Think about it? You buy life insurance – you buy health insurance – you buy automobile insurance. Are these considered scams? Of course not. There is a real need for the insurance product – where you can offset your personal risk of a catastrophe hitting your family by buying an insurance policy.
Did you know that for decades insurance companies have paid their agents – the nice folks who sell you your insurance – on a multi-level or networking basis. Master Insurance agents recruit regional insurance agents — who recruit local insurance agents – and all levels of the sales force get paid a small part of the insurance premium that you pay.
Automobile sales people get paid a commission – their sales managers get paid an override – and – well you get the picture. They too are paid on a multi-level basis.
The same holds true for a multitude of different industries.
If this is the case – why do some people think of multi-level marketing as a “scam?”
Is there a need for the multi-level marketing industry?
I believe there is a basic need for the industry. I believe the industry fulfills the need. And I do not believe the industry is in anyway a scam. Of course there are folks in every industry that try to turn a legitimate deal into a $3 bill. But for the moment let’s put these not so nice folks aside – and concentrate on: “What Is The Need For The Multi-Level Or Network Marketing Industry?”
There are numerous “Channels Of Distribution” for products to be sold in our country. There are the big box retailers – which take product from the manufacturer – stock their shelves – and sell these products at a discount.
There’s the infomercial “Channel Of Distribution” that sells usually lower priced products to people through typically late night television. There’s the “Channel Of Distribution” that runs from the manufacturer to a wholesaler – to smaller type of local merchants who sell the products to consumers.
But why does the Network Marketing channel exist?
Some products require extensive explaining – to get the product initially sold. Some manufacturers or products that require explaining – do not have a multi-billion dollars or capitalization to hire “explainers” to go out into the land and explain about new products that can benefit others.
Put these two statements together and you can see the real need for the Network Marketing (ala Multi-Level Marketing Industry). Products that require a high degree of explanation – cannot be sold easily through store shelves. The large box retailers and even the boutique markets do not employ the staff necessary to explain the product.
But the Network Marketing Industry does fit this requirement to a “t”. Once a committed networker understands the uses and benefits of a net product – they are prepared to tell the world about that product. They are the explainers.
I can think of dozens upon dozens of products that do not sell quickly off store shelves that were once the providence of the Network Marketing Explainers. Since in our career – we’ve concentrated in building business in the field of nutrition – the examples I’m going to give you now come from the nutritional field.
Co Enzyme Q-10 is a perfect example. This product now flies off the shelves of vitamin stores and even big box stores. But I remember 20 years ago when this product was sold only through the Networking Industry. What convinced me to become a life long buyer of this product was a statement a Network Marketing Explainer said to me over 20 years ago. Here’s what he said. “Look I can show you hundreds of studies from Japan that say CoQ10 helps prevent Heart Disease. I can also point to a few studies that state just the opposite. So you’ve got studies on both sides of the equation. But what I do know is that everyone who comes into the hospital with a heart attack shows a deficiency of at least 25% in their level of CoQ10.”
Bingo – I became a life long customer – right there – because a Networking Explainer – put the benefits into a set of words that I could understand.
Vitamin C – Probiodics, Digestive Enzymes, and hundreds of other nutritional products that are today commonly sold from store shelves – got their start in building a market by using the Network Marketing Channel of Distribution.
The old age of “Build a better mousetrap and the world will beat a path to your door” – is just not true. You’ve got to add the “explainer” to this equation for the product to explode in sale after sale within the marketplace.