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Network Marketing's Big Bad DEFAULT Mechanism

By: R. E. Bloom

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, interestingly there are some who have been in the industry for a good twenty years or so, including myself, who have seen a trend that just may be the cause, or at least a good share of it, to this bad reputation.

I call 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.

Nearly all businesses run on the pyramid plan-not just MLM types. At the top is the CEO, the president, the great leader. He or she has a few trusted associates who help run the show. These operate at the second level of operation, and usually receive a slightly lower pay. They, in turn, have others who report to them. And on it goes until at the very bottom, and at the lowest pay scale, rests the largest group, the factory workers, laborers, cleaner-uppers. To get from the bottom to the top of the pyramid is very rare in conventional business. But everyone knows that this is just the way businesses are run.

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

They sit down and draw circles all over a piece of paper while they croon to you. "If you just follow our easy plan, you'll be able to take vacations whenever you want to, live like a CEO, travel all over the place, and have tons of family time. We have the best business plan out there!"

All goes well... for awhile. Then one dark, dreary day you realize your American Dream, with all the fine-tuned settings you have struggled so hard to make, has gone into DEFAULT. And you find yourself again on the bottom of the pyramid, just like in conventional businesses.

An interesting thing about nearly every network marketing plan out there is that it's created with a DEFUALT button-something that makes it revert back to a normal pyramid business plan similar to Wal-mart with the top making big bucks and the bottom people basically overworking trying to make ends meet. This DEFAULT system is done by a variety of methods. I'll only list four here. Although you may hear them called different names, I think you'll recognize what I'm talking about.

1. Jump-Start: Knowing full well that most people will never get beyond the initial "buy-in", these companies push you to "tell all your friends and family" about the opportunity. This gives the company free advertising and quick profits from the "packet" that you had to buy.

2. Breakage: when you have to give up your "points" or "bonuses" because you didn't meet some monthly goal. The company keeps the money.

3. Break Away: when you "graduate" to a new level, some of your earnings that you worked hard to get is left behind. The company gets to keep that 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.

The best news however is that not all network marketing opportunities do this. Find one that really specializes in helping the little guy rather than trying to make them fail.

Article Source: http://www.articlebankonline.com

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