Is Network Marketing And MLM’s a Scam?
What I told Dave, the Insurance Man… when he said “I’m not into network marketing.”
The other day I was talking to my friend Dave about joining my network marketing opportunity. Dave listened for a bit… and then said… “I’m not into network marketing.”
Here’s what I told Dave.
There’s not much difference between insurance and network marketing.
- They both sell “hope for the future”. With insurance you’re selling a cash-flow that begins when someone dies or some disaster happens to your home or car. But with network marketing you’re selling a cash-flow that begins within days of signing up… depending on your efforts.
- They both sell into a “network” of friends, family and leads generated by advertising or marketing.
- They both hope for a residual income. The insurance guy hopes to sell enough policies to have a monthly income (coming from monthly insurance payments) of $5,000 to $10,000 a month or more. The network marketing guy also hopes to sell enough of his product or service to get monthly commissions of $5,000 to $10,000 or more.
- Both could be considered Business-to-Business marketing.
- One difference is this: When an insurance guy sells a policy… that is just a customer. But when the network marketer sells his product/service he not only gets a customer… he might get a distributor on his team… and he will make money from his entire network distribution team members.
- Here is BIG difference. Let’s say the commissions paid out to both the insurance guy and the network marketing guy is 20%. That is common. If that’s the case… the insurance guy will need to get 500 customers paying about $100 a month in order for him to get about $10,000 a month in income. 500!!!.
But the network marketing guy… generally speaking only needs to get 100 customers… to make about $10,000 a month. Why? Because in network marketing – some of your customers also become distributers. Out of 100 customers… 80 of them will do nothing about promoting and marketing the product or opportunity. But 20 of them will. 20 of them will build a network under you of about 10,000 names over time. Generally speaking. And you’ll make about $1 per name off of them all every month.
- Here’s another difference… with an insurance job, you gotta pass a test of some type and you gotta show up at the “office” at least sometime. But with a network marketing opportunity… you get more free time with no one looking over your shoulder. And with insurance, you must produce or your get called on the carpet. With a network opportunity no one is gonna fire you if you do nothing.
So… if you’re faced with joining up with a network marketing company or getting out there and selling insurance… I’d say… one has more rewards for the same amount of effort.
And if you’re looking for a good network marketing opportunity… allow me to recommend this one: http://www.solavei.com/Linwood/
It’s a cell phone network… THAT PAYS YOU… when you refer others to this network.
The company only charges $49 a month… and you get UN-limited voice, text, and 4G data.
If you get 9 folks signed up… you’ll make $60 bucks a month… that means YOUR CELL PHONE IS FREE.
If you get more folks signed up… your income grows and grows. According my model mentioned about… get about 100 customers signed up and you’ll make some $10,000 a month or more.
Check it out. http://www.solavei.com/Linwood
They have lots of videos to show you what’s going on… how it works… and how much money you can make with this wonderful platform.
Join my team.