The Great Network Marketing Scam

I was browsing the internet this morning and once again found another website devoted to the "FHTM Scam".  Since I have been associated with FHTM for several years, I know them to be an legitimate business opportunity and so I normally skip visiting these sites.  But today, for some reason, I decided to take a look.  I found the usual tirade about how the website owner joined the company, didn't make any money, found others who had the same experience, and decided it was all a scam.

Curious to see if FHTM was alone in these accusations, I Googled some of the best known and well respected network marketing companies in the business and guess what!  According to the information on the internet, they are all scams.  Don't believe me?  Try it and see just search for any MLM company and "scam" and you will find all kinds of accusations against any one of them.

What does this mean?  Are all network marketing companies frauds and cheats?  Is there really reason to be concerned?  These websites make what sound like legitimate complaints.  "I joined the company, did what I was told, and didn't make a dime."  How can that be the case for so many people if these are real business opportunities?  But then, if they are scams, why would people like Robert Kiyosaki and Donald Trump endorse them?  Surely they wouldn't want to be associated with something that is a cheat at least and possibly even illegal?

What is the truth?  Let me explain.    Network marketing is a legitimate business. It's based on providing people with real, legitimate products they need and want at a fair price. While some people do make a lot of money through network marketing, their financial benefit is always the result of their own dedicated efforts in building a team that sells real products and services.

If that's the case, then why do so many people fail?  It's not because these companies are dishonest.  It's because very few of them provide the proper training on how to build a network marketing business.  When you sign up in a network marketing company, the first thing you are normally told by your upline sponsor is to make a list of all your family and friends.  This is your warm market and the idea is for you to contact each and every one of them and present the business opportunity to them.  Hopefully, some of them will sign up.  However, the truth is most of them won't.  And so you are told to keep pitching the business to them and to everyone who gets within arm's reach of you.  But eventually you will alienate yourself from all of your friends and your family.  When people start crossing the street to avoid you so they don't have to listen to your pitch yet again, most beginner network marketers quit.  And that's the problem.

Network marketing isn't about taking advantage of your friends and family. Yes, in the past, it was an effective way to build a team.  But today there are more effective ways to build a team through use of the internet, conference calls and other marketing techniques.  Unfortunately, there are a limited number of people out there teaching these techniques.

The fact that you are reading this blog indicates that you are at least curious enough to look for a better way.  And there is a better way.  There are great tools available to help you build a successful team without becoming a card-carrying member of the "No Friends Left" club.  I have used many of them and have found several to be very helpful.

My recommendations?  Black Belt Recruiting and Magnetic Sponsoring are two of my personal favorites.  I discovered these training videos by Mike Dillard shortly after joining FHTM (right when I was about to quit because I couldn't sponsor anyone).  They made a huge difference in my business and helped me get from a downline of 6 to one of over 300 in less than a year.  I was so pleased with the results I became an affiliate for these products.  (So yes, if you take the free video training and decide you want more, I will get a commission.  Thanks!).

Since then Mike has added several other tools to help network marketers build a business.  MLM Traffic Formula 2 and Alpha Networker 2.0 are fabulous and will definitely help you move your network marketing business away from chasing your "warm market" and into the world of having prospects chase you.  (And yes, I am an affiliate for these products as well!)

If you don't want to purchase tools to help you bring your network marketing into the 21st century, that's fine.  I'm not sure why you wouldn't but that is a decision only you can make.  But do take advantage of all the information available to help you learn.  Follow Mike Dillard, Mark Weiser, and John Di Lemme.  Subscribe to this blog.  Or go Boomer Business Ideas and subscribe to my free Boomer Biz Tips newsletter.  But get out of the "friends and family trap" before you too throw in the towel and start proclaiming that network marketing is a scam.