Home » Business » Network Marketing

Home Based Marketing Network - Recipe For Disaster?

Dec 21, 2007
It can be difficult to separate the real from the fraud when it comes to home based marketing network jobs with so many advertisements on the internet and in the national magazines that offer people the chance to make millions. However, some companies offer home based business opportunities that generate a decent living while offering an alternative to working for someone else.

There are critics of the multi level marketing system that say the business model for multi level marketing is one that dooms it to failure no matter what product or service is being offered. These systems are designed around offering more money for recruiting distributors with no consideration for how much the market can withstand. More people selling a specific product won't necessarily increase sales, unless the number of people wanted the product is higher.

Many business know what the point of market saturation is and they understand the principal of supply and demand. The business will end up getting rid of a product and doing away with several sales people if there is more inventory than what the public wants or there is more sales people than the number required to sell the product to a smaller customer base. With most multi level marketing companies the problem is that no one pays attention to how many people are on the sales staff.

Another way to consider this is through the math on the companies recruiting efforts. For example offering rewards for new distributors such as a hundred for a new group of ten and another fifty when those ten bring in ten more. Just a second wave of distributors will bring the total to a thousand and if each individual brings in ten more then there will be one million people trying to sell a single product as well as people recruiting from a smaller group of distributors.

The product may be something that people want or need, but not everyone is going to buy from one company. People may not switch suppliers due to customer loyalty or a better price on a nearly identical item. There can be over a dozen reasons why people choose to buy from a different source. Even if the market isn't saturated, as far as a company is concerned the market of customers can be almost dried out. Therefore, question the motives of building a network if the focus is placed more on recruiting rather than on sales.

Separate the hype from the reality before you buy into any home based multi level marketing campaign. It may be the truth when a recruiter tells you that it is something everyone needs or wants, but whether or not customers will buy it from you will take additional research. Consider if the people in your upline, those who started with the program before you and share your profits, are really going to help you gain success or are they only wanting you to sell a lot of products in a saturated market so that they can continue their comfortable lifestyle.
About the Author
Dustin Cannon, of Next Level Enterprises, LLC is a successful Internet marketer working with top leaders in the home business and Internet marketing industry. For more information on a great business opportunity Home Based Business Opportunity
Please Rate:
(Average: Not rated)
Views: 111
Print Email Report Share
Article Categories