When a friend or a cousin you haven’t heard from for so long suddenly calls you at the office and invites you to a “business opportunity” meeting, do you:
a) bump off your scheduled meeting in her favor?
b) think of an excuse not to go?
c) tell her to bug off?
Our personal finance feature today from MoneySense says there are around two million Filipinos currently in the network marketing business, based on figures from the Direct Selling Association of the Philippines.
There are several variants in this business – network marketing, direct selling, and multi-level marketing. Due to unscrupulous practices of many companies in this business, there is a lot of confusion on whether network marketing is a scam or not.
I have personally seen several friends and acquaintances make good, legitimate money from this kind of business. But whatever you do, when talks of checks and commissions come in, don’t be led into thinking that network marketing can make everybody rich — quickly.
The truth is that network marketing is a good model for removing the middle man and distributing what he earns among consumers. But it is NOT for everybody. And the sad truth is that if you are not careful, you can fall for a lot of cons in this business. So, choose carefully.
The article gives some tips for those who are considering of getting into network marketing. Here’s an excerpt:
1. Figure out if you fit the profile
There are probably millions more who have tried their hand at the MLM business at one time or another. Not many succeed, usually dropping after a few months. It may be easy to join but it’s certainly difficult to stay for long. You need to have a certain mindset to succeed in network marketing. “2. Choose the right company
Investigate the company. It should have a long and proven track record in the industry it operates. Companies like Avon, Triumph, Tupperware, and NuSkin have been in the industry for years and have been providing people with good products as well as good income for its distributors.3. See if you like the products
The most successful network marketers are those who truly believe in the products they are selling. It certainly makes it easy to persuade other people if you love to use the products yourself.4. Make sure you earn not mainly from recruiting
One, the company should have a product. Scams like FrancSwiss offer huge interest for your investment and yet they don’t have a product. Two, the product should be unique and is exclusively made by the company. If not, then most likely, the business is being run from joining fees.
April 1st, 2008 at 11:44 am
hi azrael, i know what you mean. personally, i have high regard for those who are upfront from the very beginning about what kind of “meeting” the invitation is for. when the invitation is veiled in some kind of language, it just sets the stage for disappointment and distrust, don’t you think? and by the way, have you complained to the school?
April 1st, 2008 at 11:00 am
I once gave a contact a shot once the person claimed that my number was pulled from our college placement office to work part-time (I have a full-time job already) to “help a multinational start up in this country”, thinking I’d learn a few things. On the day of the briefing I received a text message saying that I should prepare myself for the briefing by “Thinking of ways to earn P40,000 without using my own money for capital.”
Lo and behold, the “briefing” was for network marketing, which resulted in immediate loss of confidence with how our personal information is being used by the school. And second, WHAT A LIE: what was that about thinking of ways of not spending our own money (which I’ve done for charity concerts and the like), when there’s a “starter kit” worth P12,000?!