Network Marketing: Are the old methods dead?

Lets take a brief look at the beginnings of MLM aka, Network Marketing.

The Concept:

A few people tried a product or line of products. They recommended those products to their friends. Then they converted a few of their loyal customers to distributors.

The Method:

1. Use the product(s)
2. Recommend the product(s) (to friends, family, people you meet)
3. Sell the product(s)
4. Convert your interested *customers* to distributors (back door method).
5. Share the opportunity with a few of your *special* friends and associates

Notice that the foundation was built upon use of the product. The positive side of this approach is that you have loyal customers and stable distributors. The down side is that earning significant income can take a very long time.

Over the course of the last 40 (or so) years since the inception of MLM, things have changed.

Now the concept is:

"Do you want to get rich? Look at this!"

Now the method is:

1. "Heres the opportunity."
2. "Look how much money you can make."
3. "Oh, by the way ...the product is... But I dont care, it could be bags of (whatever) and Id still buy it just for the opportunity to make $X on X sales."
4. "Do you want in?"
5. "You dont want to retail? Great! Do you think I retail? Forget it! Unspoken: "I couldnt even tell what our product does."

Notice that the foundation for this approach is based solely on making lots of money in a short period of time. The positive side of this approach is that just a few opportunity marketers on your team can make you a ton of money in a short period of time. The down side is that when their money slows down (and it will), they will move on to the next "greatest opportunity". The only loyalty that has been created is to the "almighty dollar".

There has to be a balance. No one can make any type of serious money if all they do is sell products. At the same time, touting only the opportunity does not produce stability because it is entirely dependent on new sales.

Statistics say that MLM companies are going under faster than ever before. I also heard that even old, well established companies are struggling right now. Could it be because we have lost our focus? Could it be that the get rich quick mentality and opportunity marketing are destroying the foundation on which MLM was originally established? What is that foundation? It is quality, affordable products that people cant buy at their local discount store. If you dont think the product is important, think of how many people you know who have remained loyal to a product long after they have ceased to see the opportunity with a particular company. Someone is still making money from their product purchases.

We are beginning to hear it again. "Use the products if you want to build a truly stable business." The funny thing is that some are touting product usage as a "new" concept. Actually, it is a "back to basics" approach. Some say that because of technical advances, we can never revisit the "old ways". Is it possible that we are viewing the advances from the wrong perspective? What if we viewed them as "enhancements" rather than changes?

We can achieve a true balance between product marketing and opportunity marketing. We can use all the technology we have at our disposal to enhance what has already been proven to be a solid business model. What we need to do is figure out how to make it all work together. Are the old methods dead? No, theyre just being reborn.

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About the Author

Article by Cathy Fothergill, Copyright 1998. More articles and resources for writers, webmasters and home business owners can be found at the url below.

micorcat@livingston.net
http://www.connectionteam.com