What I Learned From Network Marketing

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NetworkNote: This is my entry for September’s What I Learned From… group writing project. Our topic is CHANGE – don’t be the only one left out! Join the fray, if you dare!

The Big Question

I recently heard on the radio a commercial for speed-reading courses. One line in it goes, “learn to read 1000% faster, and it will change your life and the lives of your family” (or something like that – I’m afraid my “listener” usually clicks into standby mode during commercials).

True, sometimes seemingly insignificant things can lead to big changes. But do you think something as simple as learning to read a lot faster can actually change your life, and the lives of your family? Well… I suppose. I mean, it’s not that hard to come up with a line of reasoning that supports that conclusion.

Anyway, while you’re thinking about that one (sound of grinding gears), how about this? You may remember a few weeks ago my casually mentioning (Eek! Look out – he’s about to mention it again!) that I started a network marketing business on the side. So (once more, but with feeling) let’s consider the question once again: Can network marketing change lives? (Sound of crickets)

(Warning: You are about to enter the multiple-choice portion of the post. Please pick one from each set of options. Then rinse and repeat as needed.)

I don’t mean in the sense of “If you’ll buy (this, these) (vitamin pills, health potions, makeup or perfume, diet foods, etc.), you’ll (feel better, look better, be smarter, be a better person, win friends and influence people, etc.)”.

No, let’s look at it in a somewhat larger sense. The question, ladies and gentlemen of the jury, is this: can a network marketing business serve as a vehicle for improving life on this planet for one or more people? Well, you’re likely to get a multitude of answers on that one, but for my take, read on…

Possibly Boring Information

(If you already know all about network marketing, you have my permission to skip this section. As if you needed my permission!)

The nature of the network marketing business is its multiplicatability duplicatability the way it grows by repeating itself. Thus, as I gain a few new customers (only 10, actually), I also look for a few folks (Associates) who want to do the same thing. (We sign up electricity customers here in Texas. Soon, we’ll be signing up natural gas customers in Georgia.) And so it builds.

See, there’s one thing about electricity that makes it a nearly ideal “product”: it’s pretty much a universal need (along with the obvious ones like air, food and water – and Blue Bell vanilla ice cream). Literally everyone we know needs electricity. (And, come to think of it, everyone we don’t know probably needs electricity, too.)

Often incorrectly labeled a “pyramid scheme” (a con game which is quite illegal), this type of business is usually called an MLM, for Multi-Level Marketing. The concept is simple: every Associate is responsible for signing up 10 customers and three Associates. As each Associate does the same thing, it builds into a huge network (at least in theory). But then diagrammed, it naturally builds an organizational chart shaped like a pyramid. (Hey, think about it – what businesses’ organizational chart isn’t pyramid-shaped?)

We Can Change the World!

So here’s the thing.

Our very first Associate revealed the other day that he’d been feeling kind of depressed lately. See, over the years he’s been involved in quite a few of the ministries at our church: prison ministry, host family program (being a friend to an international student attending local Universities); he’s a deacon – well, let’s just say this guy gets around.

The problem is his hearing is going bad. He’s worn hearing aids for a long time, but lately it’s been getting so he can hardly hear at all. Because of that he’s had to drop out of most ministries because he simply can’t hear well enough anymore. It’s been understandably getting him down.

Then we came along and offered him a chance to sign up as an Associate, and Wow, what a difference it’s made!

See, among other things, he also owns quite a few low-income rent properties. And being the kind of person he is, he immediately saw an opportunity to help his tenants save money on their electricity bills. Not only that, but he’s known a few of his renters for quite a while (some as long as 20 years!) and they, if given the opportunity, would be great candidates for starting their own businesses as Associates.

Imagine that – give someone a chance to own their own business! Just for fun, try this mental exercise and put yourself in their shoes for a moment.

Here’s a person with the drive, the ambition and/or the talent to make something of themselves, but simply can’t see an affordable opportunity? Well, this is something he could share that is genuinely doable. Talk about a change in attitude! It’s completely turned his outlook around, and given him a new enthusiasm his wife says has been missing for quite a while!

Now, I realize the cynics in the audience might still insist on seeing this business as opportunistic, simply “because it’s an MLM”. Hey, no problem – everybody is free to have their opinion with no arguments from me! (We, of course, have our own opinion; it’s one of the reasons we liked the business model.) But the reality is that for our Associate is he’s found a new way to make a difference in people’s lives.

Now he’s changing the world, one person at a time!

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12 responses so far

12 Responses to “What I Learned From Network Marketing”

  1. Lillie Ammannon Sep 1st 2007 at 12:45 pm

    Robert,
    I’m a believer in network marketing – in fact I wrote a book on the subject (now out of print). I think the reason MLM has such a bad name is that so many people don’t achieve their dreams. It takes a lot of commitment and work – like anything else worthwile – and it’s easier for people who don’t succeed to blame the system than to take responsibility for their own failure/lack of commitment. Although it does take time, commitment, and work to succeed, I think network marketing is the best way for a person without a lot of capital or exceptional talent to achieve business success.

  2. Blogs for Moneyon Sep 1st 2007 at 2:00 pm

    Reminds me of a song… “If you buy this record your life will be better”.

    Would you believe it did quite badly in the charts? :-D

  3. Robert Hruzekon Sep 1st 2007 at 6:07 pm

    Lillie: THANK you!!!! Yes, that’s exactly the problem! False expectations can really cause people to fail with this type of business. Even so, it’s still a viable business model (in my humble opinion), when done right. Thanks for chipping in, Lillie!

    Danny: If you hum a few bars, I think I can fake it… :-)

  4. Joanna Youngon Sep 2nd 2007 at 4:42 am

    Hi Robert, it sounds like you’re having fun exploring this new business model – and why not transform a few lives as you go along…?:-)

    Your story is a good reminder of the need to look beyond the words (or labels) to what’s really going on. We can get hung up on words and their associations and miss out on a lot of good stuff as a consequence.

    Joanna

  5. Robert Hruzekon Sep 2nd 2007 at 8:13 am

    Exactly, Joanna! And that’s the point! In fact, we felt exactly the same way until we started looking “under the hood” to see the underlying principles. In fact, this business model is built upon the premise of helping others, and that’s what won us over!

  6. Sam (Azuaron)on Sep 5th 2007 at 8:45 pm

    What most people don’t realize about MLM is that it is different from a pyramid scheme, which has the understandably bad reputation of collapsing unexpectedly while the guy at the top runs out the back door with a sack of money. MLM is more like pay it forward. But with money-service exchange, not favors.

  7. Robert Hruzekon Sep 6th 2007 at 11:57 am

    Interesting way to put it, Sam: “pay it forward”. You know, I think you may have something there!

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  9. Stephanieon Sep 11th 2007 at 6:01 pm

    Thanks for this; I was looking for inspiration and I found it. Network marketing isn’t really what I thought I’d ever do but our community is really getting turned on to this one, because it’s a utility – VoIP, which is coming anyway, and people here (in Hawaii) at least hate our phone company. Anyway I’m pretty psyched about it even though it’s hard to stay positive with all the programmed negativity. Wish people could see this type of marketing could be the way to free us from economic slavery. Aloha and have a great day!

  10. Robert Hruzekon Sep 11th 2007 at 6:17 pm

    Stepanie, how interesting! So Network Marketing utilities is coming to Hawaii, eh? I think you guys may have something going there. Make sure you look for the deregulation of electricity and jump on board when it comes!

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  12. electronic cigaretteson Dec 11th 2008 at 1:20 pm

    I recently heard on the radio a commercial for speed-reading courses. One line in it goes, “learn to read 1000% faster, and it will change your life and the lives of your family” (or something like that – I’m afraid my “listener” usually clicks into standby mode during commercials).

    True, sometimes seemingly insignificant things can lead to big changes. But do you think something as simple as learning to read a lot faster can actually change your life, and the lives of your family? Well… I suppose. I mean, it’s not that hard to come up with a line of reasoning that supports that conclusion.

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