The 3 Myths of Network Marketing Work From Home Business

Network Marketing, known to many as Multi-Level Marketing (MLM), is the fastest growing work from home business yet most misunderstood way of moving products today. Even so, more than 100 billion dollars worth of products and/or services are being moved through this way.

In this article, we will debunk 3 most common myths about this business. Before we do that, let’s first explore the fundamental meaning of…

What Exactly Is Network Marketing or MLM

Traditional marketing is the process which involves products or services being moved from the manufacturer or company to the consumer. A network refers to an organization of people. Combining the two terms together we have network marketing is therefore is the way in which products or services are being moved through a network of people.

In this way, no advertising costs are incurred as marketing of the products or services is done almost exclusively via word-of-mouth. As such, companies are able to concentrate their finances solely on research and development, producing the best quality products in the market.

The 3 Myths Debunked

MYTH #1: MLM Work From Home Business = Pyramid Sales

This business model is often confused with PYRAMID SALES because both are multi-level and involves the moving of products or services through a network of people.

However, pyramid sales is ILLEGAL! This is because although they subscribe to the idea of moving products and services through a network, they often do not have any products nor do they provide any valid service. Therefore, pyramid sales are scams.

Unfortunately, because MLM is often confused with pyramid sales, many people shun this work from home business model. Hence, the important questions to ask when differentiating these two very different models are: Are products or services being moved? Is there a valid product or service provided?

MYTH #2: MLM Work From Home Business = Sales Job

The first impression you probably have of a person involved in network marketing, is of one knocking at your door and carrying products, trying to sell you something. Although many network marketers have been and are perhaps currently still doing this, this is a wrong perception because in a legitimate network marketing business, NO traditional selling is involved.

In this business, we are moving products and services not selling them. Well, isn’t that the same you might ask? Yes and no. Being in business for yourself, products can be bought at wholesale price from the company you are representing. Many people joined a particular company for this sole reason – to buy at wholesale. Therefore, you can, if you wish to, sell those products at retail price and make a profit. So, yes you can sell products in this business if you choose to.

However, you don’t HAVE TO sell retail to be successful in this work from home business. The most successful networkers make the larger sums of income by building their organization. When you build a network of people for the company you are representing, products or services can be channeled through your organization. That is why sales in network marketing come as a natural result of distributors sharing the products with their friends, neighbors and loved ones.

If you simply SHARE the quality of the products to your friends in your organization, that is ALL the “selling” involved in this business.

MYTH #3: Network Marketing = Recruiting

A lot of people another common misperception people have about a this work from home business is that you have to recruit a lot of sales people in order to be successful. This comes from the fact that MLM is often confused with Direct Sales.

The one distinct difference between direct sales and this business is that you are actually SPONSORING business partners into your team not recruiting salesmen (as with Direct Sales organizations). There is a vast difference: Recruiting would mean just to “sign them up” whereas when you sponsor someone, you teach them how to do what you are doing and you make a commitment to help them build a business of their own. Therefore as a sponsor, you are responsible to teach the people you bring in all about this business and how they can work from home.

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