Which Network Marketing Company One Should Join?

Sumeet | February 6, 2018

Which Network Marketing Company One Should Join?

Network marketing in simple language is a concept by which products or the services are promoted through word of mouth. Means people are told to promote the products or the services in return they get some commissions, rewards etc.
Network marketing is a very beautiful and powerful concept but still this concept is very negative in the minds of the people due to the use of this powerful concept by some companies in the past in a way that 90 percent or more people never earns a single cent by doing network marketing in those companies. Companies used and many are still using this for selling third class products in a premium amount.

Network marketing as a concept:
1. Can be good,
2. Can be bad or,
3. It can be ugly

It totally depends on the company how they are using this concept. What values they are adding into the world or into the life of the promoters? Are they just selling dreams? Are their products are worth the price people are paying for them? What is the success rate of people earning in that company should also be considered.

Problem is that these facts are kept hidden from people in almost all the direct selling companies:
1. 90 percent people earns zero (Average of top 100 network marketing companies)
2. 8 percent earns normal living
3. 2 percent earns huge

So direct selling is WORST as in no sector it happens that 90 percent or more earns nothing.
Also it is the BEST as 2 percent here earns more than any other sector jobs in the world.
So we can say network marketing or direct selling concept can be WORST as well as the BEST.

Product Based Companies:
Companies by using the term ORGANIC/LUXURY selling their products in 10 times premium rate as compared to the normal one. When study clearly shows that organic products price cannot be more than the 120 percent to 180 percent as compare to the normal one.

Means if normal Apple buying cost 10
Organic Apple can be bought in a range of 12 to 18 Rupees only

Suppose:
Normal (Not Organic) product is let’s suppose available at a price of Rupees 70
Here what these companies tell is something like this:

Manufacturing cost: 8
Company Profit: 2 (Normally 25 percent of manufacturing cost)
Distribution and advertisement cost: 60

Total Price for normal product is Rupees 70

So these companies tell people that they will distribute this distribution and advertisement cost of 60 among its associates. Which is actually logically great as people will be benefited with this.

So people join such companies. But,

Later they tell people that since their product is ORGANIC they will need to pay Rupees 600 for the same product type.

Whereas, for the pure best quality ORGANIC products also the price cannot be more than the 2.5 times as that of the normal. The price here should be like this:

Manufacturing cost: 8*2.5 = 20 (For best quality pure ORGANIC products)
Company Profit: 5 (Normally 25 percent of manufacturing cost)
Distribution and advertisement cost: 60
Total Price for same pure ORGANIC product should be maximum Rupees 85

So maximum Network Marketing companies sell Rupees 85 product in Rupees 600 approximately. Which is the main reason why people are unsatisfied with these companies and also feel cheated after joining such companies.

FOR STUDY OF ORGANIC PRODUCTS:
Please visit below links:
https://www.businessinsider.in/I-compared-the-price-of-organic-and-regular-items-at-Whole-Foods-heres-what-I-found/Tomatoes/slideshow/48395995.cms

http://www.foxnews.com/food-drink/2012/03/11/10-reasons-organic-food-is-so-expensive.html

https://www.consumerreports.org/cro/news/2015/03/cost-of-organic-food/index.htm

http://www.abc.net.au/local/stories/2008/08/29/2350525.htm

LUXURY PRODUCTS SELLING COMPANIES:
Companies selling normal Hong Kong manufactured watches which you can easily get in maximum Rupees 2500 are getting sold in a premium price of Rupees 1,00,000 by just adding the term LUXURY, and making people fools and also training others to do the same.
Companies are selling dreams to its associates before joining and later training them to promote their products or the third class travel packages if they wanted to fulfill their dreams

They ask it’s promoters to read books of famous authors like Robert T Kiyosaki Rich Dad Poor Dad, The Business School series etc. These are good books but what people not understand that Robert T Kiyosaki write about Network Marketing as a concept and these books tells about the power of Direct Selling and have very little to do with the company they are promoting.

What people should understand after reading these books:

1. Network Marketing/Direct Selling is a beautiful and powerful concept,
2. Is their company only selling this concept power? Or the products/services they are selling are value for money?
3. If they find out that their company selling third class products in a premium price just by showing the power of direct selling please stop promoting that company
4. If the products will be overpriced please change the company. As per previous record we know 90 percent of the associates will not be able to sell overpriced products
5. So 90 percent of associates will feel cheated and they will first say bad about the person who introduced them to the company, later they will blame the company and at last as they will start saying negative about the Direct selling concept as well
6. This speaking bad about the concept is the best way to understand the truth that majority of the companies only sell network marketing concept power to the associates and their products or services are very high priced as compare to the the price they should be available.
7. Otherwise if 90 percent were satisfied with the product, why they will say negative about the concept as they must be happy with the products/services they paid for.

We should only join companies who are selling the products at a price which can be justified without network marketing as well

Mail me your thoughts on this:

Sumeet@ihaveadream.in

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