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In this article I will present 4 things to remember before getting involved in a home-based business network marking group. I want to provide you with some clear warnings about what they are marketing, what you will be doing as a member, how you make money with them, as well warn you about some unexpected surprises you may find down the road.
Most people start looking for ways to start a home-based business inevitably run into these guys somewhere along the way. Unfortunately, they're all over YouTube and Google's search results.
Before you get involved in any network marketing group, you need to understand these four points.
1. If someone was really making money, they would not be advertising it. This is human nature. Why would I want to give up what I can take for myself? The truth is that they can't make money without getting people to join their group.
I've seen tons of videos on YouTube of people that are obviously just starting out. Their insincerity is obvious, and while they say they're making a million dollars, or whatever number they came up with, they can't seem to buy a decent audio setup, webcam, or any kind of video-editing team.
It's a kind of catch-22. To make money, people need to think you're making money. By projecting an image of wealth, people that perceive you to be wealthy will give you their money.
2. The product you will be marketing is entrance into the group. Although some network marketing groups try to convince you that there is value in the products they sell, the real way that you will make money by doing this is by getting people into your downline.
They MUST sell products or it will be labeled a pyramid scheme, which is illegal. Through this loophole, some network marketing businesses have been able to avoid lawsuits and the shutting down of their business (see #4 below).
All systems work essentially the same. People pay me to join my group. Others then pay them to enter their group, and I make a portion of their commission. Some places mix it up a bit and say you get "100% commissions", but they leave out the fact that you only make money on some sales, and other sales will go to your 'upline'.
3. You will need to market to your friends and family,and market continuously. If you are just starting out, you will likely not have any kind of business plan, or know how to develop leads. These places entice you by saying that you can start making money TODAY, but to do that, you will need to get people from your immediate friends and family to join.
Do you want to rope you mother and best friend into the same scheme? Remember, you will have to explain over and over how this is not a pyramid scheme (but it really is), and convince those closest to you that they can make money doing it too (but really, you're making the most money).
If you do not feel comfortable getting your family and friends to join, do you really want to do this type of work for a living?
4. You will spend more money than you think. This is the most important one. While many network marketing home based businesses start out by saying you can 'join for free', or pay a 'one time fee', this is certainly not true.
Every group I've ever seen has several levels of membership. Once you have paid your dues as a basic member, there will most certainly be an upsell, or a promotion to an 'inner circle'. The incentive of doing this is usually that you can get higher commissions or get paid more often.
It doesn't end there. There are going to be seminars, retreats, 1 on 1 sessions, and other gimmicks to get money out of your pocket. I can guarantee that you will spend more money than they advertise in their initial proposal.
If you can prove me wrong, I will print this article out, eat it, and upload the video to YouTube.
Final Thoughts
In my opinion, rather than spend all this time and money learning how to make money through a not-so-legitimate money making scheme, I think you're better off investing your efforts into building a sustainable internet based businesses like an Amazon store, a niche website, or a monetized blog on a subject you are about. These are legitimate business models that can provide you with income for many years.
In fact, with these, you'll be able to promote almost anything you want, and you don't have to belong to any 'group'. Owning a website will only cost you about $10 per year, and all other costs after that will depend on your individual choices for you business.
Best of all this is also something you can be proud to show you mother.
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