Why are so many people scared of network marketing?

Question

I've noticed that many people are scared to try any form of income generation other than a 9-5 job. These same people tell me they WANT to be wealthy, yet when I suggest they look at LEGITIMATE network marketing options they get scared and think everything is a pyramid scam etc. Could the mass fear around the concept of a "pyramid scheme" have been created by people such as governments who have a vested interest in keeping people employed in traditional industries?

Answer 1

In my opinion, it' because so many individuals have 1) lost money, 2) not made they kind of money they were promised, and 3) not treated it like a real business.

Unfortunately, a lot of people come to network marketing, and treat it like a lottery ticket.  They put their hard earned money on the table, hoping to make it big.  Then, when they don't ... they blame the system.

The network marketing business model is great.  There are few businesses that you can join for next to nothing, (with little to no inventory) ... that have the potential of making you a lot of money.

And by a lot, I mean $5,000 or more per month.

But, when people 'gamble' with MLM, they will lose!!

Then, some companies sell the MLM dream of 'working from home in your underwear'.  How many real business owners work in their underwear.  (What a joke).  

I feel we should treat network marketing like a 'brick and morter' business.  We need to have certain business hours, a specific place that we work out of, business records, etc.

When we start respecting MLM, then we'll start seeing and hearing of more MLM successes!!

Hope this helps to answer your questions.

William Noel

http://www.ExcitedIncome.com

Answer 2

Well, the big problem is that "Network Marketing" or "Multi-Level Marketing" - whatever you choose to call it - IS a pyramid scheme wearing the trappings of a legitimate business enterprise to sneak through an FTC loophole. The upline/downline concept inevitably leads to a pyramid structure, regardless of whether it's a scheme or not, and in order to get to the top of a decently-producing pyramid takes a whole lot of work and a whole lot of selling/swindling people into being your downline.

Besides that, the way 95% of people who make money at MLM enterprises make money is not by actually selling the products. It's by selling the "educational tools" that "teach" you how to sell the products to their downline.

Answer 3

It's a bit like asking 'Has the Government created the fear of Mugging in order to oppress the working classes ?"

You have got it back to front .. the fear has been created by the con-merchants, scam-artists and criminals who have run Pyramid Scheme scams in the past .. and who have 'got away with it' and still get away with it) due to the disinterest of the Government ..

Lack of supervision, lack of specific laws (and failure to enforce what applicable laws exist) plus the fact no-one is interested in helping you get your money back means that MOST people regard ALL 'Network Marketing' schemes with deep suspicion ..

Finally there is the undeniable fact the in MOST Network Marketing Schemes the ONLY way to make any "real" money is to focus on recruiting others and NOT waste your time selling the product (you let the 'down-lines' do that .. ) ..this means that they are ALL Pyramid Schemes (in everything but name) ...