What is Wrong with Networking Marketing?
Network marketing is a marketing paradigm wherein the
interconnection of the market actors and the transactions are
greatly stressed. The terminology networking marketing in
popular usage is a synonym for multi-level marketing or MLM.
Sometimes, it is also mistakenly considered as the pyramid
scheme.
Many are enticed with the promises of network marketing. Who
would not be? The idea of making instant money and not requiring
any special skill or any form of investment is very appealing
especially to those who are with an immediate need for it.
However, there is also a down side in this kind of business
model. A short list follows just to give you an idea of the dark
side of network marketing.
Network marketing or multi-level marketing are doomed by design.
If you consider that there is a possibility of succeeding by
believing that the product is saleable without a doubt. Then
once again, you are mistaken. All products and even services
will only have partial market penetration. Not everyone would
want to drink filtered water, or wear a particular shoe style,
or avail of a service or product. In the real world of business,
there is no such thing as an infinite market need for any
product.
After all, if the MLM product is such a hit, is it not
questionable that it is not sold in the customary marketing
system as known by human society for over a thousand years now?
It would not need any special kind of marketing scheme like the
MLM. That is something to really think about.
Looking at the MLM design on a mathematical perspective, you
will see the very obvious geometric flaw in the entire setup.
Multi-level marketing works through geometric expansion. It is
one vicious cycle of people recruiting people recruiting more
people. This kind of business model leads to market saturation
and it is inevitable. And sadly, the unfortunate person at the
bottom of the chain ends up as the loser. It is because all that
is generated are false hopes and money is lost in a senseless
manner.
The organizational issue of a pyramid structure is