This page was first published on the 20th of November, 2016 and last updated on the 20th of November, 2016 by Patrick Carpen.
I would like to outline in this article why network marketers should first sell the product, and not the opportunity, of a Network Marketing Program.
Network Marketing, also called Multi-Level Marketing, has often been labeled a pyramid scheme and many governmental organizations have moved to deem the business model illegal. And how did this come about? Because of a few unethical marketers.
Network marketing harnesses the power of “word of mouth advertising”. For example, I remember when I was just twelve years old, and I was coming home from the circus for the very first time. My neighbors were waiting by their fences with eager eyes and bright smiles, and they asked me “Patrick, how was the circus?!”
Then I started to unravel all the exciting details of the circus show. I said, “it’s definitely worth the money.”
I related the story of the motorcycles in the cage and added “that one event alone is worth the entry fee”.
And it was true. The circus was really amazing. And by the sincerity of my words, my neighbors trusted my account of the merits of the circus, and they ended up going too.
Words have power. What people say about you or your product is critical to success or failure. That is why one of the most powerful marketing platforms in the world – Amazon.com, started off with the powerful tool of product reviews. Almost every single product page is outfitted with a review section where users could speak their minds about their experiences with a particular product or service. And you can bet that these reviews play a major role in people’s opinion of the product, and strongly influences whether or not they purchase the product or service.
Network marketing relies on the same concept of word of mouth advertising; but it takes it a step further. It rewards those who “spread the word” about the merits of the product or service. Why spend millions of dollars advertising out of your own pocket when you can have an army of network marketers pushing your products the world over? This is the force which network marketing harnesses. And it does possess merits.
Then why all the negative talk about MLM? Why is it banned in some countries? And why do some people talk it down? The answer: because of a few unethical companies and hordes of unethical members who follow them. They peddle around the idea that “if you join and get two members to join, and they get two members to join…”
That is wrong. That is creating what you call a pyramid scheme. That is a hyped up, get-rich-quick scheme which will create a few leaders on the top and leave the masses crumbling on each other. And that is why so many network marketing programs are on the verge of collapse. This must stop.
So what is the right way to do network marketing?
First, you must sell the product. Do not sell the opportunity until the buyer really likes the product and becomes a regular customer. After that, you may inform them that if they refer someone, they will get a commission on every sale made by that person.
This is the ethical way to do network marketing, and the only way that is sustainable: sell the product first, then the opportunity. No money making opportunity should be sold before the actual product has been sold.
Many network marketing programs do exceedingly well because they have a backbone of high quality products. They are not a pyramid scheme.
When I first joined Hinode Products, I was a bit skeptical. My upline kept nudging me to “sign up others”, but I kept my mouth shut. I wanted to see if the products possessed merit. For six months, I tested the products, tested the market and sold the opportunity to no one. After I saw that the products do possess merits and sold really well, then I started signing up others.
Hinode is one of the finest network marketing programs in the world. And that is how any network marketing program should be sold: product first, then opportunity. That way, you wouldn’t create a desperate pyramid that is likely to collapse.
In my opinion, no one should quit their day job over a network marketing program, until they see that the program possesses merits and that they have gained enough grounds in marketing those products. No one should market a Network Marketing Opportunity as a way to get rich quick. Bring in a few dollars on the side? Maybe. Furnish you with a product you really need to use? Definitely. Get rich quick? No way!