The Truth and History of MLM or Network Marketing
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Cooperation vs. Competition

Permalink 04/15/04 11:25, by admin, Categories: Original Document

Link: http://www.internetnextstep.com

One of the reasons for the success of Network Marketing in the 1990's is that it is based on cooperation, not competition. Unlike in traditional business, career advancement in network marketing comes directly from helping to create success with those that you introduce to the company. Network Marketing is sharing information that results in product sales. People involve themselves because they want to finally be compensated for what their efforts are really worth. They're involved because somebody cared enough about them to show them the awesome opportunity of network marketing. They get involved because they were ready to make a change.


Why Hasn't the Truth About Network Marketing Been Told?


People resist change and are fearful of what is not fully understood. People are comfortable with what is known and accepted by most.


The truth is that most people in power today have an overriding fear of the loss of their own power. Network Marketing is about empowerment of the individual.


Is it really your best interest they have at heart? Remember what happened with W.T. Grant, franchising, and the first newspaper? Most new concepts have always met with resistance and rejection at first.


Newspapers, magazines, radio and television earn their primary profits from their advertisers. Is it in the media's best interest to say anything positive about an industry that does not advertise? Do you suppose major traditional marketing companies that are receiving increased competition from network marketing companies are excited? Whose side do you suppose the media would take to protect their advertising dollar?


A few years ago a network marketing company that sold personal care products became the attention of the media and several state Attorney Generals. Their sales were approaching $500 million dollars. These sales were being taken away from companies such as Revlon, Max Factor, Estee Lauder and others in the health and beauty aids industry. Do you believe the competition was pleased with the success of a network marketing company that was not spending multi-millions of dollars on advertising as they had traditionally done? Furthermore, network marketing companies were bypassing the department stores and malls and going direct to the consumer's living rooms with sharing, caring service and timesaving convenience. What if you were one of the brokers, retailers, wholesalers, media people or any other person whose job or businesses were being threatened because network marketing was a new and better way of doing things? What would you do?


If you had a friend in the State Attorney general's office would you call them? If you or your company had contributed to any industry lobbyist, political action committee or had media contacts might they be contacted, too? What if, in fact, your job were in jeopardy either as the VP of Sales or as one of the executive staff who might have to answer to stockholders and explain why your market share was being taken away by some network marketing company and your position, your power and your income were at stake? Do you suppose these strategies are ever used against a competitor? How many votes do you suppose an Attorney General would risk by focusing on a network marketing company that employed many people and paid a great amount of local and state taxes - in a different state?


Just as in any business or industry, there are scams and schemes that hurt the industry image. Real estate has had its scams. Banking and Savings and Loans have had their improprieties. Ministries have had abuses for self-serving purposes. The stock market has had its insider trading scandals. Why should network marketing be any different?


Look at the company, the product, its management and their past history. Understand the commitment that is necessary to achieve success and residual income. This advice is just as valid in network marketing as in anything else.


There are many myths about the industry of network marketing and the companies involved. It is true that many recognized traditional companies have started subsidiaries, such as Gillette, Colgate-Palmolive, Rexall and thousands of other companies that are using network marketing as their preferred method of distribution, creating sales of approximately $100 billion dollars. It is often stated that Coca-Cola, Goodyear, IBM, Firestone, and General Motors are involved in network marketing with their own divisions. Actually, these companies are suppliers of products to companies that utilize network marketing, such as Amway. MCI, U.S. Sprint and AT&T supply long distance service to network marketing companies that are rebillers. Due to the high cost of real estate for showrooms, Toyota of Japan uses direct sales to market directly to the consumer, but not network marketing.


Network Marketing is the new way to financial freedom. You'll never create residual income and freedom from the traditional job. Even professionals are trading their time for money; if they are not seeing clients or patients, they are not getting paid. Most income is temporary and it is easy to determine if your income is temporary - just stop working for 90 days. If your income stops or slows down, you have temporary income.
In network marketing you can stop trading time for money. Once you develop a solid network of sales representatives, you will create ongoing residual income. This can give you the freedom to do what you want when you want to.


It's interesting how resistant we are to change. We want to stay in our comfort zones even when we're miserable.

It's been said network marketing is the next step in the evolution of free enterprise. But there is one thing we can always be assured of: the most fundamental fact of life in our world today is that change is inevitable!


This completes this initial discussion on the truth and History of MLM by Greg Stewart. I will post some other cool articles as well here in the future.

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