MLMs have received an unduly bad reputation. In some cases, people have abused a good idea for their own selfishness, and in many cases, dishonest practices have perpetuated that bad reputation.
However, that was the fault of individuals. The basic concepts behind the MLM method are not only sound, but brilliant. Done right, an MLM produces a broader base of wealth across more people, offers expert and personal involvement closer to consumers, and provides an easier platform for small businesses to grow and prosper.
There is no get rich quick, no get rich without effort, and no overnight success. However, by the simple power of geometric progression, or network marketing, an MLM business can create wealth for multiple individuals. Marketers within the network become both the advertising and distribution base for the company. These are two areas that incur tremendous expense for traditional companies. In an MLM, however, instead of an expense to the company, the money becomes a wealth creation vehicle for people. Not to mention that the company itself need not spend money directly on advertising, and only pays distribution expenses (commissions) after sales have been made.
MLMs also create many experts and leaders who master the art of both sponsorship and customer service. From the onset of joining an MLM, people must embark on the road to becoming a leader if they are to become successful. Followers and tag-alongs do not last because they do not reach any sort of income level that will make the business profitable for them. The very nature of an MLM creates leaders because advancement is not possible without developing the businesses of downline members. In this way, a leadership structure that supports all members expands the company without the need for formal business training other than that which comes specifically from the company, and is specifically related to the company.
More direct and personal service to the consumer is possible as well. MLM salesmen are far more knowledgeable of their products than the average department store clerk, and in being closer to their customer are better able to meet their needs. Advertising itself is often done on a more personal basis, and not brought to bear on people in the traditional media blitz manner.
MLMs offer distinctive advantages for companies as well. Even small companies can afford to market their products in this manner because, as mentioned before, advertising is not an expense as it is done by individual marketers, and distribution costs are deferred until after a sale is made. As well, a huge distribution network is not necessary to move product UNTIL the demand for that product has already been created.
In this way, the functionality of a product can determine its own success. If it's a good product, it will sell whether the start up company can afford an initial media blitz and pre-sale distribution or not. In the same way, an inadequate product, or unprincipled MLM, will eventually be weeded out through failure.
The only thing holding back the advance of MLMs at this point is that unjust bad reputation it has been tagged with. Greedy individuals often create glitz filled companies that offer the wealth of network marketing without any sort of real product. These 'flash in the pan' organizations are the ones responsible for mistrust in consumers, and should not only be avoided but torn down for the good of all honest, hard working, MLM members everywhere.
As you can see, company, consumer, and marketer all benefit from this growing trend. MLMs should NOT be seen as pyramid schemes, but as a method of distribution for companies, as a provider of more personal customer service and product knowledge to consumers, and a leadership and wealth creating system for marketers.
With these benefits brought to the forefront, I believe those of us willing to do the work and endorse products we believe in will find not only greater wealth, but a greater sense of pride and happiness in our industry as well as our lives.
Joe Bingham, Editor of the NetPlay Newsletters Publish Your Own Quality Ezine with Little Work and a Lot of Help http://www.netplaynewsletters.com/publisher.html