TODAY -

Network marketing: good or bad ?

David Zote *



Network Marketing is also called Multi Level Marketing or Direct Distribution System. Besides, it is also called pyramid selling and referral marketing and uses controversial marketing strategy for the sale of products or services. The revenue of such company is derived from a nonsalaried workforce while the earning of the participants are derived from a pyramid-shaped or binary compensation commission system.

The compensation is given from the commission of sales either by them or by the participants who have been recruited by them referred to as down line distributors. Since Network marketing disrupts normal business system, when it first appears on the scene, it was perceived with scepticism. In some countries they even succeeded in banning it.

In Network Marketing, the back end process of the business is completely automated and you can focus straightaway on building the business and expanding it. All issues like production and distribution system is in place. You can become a co-owner or join the network with a relatively small sum of money.

Comparatively to a Franchise business like KFC, McDonalds, or other big brands which require huge capital infusion, one can become a part of Network Marketing with a small joining fee having huge potential. They grow mainly by means of relationships referrals and word of mouth marketing and incentives are given to recruit other people to join the company.

The idea is to build up a passive income in the long run with small capital investment. The intention of this article, whether it is to promote or downplay Network Marketing, will soon unravel as you complete reading it.

Some valid question to ask oneself at this stage would be, What do I personally benefit from Network Marketing? Did I just get carried away by the hype thereby leading to loss of precious time and energy? The uniqueness of the model of Network Marketing is that once someone joins, be it upline or downline, they are bestowed with a sense of ownership of the company.

As such, they are ready to defend it, whether it is good or bad. They are in earnest to recruit all friends and relatives. Thereupon, it has become an emotional question and objectivity is gone. Some people campaigned for new recruits is as though they are possessed by a spirit and try to talk others into joining it by narrating non-stop for an hour or even a couple of hours straight.

That way they don’t give an opportunity to say ‘No’. Most of the network marketing available in the market may not be worth your time. It is not designed to make you rich, but to make the founders or promoters rich. Some of them are even close to ponzi schemes.

According to a report that studied the business models of 350 Network Marketing companies in 2017 and 2018, published on the US Federal Trade Commission’s website, at least 99% of people who join lose money. Nonetheless, this statistical improbability is de-emphasised by the underlying motivation of financial security, financial freedom and the freedom to do what you love without having to work anymore for money.

Most of the products in the Network Marketing business are overpriced and after a huge discount, it still work out profitably for them. It appears that the basis of their pricing is just a figure meant to be used for motivation of their members by offering them huge discounts.

Lets take a couple of examples to drive the point. For instance Amway soap Persona cost Rs.150/- for a pack of 3 whereas the reputed brand in the market Lux soap for the same pack of 3 cost only Rs.75/-. Again, Amway toothpaste Glister (190g) cost Rs.270/- whereas Pepsodent (190g) cost Rs.135/-. Thus, the network marketing product cost 100% more in pricing in both the above cases and they can afford to give huge discounts to their distributors.

Personally, I don’t join any network marketing. But I am a consumer because some of their products are of good quality. If you are in it just for the product, then you can be content as a consumer, just like me. The first time a colleague pitched Network Marketing business to me, I still remember vividly.

He kept on talking for a good one hour on how it is going to make me successful and achieve all my dreams. In between I kept on interrupting repeatedly asking him what the name of the particular scheme. After he’s done, he finally said, “It’s Amway”. And I was kind of like, “I will think about it”. I am not a joiner by nature. That was the end of it. However, over the years, my perception of Network Marketing has evolved.

What are the Schemes?

Amway, Tupperware, Oriens, 4Life, Herbal Life, Modi Care, Oriflame, Avon, Aviance, Jafra, Vestige, and many more. These are not recommended list, but just examples of some available Network Marketing business in the market.

On having a closer look at it, there is also an upside to it. Naturally, those who are successful in this business are diligent people. This is not a get-rich-quick scheme. Success in Network Marketing business, as in any other areas, depends on hard work. The mantra is the samehard work and persistence is the key.

Financial freedom and stuff like that will come much later as in any other business. With the New Education Policy 2020 coming out heavily in favour of training students to become entrepreneurs – i.e. Job creators instead of job seekers – we can safely conclude that Network Marketing provides a good platform for internship to hone their entrepreneurial skills.

The richest people in the world look for and build networks. Everyone else look for work. You can have the greatest idea or product, but it will only be successful if you have a network to tell people, to distribute it and sell it. The earning potential in network business is infinite since it operates on other people’s time and other people’s money working for you.

For those who are interested in helping people and changing lives of others, it is imperative to learn how to network. You have to learn and help yourself before you can help other people. You can replicate the same principle of success in other areas of your life.

The Learning Opportunity and Experience:

The upside of a good Network Marketing company would be the learning opportunity and experience which could change your life. Some of the areas of learning are leadership skills, communication skills, people skills, overcoming fear of rejection, goal setting, time management skills, financial management skills, etc.

Once you are interested and have decided to enter into this arena here are some suggestions what to look out for in Network Marketing business. All Network Marketing business are not worth your time or energy. Choose an organisation with proven track record, distribution system and compensation plans which have been successful for years.

Do your due diligence to find out what are the facts and what is merely an opinion. Look out for one with a good inbuilt financial educational content whose program may develop you as a human being besides becoming financially literate, financially intelligent and to become a savvy investor.

If you are in it just for the money or product, then Network Marketing is not for you. If you are in it for the financial education it provides, you may be able to go all the way and reap the benefits Some basic lessons in Network Marketing are that it helps you to overcome your fear of rejection.

Basically, if you consider yourself just as a salesperson, you may as well be a salesperson and nothing more than that. However, a true Network Marketing group attempts to develop you by harnessing your leadership potential. The platform gives you a chance to meet and interact with people coming from diverse backgrounds.

You can meet a mentor – not just an adviser- but someone who is successful in real life. These are the life skills which cannot be developed just by reading books but to get out in real life and interact with people. The ability to get along with people influence and inspire others are traits of good leaders.

Money does not necessarily go to the business with the best products or services. Money flows to the business with the best leaders and the best management team. If you want more money, simply become more of a leader. Ultimately, it is not what you make or get that matters in the end, but what you have become.


* David Zote wrote this article for e-pao.net
The writer can be contacted at kdavidzote(AT)gmail(DOT)com
This article was webcasted on October 07 2020.



* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • General strike at Minuthong #1: Gallery
  • COVID-19 Status 29 Oct : Govt of Manipur
  • Too Close Too Apart
  • Cervical cancer - Role of Papilloma virus
  • BJP Government : Boon or bane for Ukhrul ?
  • Training Programme on mushroom cultivation
  • The school fees conundrum
  • Foot bridges in Imphal City #1 : Gallery
  • COVID-19 Status 28 Oct : Govt of Manipur
  • Irang, Chiulon return to Puching
  • COVID-19 : Impact in Manipur :: News Timeline
  • Can Indigenous People of Manipur Coexist
  • Re-imaging agriculture through lens of FPI
  • The Winter of Life :: Poem
  • NH7 Weekender announces 11th edition
  • Running low on testing kits
  • Egoistic Ethnicity
  • Bhagyachandra Anniv @Nabadwip : Gallery
  • COVID-19 Status 27 Oct : Govt of Manipur
  • In the event of resurrection of corona
  • Naga Peace Process :: News Timeline
  • MCSCCE 2016 Fiasco
  • Webinar : Myanmar General Election
  • The gordian knot :: Poem
  • Call of ATSUM to hold ADC polls
  • The fate of NSCN-IM & its probable impact
  • Understanding social media
  • Shortfalls in stadium security- NEROCA
  • COVID-19 Status 26 Oct : Govt of Manipur
  • GOC, 3 Corps meeting with CM Manipur
  • When to visit a doctor in stroke
  • Inspection for Child Labour in Imphal
  • Shrinking biodiversity & degradation
  • Waiting for new SOP
  • Surviving COVID-19 onslaught: My experience
  • Namthiurai, Chingja Yaimen: eMing
  • Breast Cancer Awareness Month
  • Ocean :: Poem
  • AI : The Fourth Industrial Revolution
  • Promoting nutri-gardens & backyard poultry
  • Straight from the NSCN (IM) leader
  • NH 2 cut off at Khongnem (Mao) : Gallery
  • COVID-19 Status 24 Oct : Govt of Manipur
  • Nidhi Prayas : Call for application
  • 93 yr old recovers from COVID-19 at Ukhrul
  • North Eastern Tale :: Poem
  • Change and continuity
  • Private schools yesterday & today
  • Tarao Laimanai in Chandel #3 : Gallery
  • COVID-19 Status 23 Oct : Govt of Manipur
  • Eyek Tamba :: Learn the Manipuri script
  • Emergency Meeting on COVID-19 : Gallery
  • My memories of Imphal from 1941 #4
  • 'No need to hold Hornbill festival 2020'
  • Food for beauty :: Shahnaz Husain
  • Condemns officials of Assam govt
  • Points for new SOP
  • Beautiful : An Anal music video : Gallery
  • COVID-19 Status 22 Oct : Govt of Manipur
  • Attention Deficit Hyperactivity Disorder
  • The price of compassion :: Poem
  • 'Aatmanirbhar Bharat' amidst COVID-19
  • Tea in Assam
  • Politics of peace talk
  • Yubi Lakpi Manipur indigenous game: Gallery
  • COVID-19 Status 21 Oct : Govt of Manipur
  • Khundrakpam Babuchand : Sanagi Medal
  • Myanmar's 2020 Election: The Way Forward
  • On the brink of irrelevance ?
  • Breeding & Culture Unit at Gauhati Univ
  • Ahead of high level meeting
  • Langban Lam-Haiba at Andro #1: Gallery
  • COVID-19 Status 20 Oct : Govt of Manipur
  • The aftermath of Unlock - 2
  • Foundation Stone - Manipur Intl Univ Campus
  • Aesthetics of nature :: Poem
  • Let's talk about career
  • 'Signs of community spread'
  • Recommendation to Manipur Govt on COVID
  • COVID-19 Status 19 Oct : Govt of Manipur
  • Bhagyachandra Death Anniversary: Gallery
  • Samananda Yumnam : NEET 2020 topper
  • Resilience to minimise humanitarian crises
  • Shyam, Your Life, Is Sundarful
  • Manipur gi Ahanba Assembly Meepham
  • Partners in coalition Govt
  • Imphal valley from Tuikhang Aimol : Gallery
  • COVID-19 Status 18 Oct : Govt of Manipur
  • Indo-Naga Peace Talks : Discussion Report
  • My memories of Imphal from 1941 #3
  • 'Engage through dialogue, Refrain Violence'
  • Luminous :: Poem
  • Maya Rani Singh : NE Women Success Stories
  • Tough talk from Th Muivah
  • Nambul : The River that cries as it dies
  • COVID-19 Status 17 Oct : Govt of Manipur
  • Naga Peace parleys reach deadlock
  • Harassment of Women in Digital Space
  • Discussion : Indo-Naga Peace Talks
  • Women :: Poem
  • Kitchen ingredients to revive your hair
  • Prevalence of Domestic Violence in North East
  • COVID-19 Status 16 Oct : Govt of Manipur
  • Toll free tele-counselling for children
  • Protect our job seekers or prevent them
  • International Day of Rural Women 2020
  • Corona also kills English !
  • Webinar 'How to crack NEET [Medical]'
  • Rising number of deaths & infections
  • Downloadable Manipuri Calendar :: 2021
  • COVID-19 Status 15 Oct : Govt of Manipur
  • Chemistry Nobel Prize 2020
  • Prisoner Database Management Portal
  • Webinars: A step forward in Digital Revolution
  • My trusted friend :: Poem
  • On political acountability: Pandemic issues
  • Consultative meet sans NNPG, NSCN (IM)
  • Global Handwashing Day 2020
  • COVID-19 Status 14 Oct : Govt of Manipur
  • Looking at COVID-19 in Tamenglong
  • Groundwater TubeWell @Sinamkom : Gallery
  • 1st E/online mediation organised
  • Intl Day for Disaster Risk Reduction
  • Political Affairs Committee of NPCC
  • Projected figure of 25,000 by mid November
  • The Barefoot Legend Of India
  • COVID-19 Status 13 Oct : Govt of Manipur
  • Come by-election, COVID-19 lurking around
  • 'How to crack NEET [Medical entrance'
  • Discussion : Kuki Nationalism & Aspiration
  • To whom does it belong ? :: Poem
  • What is Plant Variety Right (PVR)?
  • High profile entry of two to BJP
  • The promised & present political scenario
  • Thang Ta @ JNMDA #2 : Gallery
  • Eyek Tamba :: Learn Manipuri script
  • For Pettigrew College in Ukhrul : An appeal
  • Tough Times Never Last But .. :: Review
  • MoU between IBSD, Imphal & Manipur Univ
  • Working with elderly as career
  • Channel wars heating up in glare of TV news
  • 100 pc : Absurdly high cut off
  • Wuyawon - flower @ Wuya Kachui : Gallery
  • COVID-19 Status 11 Oct : Govt of Manipur
  • My memories of Imphal from 1941 #2
  • Is GoM serious in building a peaceful state?
  • Fear :: Poem
  • Ice cubes for beauty
  • Training on mushroom cultivation
  • Don't deliver outside India quip
  • Evolving digital film culture in Manipur
  • COVID-19 Status 10 Oct : Govt of Manipur
  • Is NSU Conflict Sensitive ?
  • Mount Koubru: Lifeline of Saitu-Gamphazol
  • Devt & community aspiration : Chadong Case
  • The Short Stranger At Relationship :: Poem
  • Impact of Covid on Manipuri women
  • World Mental Health Day 2020
  • Thasi-Thanou, My Bipolar Mother
  • COVID-19 Status 09 Oct : Govt of Manipur
  • Raining jobs in Wangoi !
  • Admin/ Business Support @ R-Square Design
  • Father ? :: Poem
  • Agrarian reforms: Will they help farmers
  • Congratulates WFP on Nobel Peace Prize
  • Climbing death toll and infection
  • Imphal-Moreh Road & Landscape : Gallery
  • COVID-19 Status 08 Oct : Govt of Manipur
  • My memories of Imphal from 1941 #1
  • 'Jan Andolan' campaign : CM pledged [8 Oct]
  • 20 hrs refresher course on mediation
  • A memoir of good old days :: Poem
  • From bush war to politics of talks
  • Wildlife week: Raising awareness to children
  • COVID-19 Status 07 Oct : Govt of Manipur
  • International Day for Older Persons, 2020
  • Protection of Natural Resources at Molnoi
  • As I see the Invisibility :: Poem
  • Go-to-Village Mission and Job Plans
  • 'Dont levy fees from private school student'
  • Ugly stand off over NSU site
  • Ending the great Indian political farce
  • Dhol Chollom #1 : Gallery
  • COVID-19 Status 06 Oct : Govt of Manipur
  • Network marketing: good or bad ?
  • 9th AGM / Cultural Program of AMAND, Pune
  • Webinar on National Education Policy 2020
  • World Teachers' Day 2020
  • Whistle blown for five ACs
  • Banana Fest 2019, Longmai #2 : Gallery
  • COVID-19 Status 05 Oct : Govt of Manipur
  • 'May you be the mother of many sons...'
  • Dead leaves of December :: Poem
  • Assam Don Bosco Univ- 9th Convocation
  • Lecture : India-ASEAN Relations at NEHU
  • Monsoon nail trends
  • Ukhrul brutality
  • Desperate measures
  • A new look at Ta Khousaba
  • COVID-19 Status 04 Oct : Govt of Manipur
  • Trees planted - Licypriya birthday : Gallery
  • Elections during Pandemic
  • Journey that made me a School Master
  • Umeswari Barman: Success Stories from NE
  • Lakhs of trees for Licypriya birthday
  • September deadline has expired
  • Food items at Waithou Keithel #1 : Gallery
  • COVID-19 Status 03 Oct : Govt of Manipur
  • Anaemia Free Manipur Campaign : Gallery
  • Ode to Barak :: Poem
  • Myanmar visit by Foreign Secy & Army Chief
  • Why I do not support the BJP
  • 9th Convocation of Assam Don Bosco Univ
  • Covid: Heed local experts, not central politician
  • I.T Road - GoM neglected region ?
  • COVID-19 Status 02 Oct : Govt of Manipur
  • Gandhi Jayanti / Cleanliness Day : Gallery
  • What made China intrude in Eastern Ladakh
  • Please induct me as Minister
  • Is it my mind ? :: Poem
  • COVID Care Centre at Khuman Lampak
  • Unlock 2 on in Manipur
  • An apology to the event of Sept 21
  • Paddy field of Longa Koireng : Gallery
  • COVID-19 Status 01 Oct : Govt of Manipur
  • International Day of Non-Violence
  • Online refresher course on mediation
  • Tips for a healthy heart during COVID-19
  • Coffee cultivation in North-East
  • Irabot remembered on his 125th birthday
  • Unlock 5.0 : Unlocking the economy
  • Every day should be Hijam Irabot day
  • 124th Birth Anniv of Lamyanba Irabot : Gallery
  • COVID-19 Status 30 Sept : Govt of Manipur
  • Tracing how human & algae see light & colour
  • Opening of classes, desperate call of student
  • Training on mushroom at Salam Mayai Leikai
  • Dying while we live: Cry of our dying soul
  • The Future of Higher Education : Discussion
  • Wangjing Tentha, Lilong : Whistle blown
  • Uncertain future of ex-MLAs as ministers
  • How Irawat became a Marxist revolutionary
  • COVID-19 Status 29 Sept : Govt of Manipur
  • October Calendar for Year 2020 : Tools
  • Licypriya urges everyone to plant a tree
  • A roadblock to NEP 2020: Rote learning
  • Second online Lok Adalat of Manipur held
  • What lesson has Covid-19 taught us ?
  • Being the junior partner in Govt
  • Attracting tourists: few pointers..
  • Manipur Art Fest 2019 #3 : Gallery
  • Mushroom cultivation @Singjamei : Gallery
  • Inauguration of Destination NE 2020 : Gallery
  • COVID Care Centre @UNACCO #2: Gallery
  • Swearing in @ Rajbhavan [24 Sep] : Gallery
  • RK Bikramjit (Flutist & Composer) : Gallery
  • Featured Front Page Photo 2020 #4: Gallery
  • Tongjei Maril 1942: Bridle Path to Motor Road
  • Brahmacharimayum Roji: Actress #2 : eRang
  • COVID Care Centre @UNACCO #1: Gallery
  • Akhunba Takhellei #2 : Film scene :: eRang
  • 'Zehara' - Manipuri Movie :: eRang Classic
  • SPONSORED ADS