Network Marketing - Is it Ethical? - Home - Home Business

Its hard to go anywhere today without hearing about some kind of network marketing business. It seems no matter where you go theres always someone closely associated with you who has either tried a business themselves, or knows someone who has. In todays economy its common to hear the term network marketing in the same sentence as Pyramid or Ponzi scheme, but is that really a fair and accurate representation? You may have wondered yourself, is the concept of network marketing ethical? Unequivocally yes. Here are some of the reasons why.

Network Marketing builds people up

When network marketing is done correctly it empowers and builds people. It teaches people to become leaders by teaching them to teach as opposed to just learning. The very concept is designed to show an individual how they can reach their full potential and then reap the financial rewards of that potential, i.e., to be paid what they are truly worth.

Network marketing training itself is typically always built around the concepts of faith and personal development. These principles are designed to help a person find their inner strength and build their potential higher than they ever thought possible. Its not uncommon to hear stories of average people building six and seven figure incomes through network marketing companies. Network marketing doesnt discriminate based on a persons color, background, pedigree or education. Every person is given equal opportunity to become successful. In traditional corporate business models, there is much competition between individuals, sometimes even on the same team as everyone vies for a few positions. Those positions become increasingly fewer as you go up. In network marketing its just the opposite. There is always a strong desire for people who sign-up underneath you to become more successful than you. Why? Simply because the more successful people in your organization are, the more successful you become. Everyone gets to prosper together.

Network Marketing brings quality products to market more efficiently

Network marketing companies are typically able to bring products to market faster at less cost than traditional companies. Why? Primarily because Network Marketing companies dont have to deal with the overhead that traditional companies deal with; namely employees and the offices to house them. Because of this, those cost savings can be passed directly to customers in the form of less expensive products. Additionally, more profit can be put back into research and development for the continual improvement of products, one again benefitting customers. These advantages have been recognized by some of the worlds largest corporations. Its not uncommon for a company that is part of the fortune 500 to have a component of their marketing devoted to a network marketing strategy.

Network Marketing Companies Compensate more fairly based on leverage

Leverage is a simple and powerful concept yet misunderstood by many people. Oil Billionaire J. Paul Getty was famous for his quote I'd rather have 1% of 100 people's efforts than the 100% of my own. When you properly employ leverage you are effectively increasing the amount of time available to produce a specific result. This isnt just about duplicating your efforts; its about multiplying your efforts.

Think about it this way. The maximum number of hours any individual could work in a year if they worked 24 hours a day 365 days a year would be 8760 hours per year. Conversely, if you built an organization with a 1000 people and each person worked just 1 hour per week, that would equal 52,000 hours worked in one year. It would take the average person six years to do what you could do for one hour per week. To carry the example forward, if each person in your organization were to work just 8 hours per week for a year, that would be equal 416,000 hours in one year. You would achieve in one year what would take the average person 52 years working 24 hours per day.

Contrary to popular belief, compensation plans in any reputable network marketing company are designed to reward people regardless of where they are in an organization. That means a person who came in after you has the potential to earn more than you based on their efforts.

Network marketing companies come in all shapes and sizes and market all kinds of different products. While this article is not about network marketing companies, in general, most network marketing companies are reputable. Regarding, the business model of network marketing is completely ethical when applied correctly. It is designed to empower people in knowledge and compensation, and brings strong products to market for much less cost than can be done with traditional companies.

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