Get more business help like this tutorial on what is network marketing, and whether network marketing is a pyramid scam on my business apps:
http://www.problemio.comIn this video I explain what is network marketing, and answer the question of whether network marketing is a pyramid scam. Network marketing works a little bit like a pyramid scheme. You are at the top of the pyramid. And you recruit people under you to sell things. Then those people also recruit people to sell things. And then those people also recruit others to sell things. And you collect a little bit of revenue from all the people who are under you when they make sales.
So often, you make more money from the people you recruit than from the sales you make on your own. And that tends to be the problem. It is usually difficult to sell the products. And that is why I don't think network marketing truly works, and that is also why I am skeptical of people who promise networking marketing success. Yes, some people find success doing network marketing, but most people just waste their time and irritate their friends and acquaintances by trying to recruit them into their network marketing circle. Plus, the whole thing isn't a scam, but it really feels like a scam.
On my apps, I see many people who enter into network marketing arrangements and then ask me how to sell the products which they bought from whoever got them into network marketing. And there are typically few ways to sell those products because you have a whole army of people selling the same products via existing sales channels. So while network marketing isn't a pyramid scam. Most people end up having to recruit other people into their network so that they can sell them the product inventory. And it ends up working out almost as a pyramid scam because those people know full well how difficult it will be for the next people to sell the inventory of those products.
In my experience, what I see happen when people try network marketing is that they tend to be beginners at marketing. And therefore they are usually not able to sell the actual products they are trying to sell. So their only option is to recruit other people into the network marketing scheme and sell the initial inventory of products to those people.
Some people do find success in network marketing if they build a great pyramid of network marketers under them. But most people do not find success with network marketing.
In this video I discuss whether is network marketing a pyramid scam, and what is network marketing in general.
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