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Network Marketing's Big Bad DEFAULT Mechanism

How come it is that even though businesses that pay people commissions to sell products to their family, friends, and others are heralded as such horrible businesses when anyone in marketing would agree that word-of-mouth advertising is the best way to sell products?

Well, those who have been in the industry over the last twenty years, including yours truly, have observed a trend that very well may be the cause, if not at least a major contributing factor, to this disgust.

I'll name it DEFAULT

This is something that has been experienced by us all in the industry. We get into a program and set it all up just right. What a blessing it is! We have money coming in that we never knew possible. The birds are chirping and the blooms of the day fill us with awe and wonder. The, suddenly and without warning, everything diverts back to DEFAULT. Storm clouds close in. Appointments are missed, all decisions are delayed, hours are lost, emotions run on high, and a ton of other things go wrong. Simply because of DEFAULT.

You might be surprised to realize that nearly every business on the planet has a pyramid as their business model. That's every business, not just network marketing ones. Let me explain. At the very tippy top of the company is the head honcho, Mr. President. Then, below him are his few trusted managers, those managers also each have a few trusted managers, on down to the plain old employees. The top guys get paid the most, the little workers, like the janitor, get paid the least. Sure looks like a pyramid to me!

So then a network marketing business starts up and changes how things workso it's advertised.

"Just stick with us, and we'll show you the best business in the world. In our business, you don't have to stay on those bottom levels and get paid less that the president. You can enjoy living like a CEO, have vacation whenever you like, travel the world in style, and even have oodles of time to spend with your family" and on and on and on they tell you. They draw circles all over a piece of paper and who you how it's possible.

And so you try it and everything goes incredibly wellfor a short time. Then suddenly, a dark day dawns and you find that everything you've worked so hard to set into motion is gone, all gone, and everything has turned back to DEFAULT. You find yourself again at the bottom of the pyramid just like if you worked at your local retail store stocking shelves.

What people don't know about most MLM plans is that they are designed to DEFAULT to the conventional pyramid business style, with few at the top enjoying high incomes and those on the bottom groveling, trying to make the system work. This is done by various methods. We will mention only four. They may be called by different names, but I think you will recognize them.

1. Jump Start: The company knows most people won't go beyond the initial "buy-in". So they sell you a package and gets profit from the "introduction packet" they sell you and free advertising you give them because you are "pushed" to tell everyone you know and to do it fast.

2. Breakage: if you don't meet your monthly quota then you have to forfeit your "bonuses" or "points" and then the company keeps the money.

3. Break-away: when you "advance" to a higher level you leave behind some earning potential you had struggled hard to achieve. The company keeps the money.

4. Exhaustion: The company wears you out quick by requiring monthly quotas of new people enrolled knowing full well that you will eventually get tired and give up. Because the average recruit will only be able to enroll 2-3 people, the new enrollment requirement is kept high. When you leave because you're too tired, the company gets to keep all those new people and the money they're bringing in.

This is a short description of some of the ways network marketing companies make the big profits. They are designed to cause your own businesses that had lots of earning potential to DEFAULT back to you being the little guy on the bottom of the conventional business pyramid.

But the good news is that not all MLM opportunities do this! Look for those who specialize in helping the "little guy", who don't use the mechanisms mentioned above.

Article Source: http://www.uberarticles.com/articles

R.E. Bloom has studied network marketing companies for more than 20 years. He recommends checking out BioGenX as an industry first alternative to the bad rap of MLM's. Visit BioGenX today! Don't reprint the same version as everyone else. Get your own unique content biogenx article here.

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