Where forth art thou?: MLM vs Network Marketing - Reader's Mail

Friday, September 15, 2006

MLM vs Network Marketing - Reader's Mail

In the Mail today...

im sorry i had to bring this up after so long.. your readers have probably forgotten this topic!

before i start, i'll apologise if this seems too biased, or insensitive. i'll probably look as though i am defending MLM companies, but i am just defending what i know about it.

dear xialanxue,

MLM vs Network Marketing Are they one and the same? Obviously they have similar attributes, but are they the same? Technically, no, they are not. Multi-level notions a big structure with the person at the top as the boss, and obviously earning the most money. Networks are webs of people, helping each other out, regardless of where they are, because its a win-win situation. While MLM creates the need to SELL SELL SELL, most network marketing has to do with USE USE USE. MLM = you sell and create commission. And oftentimes these items they sell are either bogus, or things you really don't need! Like you mentioned, magnetic beds. If i were broke would i invest in something that useless? Yes it might be good for my health or something of that sort. But do i really need it? Network Marketing = you use the items and encourage others to do so. And what these companies sell are the things we use everyday. Make-up, facial care, healthcare, and so on. If you shop at WAL-MART, you get to save. If you join a network marketing company, you get to save AND make money, by simply the process of duplication. Bogus products? In one of your previous posts there was a mention of Nutrilite. Nutrilite has appeared in Readers Digest a couple of times. Its Superbrand for two years. If Nutrilite is bogus, Reader's Digest is bogus. (Maybe if network marketing companies start selling guns and rounds like Wal-mart, they could be as successful. )

I think we need to separate the companies that are doing well from this marketing method from those who are obviously bogus, and are constantly, everyday of the week, tricking people into "investing" amounts of money. Aiyah, these people spoil the market. I will label the former group of companies Group A. The latter would be Group B(ogus). haha.

i'll start with the obvious difference. The amount of cash you pay to enter the business. Group A = not exceeding S$100. Group B = US$500 or more. I am surprised, in a country like ours, why doesnt anyone ask for transparency? I'm very particular about where my money goes, so i do check it out. For Group A, i am paying to legalise my business. And the tools from the company. Obviously, this is not a pyramid scheme. How high can a 100 bucks reach a network a few million strong? Then where does the US$500 im paying to Group B go to? Up up UP! If you are happy with giving people commission and having to lie to several of your friends, then so be it. A network marketer's income comes from a company backed by years of experience. An MLM's income comes from the poor poor people beneath you. Your friends and family. Either that or you having to sell and keep selling products you're not even sure of.

I'm sure you are familiar with Robert T. Kiyosaki, an author EVERYBODY mentions, am i right? That aside, he wrote a book about network marketing. He wrote about the opportunities the marketing offers, that if he did not have the business he had before, he would be building a network marketing business. I think thats enough testament, but please, please, do your research

Network marketing companies dont spend on advertising. They would rather empower people by channelling this money to them, and to further research of their products. Maybe Wal-Mart does not need advertising. But if you were an employee in any of the chain stores, would you be rich? Over 100 billion in turnover, does it go to you? Baby, stop dreaming. Normal people like you and me, earning a few extra thousand from just calling and using products, i think i would be content. We should stop whining about how other forms of business are doing better. Because if you were in that kind of business, you wouldn't be talking to us.

Lastly, i think i might know better because im with a company in Group A, and my brother is in Group B. I am not earning at my current stage, while he is. I am undetterred, because if i were looking for instant cash, i'd take a time-for-money job. What i am building is passive income. And if it leaves me with 2-5 years of just my working income, i wont really mind. Further, i know that all my previous investments have not been for naught. They will contribute to who i am, and who i will be in future. i.e a healthier person, or a stronger person, from the educational programs.

My initial investment is peanuts to his US$500 - US$1500. And it goes all the way, all the way up to the highest person. Pyramid scheme? They can only be labelled like such if they have no products. And to date, i havent seen any.

Lastly, the purpose of this is not to advocate Network Marketing. This is just a warning to people who are either in these schemes or are considering.

1) That there is a legit business going on, but if you are paying more than you can afford, ITS NOT FOR YOU.
2) Look at where your cash would be coming from. If its from a good company, then why not. If its from unsuspecting people like yourself, get away.
3) The level of transparency. DO YOUR RESEARCH!

I have friends who dont want to be earning an "unorthodox" income. Passive income is what we need, so even if u wont like the company that is give u money, or you dont like the business, just disregard all that and just bloddy build the business! Be honest, do you really want to work till you're 65? We need this.

If you havent looked at a Network Marketing plan, you should. At the very least, you learn something new, even if you don't join.

Ah, i think i might mave missed out some points but i think i've said enough. thanks a lot for readin!



Tags: MLM vs Network Marketing Rich Dad Poor Dad Sales

1 comment:

nwm said...

enough said.

CASE and the DSAS... and perhaps the CAD, have to do a much better job of clamping down on the bullsh*t MLM companies that are roping in innocent & new / inexperienced MLM-ers even as we speak.

Why let these poor newbies get sweet-talked into get-rich-quick or sit-back-and-earn schemes where clearly no legit product is being sold.

It only serves to add to the industry's bad name when these BS MLM's pack up... or recruit so many people such that xlx's earlier post about the doomsday characteristic shows up.

Oh, 1 more thing: though aromatherapy products do have solid foundations in terms of the concept's background & ancient origins... I do not condone the front-loading (i.e. 5-figure buy-ins) aspect of these "essential oil" companies either.

Real network marketing companies exist out there, people --
do your research and sort through these con-jobs to find yourself a proper secondary income in network marketing!