Footshooting - Multi Level Marketing

In last week's introductory section of "Footshooting" I talked about the importance of showing up. This post is primarily directed at people who are unemployed, significantly under employed, miserably employed, or nervously employed. You could be in a state of mind that would encourage you to make decisions that are not in your best interest or the best interest of your family. Their are all kinds of financial “opportunities” out there today available through infomercials, the internet, and even your friends, relatives, and neighbors.

My focus here is on “Multi-Level” marketing and before I go any further let me make some distinctions. Their are at least 3 categories of business that often get collapsed into one but technically are different even though there is often overlap. These three are Direct Marketing,  Network Marketing, and Multi Level Marketing.

Examples of Direct Marketing would be Mary Kay, Avon, and Tupperware where people make money selling a product often in the home on commission. In my opinion many of these are very good products and excellent opportunities for those who are so wired to do them. Multi-Level Marketing on the other hand has an income stream that is primarily derived from recruiting a down line of other sales people who are often not so wired and with very little personal sales intended. If it has no personal sales it becomes a pyramid and is illegal. So Multi-Level Marketing encourages minimal personal sales and maximum recruiting of other sales people, usually from a pool of relatives, co-workers, and church friends. I know their is some overlap between Multi-Level Marketing and Direct Marketing but I think they are very different things.

I’m not suggesting that you don’t buy the products from these companies or their sales people. Arguably Amway introduced a lot of people to vitamins. A.L. Williams (Now Primerica) led a needed financial revolution overthrowing the reign of the traditional whole life insurance policy by encouraging people all over America to buy term and invest the difference. Both vitamins and term life insurance have become standards of wisdom. I myself have products from Pre-Paid Legal and I personally know people who have saved hundreds if not thousands of dollars in much needed advice from a good employment attorney. I don’t sell Pre-Paid Legal nor do I get a dime from recommending it but I think it might be a good investment for you.  But for many of you, I think it might be a very poor career choice.  In fact it might be disasterous if you are in a vulnerable time financially.

...I know your best friend is in Multi-Level Marketing, your pastor’s wife is in it, this one is different, your second cousin 3 times removed got wealthy doing it, their isn’t the kind of opportunity in traditional businesses their used to be… I’ve heard all these and many more. Just be especially careful where you focus your time if you are unemployed, significantly under employed, miserably employed, or nervously employed.

Before I get to my own list of concerns with Multi-Level Marketing let me offer up an article written by Inc. Magazine columnist and successful business owner Norm Brodsky. Follow this link to his insightful Inc. Magazine article of over a decade ago:

http://www.inc.com/magazine/19980601/941.html#

Now here is my own similar list of thoughts:


1. I believe in gifts, talents, abilities, and calling. Multi Level Marketing can pull people out of their strengths.

2. Focus is a critical component of success. To take on a Multi Level Marketing Business can pull people away from their job, family, ministry, and other important things.

3. I have experience with employees at a company I’ve worked in trying to sell their network marketing opportunity to their company customers. This creates confusion and distrust with those customers and can even be in violation of employment agreements that you have in your day job.

4. Passion is a critical component of success. Many people get into network marketing with nothing more than a passion for getting rich.

5. Network marketing can foster greed. If you want to get rich pick up a used copy of “Getting Rich Your Own Way”. It is out of print but here is an Amazon link to help you track it down. I offer no guarantees but I believe this is one of the few resources on the topic of getting wealthy that is factually based.
Amazon Link:  Getting Rich Your Own Way

6. Network marketing unlike other sales is based on people having to fail for it to work. If everyone succeeded then everyone would be in… the whole world would be in and then it would cease to be profitable. Think this one through carefully.

7. Many network marketing companies make success sound easier than it is. People I know who have been successful at this work at it 60-80 even 100 hours a week. Americans also now have a built in resistance to network marketing.

8. It sometimes preys on people who are financially suffering and who need a base income. Out of work is the absolute worst time to try this.

9. You often lose and weaken friendships. Inviting someone for dinner under the pretenses of getting together for a fun evening and then switching into the latest business opportunity doesn’t build trust. You may strain the very connection in your network that would have introduced you to a great job.

10. Some MLM companies refer to non-participants and people who move on as losers who aren’t going anywhere in life. This is sour grapes at best.

Here is my bottom line… if you are gifted in sales work… consider a direct marketing opportunity. If you are unemployed, be very wary of a Multi Level Marketing “Opportunity”. Only rarely will it lead you in the direction of those things you are truly gifted and called to do.