Friday, October 04, 2013

The Appeal Of Network Marketing

(written for Vishwa Sandesh)

The Appeal Of Network Marketing
By Paramendra Bhagat (

I signed up for network marketing not long back. I don’t plan to quit doing the other things I am doing – tech consulting, my tech startup idea, my interest in Nepal hydro – but I am so glad I signed up. I once delved into it before I moved to New York City in 2005. I liked the business model, but I was on the road too much at the time to put in any serious effort. I was already familiar with the business model and a believer. What struck me this time was the products and services were things people were already using. There was this potential for mass appeal.

Traditional companies and distribution networks spend a ton of money on advertising. Network marketing companies do not spend on advertising. Instead they give that money to the marketers in their network. It is not a scam. It is a legitimate business model. Compare the million dollars you need to launch a McDonald’s franchise to the 500 dollars I had to put in to get started. That is a no brainer. This might be the only shot most people might have at business ownership.

There is hard work involved. This is not easy money. Many people sign up and quit because they thought it was effortless and it is not. And it does work. On October 3 Michael Maser showed up at my house. He flew in from Miami just for the event. He is my upline Senior Vice President, the top achievement in the business. He has been at it for 12 years now. He started part time. Then he quit his job once his income from the business matched his income from his job. Now he makes close to 80,000 dollars a week from the business. I saw those figures on his iPad. My most famous local upline is a Bangladeshi guy called Rahman: a bundle of energy and determination. Rahman signed up and made 150,000 dollars in his first four months. You might have seen Santanu at the TD Bank. He currently makes 8,000 dollars a month from the business.

Maser might make a few million a year, but that is not a billion. This is not a billion dollar idea for those who sign up, although it is for the founders of the company. A successful tech startup might be a billion dollar idea. But a million dollars is a lot of money. Less than 5% of Americans make more than 100,000 dollars a year. Rahman made 175,000 dollars in the past six months alone. The dude was driving a cab when he signed up, although he did have a calling card business on the side, which he still operates.

People sign up, go to an event, get excited, and then they go approach a few people and the force of rejection hits them so hard they either lose steam, or quit. The thing is you are not trying to convince people. Prequalifying is important. That way you reject them. They don’t reject you. You ask a set of prequalifying questions. Unless they prequalify, you don’t even bring up the topic. Once they prequalify, you bring it up the right away. And then you are ready for their answer: yes or no.

The support system is a tremendous aspect of the business. You are an independent business owner, but you are not on your own. Your uplines are so willing to go out of the way for you. Michael Maser showed up at my house before I had signed up my first person. Why would he do that? He would do that because he is part of a tremendous support system.

This is not for everybody, but it is for many more people than those that have already signed up. One speaker said, go find the PHDs: poor, hungry, driven people. Or go sign up business owners, people who are already striving to make a buck or two.

More than 99% of the people out there work jobs. Business ownership can feel like a leap of faith. It always strikes me how easy it is to misunderstand this very simple business. The mind keeps flying off of tangents for many new signups. Think about it, if the company is the same, the product and services are the same, and it is the same support system, it has got to be you. You are the reason why it is not working for you. You can become an Independent Business Owner for 500 dollars. But unless you are committed to being a team player and someone who seeks to go through tremendous personal growth, you might not make it. Most people fail because they give up. Most people fail because they do not make use of the support system. You plug into the system, and you plug your downlines into the system. And you learn. You soak it up every step of the way. Speakers get up to speak. You take notes.

Santanu who makes 8,000 dollars a month only signed up five people. He now has 800 people in his network and 18,000 customers. Those five people brought people who brought people who brought people. And all that happened in 12 months. You get the idea.

Some people first sign up as customers. Later they might or might not end up being Independent Business Owners. That is also a nice route to take.

To learn more go to

Photo Album: ACN: Saturday: Hotel Pennsylvania
Photo Album: ACN: Michael Maser At My Woodside Home
Relationship Marketing: The ACN Way: An Overview
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