Network Marketing is a huge movement that has inspired many companies to completely alter their marketing plans to allow for it. There are quite a few major companies in the USA that have gone to this business model to make all of their sales, and many have seen a large increase in revenue. Network marketing is also a business plan that has received a lot of negative attention, as many people have misconceptions about it or don’t fully understand it. Some refer to it as a pyramid scheme or a ripoff for the associates, and use these phrases to generalize the whole industry. However, the truth is that just a few companies have given the entire plan a bad name.

The World Federation of Direct Sales Association is a group that oversees these types of businesses, and tries to make things as fair as possible. It regulates all of the businesses, and holds them to ethical standards. So if you are interested in an MLM company, you should definitely make sure that they are a part of this association for your own protection. Under the WFDSA, over $75 billion in sales are made each year. This shows that it is an industry that is working, and working well. However, not everyone who gets involved with a network marketing company gets a cut of this money. Less than .05% of all of the associates make enough to survive on. Less than 1% ever even see a profit despite their efforts.

For the products that those companies sell, network marketing is perhaps the best route that they could take. Health products usually have extreme promises, but these can all be backed up as long as the salesperson has some personal experience with the product. This is why the direct marketing is helpful – someone has a good experience with a product, and then they go out and attempt to sell the product to their friends and family. Their credibility is never questioned, since they aren’t technically a part of the company. Some feel this is a method of sales that takes advantage of people’s willingness to trust their friends and family. These relationships are put into an awkward place when a sale is made.

If you aren’t exactly sure whether you want to get involved with network marketing or not, you should not make a decision either way until you are absolutely sure. Ask around as much as you wish. You can make inquiries with the WFDSA to see if the company is one that you would like to help out as a salesperson. You can also request official business statements from the company, or just ask about some of their practices. Another great way is to speak with someone who has had experience working with that particular company, and see if their experiences have been positive or negative. Use the internet to gather as much data as you can, and put it to its full use in deciding whether a company is worth working for or not.

Brian Hackett, CEO
MLMNetworker