Saturday, January 17, 2009

The Biggest Lie of Network Marketing

I'm not really against network marketing; It's just not my cup of tea. I know a few people who are making a living off of it. And, I am fully aware that there are about 10 network marketing companies out there that do hundreds of millions (if not billions) in annual revenue. Despite this, I have some bones to pick.

Network marketing is very deceptive, and many who are involved don't even realize the biggest lie that they tell you - that "you can own your own business."

My question is simple: What exactly do you own?

Business ownership is when you possess and control all the entities within the company. You own the trademarks, the copyrights, the storefront, the inventory, the web site, and most importantly - all the profits. You even own the right to make major decisions for the company.

As a network marketer, you don't own any of these.

That makes you nothing more than just an employee, a contractor, or a sales person - however you want to word it. Neither of these are bad titles, as long you understand that the only thing you actually own is that lie you just bought.


  1. This is 100 percent TRUTH! Thanks so much for bringing it to light Dante. For decades, current and prospective network marketers have been bamboozled into thinking they have their own "business." Worse is that they reiterate that lie to others.

    In all my years interacting with those in network marketing, I've never seen one outlast the product they intice others to sell, grow outside their market or keep the momentum going. Those who are STARS in the game are usually passed off as “testimonials” that those at the top invest in by padding their financial success. This is why each network marketer has someone they are accountable to.

    One crippling factor in the network marketing model is that growth is limited to predesigned marketing strategies, which everyone follows. This is one reason I agree that the model works well for collecting quick cash but not building a lucrative business empire.

    Something else to note, in the network marketing model is that each marketer is solely responsible for insurance -- not the company they supposedly "own." In a real business, all business related expenses are covered by the business.

    Not too long ago, a network marketer approached me about partnering with him. He’d experience such success that he could leave his day job and work from home while enjoying family. What he didn’t know is that I actually have my own business. So I cut straight to the chase and said in order for me to consider any type of partnership, I have to call the shots on the percentage I receive on sales as well as change the marketing strategy to adapt to the target audience I am interested in pursuing. I also asked him to organize a meeting with all the decision makers so we can discuss the business opportunity… Well, to date, I’ve not heard anything from him YET, b/c of my personality, independence, and mktg. savvy among other factors, I was the ideal person to recruit as a “business partner.”

    Plain and simple, network marketing AKA pyramid schemes is about how much the people towards the top of the organization can make off of people at the middle and the bottom. The turnover rates in those firms are very high.

  2. That was pretty harsh on networking. However its enough dream stealers and I'm quite surprised in this comment of "lie" coming from
    this blog. It is the best way to be involved in business though!

  3. Finally, someone was honest enough to say it -- I appreciate this blog.

  4. Dante,

    How timely your blog on this subject! At a time where I need to make some extra money, a sister who I respect approached me about making residual income by being a rep for ACN this past week! I sent a mass email and spoke to some business savvy people and I frankly got mixed responses. Of course, my signal went off with the $500 initial investment (as ends are already tight!). They never fed me the line about "owning my own business" but I've heard a lot of "it only works if you work it". If you can, please elaborate on what you meant by "not my cup of tea". Shed your knowledge on what you know about companies like ACN and Globalinx that help "make millionaires out of ordinary people". Thanks!

  5. So right. The other lie is that it's easy.

  6. Dante this is very true! Like many on this post I have not only been approached but even bought into a few. I was approached for the same reasons mentioned above, they see my drive, personally, respect among peers and say "You would be perfect, you're what we call a SHARK". They can be flattering but it's still based on lies. None of the people that talk to ever desired or went after their own true business so these aren't even business people, strategic thinkers or creative minds. I do agree that this can be a way that 10% of the people who buy into it can make extra or supplemental income but a dream of business ownership, it could never be!

  7. What about Amway?! The have a business that is 50 Billion in profit and they pay out over 3 billon a year to it people?