Understanding Lingo

“If it looks like a duck, swims like a duck, and quacks like a duck, it probably is a duck.”

Ever had a network marketer try to tell you he was NOT in network marketing?  I have, and I hate the smoke and mirrors.  Representatives of many companies try to avoid this label because, let’s be honest, network marketing often has a bad reputation with the public at large – and for good reasons.

However, IF conducted properly and sustainably, network marketing can be beneficial for everyone – company founders, employees, independent representatives, customers, and society at large.  My vision is for this to someday be the only type of network marketing that remains.  But to achieve this vision, we must all know how to discern between hype and truth, so we can reject the former and support the latter.

Here are a few key terms to understand so you don’t get fooled or confused by the hype.

Please note – This is a very brief overview. If you have questions or comments on any of these, let’s have a more in depth discussion in the comments section below.

Pyramid Schemes.  These are illegal – but not because of the “pyramid” shape.  Every organization has this shape – governments, corporations, non-profits, volunteer organizations, faith communities, your family tree… all of which can work well for the benefit of all, or fall to corruption.  Though many incorrectly equate the two, pyramid schemes are not the same as legitimate network marketing companies.  Do you know how to tell the difference?

Network Marketing.  Simply refers to the method of getting the word out on products or services through networks of individuals, rather than through insanely expensive mass media advertizing methods.  This should be done based on genuine quality and value, not hype.  How many ways can you think of in which mass media ads are wasteful?

Multi-Level Marketing.  Same industry.  Simply refers to how working representatives are paid – on their own sales and sales made by 2 or more levels of reps into whom they have invested time and effort, teaching them how to also find and serve customers.  The goal should be that all working reps are trained to serve their customers well, instead of engaging in stereotypical recruiting hype.  As long as it’s done properly, why should trainers not be paid for the time and effort they invest in their organizations?

Direct Sales.  Same industry.*  Simply refers to the person-to-person nature of the industry, rather than mass media and impersonal customer service.  If done properly, this should not create weird pressures or relationship dynamics – it should create excellent, personalized attention and service for customers.  Have you experienced the negative, the positive, or both?  (*Note: you can have direct sales without NM-MLM, but all NM-MLM is direct sales.)

New Variations…  “Customer direct marketing” or “social commerce marketing” or “referral marketing” etc.  It’s fine if companies want to use distinguishing terms to highlight special attributes of their approach to network marketing.  But when in the same breath they deny that they are fundamentally a network marketing company, they only create a whole new level of hype that is not helpful for anyone – only more confusing.

In the MiCommunity Team, we call what we do “Sustainable Network Marketing” to differentiate it from what’s typically done in the industry.  But we will never deny that it is network marketing at its most basic definition.  We don’t have to deny it, or be ashamed of it, because we know that, done properly, it benefits the public at large via a relative handful of honest Working Reps serving the majority – a growing customer base – with excellence.  Rather than hide the truth and create our own hype and spin, we’d prefer to educate you on the facts so that you can be empowered to wisely evaluate the products, services, or business offered by any company – network marketing or otherwise.

 

So how about you?  What good, bad, or ugly experiences have you had with network marketers, or in network marketing?  Do you have any questions on the above lingo?