Network Marketing for Dummies - How to Spot a Scam
Most stories about getting involved in a network marketing business start out the same. A recruit is approached by someone they know well; perhaps a friend or neighbor. The friend has just joined an opportunity with some type of network marketing company, for example, a health and wellness opportunity. They rave about the products, and talk about how much money they will be able to make by growing their business just a little bit.
The recruit's interest is piqued. Eventually, he or she decides that it would be nice to have a bit of extra cash, for what seems to be very little. And a network marketer is born. Enter a slew of information about "network marketing for dummies," found all over the internet: "Is this opportunity a scam? The real deal?" Most novice network marketers will start to wonder if they have made a big mistake.
Most of these new network marketers have never been in business or sales, and the idea of beginning a home-based business is quite appealing. But, unfortunately, often times the opportunity isn't as "easy" as it once seemed. And the new recruit is left wondering if he or she has been "had" by a company preying on the likes of him or her.
Network Marketing for Dummies: The Basics of a Scam
Unfortunately, scams do exist. Pyramid schemes are the most popular of all of the "scams" out there. A pyramid scheme exists when a company pays representatives money for each person they recruit into the company; commissions are purely based on how many people one can add into the opportunity (and pay the investment fee, of course), and not based at all on the actual sales of the product.
A network marketing opportunity is not a scam, however, if its compensation plan is based on actual sales of representatives. While it's true that many companies face bad press and poor reputations for their "Sign up, it's easy!" attitude, few are sued for this type of behavior. Unfortunately, this is an attitude promoted by reps who are desperate to increase their downline.
So, if an opportunity isn't a scam, how can a novice network marketer get out of his or her rut? Network marketing for dummies tools are located all over the web to help network marketers. But the tools that will truly make a difference in the success or failure of an opportunity involve learning how to generate warm leads, and craft perfect pitches to turn prospects into recruits. These tools include utilizing SEO, driving traffic to an opt-in page on your own website, and using ever-changing social media tools to spread the word about your opportunity.
To find out more about building a network marketing skill-set to launch your business, read more here.
About the Author
Joshua Fuson is a professional marketer, and has participated in the generation of over $14 million dollars in the direct-marketing industry in the past 4 years alone. To find out more about Josh, and to see how he uses the internet to grow his own business every single day, click here.
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