When I first heard about network marketing, I was against it.  I would say that is probably the norm for most people?  Or is it, please share.  So, why do I have this perception?

Maybe it's the pyramid structure? You always hear the term, "oh that is a pyramid scheme!".  But you can't really take issue with the tiered compensation structure—almost every large sales organization in the world has that. Salespeople get commission, and sales managers get overrides or bonuses on top of that, and sales directors on top of that, and VPs on top of that.  The CEO is usually the one who sits at the top of the pyramid.  Yes I know there have been some examples of true schemes, however, some Network Marketing companies have been around for years and I have some great respect for the founders who decided to market their business this way.  Very creative.

Here is another example, that is close to my world.  In the web space, you see affiliate marketing everywhere.  We have our very own affiliate program with Big Santo.   With affiliate marketing you give people/customers/partners the opportunity to share your product or service and they are in return compensated for delivering a new customer to your business.  To me, this is very similar to network marketing.

Moolala, which is a group buying solution out of Michigan, takes group buying a step farther and integrates network marketing concepts into their group buying platform.  Thank you Elaine Shannon for the tip.  They call it a Pay Matrix.  Watch the video to see how it works.

When you think about it, isn't network marketing very similar to owning a franchise?  More like "micro franchsising".  It really is a business opporunity for people who may want to own and operate a business.  The one issue I do see when comparing it to traditional franchising is it does have a lower cost of entry, which may attract individuals who are not ready or have the skillsets to operate a business.  These folks may sometimes come off as:

• desperate
• over-focused on new recruits and making money
• being either inaccurate or deceptive when talking about their business
• over-selling
• not interested in the product they are selling

This is where I think the most damage is done to the brand of a Network Marketing organization .  It is unfortunate that a small number can tarnish a business/brand, but it really can.  Especially in todays world.

Even with the bad rap network marketing gets from some, I have opened my mind to it, and depending on the opportunity I am seeing advantages that few other business opportunities offer.  If the Network Marketing company is selling a product you truly believe in and you are serious about building a business, then go for it!  You will have my ear.

What is your take?