Discover Truth In Network Marketing
Perspectives On Multi-Level Marketing


The Realities of Network Marketing

Spectrum Of Opinion

Opinions about network marketing tend to fall into three groups:

  1. People who are fascinated by the idea.
  2. People who are skeptical about the the idea.
  3. People who are outright hostile to the idea.

If you're completely convinced that network marketing is a legal, ethical, and powerful business concept, then keep reading. You're in the first group.

If you're still skeptical take a side trip to Debunking Schemes and Scams.

If you're hostile to the idea of network marketing, I'm completely amazed you read this far! I congratulate you for being very open minded and suspending your judgement. Consider yourself a skeptic now and check out the article I mentioned above.

Theory vs. Reality

Most people in network marketing don't make any money. Isn't it about time we admitted this? Network marketing is ususally presented as "easy to do" and it looks great on paper, but in reality part-timers rarely make any money. In fact, most part timers LOSE money. The truth is that it is mathematically IMPOSSIBLE for everyone in a network marketing program to make a lot of money. Few people involved in the industry openly admit this.

But think about this. Is this network marketing any different than the traditional business world? Does everyone in a large corporation get paid the same as the CEO? Of course not! Stock clerks don't make the same money as executive mangement. At least in network marketing you promote yourself from an entry level position by your own productivity. Network marketing is true pay-for-performance.

Why Businesses Fail

One of the main reasons both traditional and network marketing businesses fail is they don't create a positive cash flow. A key to success in any business is creating a positive cash flow to fund the business growth out of the profits, rather than out of start-up capital. It is amazing how few people apply this basic principle to their network marketing business even though it is a fundamental business principle.

In any network marketing company a few people will make a lot of money, but the main problem is that most people LOSE money. Wouldn't it be great if LOTS of regular people could make good part-time income while the "go-getters" make the big income? A critical key to success in network marketing, like any business, is cash flow. If part-timers have a good opportunity for getting into profit, they will stay in the program. Everybody wins with this type of arrangement.

Picking a Winner

When picking a network marketing program, it is best to go with a stable company that has been in business a few years and established a track record of success. Why risk all your effort on an unproven company? You dramatically increase your chances of success by picking an established company.

However, if you pick a mature company that has been overexposed and saturated the market, you'll struggle unnecessarily in overcoming the current market penetration. It is best to pick a stable, growing, undervalued company just like picking a stock for an investment portfolio.

Times have changed since 1994 when I first got into network marketing. Unless you understand current market conditions and how to generate a positive cash flow, your likelihood of success in network marketing is slim. There are thousands of companies competing for distributors. If you're going to be successful, you need to be informed, educated, and prepared with the knowledge of what it takes to succeed in the business of network marketing today.

Ultimately the success or failure of your business is up to you. It is YOUR business so we cannot promise you'll be successful. However, you don't need special talent, and you can learn the skills you need.

While it is true that just about anybody can learn how to do network marketing, it isn't a business that suits everyone. Network marketing works best when you believe in what you're doing and enjoy doing it. If you don't enjoy it and aren't willing to work at it, then don't do it. I'll bet you never had anyone tell you that in the recruiting process!

Do You Have the 'Right Stuff'?

You can get started on less than 10 hours per week; in order to see your business grow and prosper beyond that you will need to consistently invest at least 10 productive hours per week into the program. This is a big commitment for most people. It requires a change in your lifestyle.

Few big income earners in network marketing admit how hard they work to build their bonus checks. They want you to think it is easy, and they'll promise you all kinds of "lazy ways" to make money. This is why many people fail. They believe the false promises and lies. Don't fall in this trap!

It takes time to run any business, and network marketing is no different. If you cannot commit at least 5 to 10 hours a week to your business, you won't make much money at it. If you invest hobby time, you'll get hobby results. But, if you treat it like a business, you can create great safety net income with part-time effort. If you really enjoy network marketing, you can make a great living at it. The decision is yours.

People who promise to build a downline for you cannot possibly deliver on their promise once geometric growth begins. They can't recruit fast enough. If you fall for the empty promise of "I'll build it for you," you'll always disappointed. This is another reason people fail. They buy into the lottery mentality of getting "lucky" and having someone build it for them. This will never produce lasting results.

One other point on motivation and follow-through. I believe that most people fail to achive business goals in MLM because both they and the people they recruit don't follow-through on building a business. There are many demands on out time, and network marketing is extremely dependent on your self-motivation and ability to set and follow priorities. For most people, selling and recruiting are not fun, so it is easy to put them off. But those are key parts of MLM. Others, when push comes to shove, don't have or are not willing to commit the resources of time or money to do marketing of their product or service. It is very important to look realistically at whether you want to take the time to learn to build a business and do the work necessary to make it succeed.

Win/Win Relationships

You may be thinking I'm not painting a bright picture of network Marketing. That is not my goal. Presenting the most realistic, truthful information is my goal, because if you decide to build a Cognigen business, I would rather that be because you really want to do the work to build a business, rather than because you think there is easy money to be made.

If you don't want to build a business, does that mean you should leave now? NO! I'd encourage you to check out Cognigen's great prices on services you use every day. I learned several positive things from my first MLM experience: It is a great thing to be able to pick up the phone and pay the same low rate for long distance any time day or night, weekday or weekend. The "big" phone companies, with their complicated calling plans, are charging you a fortune to support their expensive commercials and telemarketing campaigns. And the quality of a good flat-rate, low-cost long distance carrier is exactly the same as any of the "big three" (after all, the low cost carriers are just using extra capacity on the same lines the expensive companies use!). So click here and start saving money today on long distance, cell phone plans, internet services, home security, DISH Satellite TV, and even computers!

Taking the Next Step

If you've read this far, you've already taken a big first step. If you would like to start a network marketing business, continue on to read about what specifically to look for in the company you work with.

Take the next step!
Discover The Success Factors of MLM


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