Your best friend has finally convinced you to join the best business opportunity EVER! You and she are so excited that you will be working together and help each other earn a six figure income. Her upline sponsor earned $6,000 in his first month! Wow! How could you NOT get on board?
After your initial fee is paid, which can run from under $100 to several hundred dollars or more, you are pumped and ready to get started… but wait a minute. Now your “friend” tells you that you must purchase magazines, DVDs, a company website, AND business cards? But you just paid several hundred dollars! And product samples? Are you kidding me? She also forgot to mention that you must attend the next “National Event” in a city 2,000 miles away from you. Your head is spinning just thinking about the price of air, car, hotel and admission to the event.
Most people will tell you that these investments are just natural occurring expenses when starting a business. Just think. If you had purchased a franchise, you would be spending at least six figures to get started. Network Marketing is a bargain compared to start up costs in most traditional businesses. And that is a true statement. Unfortunately, many people in today’s economy get into Network Marketing because they are broke, dead broke. Several Network Marketing Companies were created during recessionary times. People need an income and are convinced that network marketing is the answer. This may be the answer for approximately 3% of those who join any network marketing business. Yes, approximately 3% of people that join network marketing will have huge success. What about the other 97%? The start-up costs to join a business create fear and the new representative panics and gives up after a month or two. They have not made any money and they have spent a lot of money and, after pestering all of their friends and family, they see no possibility of income. And they are still broke – only more broke than before they joined the business.
Welcome to the world of traditional Network Marketing. Unfortunately, you are going to spend a lot more money than you earn. Your friend is just asking you to do what her upline asked her to do. And when you sign your first teammate, you will ask them to do the same.
ACN, a very popular and successful network marketing company, has four National Training events a year. While the events tend to alternate location from the Midwest/East to the West, representatives from all over the country are pressured by their upline to attend every event. The National Event is a fun experience for a new representative or if you are a superstar and many of your downline are attending. But for most of the attendees, no money has been earned and they are continually pressured to sign up for the next event before they even leave the event they are currently attending. These events are motivating, no question. At your first event, you will watch top money earners walk across the stage and you will think “I am next.” Most likely, by the time you attend your fourth event, you have yet to see a cent in income and discouragement sets in.
Not every network marketing company has as many “National Events” as ACN, but whether there are one or two a year, plus all of the regional events, you are spending a lot of money. In fact, some Network Marketing companies reward the top earners with free air and hotel for having the most representatives sign up to attend the event. This seems rather backwards. These folks are the top earners. Clearly they can afford their air travel and hotel expense. Why not have a contest and reward those hard working representatives at the bottom of the organization? Many at the bottom are just starting up. What a way to gain momentum and what a great story to tell other new reps. Create a sense of hope rather than defeat early on.
Is there a better way? A different way? Yes. Imagine a home-based business to grow your Network Marketing business. Your sponsor will tell you that this business is “home-based”. Four national events plus all of the regional events several times a year is not my definition of “home-based.” We have not even mentioned the nightly meetings with your prospects and the Saturday training.
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