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My Experience with Network Marketing

Network marketing

The success of network marketing companies such as Amway, Herbalife, and Kleeneze has proved that the Multi Level Marketing concept can work if you choose to join the right company and if you approach these schemes with the right attitude and are prepared to spend a lot of money, in some cases 1000s in order to progress up to the highest level in the company.

Almost any product or service can be marketed through network marketing but the main players in the MLM industry seem to be those which focus on nutrition and personal care products.

Any company which promises high returns by recruiting others into the scheme with the absence of tangible products is likely to be a pyramid scheme which is illegal in many countries including New Zealand, Australia, Canada, The UK, and Ireland. The promoters of these schemes describe them as MLM or network marketing companies in an attempt to legitimize them.

If a proposition seems too good to be true then it most probably is, there is no such thing as a free lunch, if in doubt then seek legal advice.

The money to be made in network marketing is in the recruiting and training of others. The object is for your team members (the persons you recruit or sponsor) to duplicate your efforts.

Does this sound like pyramid selling.? Well you be the judge because there are some very well-known companies who sell products in this manner.

Amway which was established in 1959 was the frontrunner in the network marketing field. Herbalife (established 1980)

Then there is Melaleuca which sells products using tea tree oil. Melaleuca which is the botanical name for tea tree has tried to distance itself from the network marketing image by using the term referral instead.

All these companies would almost certainly scoff at suggestions that they are all pyramid schemes. 

Many people who have reached the top of the tree in network marketing have done so only after investing a great deal of money (1000s) and in some cases going into debt but whether they have made any real money is another matter altogether.

The British company Kleeneze (established 1923), is different from other MLM companies in that agents drop off catalogues at people’s homes, collect them a few days later, and if there is an order deliver the goods to them perhaps a week to 10 days later. This method of selling is similar to Homecare direct shopping in NZ and Australia except that with Kleeneze, you can increase your income potential by sponsoring others into the business.

However as with other companies, finding other people who share your vision and that of the company is a problem. 

Before you commit yourself to one company, do an internet search to find out how others have feared. You will find a lot of feedback in this way however please also bear in mind that the opinions of others may not be a reflection of the company but merely their attitude, the company they joined may not have been right for them and who is to say that is not the right one for you?.

Kleeneze is one company I had success with. By dropping off catalogues at houses then collecting them 2 or 3 days later hopefully with an order much the same as Homecare direct shopping do in New Zealand and Australia but the difference between Kleeneze and Homecare is that Kleeneze is a network marketing company.

Every Kleeneze agent gets 21% commission of all orders collected irrespective of their status in the company. These are orders obtained by dropping off catalogues at people’s homes, picking them up a few days later hopefully with an order and delivering the goods, collecting the money and paying the company minus your commission.

It is in the bonus structure where you can really make the money.

By introducing others into the business, their sales figures are combined with yours to form what is described as volume total.

You earn a bonus on your total volume orders for the month as follows.

Monthly total Bonus

650-1299 10%

1300-2249 13%

2250-3399 15%

3400-5000 18%

5100-7499 21%

7500+ 24%

There are other bonus payments available.

Kleeneze proved very lucrative just by dropping off the catalogues and developing a regular round of customers, I did have three people under me but they gave up after a week or so, one after owing me more than 300 pounds. That is not going to occur now as everyone who joins Kleeneze now has their own account 

The main quality for success with any of these network marketing is passion for what you are doing. Without it you have not a chance of succeeding. Of course agents of the companies concerned will present the companies to you wearing rose tinted glasses, because everyone they sponsor into the business is helping to build theirs.

Melaleuca was a referral company I joined some time ago however I parted company with them when I lost my job.

Each person who joins Melaleuca agrees to purchase 35 points worth of product per month which equates to about $120. This is irrespective of whether you need any product or not. Agents can earn bonuses by referring others into the business. Agents require at least 8 referrals just to pay for their monthly order. A tall order indeed since the products are rather expensive, for example toothpaste around $9 and shampoo $19.95. 

This business would suit people who have contact with others in high paying jobs where money is no object to them

Herbalife is the same but as with all of the other MLM companies, though agents may claim to have received cheques from them for xxx, the amount they have poured into the business is quite a bit more.

To sum up, don’t go into network marketing as a means to get rich quick with little effort, you will be disappointed. Go in with an open mind. Check the credentials of the company and whether it is the right one for you and most of all ask yourself this question “what motivates me”.? If you know the answer then it’s a start.

 

To summarise: Network marketing is not the best way to make money for the majority of people. The majority of people involved in these types of businesses are subsidising those at the top. If you are thinking of joining, keep an open mind and understand what you are getting involved in. Above all else, don’t allow anyone to pressure you into joining.

About this article

This article is of the opinion of the writer and may not be applicable to your personal circumstances therefore discretion is advised. You may use any or part of the article as content for your website/blog, or ebook.

www.robertastewart.com

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Network marketing

The success of network marketing companies such as Amway, Herbalife, and Kleeneze has proved that the Multi Level Marketing concept can work if you choose to join the right company and if you approach these schemes with the right attitude and are prepared to spend a lot of money, in some cases 1000s in order to progress up to the highest level in the company.

Almost any product or service can be marketed through network marketing but the main players in the MLM industry seem to be those which focus on nutrition and personal care products.

Any company which promises high returns by recruiting others into the scheme with the absence of tangible products is likely to be a pyramid scheme which is illegal in many countries including New Zealand, Australia, Canada, The UK, and Ireland. The promoters of these schemes describe them as MLM or network marketing companies in an attempt to legitimize them.

If a proposition seems too good to be true then it most probably is, there is no such thing as a free lunch, if in doubt then seek legal advice.

The money to be made in network marketing is in the recruiting and training of others. The object is for your team members (the persons you recruit or sponsor) to duplicate your efforts.

Does this sound like pyramid selling.? Well you be the judge because there are some very well-known companies who sell products in this manner.

Amway which was established in 1959 was the frontrunner in the network marketing field. Herbalife (established 1980) which sponsors the football club in the USA which David Beckham plays for is another. Then there is Melaleuca which sells products using tea tree oil. Melaleuca which is the botanical name for tea tree has tried to distance itself from the network marketing image by using the term referral instead.

All these companies would almost certainly scoff at suggestions that they are all pyramid schemes. 

Many people who have reached the top of the tree in network marketing have done so only after investing a great deal of money (1000s) and in some cases going into debt but whether they have made any real money is another matter altogether.

The British company Kleeneze (established 1923), is different from other MLM companies in that agents drop off catalogues at people’s homes, collect them a few days later, and if there is an order deliver the goods to them perhaps a week to 10 days later. This method of selling is similar to Homecare direct shopping in NZ and Australia except that with Kleeneze, you can increase your income potential by sponsoring others into the business.

However as with other companies, finding other people who share your vision and that of the company is a problem. 

Before you commit yourself to one company, do an internet search to find out how others have feared. You will find a lot of feedback in this way however please also bear in mind that the opinions of others may not be a reflection of the company but merely their attitude, the company they joined may not have been right for them and who is to say that is not the right one for you?.

Kleeneze is one company I had success with. By dropping off catalogues at houses then collecting them 2 or 3 days later hopefully with an order much the same as Homecare direct shopping do in New Zealand and Australia but the difference between Kleeneze and Homecare  is that Kleeneze is a network marketing company.

Every Kleeneze agent gets 21% commission of all orders collected irrespective of their status in the company. These are orders obtained by dropping off catalogues at people’s homes, picking them up a few days later hopefully with an order and delivering the goods, collecting the money and paying the company minus your commission.

It is in the bonus structure where you can really make the money.

By introducing others into the business, their sales figures are combined with yours to form what is described as volume total.

You earn a bonus on your total volume orders for the month as follows.

Monthly total Bonus

650-1299 10%

1300-2249 13%

2250-3399 15%

3400-5000 18%

5100-7499 21%

7500+ 24%

There are other bonus payments available.

Kleeneze proved very lucrative just by dropping off the catalogues and developing a regular round of customers, I did have three people under me but they gave up after a week or so, one after owing me more than 300 pounds. That is not going to occur now as everyone who joins Kleeneze now has their own account 

The main quality for success with any of these network marketing is passion for what you are doing. Without it you have not a chance of succeeding. Of course agents of the companies concerned will present the companies to you wearing rose tinted glasses, because everyone they sponsor into the business is helping to build theirs.

Melaleuca was a referral company I joined some time ago however I parted company with them when I lost my job.

Each person who joins Melaleuca agrees to purchase 35 points worth of product per month which equates to about $120. This is irrespective of whether you need any product or not. Agents can earn bonuses by referring others into the business. Agents require at least 8 referrals just to pay for their monthly order. A tall order indeed since the products are rather expensive, for example toothpaste around $9 and shampoo $19.95. 

This business would suit people who have contact with others in high paying jobs where money is no object to them

Herbalife is the same but as with all of the other MLM companies, though agents may claim to have received cheques from them for xxx , the amount they have poured into the business is quite a bit more.

To sum up, don’t go into network marketing as a means to get rich quick with little effort, you will be disappointed. Go in with an open mind. Check the credentials of the company and whether it is the right one for you and most of all ask yourself this question “what motivates me”.? If you know the answer then it’s a start.

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PYRAMID SELLING

INTRODUCTION

Pyramid selling is a marketing system which involves enticing others into the scheme and training them to do likewise who in turn train others. Network marketing is a similar system of selling but the difference between the two is that with legitimate network marketing companies, products are being sold. It is important to know the difference between the two and not be pressured into joining something which you feel uncomfortable with.

Pyramid Scheme doing the rounds in New Zealand

A pyramid scheme targeting Pacific Islanders has been doing the rounds in South Auckland. A few people who are also Tongan have been promoting the schemes which has seen people part with sums ranging from $300-$1500.

The scheme is some kind of gifting program where each person sends a gift to those higher up in the chain.

Promises have been made to would be participants about the large sums of money they can make in the scheme but this is dependent on them recruiting others into the scheme and convincing them to invest money into it. They then must do likewise in order to make money and so on.

Somewhere during this chain the money trail stops as fewer people get involved while others drop out. The scheme relies on a large number to join in order to make it work. In the end the only person who makes any money from it all is the originator of the scheme.

Some people who had been a participant in one scheme had left to create their own and have persuaded others to join them telling them “Come over to my one, this is a whole lot better.”

“If something is too good to be true it most probably is.”

So what are the tell tale signs of a pyramid scheme?

There are some keywords to look out for with the main ones being recruit, network marketing, upline, downline, gifting program.

The one question which should be asked of those promoting the scheme is, “What products are being sold?” 

Any marketing scheme which requires its members to recruit others in order to make money without any products being sold is almost certainly a pyramid scheme which is illegal in New Zealand and other countries.

Legitimate companies such as Amway, Melaleuca, Herbalife, Kleeneze (UK) all sell products as do a heap of other companies which involve recruiting others but even so, the tactics employed by these companies can be downright pushy that people who are not suited to this type of selling get talked into joining the scheme without any hope of ever making any money. There are some pyramid schemes which masquerade as network marketing companies so you need to be on the ball.

What can people do to protect themselves?

The most obvious one is to take financial advice and this does not need to cost an arm and a leg. Get free legal advice at the citizens advice bureau. You can also go to your bank and just ask for their advice. Of course the people who are promoting these schemes don’t want you to do that but it is your money they are after and they do not want you to expose their scheme.

It is those who can least afford it who are taken in by these schemes; the thought of a financially free life with little or no effort. Promoters of these schemes are selling a dream; who says, “Dreams are free?”

The bottom line to all this is that these schemes are illegal in most countries so if you could get into trouble if you are a participant.

TO SUMMARISE

Certain types of people are attracted by pyramid schemes; the desperate, the greedy, the ignorant, and the financially illiterate. Therefore it is important to get financial education and to take advice from well informed people. My blog www.robertastewart.com has lots of information of a financial nature.

Here is an ebook with some of my thoughts on personal finance; you can grab a copy here.

https://payhip.com/b/frA7 (Financial steps)

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