The History of Network Marketing (A.K.A Multi-Level Marketing)

Network Marketing was first practiced over 100 years ago. When it all began, it was simply a way to get your company products recognized. Of course, without internet, it was close to impossible to get your products sold outside of your area. This is where network marketing came in to play.

Let's say there is a small store named Shrugs that sells special candles. A man named Joe travels to the store once a week to get their special candles.
Shrugs wants to widen their scale of customers. Joe is actually from a town 30 minutes away, but loves these candles so he comes in once a week. Shrugs says to Joe, if you sell these 5 candles in your town, I will give you a percentage of the money. Joe sells his 5 candles, and tells his cousin who lives 15 minutes away in another town. Joe and his cousin go back to the candle store to get 10 candles. Joe and his cousin both sell these candles in each of their own towns. BAM! Network Marketing is born!

Modern Day Network Marketing

Network Marketing today is much more complex. With the internet and other advanced technologies we have access to so many ways of getting our ideas on the market. Once network marketing was about selling your product and pride, now it has evolved to selling your ideas and making money. What I mean by this is that a hundred years ago, the whole point of network marketing was much less conniving. A hundred years ago, you would first come up with candles that you sell really well in your own town, and then you would want to expand your business. Nowadays, it seems as though this has been flipped. You first decide that you want to have a huge business and make a lot of money, and then try to figure out what is going to sell and make you rich. Is there something wrong with this way of doing it? Absolutely not, it has just redefined network marketing.

The Good and The Evil of Network Marketing

In the network marketing world there is a lot of good and a lot more evil. It is your responsibility to prosper with the good and protect yourself from the evil. The internet has contributed greatly to the multi-level marketing industry which has played in favor and against dream seekers.

The Good…

The good side of network marketing can be glorious. There are many legitimate companies out there that will fulfil all your dreams. What is the catch? You will have to WORK for it! Nothing good will ever come for free, and this even applies to "working from home". The companies that are practicing the good side of network marketing will tell you that. Unfortunately, most people don't like this idea and will go find a company that promises more money and less work. This brings you to the evil side of things.

The Evil…

Sadly, evil is what you will run into 9 times out of 10 in the network marketing industry. All companies want to make money, which is understandable, since it is the whole point of working. What defines a company as evil is that they want to make money, but they don't want to work for it. What is their simplest solution? Hmmm, this one is not too tough to come up with. They are going to have YOU do the work and they will collect the money. There are many ways that this deceitful game is played. One of the most popular is the Pyramid Scheme that has become such a problem it is now illegal.

The Reality of Network Marketing

The reality of network marketing and multi-level marketing is that there is very little reality in it at all. Here are a few facts that might surprise you.
Statistics show that 95% of people who go the direction of network marketing or MLM do NOT succeed. They usually fail (and lose a lot of money) within the first 5 years.

The hours of work needed a week has increased over 6% in the last 5 years. This means it is getting harder to succeed in network marketing.

98% of MLM companies will not survive longer than 5 years. Remember: When they go down, YOU go down.

Over 73% of distributors for network marketing companies are NOT making enough money to quite their day job.

So, is it really a bad idea to try network marketing?

No, if you really want it then go for it. It is completely possible to be successful in MLM companies, as long as you do it right. Just PAY ATTENTION, do your RESEARCH, and follow your INSTINCT. A multi-level marketing company can not take your money, you have to give it to them. Therefore, it is up to you if it will work out or not.