If you look at any TM (Network Marketing) firm, it is primarily interested in new investors whose hearts are full of dreams, not consumers or society. At first glance, the marketing pressure of such firms seems to be focused on introducing the product or the end consumer, but the real goal is to attract new traders. The real product will be the use of resources (money and time) from countless vendors, not some bio-supplements or shampoos.
The world of network marketing is full of small and huge lies from start to finish.
The first lie: TM is a business that offers the best opportunity to make big money.
Fact: Almost everyone who joins the TM system will definitely spend money (almost lose it). And this is not a guess, it is a historical fact. Only 0,5-1 percent of all retailers that are members of the largest Amway firm have moved to the next level - the level of "direct" sales. The average income of all vendors at Amway is $ 40 per month. All their expenses and taxes they now pay are also in that $ 40!
In the marketing system of firms based on the TM model, only a few people can make big money. Just think, if a single manager in a TM structure needs a few thousand people to make a wax profit, then each of those thousand people will need a thousand more people (a million people need it). will be)! And it will take a million people to make the same amount of money that that first manager earned. So how many people need to be converted into one huge “company”? So, what is called "high-speed development of the firm" is the money taken from new members. Most of those who waste their money and time will leave TM this year.
According to the United States Securities and Exchange Commission (SEC), 60-70 percent of consultants (who like to call themselves that) leave the firm within a year. According to reports, about two-thirds of the total money paid by NuSkin to its employees was given as a reward to the 200 people who climbed to the top of the pyramid, bringing a total of 63 people to the pyramid (uh-ho ’. !) as long as you are involved! However, TM firms are advertising their business as an “unlimited growth opportunity”! Arrogant!
The second lie: Network marketing is the most popular and practical way to offer goods in the market. Buyers love to buy goods from TM companies.
Fact: If you look closely at network marketing, you will see that it is based on an inefficient distribution system. Personal retail is an outdated, commercial model of the past, not the future. Selling a product to acquaintances and relatives is to force them to give up their shopping skills, to persuade them to buy your product at a high price, to deprive customers of the opportunity to choose goods, to bargain, to fool the business. models.
As a result of the inconveniences of such network marketing, the product itself is usually not sold, but new sellers can be hired as a result of this purchase.
The third lie: Eventually, any goods or services will only be sold through TM. All sales activities will be transferred to the TM system.
Fact: This is not great news. Today’s TM firms emerged in the late 1960s. Even in TM's homeland, the United States, the total turnover of TM firms did not make up even one percent of the country's retail turnover!
The fourth lie: TM is a new lifestyle full of joy and happiness! It is the only way to achieve everything in life!
Fact: TM’s motivational slogans promise a life full of wealth, luxury. However, most people are looking for a conscious activity that realizes their abilities, talents, and talents. Not all of them are burning with the desire to go from house to house to their relatives and acquaintances and buy worthless, dubious products.
The fifth lie: TM is the only and best way to achieve mental balance.
Fact: Saying things like "Working in the TM system and helping your loved ones with peace of mind" with some abstract concepts is utter nonsense. TM's alleged "moral support" is based solely on money from newcomers to the pyramid. Such "spiritual help" will stop the day when "newcomers" do not come to the company.
Lie Six: It's so easy to succeed in TM! Your friends and loved ones are your natural customers. The people you love will be your customers for a lifetime!
Fact: Turning friends and relatives into a personal business vehicle can deliver a futuristic relationship to them. It's not uncommon for you to lose friends because you want to put "marketing pressure" on them, and you want to touch their souls because you want to sell your product. Do you believe that? Do you think that there are a lot of people who want to buy your product from you?
The seventh lie: You can only sell products in your spare time (“free work schedule” etc.). You can work at TM whenever and in any amount you want (there will be no managers, you will be your own boss). By working just a few hours a week and earning a large amount of extra money, your personal income can increase so much that your other work becomes redundant…
Fact: Millions of people know from decades of personal experience that working and earning money at TM takes a lot of time, personal active participation, patience, mastery of speech, the ability to persuade. This model of marketing requires you to have special personal qualities, an extremely busy work process so that you do not have any free time in your personal life. For TM, anyone is a potential buyer who buys a product killer and then encourages others to do the same. Every moment of your life becomes an opportunity for someone to advertise a business, to present a product, in short, to sell a product, to hire a person. Now when choosing a product, you choose neither the place, nor the person, nor the time, nor the conditions - the idea of the ring is to buy more goods and hire more people (you have to climb to the next step of the pyramid! )
This means that you will have no free time, no relatives, no loved ones - all will become customers. You fell into the hook, not the "net", brother, into the hook !!!
The TM system humbly allows our employees not to pretend that they will earn their own income, in fact, it takes control of the whole life of the person who falls into its trap, and even begins to master it, again this person's system it also requires unconditional compliance. This system takes some into its domain so much that they even become unable to simply interact with those around them.
The eighth lie: TM is a new, positive business that supports its employees. TM strengthens the human spirit and personal freedom.
Fact: Mass marketing scares newcomers: wax deceives with promises of income, and other forms of trade in goods or services disappear, everyone fears unemployment, a crisis. Occupations, trades, various forms of labor, which are considered human qualities, are ridiculed as "sitting on a salary" and even "slavery". (Not surprisingly, women attending TM seminars are reminded of “proverbs” such as “I looked at the ground - I looked at the ground”). The multi-level marketing system itself, as the last hope of all mankind, rises to the skies as a gateway to salvation.
Serious business models are not based on negative forecasts and intimidation, deception of ordinary people.
The ninth lie: TM is the best way to grow your personal business and be independent!
Fact: TM does not give you independence, freedom. Becoming a member of TM as a "free" seller is a real pleasure. Some TM firms explicitly prohibit their vendors from collaborating with other firms. Most contracts with vendors contain clauses such as immediate dismissal, and sponsors can be instantly deprived of the structures they have created for a variety of reasons. Vendors (as we have already said, "consultants") are a branch of a complex hierarchy system in which they have no right over these hierarchies.
Tenth lie: Network marketing is not a financial pyramid because it deals with product sales.
Fact: If a firm is selling a product, it cannot be said that the “anti-pyramid” laws passed in most countries of the world do not apply to it. For example, the US federal government has shut down some "pyramid" firms that sell much-needed goods. These firms have been shut down and criminal charges have been filed for violating financial pyramid laws. A very large proportion of TM firms violate applicable law but are not prosecuted by the government because they operate in a semi-secret sector.
My personal conclusions
Most TM firms do not deserve the attention of potential employees. As a result of pressure on sellers in the system, they are forced to squeeze into their customers either absolutely unnecessary or extremely expensive goods. Recently, many TM firms have switched to the Internet en masse. However, they will remain a system of extorting money from ordinary citizens. I hope there is a network marketing company out there that works fairly and honestly, but I haven’t come across one yet… All I saw was just a sham. I'll just be happy to meet you.
