What Is The Big Challenge With MLM?

In the five and half years I have been in the networking and home based business industry, I have seen and heard a lot of hype and many polar opposite views of the network marketing industry.

Some people are passionate about the industry, while others condemn it. Some claim all companies are pyramid schemes and scams. Celebrity authors such as Robert Allen, Mark Victor Hansen and Robert Kiyosaki advocate the industry.

Network marketing is, in its most fundamental sense, a franchise business model. Such a model provides a duplicable system that involves the continuous repetition of certain activities.

One key test of a network marketing or home based business company is whether there are large numbers of repeat customers who order and use real products even if they do not get a check. The fact is that Amway/Quixtar, Melaleuca, PrePaid Legal, USANA, and many others have sold millions upon millions of dollars of products to happy customers, many of whom are NOT also getting checks.

So why does the industry seem to have a black eye? The problem does not seem to lie with the overall franchise business model. Network marketing is just a business model, and it really amounts to "micro-franchising". It has a low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.

However, the things that make it attractive make it attractive to many who are NOT really qualified or prepared to become business owners.

Some of the characteristics of these people are:
•have not done well in their business or profession and have little money saved up to invest
•have no previous experience owning or running a business
•have no previous experience in sales
•have little or no experience developing business relationships other than that of employer/employee/co-worker
•are not satisfied with their current level of income
•have unrealistic expectations of the amount of work involved compared to the revenue realized

From my experience, without knowing any better, inexperienced or unqualified network marketers often
•over-sell the opportunity
•inappropriately talk about the business in social situations
•come across as desperate
•focus too much on new recruits and neglect existing customers as a result
•are either inaccurate or deceptive when talking about their business

What is the solution?
Read about it in my next post.
About the author

Jon Roussel is a five year veteran of the home base business industry. He owns a business in Beverly, MA and teaches business owners and others how to start and success with a home based business that will generate a long term reliable leveraged residual income. Learn more at http://www.payitforward4proftis.com/jonroussel

By: Jon Roussel

Article Source: http://www.directorys.uniquearticles.info

Jon Roussel is a five year veteran of the home base business industry. He owns a business in Beverly, MA and teaches business owners and others how to start and success with a home based business that will generate a long term reliable leveraged residual income. Learn more at www.adminder.com/c.cgi?jonroussel1&isnare

Please Rate this Article Not yet Rated

More Unique Articles From - Home | Business

How to Use Article Marketing to Boost Your Affiliate Profits - By : Gen Wright
The Simplest Way To Make Money - By : Ben Needles
Making a Difference with Affordable Article Marketing - By : Gen Wright
What Comes First, Fire Or The Log - By : Ben Needles
It Works. I Made Over $3,800 In 3 Days - By : Ben Needles
Re-Facing My Office Building: Why Jerusalem Stone Is The Best Material To Use! - By : Ben Needles
How to Benefit From Article Marketing - By : Gen Wright
Investment Considerations When Thinking About Starting A Home Business - By : Ben Needles
Is The Best Rated Home Business Necessarily The Best For You? - By : Ben Needles
Eye Contact and 3 Other Ways to Build Trust Through Customer Service Training - By : Ben Needles

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Submission Guidelines
Ezine Notifications
Articles RSS

About Us
Link to Us
Contact Us
Privacy Policy
Terms of Service
Popular Articles

Unique Videos
Unique Search
Unique Articles

Copyright © 2007-2008 Unique Article Directories -- All Rights Reserved Worldwide
Sitemap

Accounting | Acne | Adsense | Advertising | Aerobics | Affiliate | Aging | Alternative | Articles | Attraction | Automotive | Beauty | Break-up | Business | Business-Management | Cancer-Survival | Career | Cars-and-Trucks | Cheating | Computers | Computers-and-Technology | Cooking | Culture-and-Society | Ebay | Environment | Etiquette | Family | Family-Concerns | Finance | Finances | Fitness | Food-and-Drink | Free-Tools-and-Resources | Health | Hobbies | Home | Home-Management | Humor | Inspirational/Motivational | Internet | Internet-Marketing | Jobs | Legal | Marketing | Medical-Business | Medicines-and-Remedies | Music | Opinions | Personal-Development | Pets-and-Animals | Politics | Psychology | Publishing | Recreation-and-Leisure | Relationships | Religion | Religion-and-Spirituality | Science | Self-Help | Short-Stories | Speaking | Technology | Wellness-Fitness-and-Diet | Womens-Interest | Writing |