someone might say. “Have you lost weight?”

“Yes, I have,” they will respond. “I’m using this great diet pill. I love it.”

“Can I try it?”

“Yes, you can. I will get you the contact information of the guy I’m buying it from.”

It’s an honest appreciation of the product that generates interest authentically.

For most people, however, that is not the situation. You have to avoid presenting two different stories about how your company works: one that is the truth and another that is the sales pitch.

When you make a pitch for how your process works, use an example that describes the real experience of working in this industry.

I like to compare it to a franchise:

“In 2016, the average investment in a franchise was $125,000,” I will say. “On the other hand, the average investment in network marketing is between $49 and $299. As you can see, network marketing is much cheaper than buying a franchise, but it includes many of the same advantages. For example, distributors receive the product and all of its materials. They don’t need to develop or invent anything. You sell the product using a strategy that the company has designed, tested, and proved — a strategy that doesn’t use any lies. The work is similar to running a franchise — distributors recruit business partners and exercise leadership.”

In all of this, I stick to the facts. I tell them that network marketing is a $160 billion industry, which is impressive considering that the industry has been around for only about forty-five years.

“It may not be the biggest industry,” I admit, “but it has seen some of the biggest growth numbers of the last ten years.”

The truth offers plenty of facts to get a potential partner excited.

A Personalized Approach

Honestly, when I was first pitched on network marketing, what got me excited was the honest, personalized approach of the salesperson. He started by saying, “I heard you’re a determined athlete who never quits a job before it’s finished.”

“Yeah, that’s true,” I replied.

“I also heard you have big dreams for your life.”

“That’s true as well,” I said.

Clearly, he had spoken to my friends and learned important details about my life, which allowed him to give a pitch that was highly personalized. This made it far more effective.

Before you pitch, think hard about the individuals you want to approach. Every pitch should be tailored to the listener, and you should always be clear about the qualities they bring to the table.

The Only One Fighting Fair

At first, you may feel like being honest puts you at a disadvantage, since all of your competitors are lying. Let’s just admit it — dishonest pitches usually sound more appealing. However, you can turn the situation to your advantage.

Use your honesty as a selling point:

“The good thing about working with me is I believe in keeping it real. I’m always honest. I won’t try to get you to join the company under false pretenses or by using phony promises. What you see is what you get. If you have any doubts about any of my claims, do your homework. I’m not trying to strong-arm you or trick you into signing away your life today. I want you to have a crystal-clear understanding of how this business works so you can decide if you want to commit.”

With a pitch like that, you put the choice and responsibility in your potential partner’s hands. If he buys in, he will never come back to complain about some unrealized, impossible promise.

“Hey, you told me I would make $20,000 a month!”

Instead, he is setting his own goals.

Keeping it real is the secret sauce that keeps you safe.

The Facts Are Good Enough

Network marketing has created more income millionaires than any other industry, but it’s not a handout. Anyone who wants to make money in this industry must be teachable. If someone thinks they already know everything they need to know to succeed at network marketing because they already enjoyed success in some other industry, network marketing might not be right for them. If anyone thinks they can achieve success at this without putting in a lot of time, they should move on.

It’s like marriage. If I tell my wife that I’ll never forget an anniversary date and then don’t follow through, odds are a divorce is just around the corner. In the end, I lose 50 percent of my wealth. However, if I tell her, “I just don’t care about anniversaries,” and she still wants to marry me, then we’re on a better track. She knows what she’s getting into, so she’s free to make an honest commitment based on facts.

Tell potential partners the truth:

“You have a real chance at success if you are teachable and willing to work. Entrance costs are lower than almost any other opportunity. At good companies, support systems are in place, so if you take your best shot, you can do well.”

You can learn more about network marketing in Manipulated on Amazon.

Mark Davenport is the professional and pen name of a well-known serial entrepreneur and marketing expert who has started more than nineteen companies in fields as diverse as direct marketing, software, nanotechnology, and automated marketing. Having sold all of his ventures, the author now lives in Dubai, where he continues to advise entrepreneurs and direct marketing companies around the world.