Comparing MLM to Employers. How Do They Measure Up?

Network Marketing/MLM is a $100 billion dollar industry worldwide and is one of the fastest growing trends in home based business. More than 10 million people in the US are involved in a Network Marketing/MLM business. It allows anyone, from any background or education to create a significant income in a business of one's own.

Many Network Marketing/MLM Companies are Fortune 500 companies, traded publicly on the Stock Exchanges and many are held privately. Mary Kay Cosmetics; Tupperware; Jafra Cosmetics and Avon are just a few well known and well respected companies using a network marketing / direct sales business model. Network Marketing/MLM has been written about favorably by major publications such as Forbes, Fortune, Success, Fast Company, USA Today and the Wall Street Journal.

There are those who still want to call Network Marketing/MLM a pyramid scheme. Let's consider the actual shape of a pyramid. Now, think about working as an employee. How many top paid executives are in the company? ONE! And that position can not be taken until the person who fills that position is gone. Then, there will be someone in line to take his place. In the meantime, there are other employees in the company working for peanuts that have little to no chance of any advancement in the company.

Now, consider Network Marketing /MLM. In this case, a good company offers unlimited top positions, allowing anyone who joins an equal opportunity for advancement to that position. That is earned by the person themselves, rather than appointed by an executive. Therefore, if there are 1,000 people who are top performers, they are all in the same top positions.

Now, you tell me, which of these situations ends up more like a pyramid? This is because of the fact that in the employee position, your pay is based on your hours alone and the company gets to decide how many of those hours you are allowed to work. In the employer situation you also have the ability, regardless of how well you perform your job, to miss a promotion or raise due to personal choice of the supervisor or others in authoritative positioins. Therefore, it is up to them how far you advance in your employment. Whereas, in Network Marketing/MLM, you not only choose how many hours you want to work but you also don't have to worry about personal feelings, bias and other things of that nature getting in your way. Your advancement is based on your performance and leadership abilities. Does your team members' performance help? Absolutely! This is where your leadership training and skills will aid you in building a successful business. You have the ability to make commissions from work that others do as a form of payment for your time to train those members. When was the last time an employer offered you a training commission from the people you train for as long as that person remains with the company, as well as a commission on the people that THEY train while employed there? Unheard of, right?

Does the owner of a Network Marketing/MLM company profit? Of course they do! If they didn't they wouldn't be in business. That is the whole purpose of having a business in the beginning. I have heard so many say that there's no way they would work for a Network Marketing/ MLM company and line the boss' pockets for them. Excuse me! What do you think you are doing when you work in a factory or corporate job? The only difference is that in the employee situation, there will always be a limit on the amount of money you can make with them. While, in Network Marketing/MLM, your income increases as you build your business. The more you build your business, the more money you make. Unlike in an employer situation, it is in the best interest of the company to help you in becoming successful. In fact, they want as many successful people in their business as possible and that is why they create the compensation plan that they have for their members. If they aren't successful, it doesn't help the company reach their own goals.

In an employer situation, the head of the company could care less if you get that promotion you have been working for or not. If you get passed up, they haven't lost a thing. In fact, in some cases, you may run into resistance from them altogether that may hinder your goals. If you decide to work somewhere else, they have the power to give you a bad reference there as well, causing you to miss out on that job as well. It doesn't take a rocket scientist to figure out where the pyramid really lies here.

Now, consider the fact that pyramid schemes are illegal and MLM has been well respected by many of the top businesses in the world today. So, who will you listen to? Someone who is still feeding off the crumbs of the boss and heading nowhere fast or to many top business owners who understand the business concept and have come to respect the structure of Network Marketing/MLM? Personally, I have found that if I really wanted something, I should take the advice of someone who already has it and find out how they did it. Someone who has never even tried to reach their own goals will never be able to give you sound advice on something that they aren't even willing to try to understand.

Now, consider the fact that pyramid schemes are illegal and MLM has been well respected by many of the top businesses in the world today. So, who will you listen to? Someone who is still feeding off the crumbs of the boss and heading nowhere fast or to many top business owners who understand the business concept and have come to respect the structure of Network Marketing/MLM? Personally, I have found that if I really wanted something, I should take the advice of someone who already has it and find out how they did it. Someone who has never even tried to reach their own goals will never be able to give you sound advice on something that they aren't even willing to try to understand. Decide for yourself after talking to someone besides all the other people who simply want to stifle your dreams and keep you from being successful.

Much of the negative response to Network Marketing/MLM stems from several factors such as fear, negative feedback and lack of understanding the structure. The fear, in most cases are based on the fear of the unknown, the uncertainty of whether or not they can be successful. One thing IS certain, however, and that is that you will never be successful with anything if you aren't willing to take the risk of trying.

The negative feedback mostly comes from other people who have tried and failed for whatever reason. This could mean anything from the wrong company, compensation plan structure, low retail profits, high start-up costs, bad leadership to the person who joined simply not willing to learn to work the business properly. Whatever the reason, you can bet that the company will be labeled as a scammer whether it was their fault or not. That is why it is so important to know what to look for in a company before you become involved with any business.

If you decide to try Network Marketing/MLM just do some research on the company to be sure that it is the right opportunity for you. While Network Marketing/MLM is a legitimate form of business, there are companies that are either scams or just this side of legal. If you are not sure what to look for and what kind of things to avoid in these types of businesses then please take time to learn how to look and how it works before you start looking for a company. And by all means, talk to positive people who have been in these types of businesses. Find some who have been successful and find out how they did it and what their experiences have been. Feel free to have a look through my other hubs on this topic. I have written on various subjects to help you avoid those online scams, learn how to find the right opportunity for you, what types of questions to ask and lots of other useful information on understanding and getting started in your Network Marketing/MLM business.

© 2007 Bonnie N. Ramsey