Truths about Network Marketing

I don’t know many people who shop only on price.  Price may be a factor certainly, but most people also take into account quality and other value considerations.  And the decisions can become even more complex – and confusing – when one starts looking beyond traditional retail chains for products of better quality and value.  There is a world of options out there!

Often, people assume that products from network marketing companies are automatically overpriced.  And this is based in some truth, as there are plenty of stereotypical network marketing companies out there that really do overprice their products to the end customer.  But we also find products in retail stores that are overpriced for their quality.  So what’s the difference?

Frequently, the assumption is that network marketing products are higher priced because of the two or more levels of distributors paid on the sale of the product (which is paid as such because of the time and effort put into training new reps by more experienced reps).  But, what most people fail to remember is that multiple levels of distribution are paid on the sale of virtually every product imaginable.  In any traditional retail chain there are warehouses, wholesalers, national, regional, and local retailers, and advertisers.  Even in the case where one is buying direct from a local artisan of some sort, advertising costs are factored into the price of the product – or should be if the artisan plans to stay in business.

So, is the distributor network really any different from normal price mark-ups in other methods of distribution?  It shouldn’t be, if network marketing is done properly and sustainably.  If run properly, a sustainable network marketing company will offer products that are competitive in the overall market place for comparable quality.  If the price is greater, the quality should be demonstrably greater.  If the base product quality is the same and the price is still greater, there should be other demonstrable value considerations – such as customer service or sustainable and ethical business considerations.

I continually keep my eyes open for products of similar quality to the Miessence brand, and so far, the other ‘organic’ products I have come across are either: a) less expensive but lower quality in either the ingredient purity or the product functionality, and do not offer the same level of customer service and sustainable business impact, b) similarly priced but again not as high quality in terms of ingredient purity or product functionality, or with regard to service and sustainability values, or c) similar quality in terms of ingredients or functionality (rarely in service and sustainability) but more expensive…  And d) nothing of the same ingredient and functional quality, plus overall service and sustainability value, that also offers referral benefits that can help customers earn free products.

I’m married to the principles, not a brand, but as I continue to run across and research other brands, Miessence continues to prove itself a leader, both in the network marketing arena and the larger competitive marketplace in general.

 

“If it looks like a duck, swims like a duck, and quacks like a duck, it probably is a duck.”

Ever had a network marketer try to tell you he was NOT in network marketing?  I have, and I hate the smoke and mirrors.  Representatives of many companies try to avoid this label because, let’s be honest, network marketing often has a bad reputation with the public at large – and for good reasons.

However, IF conducted properly and sustainably, network marketing can be beneficial for everyone – company founders, employees, independent representatives, customers, and society at large.  My vision is for this to someday be the only type of network marketing that remains.  But to achieve this vision, we must all know how to discern between hype and truth, so we can reject the former and support the latter.

Here are a few key terms to understand so you don’t get fooled or confused by the hype.

Please note – This is a very brief overview. If you have questions or comments on any of these, let’s have a more in depth discussion in the comments section below.

Pyramid Schemes.  These are illegal – but not because of the “pyramid” shape.  Every organization has this shape – governments, corporations, non-profits, volunteer organizations, faith communities, your family tree… all of which can work well for the benefit of all, or fall to corruption.  Though many incorrectly equate the two, pyramid schemes are not the same as legitimate network marketing companies.  Do you know how to tell the difference?

Network Marketing.  Simply refers to the method of getting the word out on products or services through networks of individuals, rather than through insanely expensive mass media advertizing methods.  This should be done based on genuine quality and value, not hype.  How many ways can you think of in which mass media ads are wasteful?

Multi-Level Marketing.  Same industry.  Simply refers to how working representatives are paid – on their own sales and sales made by 2 or more levels of reps into whom they have invested time and effort, teaching them how to also find and serve customers.  The goal should be that all working reps are trained to serve their customers well, instead of engaging in stereotypical recruiting hype.  As long as it’s done properly, why should trainers not be paid for the time and effort they invest in their organizations?

Direct Sales.  Same industry.*  Simply refers to the person-to-person nature of the industry, rather than mass media and impersonal customer service.  If done properly, this should not create weird pressures or relationship dynamics – it should create excellent, personalized attention and service for customers.  Have you experienced the negative, the positive, or both?  (*Note: you can have direct sales without NM-MLM, but all NM-MLM is direct sales.)

New Variations…  “Customer direct marketing” or “social commerce marketing” or “referral marketing” etc.  It’s fine if companies want to use distinguishing terms to highlight special attributes of their approach to network marketing.  But when in the same breath they deny that they are fundamentally a network marketing company, they only create a whole new level of hype that is not helpful for anyone – only more confusing.

In the MiCommunity Team, we call what we do “Sustainable Network Marketing” to differentiate it from what’s typically done in the industry.  But we will never deny that it is network marketing at its most basic definition.  We don’t have to deny it, or be ashamed of it, because we know that, done properly, it benefits the public at large via a relative handful of honest Working Reps serving the majority – a growing customer base – with excellence.  Rather than hide the truth and create our own hype and spin, we’d prefer to educate you on the facts so that you can be empowered to wisely evaluate the products, services, or business offered by any company – network marketing or otherwise.

 

So how about you?  What good, bad, or ugly experiences have you had with network marketers, or in network marketing?  Do you have any questions on the above lingo?

 

This year, interspersed with natural health, sustainable living, and personal story posts, I’d like to offer you insights into the good, the bad, and the ugly of network marketing and empower you to understand key essential truths that can help you:

1- Steer clear of the scams and hype that threaten a sustainable economy and world by wasting people’s time and money.

2- Find respectable companies that genuinely care about serving you as a customer and, through their ethical approach to network marketing, contribute to a more sustainable economy and world.

After 8 years in network marketing, I have learned a LOT about the industry and truly have a love-hate relationship with it.  I love all the good it offers and hate the hype that so often infests it.

But pause and consider…

Does the undesirable behavior of certain people in any given profession necessarily make the profession itself unethical?  While there are unethical doctors, lawyers, teachers, politicians – you name it – there are also many in those professions who are trustworthy and servant-hearted.

The same is true in network marketing.

If you’ve ever been approached by a “stereotypical” network marketer, then perhaps you can relate to one of these three experiences:

1- Feeling like you’re just a target in the marketer’s hyped up attempts to reach his sales quotas.

2- Hating the hard sell tactics and the lack of respect for your “not now” or “not ever” response.

3- Hiding from someone who was essentially taught to use peer pressure with friends and family.

Sadly, all this and more happens far too often in network marketing.  But it does not need to be the case.

For example, when I first discovered Miessence in June of 2010, I was immediately struck by the clear difference – and was thrilled to have found such a refreshing community to potentially work with as a stay at home mom.  Miessence’s Working Representatives absolutely reject the above “norms” for network marketing and instead work to create a sincere and sustainable culture of:

1- Education – empowering you with information you can use to evaluate ANY brand or company.

2- Service – genuinely consulting with you to help you find what YOU want, instead of pitching at you.

3- Zero Pressure – no one is ever pressured to become a customer or to “do the business.”

I’ll be honest.  We often feel like salmon swimming upstream against the trends in network marketing.

But if the public begins demanding this ethic from the industry at large instead of falling for the hype or accepting the peer pressure, the negatives will die away and the positives will spread.

If a friend approaches you for “x, y, z network marketing company” in all the stereotypical ways, lovingly encourage her to reject the stereotypical industry training and instead choose a more sustainable, educational, service based, zero pressure, and no hype approach from which everyone – representatives, customers, and society at large – can benefit.

As a customer or representative, what have been your best or worst experiences with network marketing?

PS – If you’re in network marketing, with any company, and struggling with the stereotypical training, click here.