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The Network Marketing Industry: An Honest Discussion ...


Introduction 

In this blog post, we will delve into a discussion about the network marketing industry, its workings, and the challenges it poses for its participants. We will explore the pricing strategies, compensation plans, and the disparity between the top earners and the majority of individuals who struggle to make a profit. It is evident that the industry is flawed, but there is hope for change.

The Pricing Dilemma 

One of the key aspects of network marketing is the sale of products, including nutritional supplements, skincare items, and other similar goods. These products typically cost around $8 to $12 to manufacture. However, network marketing companies often sell them for significantly higher prices, ranging from $60 to over $100. This pricing strategy allows for substantial payouts in the compensation plan.

The Reality of Earnings 

While the compensation plan may seem promising, the truth is that only a small percentage of individuals, approximately 1%, actually make substantial profits in network marketing. Another 3% to 4% manage to earn enough to cover their monthly product expenses. Unfortunately, the remaining 95% of participants who joined with the intention of making money struggle to earn even a modest income. Many of them fail to recruit a single person or make a single sale.

Factors Contributing to Limited Success 

It is important to acknowledge that both external and internal factors contribute to the lack of success for the majority of network marketers. One significant challenge is the difficulty of selling products at inflated prices when similar alternatives are readily available at lower costs on platforms like Amazon. This pricing discrepancy makes it challenging for individuals to convince potential customers to invest in their network marketing products.

A Shift in Perspective 

To gain a better understanding of the situation, let's imagine a world where network marketing principles apply to every aspect of our lives. In this hypothetical scenario, every recommendation we make, whether it's for a restaurant, a movie, or a hotel, would earn us a commission. Even routine activities like grocery shopping would involve compensation. While this may initially sound appealing, it raises some important questions.

The Flaw in the System 

Consider the example of paying $80 for a haircut that would typically cost $15 solely because it is part of a network marketing scheme. In this scenario, the person who referred you to the barber would earn a $20 commission. Similarly, purchasing a can of beans for $12 instead of $1.50 with a portion going to your upline seems unreasonable. These examples highlight the absurdity of overpaying for products simply to support a compensation plan.

Disparity and Inequality 

The network marketing industry is marred by a significant disparity between the top earners and those struggling to make ends meet. While some individuals at the pinnacle of the compensation plan enjoy luxuries like new Mercedes cars and private jet travel, others, including single mothers seeking additional income, are burdened with expensive products that benefit only the company owners and their uplines.

The Need for Change 

It is evident that the network marketing industry is in dire need of reform. The current system perpetuates inequality and exploits the financial vulnerabilities of its participants. It is time to challenge the status quo and work towards creating a more equitable and sustainable network marketing model.

Conclusion

The network marketing industry, with its inflated product prices and limited earning potential for the majority, is in need of a transformation. The current system fails to align with the principles of fairness and value for money. By acknowledging the flaws and advocating for change, we can strive towards a more inclusive and ethical network marketing industry that benefits all participants.