Is Network Marketing a scam or a legitimate business? Part 1

Network Marketing ScamToday I heard a story about a session on talk back radio where the radio announcer made comment about Amway being a pyramid scam. It really got me thinking about the Network Marketing Industryand how so many people still perceive the Network Marketing Industry as a scam and not a legitimate business.

Just before I go any further I would like to make it clear that I believe, not everyone is cut out for Network Marketing just as not everyone is cut for Sales or Nursing or Engineering or any other profession. To truly succeed in anything you must be committed and posses a genuine desire to succeed in that field and you will need to study and develop the skill sets required to meet that success.

A point I want to make right here is that I am not saying all people who are involved in the Network Marketing Industry are always coming from the highest set of values and integrity, in fact if I believe every profession including Network Marketing has people whose values and integrity are not always for the highest good. Just take a look at Bernard Madoff a man whose lack of integrity and values rocked the financial world, do stories like this mean that the finance Industry is now a scam and not a legitimate business, of course not it was the person not the industry who is a scam and wasn’t running a legitimate business it is not the industry itself that is the issue it is exactly the same with the Network Marketing Industry.

If you watch one of those current affair type TV shows that are usually on every evening around dinner time you will hear negative story after negative story about almost every profession and Industry on the planet it is the individual that is in question not the Industry they are involved in, there is good and bad in everything.

So that being said, let’s move on to looking at why people claim that the Network Marketing Industry is a scam and not a legitimate business.

The most common beliefs about Network Marketing are:

Network Marketing companies are a pyramid scheme:

Legitimate Network Marketing companies are not a Pyramid, just check with your local Government Authority (in Australia that’s the ACCC ) the governments in most countries around the world have worked diligently to keep out those individuals who are scams and do not run a legitimate business.

Only the people at the top make money:

Network Marketing plans reward people for their personal efforts in product sales and the development and advancement of new distributors so the more achieve and help others achieve the more you get paid. In most cases a distributor needs to meet certain qualifications to get paid the maximum bonuses and overrides, so whether you are at the top or in the middle or a brand new distributor unless you meet those qualifications you don’t get paid those bonuses or overrides. I compare this to when I was working in the corporate world and my staff were given KPI’s at the start of each year, bonuses were given to those that me those KPI’s and those that didn’t, didn’t get the bonus, whether they were new to the company or a long term employee the same rules applied.

In part 2 of this blog I am going to go over a couple more of the beliefs that people have about Network Marketing and just what you can do to check out if the company you are thinking about joining is legitimate.

Till then make your day a magic one!

Yours in success 

Linda Cargill-Selfe

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