This is not to demean the profession in any way or the industry but to bring to the fore how worrisome with the way and manner the industry and its business model are being perceived by the general public. This is an industry that has over the years stamped its authority in today’s business climate that has culminated into a giant force giving birth to top class leaders and top earners. It has changed so many lives and helped build solid relationship among friends cutting across different continents. I can say for the fact that, there are successful people making the rounds using the business model to scale up.
Emphatically, I will say the business model is still very much in top gear and kicking because I have had a memorable stint in the industry with different MLM companies.
However, there are growing concerns about the business model that begs the question as to its direction in this present times. One of my mentors whom I respect so much in the person of Gary Vaynerchuk gave his true opinion about it and I picked out his quote underneath and he said…
I do not believe that multi-level-marketing is a great business model just based on the data. There’s a small percentage of people that make money, the far majority don’t and this idea any business that is predicated, any entrepreneur that is interested in the following model: I’m gonna get D-rock to do something, then D-rock is gonna get someone else to do something and I’m gonna make more money than they do because I’m at the top of the tree and started the process is a bad business model. This thought of passive income, I’m gonna get enough people to do shit and then I am going to be on the beach, pool-side all day and money is going to be flowing in, it’s just not a good model, it’s not sustainable, there’s a couple people that can pull it off, but, I’m just not a believer.
Well that was Gary Vaynerchuk’s assertion about the industry of MLM is. As much as there are some points he laid out, we can take some positives from some of the industry leaders that have worked so hard in the past and present, trying to create an enabling environment for the business entirety.
WHY DOES THE GENERAL PUBLIC FROWN AT THE INDUSTRY?
Unfortunately, legitimate MLM companies must often fight an uphill task for acceptance based largely on the sins of those who have come before. I will say however that the public lacks the requisite knowledge about how the business model works as it has been confused to be a Ponzi scheme as that notion still dwells in the minds of many.
We have situations where so called leaders, because of their penchant to recruit individuals to make the quick bucks fail to guide properly these newbies who literally are not wired for entrepreneurial endeavors, end up getting these set of people frustrated, thus giving up on a new venture they hope could make something out of it.
We have seen companies come and go, I mean they just go under and you begin to wonder, how did it all happen? This trend has affected lots of honest individuals with families with the firm belief that…YES! I have found the right company at last only for it to seize to exist. It’s a major burden, especially if the serial MLMer after having gone from company A to D has burned his/her credibility multiple times with the wrong vehicle.
Do I believe all of this is true? Yes and No. The onus lies on certain factors, most largely coming from individuals from the corporate. I believe that network marketing if done properly, with ethics and morals is a wonderful business model which can sustain its tremendous growth.
It is also very plausible to build a business within the MLM industry and not lose friends or make enemies. Until industry leaders come together to harness and instigate a coherent voice, the general public will still be having that notion.
It is time to gear up and take action and enforce stringent morals in the industry. This is a billion dollar industry and will continue to impact on lives as i believe it will.
I will be glad if you can leave a comment below to have your opinion about this article. Do you think the Business Model has lost track? Please do share on your social media platforms.