More from author
-	To be Worthy or Worthless
-	My Anguish
-	My Anguish
-	Sweet Money Talk
-	Void

See news about

activism AKP Al Yamamah alcoholism treatment Angelina Jolie BAE Systems Bill Murray bizarre news BRIT Awards Buick car crash Celebrity Commonwealth Bank Series Cricket Demi Moore extradition formula one France Gambhir genocide geri Halliwell headlines single Health Care Commission Heather Mills Hutu Hyperinflation Impeachment James Earl Katie Holmes Kylie Minogue Mika military tribunal MRSA Mugabe music Pakistan Pakistan Tour Paris Hilton Politics Ponting Prince Harry and Chelsy Rod Stewart Saudi Arabia SCG Secularists security Serious Fraud Office Sienna Miller Stockholm Syndrome Symonds terrorism The Huff Tim Burton Tutsi usic Victoria Beckham Victoria Beckham nude Yves Leterme00710 Worst Nude Film Scenes2nd amendment50 Cent50-Centa-teamA-Team movieABBAAbbie CornishAbi TitmussAbigail BreslinAcademy AwardsaccidentsAdam SandleraddictionsAdeleAdnan GhalibAfghanistanAfton SmithAgyness DeynAir IndiaAishwarya RaiAl GoreAl Pacinoal QaedaAl-QaedaAlan ArkinAlan RickmanAlanis MorisseteAlanis MorissetteAlbert Einsteinalcoholalcohol addictionalcoholismAlec BaldwinAlesha DixonAlex TurnerAlexandriaAli CampbellAli LarterAlicia KeysAlicia SilverstoneAllahAlli SimsAmanda HoldenAmanda PeetAmanda SeyfriedAmazonAmelle BerrabahAmerican IdolAmerican PieAmy AdamsAmy RyanAmy WinehouseAmy Winehouse is planning a massive Christmas bingAnatole TaubmannAndhraAndrew MortonAndy HilfigerAndy SerkisAng LeeAngela MerkelAngelina Jolieanimal rightsAnjelica HustonAnna NicoleAnna Nicole SmithAnne HathawayAnnie LennoxAnthony HopkinsAnthony MinghellaAnti-IconAntonio BanderasAppleArctic MonkeysAretha FranklinAri SandelArmaniArnieArnold SchwarzeneggerArpad BussonAshantiAshely TisdaleAshlee SimpsonAshley ColeAshley JuddAshley OlsenAshley TisdaleAshton KutcherAsif Ali ZardariAsley OlsenAssamastronautAtonementAtonement\'Audrey HepburnAustraliaAvril LavigneAyda FieldBabelbabyBackstairs BillyBackstreet Boysbad influencesBaftaBaghdadBalticBangladeshBar RafaeliBar RefaeliBarack ObamaBarry ManilowBasraBattlestar GalacticaBBCBeatlesbeauty pageantBeckhambecome news reporterBeethovenBelgiumBen AffleckBenazirBenazir assassinationBenazir BhuttoBenazir Bhutto assassinationBenazir Bhutto photosBenazir Bhutto stampsBenazir Bhutto willBenezir Bhutto assassinationBeowulfBernardo BertolucciBest ActressBest Dressed in 2007best haircutbest motorcycle movie momentsbest moviesBeth DittoBethlehemBette MidlerBeverly Hills 90210BeyonceBeyoncé KnowlesBeyonc¨¦ KnowlesBilawal ZardarBilawal ZardariBill GatesBillie PiperBillionaireBilly JoelBilly Zanebinge drinkingBipasha Basubird fluBismarckBizarre NewsBjorkBlack CrowesBlack Eyed PeasBlake FielderBlake Fielder CivilBlake Fielder-CivilBlaze Media ProblogbloggerbloggingBlurBMWBo DerekBob DylanBobby BrownBollywoodbombBon JoviBondBond 22Bond girlBond girlsBonoBoratBotoxBoy GeorgeBrad PittBrad RenfroBrainBrandon RouthBrandyBrazilbrazil prisonbread thievesBrendan FraserBrian MayBrian McFaddenBrian WilliamsBridget JonesBridget MoynahanBRIT AwardsBritish royal familyBritish Secret IntelligenceBritney SpearBritney SpearsBritney Spears adoptionBritney Spears body doubleBritney Spears lawyerBritney Spears psychological evaluationBritsBrittany MurphyBrooke ShieldsBruce LeeBruce SpringsteenBruce WillisBruneiBryan AdamsBuckingham Palacebulletproof vestBushBusta RhymesCairoCalista FlockhartCalvin KleinCameron DiazCameron MackintosCamila AlvesCamillaCanadaCanada¡¯s Juno AwardscancercannabisCannesCannes Film FestivalCapri Hollywood Film FestivalCarey HartCarla Bruni-SarkozyCarmen ElectraCarmit BacharCaroline KennedyCarrie UnderwoodCasablancaCasey AffleckCasey AldridgeCash WarrenCasio keyboard

 

Besides this, most, (not all) network marketing companies require you to purchase one or more of their products before you become an official distributor. The rationale is that in order to sell the product, you must first believe in the product. This is not a bad rationale in itself. However, think about it from the job-seeker's point of view. He or she came to the company to earn money. Yet the person has to fork out money first. Does this make sense to the job seeker? I mean, if the company was really sincere, it should give out samples of the product to the interested job-seeker to fulfill this rationale. In fact, to me, it smacks of exploitation, a measure used to gain more customers and consumers. That is also another peeve I have with network marketing companies.

If you look at the advertisements of the typical network marketing companies, they will read "residual income guaranteed". I will now explain what residual income is.

As mentioned earlier, the distributor of the higher level will stand to gain a percentage of the profits made by the distributor of a level below him. This system stretches from the lowest to the highest tier. In a nutshell, the person at the top gets money from what the lowest level does.

This is what attracts so many people into the business as well. The residual income. Often network marketing companies will promote this by saying that you can get money without doing anything. I am going to paint two scenarios now- When the person at the top does get the residual income and when he doesn't.

First scenario: The person at the top gets the residual income.

 
Now if it was just one level difference and the distributor of a higher level was showing the other distributor the ropes, I have no complaints. The distributor is getting his rewards from grooming the distributor directly below him. Fair enough. Yet, what has the distributor of two levels or more above done to deserve the profit? Is it because he has already groomed the now-groomer? Is it fair? The answer is perhaps subjective. Some people would argue it is fair as the distributor of the highest level did in fact groom people to carry on the job. However, from a psychological point of view, the average person would expect the person of a level above him to get higher pay either because of higher qualifications or more contributions made to the company they are both working for. In typical companies, in order to earn further income, the person does need to continue working and making contributions towards the company. It is true that in practice it does not always hold water. Yet, from another perspective, it is more unjustified in the system of network marketing as compared to the typical business model. One might argue that the distributor below can work his way up and also gain residual income. Yet, this is not guaranteed as not everybody makes it to the top.

 
Second scenario: The person at the top does not get the residual income.

This typically happens when the network of the said distributor collapses. This occurs when many people within the network pull out of the company. In fact, the turnover rate in network companies is extremely high. This shows an inherent flaw in the structure and system of network marketing companies and also explains why these companies are constantly recruiting people.

That said, it might be of your interest to know why network marketing is here to stay. It is indeed a lucrative business once you get to the very top. I have seen pay checks of six-figure sums of the top distributors.

If you can accept the flaws that I have mentioned and you want money, network marketing is the place to go. In order to get a more balanced view of network marketing that promotes network marketing, there is a bestseller entitled "Rich Dad, Poor Dad"that you may consult.

Having read one perspective in the affirmative and another in the negative, it is then up to you yourself to decide what you think about the issue I am writing on today- network marketing. However, one thing is for sure, it is here to stay. For now.