In Network Marketing, It's All About Credibility.
Article Title: In Network Marketing, It's all about credibility.
Author Name: Tim Hicks
Contact Email Address: email@example.com
Word Count: 1,088
Category: Business (Network Marketing)
Copyright Date: © 2005 - Tim Hicks
Internet Address (If Available): www.TimHicks.com/www.TRH3.com
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In Network Marketing, it's all about credibility.
When it comes to any business, credibility is a key to success.
Put simply, do people trust your business and why (or why not)?
This is especially important in the Network Marketing industry.
After all, we're asking people to not only purchase our products,
but to trust us, and our MLM company, with their future and their
dreams. That's asking a lot.
If you doubt that credibility is important, just look at your own
buying decisions. If you were looking for tires for your car,
would you be more likely to buy Firestone or Big O as opposed to
"Joes All-Purpose Radials?" Probably. Now, in truth, Joe's tire
may be very good, but you don't really know that company.
Firestone and Big O are long established brands and they come
across as more trustworthy.
Each year, companies spend billions of dollars trying to
establish credibility with you. They want you to know them and
to trust them and the products they produce.
How does this apply to Network Marketing? Well, let's take a
Suppose you've just signed up with the latest and greatest health
supplement MLM. I mean this product is great. It will cure
every disease known to mankind, including the common cold. It
will cure mange in a horse and ease the suffering of epileptic
dogs. This stuff is great. It really is. So anyway, you buy
your kit and you're all ready to take on the world and to make
everyone much more healthy. What happens when you talk to your
Well, first off, you have to convince them why you are qualified
to recommend a health supplement to them in the first place.
Secondly, you have to convince them that your product is more
than just "snake oil." After all, how many "hot new nutrition
products" have been introduced in the past ten years? Hundreds.
How many of them have stood the test of time? Very few. You
have to show why yours is different.
Then, thirdly, if you want this prospect to consider your
business opportunity, you have to convince them that your company
will even be around five years from now. The sad fact is that
most upstart MLM companies won't be around in five years. When
they close, they take your business with them. You have to start
all over again. That's why you have to convince your prospect
why this won't happen to your company.
Here you have three reasons why I always tell people, especially
those new to network marketing, to choose established companies
who offer products that are in demand in the market place.
When you represent an established company with a good reputation,
you don't have to spend valuable time explaining them and why
they are stable. Odds are that your prospect has heard of them
and already has a favorable impression of them.
Secondly, you don't have to spend even more time convincing your
prospect of your qualifications. In most cases, the company's
credibility will flow over onto you. As long as you are
operating your business in an honest and ethical manner, most
prospects will give you the benefit of most doubts.
Thirdly, you don't have to explain the products. If the company
has been around for a long time and has been successful, it
stands to reason that the products must be good and offer a real
Now, you will hear people argue that it is better to choose a new
company because the older companies are already saturated and
there is limited growth potential. In 99.9% of the cases, that
is unadulterated hogwash. I don't know of ANY MLM company that
is even close to capturing a majority of the market place. Sure,
you may make a lot more money in the short term by hyping a "hot
new company," but what happens when the company folds? That's
right, your bonus checks stop coming and you have to start all
Usually, companies and distributors who play the "you've got to
get in now before it's too late" game are only in it for the
short term and/or they are offering a product that has no real
value to anyone who is not participating in the compensation
plan. That should really send up a warning flag. Let me put
this plainly. If your business does not offer a product that
will appeal to the general public without the business
opportunity attached, you are walking the thin line between a
legal MLM business and an illegal pyramid scheme and your
credibility is at risk.
That is why I always say, if your MLM company doesn't promote
(and reward) the retail sales of products to non-distributors
(i.e. the general public), you should RUN away from that company
as fast as you can. Most people will never sponsor more than two
downline distributors. That's a long-proven fact. If you don't
have a way for people to earn some money without sponsoring (i.e.
retail sales), these people will get tired of not making any
money and they will quit. When they quit, they will be sure to
tell their friends about how your business didn't work and, once
again there goes your credibility.
Can you make a lot of money and be successful with new, unproven
companies? Sure you can, but the more important questions would
Do you want to work that hard to provide the credibility for your
Do you want to take the risks associated with an unproven
Your answers to those questions will be determined by your goals.
Are you in business for short term profits or long-term success?
If you're like me, you're more concerned about long-term security
and you don't have the time or patience to work harder than you
have to in order to make up for your MLM company's lack of brand
name recognition or credibility. That's why I strongly urge
people to first consider established companies with good
reputations and proven track records. They may not be as flashy
as some of the hot new upstarts, but you don't have nearly as
much risks either. Remember, today's bright and shining new star
may be little more than a flash in the pan.
===================================================================================================================================About the author: Tim Hicks, DD has been helping people to start
REAL home-based businesses and avoid scams for over 22 years.
Tim invites you to visit his websites at www.TRH3.com and
www.TimHicks.com. You may e-mail Tim at firstname.lastname@example.org