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36 Replies Last post: Nov 8, 2008 2:28 PM by blitzlocal

The good and bad of Network Marketing

Nov 10, 2007 3:55 PM

Click to view Dao Marketing's profile Professional Dao Marketing 14 posts since
Oct 18, 2007
Three Questions:

1. Do you feel Network Marketing will be the business of the 21st century?

2. What are the pros to network marketing and what are the cons, do you feel the pros outweigh the cons?

3. Is there a database available to find people interested in Home Based Businesses, specific to the Network Marketing model?
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
1. Re: The good and bad of Network Marketing Nov 10, 2007 4:19 PM
Good question. Yes I do feel Network Marketing will be ONE of the businesses of the 21st century.
With technology changing (almost daily) so much is on line. We can do almost everything from reading a
newspaper, to buying and selling and banking from home.
Do not know if there is a database available to find people interested in Home Based Businesses,
BUT there is SCORE online. They could help.
LUCKIEST
Click to view Dao Marketing's profile Professional Dao Marketing 14 posts since
Oct 18, 2007
2. Re: The good and bad of Network Marketing Nov 10, 2007 4:29 PM
in response to: LUCKIEST
thanks, what is the web address for Score?
Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
3. Re: The good and bad of Network Marketing Nov 10, 2007 4:33 PM
in response to: Dao Marketing
Score.org or go "www.score.org"
LUCKIEST
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
4. Re: The good and bad of Network Marketing Nov 10, 2007 8:33 PM

Good question.

1. I think that Network Marketing (or MLM), as it generally exists today, will vanish for all but a few types of products. For companies that use MLM, the value of a downline has traditionally been to introduce new distribution channels and new customers -- and the downline took about half the total profits for that. The Internet and other technology advances have resulted in better and cheaper ways for a company to market directly to potential buyers (by one estimate, 93 percent of all U.S. consumers are already "databased" by at least one on-line seller) -- so the downline potential is being squeezed out. I do think a new type of MLM will emerge for certain companies and products where the downline individual is not so much a seller/distributor, but rather a post-delivery servicer. (That "servicer" role would help reduce the thousands of MLM complaints on file with BBB's, Consumer Affairs groups, and state Attorneys General, too.)


2. Pros and cons depend on who you are in the whole deal. If you're the company, the advantage is that you essentially have other people using their money to get you new customers. The disadvantage is that you have no control over how those people represent (or misrepresent) you. If you're in the downline, the advantage is that you can get into your own business easily. The disadvantage is that unless you're in the network early and can build a proftable downline of your own, you probably won't make much money. If you're the customer, the advantage is you might be able to buy a product that you'd have never seen in a store or even known about otherwise. The disadvantage is that if you are not satisfied with that product, the downline individual who sold it to you may be unwilling or unable to correct the problem or refund your money.


3. I'm sure there are many such databases, but I can't offer a specific link or pointer.

Click to view Dao Marketing's profile Professional Dao Marketing 14 posts since
Oct 18, 2007
5. Re: The good and bad of Network Marketing Nov 10, 2007 8:58 PM
in response to: Lighthouse24
Lighthouse, you do know that the US Chamber Of Commerce has stated that Network Marketing will be the Business of the 21st century, and both Robert Kyosaki and Donald Trump have endorsed Network Marketing, both have stated that if they were to start a business today that is the way they would go. (See Success From Home Magazine May 2007),
Dao Marketing
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
6. Re: The good and bad of Network Marketing Nov 10, 2007 9:51 PM
in response to: Dao Marketing

Did I misunderstand question #1? I thought you were asking community members for their honest opinion, and I offered mine.
Click to view DomainDiva's profile Mogul DomainDiva 1,732 posts since
Oct 10, 2007
7. Re: The good and bad of Network Marketing Nov 14, 2007 3:26 PM
Actually a great deal of marketing is 'network marketing'...word of mouth advertising is very important. (Right Nat? ;) )

I am in a health and wellness MLM. The company is privatley held and the owners are actively involved in the business. This company also provides training. The training seminars have helped me become a better businessperson and gotten me over my fear of public speaking.

Dr. Charles King @ U of Illinios @ Chicago (UIC) teachs MLM. MLM I believe is as good or bad as the people that participate. Just like any other business.
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
8. Re: The good and bad of Network Marketing Nov 16, 2007 8:10 PM
in response to: DomainDiva
Yes DomainDiva, you are 100% right :-)

I tried the chamber of commerce here when I was running my graphic design company, it was a wast of time and money, people were rude.

I also had long time ago a meeting with a SCORE counselor, this person was very nice but knew nothing about my industry or to promote it.

Once again, the best marketing you can have is word of mouth, trust me I am in business for 7 years now.
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
9. Re: The good and bad of Network Marketing Nov 16, 2007 8:15 PM
in response to: DomainDiva
Oh I forgot, I really don't like the concept to pay and be member of BBB, Vegan, and all the services like that to make money.

Independance is KING and FREE ! :-)
Click to view Ramone1's profile Start-up Ramone1 1 posts since
Nov 17, 2007
10. Re: The good and bad of Network Marketing Nov 17, 2007 4:10 PM
Click to view BarryHurd's profile Professional BarryHurd 15 posts since
Nov 22, 2007
11. Re: The good and bad of Network Marketing Nov 22, 2007 1:28 AM
I just read this thread and was left scratching my head.

While MLM is network marketing, not all network marketing is MLM.

For instance blogging and online communities (like this one) is online network marketing.

1. Do you feel Network Marketing will be the business of the 21st century?

Yes I do, fueled by technology changes in blogging and social media. Affiliate marketing will evolve into a much leaner machine that is based on referrals and recommendations by the people we know (which is a huge reason Facebook is attracting so many marketing dollar right now)

2. What are the pros to network marketing and what are the cons, do you feel the pros outweigh the cons?

The pros are moving into a relationship based selling model, rather than a product based sales model. You can jump several levels into the sales cycle by finding people who you already know or who trust a referral enough to make a business transaction. The con is that there is a tendency in folks to put too many eggs in one basket and not develop multiple channels of business.

3. Is there a database available to find people interested in Home Based Businesses, specific to the Network Marketing model?

Yes... its called Google. I've done a lot of research on home based businesses, which more and more businesses are adapting to the model. The technical / corporate version of "home based" is calling it "virtual". Everyone on my team is virtually based out of offices across the U.S. After having a decade of corporate life and cube farming under my resume, the need to have a physical office is getting less and less needed. One major shift is that physical mail is even going truly electronic, a professional contact in the northwest here received over ten million in funding to launch EarthClassMail (a virtual PO Box that scans physical mail and sends it to you via the net anywhere in the world)
Click to view CorpCons08's profile Mogul CorpCons08 1,128 posts since
Nov 14, 2007
12. Re: The good and bad of Network Marketing Nov 22, 2007 2:51 PM
in response to: BarryHurd
Everybody is entitled to their opinion. Can you tell me more on why you do not like network marketing?
Click to view BarryHurd's profile Professional BarryHurd 15 posts since
Nov 22, 2007
13. Re: The good and bad of Network Marketing Nov 22, 2007 4:08 PM
in response to: CorpCons08
I'm assuming you are referring to MLM type of network marketing?

Many large Fortune 5000 companies use network marketing... so I can' see how that includes "poor desperate people who usually are in debt."

For instance the Advertising and Public Relations industries both work offsliding scale percentages that often feed several layers down through vendors and affiliated business partners. The usual percentage in the advertising realm starts at 15% for referrral business, which trickles down into everything from online sales to national newspaper campaigns.

Network Marketing is also used by street salesforces with a high-turnover rate. For instance when I was at Verizon we had a salesforce of four to five thousand nationwide. Every single salesperson exposed us to a personal and professional network ranging from 50 to 5000. Basic math told us we had an inherent network of 200,000 to 25,000,000 word of mouth contacts in the circuit at any one time.

The MLM model used by companies like Amway (Quikstar) or a variety of other businesses often does present itself to people who are targeting the wrong demographic, but the successful salespeople and marketers within those groups have extraordinary professional networks. If you ever network with the diamond level of Amway for instance, they often have an inner-circle of succesful six-figure incomes representing a wide variety of industries.

If you look at the online model of network marketing (affiliate marketing) sites like commission junction have large groups in the tens of thousands of users working as MLM structured business networks. It is one of the fastest growing areas of online marketing due to things like blogging and online communities.
Click to view Dao Marketing's profile Professional Dao Marketing 14 posts since
Oct 18, 2007
14. Re: The good and bad of Network Marketing Nov 25, 2007 2:14 PM
in response to: BarryHurd
Hi Barry, thanks for your insight. I would like your opinion of the company i am in business with-- Pre-Paid Legal Services, Inc. we use the direct marketing approach, also referred to as Network Marketing. We are different from the standard MLM because we offer a stand alone product. If you are not familiar with us please go to my website daomarketing.com. There is a short movie or you can click on the links for members or associates.
Thank you in advance, Rick Mosca
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