Is Network Marketing dead?

25 replies
With a 93- 97% failure rate and most people who become involved losing more money than they'll ever make, is network marketing and the dream of earning a residual income (for most people.) dead?
Most companies put an emphasis on recruiting more so than selling. Some are even free to join or have very low start up costs. Nor do they ever charge anyone a recurring cost to remain a member. Half the time you end up with a team of people who aren't really serious about the particular program. The typical deadbeats and tire kickers, who in spite of your motivation and instructions will never take any sort of action. Some quit others simply remain inactive.

Obviously its possible to achieve success, but not for most people. I picture it as being a large fishing net in the middle of a vast ocean filled with a bunch of people. The people on top are going to stay afloat those on the bottom will be drowned, and the ones in the middle have a 50/50 chance.
#dead #marketing #network
  • Profile picture of the author Lisa Gergets
    Define "network marketing". (Not being a smarta$$...I'm serious. LOL)
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  • Profile picture of the author badboy_Nick
    How is "network marketing" dead? That's like saying print advertizing is dead. Unless you really did mean something else ... please elaborate
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  • Profile picture of the author Lisa Gergets
    Yeah, that's why I asked too.

    If, by "network marketing" you mean...well...selling things by networking with people and always attempting to increase that network, then no, it's not dead. Never will be.
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  • Profile picture of the author sloanjim
    amway was the most successdul..why? Because in the 1960's it was all new. New idea/business in new coutnries. What they didn't tell people was all those millionaires were created who got in early in each country. The poor suckers who get in late never stood a chance. Must be so easy to give motivational speaches when you made $10 Million. Have 6 porsches and 3 mansions etc. And they let the audience know about it. Very good at the emotional plays..a bit like I.M.

    Yes I do think it's dead now. Been around a lnog time and there are no new countries to get into. Something else will pop up though in its place.
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  • Profile picture of the author businessmatt
    I think you mean multi-level-marketing, like amway, primerica, world financial group, etc. I don't see how it will ever die. I'm not saying I'm a fan of it, but some of the companies are actually decent. Most will take the shirt off your back though. I've watched it happen.
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    • Profile picture of the author iseethecode
      I think MLM marketing can be a great way to grow a business and reach people so long as it is done right and there is a true benefit that the service or product offers. The companies below have decent examples... I am actually going to be launching one very soon that is solely based on a suite of various kinds of financial software.

      Network marketing's model is here to stay indeed.

      Originally Posted by businessmatt View Post

      I think you mean multi-level-marketing, like amway, primerica, world financial group, etc. I don't see how it will ever die. I'm not saying I'm a fan of it, but some of the companies are actually decent. Most will take the shirt off your back though. I've watched it happen.
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      • Profile picture of the author MichelleCobbs
        I have to agree, network marketing is not going anyway.

        Michelle
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  • Profile picture of the author AlTheGr8
    Looks like every day there's at least one article that says "... Marketing Is Dead" in the subject on this forum.
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  • Profile picture of the author laurenceh
    ALthegreat you must have missed my thread from the other day "Relax everyone, nothing has died!"
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  • Profile picture of the author Jon Tees
    I was referring to pyramid marketing, mlm (multi level marketing) and anything by any other name where those who joined early and worked their way to the top, benefit from everyone who joined after them and is now below them. It's possible to still make money if you know how to brand yourself and stand out from the pack. But its also possible to swim the English channel. Anything's possible, but its getting increasingly difficult for most people to make a profit or even break even in these types of businesses. I feel that the main problem is that many of these companies are ever changing. As soon as someone starts making money with them, they pull the rug out from under them and completely change their compensation and pay plans under the guise of "making it easier for more people to make money." in fact it can make it difficult or even impossible for those who are making money to continue doing so. Multi level/tier affiliate programs however seem to be doing well, they allow an opportunity that other wise may not exist for more people to run their own businesses successfully.

    You have to try in order fail and learn from your failures and try again. This wouldn't be applicable to someone who simply wants to buy retail products at wholesale prices with no intention of building a business.
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    • Profile picture of the author Raygun
      Originally Posted by Jon Tees View Post

      I was referring to pyramid marketing, mlm (multi level marketing) and anything by any other name where those who joined early and worked their way to the top, benefit from everyone who joined after them and is now below them. It's possible to still make money if you know how to brand yourself and stand out from the pack. But its also possible to swim the English channel. Anything's possible, but its getting increasingly difficult for most people to make a profit or even break even in these types of businesses. I feel that the main problem is that many of these companies are ever changing. As soon as someone starts making money with them, they pull the rug out from under them and completely change their compensation and pay plans under the guise of "making it easier for more people to make money." in fact it can make it difficult or even impossible for those who are making money to continue doing so. Multi level/tier affiliate programs however seem to be doing well, they allow an opportunity that other wise may not exist for more people to run their own businesses successfully.

      You have to try in order fail and learn from your failures and try again. This wouldn't be applicable to someone who simply wants to buy retail products at wholesale prices with no intention of building a business.
      In my opinion MLM is as strong as ever, maybe I am in the minority here but I think it is a great way to build a business online. I actually have a fitness blog where I promote Beachbody Products, like P90X. It is all based on home fitness and I focus my articles on that accordingly. I have been plugging away at it for about 7 months now and can honestly say that I will be making a full time income from that alone. Never once have I had to harass my friends or family to join, I simply attract the people that I want towards me.
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    • Profile picture of the author Mr. Enthusiastic
      Originally Posted by Jon Tees View Post

      I was referring to pyramid marketing, mlm (multi level marketing) and anything by any other name where those who joined early and worked their way to the top, benefit from everyone who joined after them and is now below them.


      Why in the world did you post about multi-level marketing in an Internet marketing forum? Internet marketing uses computer networks - one computer forwarding TCP packets to another. These enable computer-assisted communication between buyers and sellers. But it doesn't inherently have anything to do with reseller networks - business arrangements of commissions from one sales rep to another.

      I've read the specs for the TCP networking stack; it doesn't have anything built-in for downlines, residual matrix payout plans and all that jazz. Of course that's how some people choose to use a computer network.

      There's a lot of discussion here of affiliate marketing, and there's also a lot of discussion of content creation, copywriting, graphic design, Web design, pay per click and a lot more. Some of these strategies do involve "networks," such as CPA. These are only one-deep sales commissions, not any kind of pyramid structure.

      Even the most cursory search of the archives shows that indifference to outright animosity is the general attitude here towards MLM. Meanwhile, a few people are always very happy about their experience with it. Since it's polarizing and off topic, why bring it up at all? There are plenty of other forums that have enthusiastic ongoing discussions of that type of business, both for and against.

      Chris

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  • Profile picture of the author TheRichJerksNet
    Everything is dead - Article Marketing, Network Marketing, Marketing in General... Yep! It is all dead, so we might as well pack it in now and all go home and get a J.O.B.

    James

    p.s. for the life of me I do not understand these threads and someone please show proof of those % claims of failure rates
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  • Profile picture of the author candoit2
    Has anyone ever heard the term "Don't beat a dead horse"?

    Network marketing is alive and strong.

    Keep beating on it, this horse is not dead.

    Aaron
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  • Profile picture of the author WhoDaresWins
    Depends on what you mean by "Network".

    If, by "Network" you mean the 50 year old model of direct selling through friends and family, I wouldn't say it was "dead" but so many people have preconceived notions of so called "pyramid schemes" that people run for the hills when they see you coming. It's not dead, and some folks are really good at it, but it's definitely a tough business for most folks. Plus there are so many companies going to market this way that people wanting to do it have dozens of great products and companies to choose from.

    Donald Trump (Trump Network) and Sir Richard Branson (Virgin Cosmetics - now VIE at Home) wouldn't have used this business model if it was dead.

    If, on the other hand, by "Network" you mean finding customers and referrals via the
    InterNetwork, then it is VERY MUCH ALIVE AND WELL. Smart direct sales distributors are learning how to create their organizations using the web, this in turn has created opportunities to do affilate networking where even if their prospect doesn't sign up for their product, they make money via the affilates. Some of the guys have taken it a step further and are teaching what they know, creating yet another industry in teaching distributors how to do what they have done - and are making money there too.

    The internet has made the term "Network Marketing" take on a completely different meaning from what Amway et al created 50 years ago.

    So, as I said at the beginning - Depends on what you mean by "Network".
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  • Profile picture of the author Chris Faraday
    It will evolve into something authentic and potentially beautiful tied to philanthropy and support organically online communities. This is a ways off. Turns the stomach of most. I see shallower networks that support relationships and mentoring versus recruiting & training "duplication."

    All too often hype & greed are the main focus : (
    Goji, noni, aloe, blue green, acia, melaleuca - all profound...
    But... Buy em at whole foods : )

    Pharma companies are the grim reapers. Often under mlm people discover a new perspective on health & life and avoid the medical pharmicopia of death. (the major funnel) most of us are in - even on this forum...

    Perhaps information & service based firms have a better model...
    Pre-paid legal & Telecom are interesting...

    Sunrider, forever green - not bad - good culture

    What are the ETHICAL firms any of you have heard of???

    Allways open - sometimes real...

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  • Profile picture of the author msfunding
    I've been in MLM for over 20 years and have made some very strong money.

    As with IM there is a large drop off, it does not make it bad business, but it does make quitters, when the going is tough.

    I have helped many people to retire from full time employment and the one thing that I will gaurentee you is that the person who sponsers you (If they are serious about mlm and are proffessional) will inverably be more commited to your succes than you are to your own.

    IM in the main is just about people making money because they never have to meet or speak to their customers, so they don't really care what they sell. There needs to be a complete paradigm shift and its through forums like this that it is slowly happening. I hope 1 day for IM to be like MLM

    I have two young children and I would encourage them whole heartedly to join an MLM programme. To be around happy helpful and positive people beats a job every day of the week.

    PS I still earn money today from work that I did back in 1995. I hope I can say the same about this industry.
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  • Profile picture of the author Money on the Side
    Network marketing got its start here in the U.S. in the early 70s and has been going strong ever since. I own several businesses with a network marketing business on the side...and I have to say that the network marketing business is the most fun. I think there are certain people who have avoided it in the past because no one likes to hound friends and family or hold presentations in their homes. With the Internet, all that is avoided. In fact, people on this forum can make a killing in network marketing because you have an edge that 90%+ of the network marketers out there do not have...and that is Internet marketing experience.

    I sponsored 6 people into my downline in less than three weeks and had my first commission check in two weeks...just from a simple blog and a few articles.

    It is nothing you have to do full time. For me, it is a side business. But having it is an asset because it gets larger and larger every month. And at the rate it is going, in 1-2 years, it will be a passive six figure income.

    I am biased, but really, I think people are crazy not to be involved in a network marketing company. It's not a quick fix...it is something that is built over time. The low cost to join and the low risk involved vs. the income potential makes it a smart move.
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    • Profile picture of the author Tsnyder
      Originally Posted by killercopy View Post

      Network marketing got its start here in the U.S. in the early 70s and has been going strong ever since. I own several businesses with a network marketing business on the side...and I have to say that the network marketing business is the most fun. I think there are certain people who have avoided it in the past because no one likes to hound friends and family or hold presentations in their homes. With the Internet, all that is avoided. In fact, people on this forum can make a killing in network marketing because you have an edge that 90%+ of the network marketers out there do not have...and that is Internet marketing experience.

      I sponsored 6 people into my downline in less than three weeks and had my first commission check in two weeks...just from a simple blog and a few articles.

      It is nothing you have to do full time. For me, it is a side business. But having it is an asset because it gets larger and larger every month. And at the rate it is going, in 1-2 years, it will be a passive six figure income.

      I am biased, but really, I think people are crazy not to be involved in a network marketing company. It's not a quick fix...it is something that is built over time. The low cost to join and the low risk involved vs. the income potential makes it a smart move.
      Just one correction... MLM/NWM did not start in the early 70's.
      Amway started in 1959 and it wasn't the first by a long shot.

      The founders of Amway... Rich DeVos and Jay Van Andel... were
      independent distributors for Nutrilite prior to founding what would
      become Amway. They became so successful they eventually bought
      Nutrilite and folded the product line into Amway in 1972.

      Dr. Forrest Shaklee started the Shaklee Corporation prior to 1959.

      Tsnyder
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      • Profile picture of the author thmark
        MLM or Network marketing done right can be much better than CPA or affiliate marketing or any of the other IM strategies considered to be OK.

        It's silly to get upset about MLM or Network Marketing when it is just a vehicle to promote products like affiliate marketing or JV's or any other method.

        As mentioned above, the network incentivizes your upline to work with you to help you out, vs. the hit and run of selling you an info product and disappearing before you try to refund.

        Compensation plans can be mind boggling, but in principle are designed to reward consistent effort. They are starting to get simpler and easier to understand.

        I've just run across a new company where I've got direct access all the way to the top. Where else can you bring in a professional "closer" that is ready to help you recruit and close the sale? All for no cost to you. And the comp plan can be explained in 30 seconds, and everyone gets it.

        The beauty of my current program is that it creates the perfect motivation to combine online expertise with offline person to person recruiters in a win/win situation.

        Everyone benefits, and the residual income can be tremendous.

        IMers can spread these opportunities far and wide, and also pick up traffic from all the people searching for products that offline people have told them about.
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      • Profile picture of the author Money on the Side
        Originally Posted by Tsnyder View Post

        Just one correction... MLM/NWM did not start in the early 70's.
        Amway started in 1959 and it wasn't the first by a long shot.

        The founders of Amway... Rich DeVos and Jay Van Andel... were
        independent distributors for Nutrilite prior to founding what would
        become Amway. They became so successful they eventually bought
        Nutrilite and folded the product line into Amway in 1972.

        Dr. Forrest Shaklee started the Shaklee Corporation prior to 1959.

        Tsnyder
        Yes, sorry...you are correct. MLM had it's major boom in the 70's which is when they caught the attention of regulators (and Walter Mondale) who began investigating them as pyramid schemes. This is when the FTC first made (or tried to make) the distinction between what was legal and what was not.
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