Network Marketing Scams by James Hagarty
Read More: Aren’t all network marketing businesses scams? This is the number one question I see posted over and over again in various forums! After giving it much thought I realized that there is a main reason why so many people perceive all network marketing businesss as scams.
I have been working from home and doing network marketing for years, and believe me I have seen the good, the bad, and the ugly when it comes to network marketing scams. But for every network marketing scam there are at least four or five legitimate opportunities. Why is it that the 20% of network marketing businesses that really are scams are causing people to fear that all network marketing businesses are scams?
I think it is a matter of expectation. Most people who are looking for a network marketing business have never owned a business before. They are employees and are used to working a job where they trade dollars for hours, answer to a boss, and collect a check every pay day whether they deserve it or not.
A network marketing business is just like any other business. There will be start up costs. There will be monthly overhead. It may take some time to get into profit. You can lose a little money – or a lot of money. You can also make a little money – or a lot of money. It is a business.
There are no guarantees! Anyone who tells you they will guarantee you will make millions of dollars from home is just blowing smoke at you. No one can guarantee that you will get out of bed in the morning and go to work, let alone do what it takes to succeed in your own business.
The reason why people think every network marketing business is a scam is because what they really want is a job. They want to trade hours for dollars, answer to a boss, and collect that check every payday whether they have earned it (or more!) or not. The conflict is that people are selling businesses to people who really just want a job.
Network marketing can be a wonderful thing, if you understand the risks and rewards involved in having your own business. If you don’t understand the difference between a business and a job, then you will think that all network marketing businesses are scams.
Have fun, and good luck!
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Comments: 5 
About the Author: James Hagarty
Member Since: 04/03/2009
Company: Daba Cashflow Solutions LLC
Industry: Affiliate Marketing
Primary Web Site: http://www.virtualbreadwinner.com/james
Scams
Hey James
I agree with your comments, thats why it's so important for the person who is going to sponsor them educate them first, instead of trying to sell them on their opportunity. If you miss this first step you are setting them up for failure.
Sort, Sorting, Sorted
James,
It occurs to me that our task as a sponsor is to make certain our prospect is clear about what we are offering. Someone seeking a job will have expectations about what "should" happen or be upset that they would have to invest something. Someone with an entrepreneurial spirit will see opportunity when it is presented to them and want to know more.
Tony, you are right, selling someone an opportunity is no different than selling them snake oil. The education part is the sorting part. Everyone I talk with initially gets interviewed and told flat out this is not a job, I am not doing any hiring, this is a business opportunity. Do you understand the difference? If they are unsure I will give a brief overview. If there is a spark of interest we move along. If not, they really do not qualify as a potential business partner.
RICK
Rick Lelchuk
Miami, FL, USA
thanks
Hi Tony & Rick -
Thank you for your comments and feedback.
Rick wrote "...this is not a job, I am not doing any hiring, this is a business opportunity. Do you understand the difference?..."
That's a great qualifying question!
Thanks for sharing!
James Hagarty
Dover, DE
Scamed
My first weeks I thought "what did I get myself into?" I've been scammed into being a telemarketer! I saw no use in crying or pointing fingers, insted I worked to hold myself accountable to my goals like everbody else who succeeds.
We have to overcome any thing that comes our way if we want to succeed, and we must realize that we are growing into something better every time we achieve our objective and must continue to set the bar higher to keep growing in our skills.
This is a process that is up to me to realize if I want to continue in my business. If my efforts start to slack, so will my results There, I said it.
Thanks for shining the light on one of my own demons.
MLM scams
No matter How great the opportunity, if you can not profit from it it, is no better then a scam. Most legitimate MLM opportunities are run as scams when you sell a program and then don't follow up with real training or at least some kind of information where to get this training then in effect your scamming someone. and that is how MLM has been presented from its beginnings. how many takers would get if you told them that it might take a year or two to learn how to make their first buck in MLM? There are people out their that will help you get the training you need but finding them can be expensive because looking for them paints a target on you for the scam artist looking for easy marks. The sad thing is if the people involved in MLM would take the time to get training and then train their down lines. then MLM would work for a lot more people.
regards, Alcoy