Network marketing is no longer a brand-new form of distribution; and precisely because some people have had bad experiences, there are negative stories about this earning and sales opportunity.
But there are also people who simply reject this system and actually spread falsehoods out of malice. And then there are still many today who try to get rich quickly with network marketing – and at the expense of others.
Network marketing, or MLM – multi-level marketing, is a legitimate form of distribution when done honestly. However, this is often not the case in advertising and on social media. Let's therefore look at a few common questions, misunderstandings, and false promises so that you know what you might be getting into – and with whom.
Buzzwords, superlatives, empty phrases and clichés
Flexible working hours
A job in network marketing is naturally not an employment relationship and there are no accountability obligations. The free allocation of time one wants to devote to their business is therefore a given and is the case with all network marketing companies.
The more important question is: what time commitment is needed to actually achieve something? Just sitting around achieves nothing.
Completely flexible
"You can do what you want, when you want, with whom you want."
That's a high degree of flexibility. This is also given with all network companies. The question is: can you handle this freedom, or do you need a system to work effectively? Those with complete flexibility and no self-commitment often do nothing.
Building something of your own
Anyone who dreams of creating something themselves can achieve this with network marketing. But it must be clear:
- No one gives you anything for free. Even in binary plans, new consultants are not evenly distributed, but usually only the outermost leg is built. So you don't get new consultants by doing nothing.
- You can realise yourself with the structure building and income creation. But at the end of the day, the structure and customers always belong to the company.
- If you want to build something of your own, you can do so in a network, but the question is: wouldn't you benefit more from creating something truly your own? Your own idea?
Building something is made easier by a network company because you only need to contribute your work effort, and the rest is already provided.
That's why the rest must fit: company, product, working method, target customer, remuneration. Then a network marketing company can also be a good step to realise oneself or earn enough money to later build something of one's own.
Network makes it easier, but it's not the only opportunity to build something. If you're only lured by this promise, you're not clear about what you're really looking for.
No prior knowledge needed
Even in an apprenticeship, no prior knowledge is needed. In every new profession, no prior knowledge is needed. But they are always helpful.
In network marketing, it's important to learn and ideally know more than just slogans from marketing brochures or perseverance slogans and sometimes dubious statements from leaders.
At the end of the day, you're not just presenting a product or a business opportunity, but also yourself, your knowledge, and your handling of questions and criticism. You shouldn't be unprepared.
Product knowledge is often not that extensive, as network companies take care of everything in the background and make it as simple as possible; but you should have the willingness to at least understand the necessary knowledge.
Online
Network marketing has always been a business from person to person. Those who rely entirely on online or highlight it as an advantage that everything runs online forget that it's a relationship business.
Online can support, expand, and enrich an activity. But if the focus is solely on doing everything online, it becomes
a) arbitrary
b) reckless
Arbitrary, because many such networkers simply play with large numbers: if the first doesn't bite, the next will. There's plenty of choice on the internet.
Reckless, because many people online are tempted to make statements that are not correct or simply lies. Online, behind your PC or mobile, you often feel like you're in a lawless space.
There are companies that heavily rely on messengers and invite partners and prospects into groups. Often, people are overwhelmed there and moved by group pressure to do or buy something. Would you do that in real life?
If someone says yes here, they still have a lot of personal experience and development ahead of them.
Meaningful
Every activity must be meaningful, otherwise you quickly lose interest and motivation.
That's exactly why you should take a close look at the company, product, concept, and people before getting involved with a company.
The people introducing you to an opportunity often try to convince you that this opportunity is meaningful and others are not. But how honest is it if you're not allowed to form your own opinion and just have to believe everything?
What is meaningful to you?
- Helping people? If so: what does that look like for you? Does this company/product support you in achieving that?
- Earning money? Money comes automatically when you do something that feels right for you. If the company and product are right: can you realistically earn money here?
- Receiving recognition? Does the company recognise you, are there things that appeal to you? Titles, badges, holidays?
- Gaining security? If security is important to you, a good structure can lead to a secure income source. But if you have trouble talking to people because you don't know how they'll react, you should look for a solution here.
- Having variety? The activity as a salesperson is very varied if you actually work, because you'll meet many people and situations.
- Developing yourself? Network marketing can be a good way to do this because you'll experience rejection, approval, highs, and lows and learn a lot about yourself. Network is by no means the only way, but it is a way.
So: what is meaningful for you? Does this opportunity, this company, this product, this sponsor support you in that? Do the company's values align with your own? These are important questions.
Gamechanger
In the decades of network marketing, there's hardly a dumber argument to get people to join than the claim that a product or opportunity is a gamechanger, changing the rules of the game.
People who respond to this don't want to miss this potential chance. But in recent decades, practically all these gamechanger companies and products have disappeared from the market, even those with financial backing.
- Who still remembers LetsBuyIt.com, the portal founded in 1999 where shopping communities were to be formed? Many people buy a product and get a better price.
- Who remembers the network DubLi? Good idea, long on the market, long gone.
- There are many companies in the network that started with a bang and are still active today but lead a rather insignificant existence.
A current real gamechanger is AI (artificial intelligence), and it's hard to predict what changes will really come with it. AI has already captured many areas of life and is not just a niche product but is found in society.
Unrivalled
If a product is unrivalled, it's usually not good.
Because if something has potential, there will be competitors and imitators. Only products that are insignificant have no competition.
So the question is: what aspects are unrivalled?
- Is there a special formula that cannot be imitated? (even Coca-Cola has many competitors)
- Is there intellectual property that is protected? (even Harry Potter and Lord of the Rings are not unique – there are many books within their genres. Not as successful, but there is competition)
- Is there a special quality? (can this not be imitated or even surpassed?)
- Are there special advocates, celebrities, etc.? (what real value does that have and is it truly unrivalled?)
- Is this product available nowhere else? (but are there similar products that do the same or comparable things?)
High-quality products
The argument that you offer high-quality products is not an advantage but a basic requirement.
What person working in sales wants to offer second-rate goods or junk? Who wants to buy cheap products, except out of financial necessity or because they only need them once and therefore durability and quality can be neglected?
What makes the products "high-quality"?
Our grandparents had a saying "Just because we have no money, we must buy quality."
So your product should be of high quality, but it's not a special feature, it's an expectation.
Growth market
Growth markets change in cycles. There are researchers who have studied the different phases. You have to see what has value and substance.
Some researchers say we are in the health market, others speak of the technology market. AI (artificial intelligence) will change a lot here.
At the end of the day, basic needs always count: am I well, do I have a roof over my head, can I survive and other things.
Anyone who helps meet people's needs will always have customers, whether you're in a growth market or not.
"We stood exactly where you are now"
This statement is often used to create a sense of commonality and to express "if we managed it, then you can too." But usually, people just want to get someone new into the team, and the interest ends with the signing of the consultant application.
But if someone actually knows your situation, can describe in detail and precisely what is happening in your current life situation, you really feel understood and they show you comprehensibly how they have progressed, then you might have encountered someone "genuine."
In most cases, however, this sentence is just simple marketing speak.
"We've waited x years for this"
A meaningless and insignificant statement.
Who has waited for what and why? Who makes this statement? Is this person saying it an authority? Why should I believe them and what does it have to do with me/us?
It's great when other people's wishes come true. The phrase "we've waited x years for this" often conveys that there is something special that hasn't existed before, and one is easily led to believe it out of naivety.
But what is special about it? And is it really special? What impact does it have for/on you? Does it make your life or the work you have to do easier? How? And why has no one invented it before, or did it exist and it didn't work?
"We've waited x years for this" is not a good statement.
"Such an opportunity comes only once in a lifetime!"
A relevant, real opportunity for you is noticeable when it completely speaks to you, when you feel it's something for you. When you can't think of anything else. When it keeps you awake at night.
It's a bit like being in love: you recognise that there's something for you and you have to act. Otherwise, the opportunity might be missed.
But you know what? In network marketing, it's like in love: there's more than one opportunity.
And if someone pressures you to act immediately, without giving you a chance to sleep on it, the statement about the "once-in-a-lifetime opportunity" is probably more of a marketing cliché to quickly get people into the system before they realise it's not that great.
If a stranger, an acquaintance, or even a friend urges you to do something immediately, it might not be such a good friend.
Except if they notice that the love of your life is standing over there and urge you to speak to them. You should give in to that pressure and opportunity.
Strong team
A statement without much substance.
What does it mean? And how does it show concretely?
Can I talk to everyone in the team and will I get help? Do I receive support? Do the people know and appreciate me?
Are there joint activities to really form a team? Is there no envy, or are customers poached?
Is there a sensible, actually applicable system that suits me, or is everyone the same and has to do the same? Is attention paid to me?
How does the "strong team" show itself? What do I get out of it?
Personal support
In every apprenticeship, you have a training manager who takes care of the trainees. In university, you have fellow students, lectures, and opportunities for support.
How is it in the network? How long and how much support do you get if "personal support" is promised?
Is it my responsibility to collect it myself, or is it the sponsor's obligation to deliver it?
Do I get documents, training, answers to follow-up questions? Does someone sit down with me? Does someone go to appointments with me? What does it look like in concrete terms? Or is "personal support" limited to text messages on the phone with the text "You must..."?
Personal growth / spiritual
Everyone experiences personal growth when they dare to try something new. When they engage, experiment, stumble, get back up, learn, and have fun.
Network Marketing can be a great opportunity for development, as it involves a lot of interaction with new people and situations. You travel to cities, enter homes, make mistakes, face them, and grow as a person. You learn more about yourself.
All of this is true – if you actually do something and see feedback as an opportunity for growth and use it.
And the more you see others' reactions to you as a reflection of your own personality, the more spiritual a network activity can become.
Unfortunately, it also happens more often that spiritual people are targeted with the argument of personal growth, by people who have no interest in others and are just looking for new partners.
Network Marketing can be a path to enlightenment, but it's certainly not the only one. And every spiritually inclined person should question what need they are trying to fulfil with this activity, what interest lies behind it all, how well they have learned to deal with rejection, and how they react to it.
Do these superlatives annoy you too?
Legal questions
Note: this is not legal advice.
Is Network Marketing legal?
Yes. This form of distribution has existed for a long time and is essentially just the shift from wholesale and retail to the individual consultant. Some intermediate stages are omitted, and the saved costs are paid out as trade margins and support commissions for advisors you recruit and support. So you can build your own network of "dealers" and earn from their performance.
If Network Marketing is conducted ethically by the company/founder and the individual consultants, there is nothing against this form of distribution.
Do I have to register a business?
The activity of a consultant in Network Marketing is usually a commercial activity aimed at making a profit. Therefore: yes. Generally, yes. This means that you must register a business with the municipality or city and declare your income and business expenses in your tax return.
However, check with your sponsor/consultant whether a business registration is necessary in your country and in cooperation with your company. Generally, yes.
What is allowed to be done/said? (Liability)
Depending on the industry and products you work with, there are legal peculiarities to consider. If you mediate insurance, investments, real estate, or similar objects, it may be necessary to undergo an examination before a chamber to even be allowed to operate and to exclude or minimise liability claims. If you are dealing with a product range related to health, you must adhere to the HCVO guidelines and refrain from any efficacy or healing claims that are not officially approved.
Therefore, it is best to use only officially issued material from your company, as this is usually legally reviewed, and your partner company assumes liability.
Avoid under all circumstances vague statements, loopholes, and unauthorised practices. Warnings for inadmissible healing claims (e.g., "our product helps with headaches") are expensive. Promising special advantages can also be warned against.
Avoid at all costs half-baked statements, loopholes and illegal practices. Warnings for inadmissible health claims (e.g. "our product helps with headaches") are expensive. Promising special advantages can also be warned against. In a well-known case, the word "digestible" in relation to beer was warned against.
Is Network Marketing a pyramid scheme?
Absolutely
There will be a very large and broad base of consultants and an even larger and broader number of customers who are looked after by these consultants. This is normal. Any organisation takes the form of a pyramid when you draw it.
It's like asking if the Catholic Church is a pyramid scheme. Yes. At the top, there is a Pope, then there are Cardinals, then Archbishops, followed by Bishops, below them Priests, there are altar servers and the large community of believers.
The same is true for the military, there is a supreme commander. There are few generals, more lieutenants, even more sergeants and non-commissioned officers, and many more soldiers.
You can continue this forever: whether in football, at a concert, in a film (leading actors, supporting actors, extras), at school (headteacher, teachers, students) or in any workplace: boss, managers, employees.
We find pyramid structures everywhere in everyday life. It would therefore be highly questionable if a Network Marketing organisation/company did not take the form of a pyramid. Then you should be suspicious.
Is Network Marketing a Ponzi scheme?
No
In a Ponzi scheme, products are passed down from the top and continually marked up.
A simple example of a legal system:
If a customer wants to buy a Platinum product, they can purchase it from any consultant and receive it from any consultant at the same price.
In an illegal system, the product would be differently priced depending on who it is bought from.
The consultants "above" in the system get the product cheaply directly from the company and pass it on to their consultants below, marking it up each time to make a profit. The advisors "above" in the system get the product cheaply directly from the company and pass it on to their advisors below, each time increasing the price so they can make a profit from it.
The further a product is passed down, the more expensive it becomes because everyone wants to earn from it. The product, as it "rolls down" (to use the example of a snowball), becomes more expensive.
Is Network Marketing a Ponzi scheme?
No. A Ponzi scheme usually has no product being sold, and the only similarity to Network Marketing is that people are approached to see if they want to "join."
No. A Ponzi scheme usually has no product being sold, and the only similarity to network marketing is that people are approached to see if they want to "join."
New members only pay in and receive no equivalent value. Only through newly joined members do you move up (while the people ahead of you in the system gradually drop out when they have been gifted) and only receive money once you have reached the centre. a.) are characterised by the fact that you pay (gift) money and you yourself move up through new members who join the respective gifting circle until you are in the middle of the gifting circle and then "gifted" by the newly joined members.
Do you have more questions about it?
Platinum as a Network Marketing opportunity is a sincere, legal, and highly ethical company. If you are interested in working with these products and this company but still have questions, contact us:
Unethical behaviour
SUHR – Get Rich Quick
There are people who only care about quickly covering their own lack. And their way to do that is you. Or rather: you should sign up with them as a consultant, regularly buy products, and recruit new consultants.
They want you to trust them and sign up right away. And buy many products. You'll get rid of them. "Trust me." And you can't think, can't consider, can't discuss with a partner, because "they just want to spoil it for you."
They want you to trust them and sign up right away. And buy many products. You'll get rid of them. "Trust me."
They are not interested in you or whether the offered opportunity suits you. They are only interested in themselves. Stay away from such people. Can you get rich with Network Marketing?
Yes.
Yes, you can get rich with Network Marketing. And no one has to be ripped off for it, you don't have to sell your soul, you don't have to persuade, overwhelm, or trick anyone.
Network Marketing is not a magical system that suddenly makes you rich, it is a way to work and earn money through continuity and even become rich.
Reputable companies in the industry publish transparently how many people have reached which bonus level in what time frame and what they have earned. This avoids false impressions.
In these publications, it is always clear that over 98% of all consultants earn some extra money and the high and top earners make up the remaining 2%. But they have also worked hard for it.
So don't be lured by the promise of wealth if you are not willing to work for it.
In diesen Veröffentlichungen sieht man immer wieder klar, dass über 98% aller Berater etwas Geld dazu verdienen und die Gut- und Topverdiener die restlichen 2% ausmachen. Diese haben dafür aber auch ordentlich gearbeitet.
You've changed quite a bit
When you first get involved with Network Marketing, you might think your own company, product, and Network itself is "the best" there is and see everyone else as less intelligent, less experienced, or less supportive.
When you first get involved with network marketing, you might think your own company, your own product and network itself is "the best" there is, and see everyone else as less intelligent, less experienced or less supportive.
this, combined with the exuberant enthusiasm you show after such seminars, can really seem strange.
If you then hear at events that many "normal" employees are "stupid" because they haven't yet engaged in brilliant network marketing and that you only get "real" information here and know things that no one else knows and uses, A doctor doesn't know everything, and some don't behave well, but that applies to many people, and it shouldn't be blamed on a professional group as a whole.
The same goes for police officers, bankers, teachers, and many other professions. They can never know everything, they make mistakes, and some really shouldn't be working in their profession, but the same applies to Networkers and other groups. In short: you shouldn't throw away all your previous experiences and perspectives and simply replace them with new ones. And you shouldn't proceed dogmatically, but share the newly acquired knowledge in conversation with others and not take criticism personally.
And yes: the world is not perfect. If you can make it better with your Network and through your product, then do so. And do it in a way that stays true to yourself and doesn't just parrot what someone told you at a seminar. Go your own way that suits you. Then your offer will also be accepted.
Suddenly a consultant?! "I just wanted to buy cheaper!"
Dishonest
Suddenly a consultant?! "I just wanted to shop cheaper!"
Not only is this behaviour unethical, as one has practically been "ambushed," it often has consequences:
Quite often, such a "consultant" then finds themselves in the situation that they cannot return products they only wanted to test and now want to return, as the extensive right of withdrawal (e.g., 90 days) is only granted to customers, but not to consultants.
Not only is this behaviour unethical, as you were practically "ambushed" here, it often has consequences:
Quite often, such a "consultant" finds themselves in the situation where they cannot return products they only wanted to test and now want to return, as the extensive right of withdrawal (e.g. 90 days) is only granted to customers, not consultants.
for all customers to be made consultants, as a customer should be able to recognise the value of a product, and the product should be worth the price to them. If that is not the case and everyone is made a consultant – do the products even have real value?
And: a Network company that consists only of consultants and has no customers is seen in a strange light."If everyone brings 5 people and they each bring 5 people..." Unreliable calculations of wealth
„Wenn jeder 5 Leute bringt und die wieder jeder 5 Leute bringen…“
In Präsentationen wird gerne das Beispiel bemüht, dass man z. B. für eine bestimmte / wichtige Stufe im Karriereplan 2 oder 5 direkte eigene Berater haben muss.
Seeing the potential is perfectly fine. It becomes questionable when this work is portrayed as easy and that this kind of multiplication actually happens and you are lured and tempted by the prospect of high income. The technical term is: greed eats brain.
Dann wird häufig weiter gerechnet: wenn diese 5 Berater jeder ebenfalls 5 Berater bringt und diese ebenfalls ihre Eigenumsätze bringen, was bekommt man dann als Verdienst.
Those who work seriously will make many people consultants. But really large salaries are usually earned by less than 1% of consultants.
Denn tatsächlich ist es so, dass manche Menschen 10, 50 oder auch 100 Berater direkt ins Geschäft bringen und die meisten dieser Berater niemanden.
Because if you stick to the example that the multiplication "you bring 5, who each bring 5, and each of them brings 5, etc." continues, in the eleventh level after you, there would already be 48,828,125 people in your Network. That's over half of Germany. Good companies publish transparently how many consultants have earned what income in what period, to avoid raising false expectations or "calculating wealth" for interested parties.
Bleibt man nämlich bei dem Beispiel, dass sich die Multiplikation „du bringst 5, die jeder auch 5 bringen und von denen bringt jeder auch 5 usw.“ fortsetzt, wären in der elften Ebene nach dir bereits 48.828.125 Menschen bei deinem Network mit dabei. Das ist über die Hälfte von Deutschland.
In manchen Präsentationen wird gefragt, wie lange man wohl bräuchte, um 5 Menschen („die sich für Gesundheit und Business interessieren“ oder „die duschen und waschen“ oder „die Geld bei xyz sparen möchten“) ins Geschäft zu bringen. Eine häufige Antwort ist „1 Monat“. Wenn das stimmen würde und jeder sich ans System hält, wäre nach nur einem Jahr ganz Deutschland im Network Marketing – bei dieser einen Firma – tätig. Utopisch, unsinnig, unseriös.
Had enough of such behaviour?
If you don't like such unethical behaviour or work with a company that promotes or at least tolerates such behaviour and want to do something new, there are some companies that work ethically correctly. One of these companies is Platinum. Talk to us and listen to your gut feeling:
Mistakes in daily work
Sudden change in behaviour
If you are new to the Network, you may suddenly start wearing suits or expressing yourself differently or want to integrate new habits into everyday life because "successful people" do it that way.
If you're new to the network, you might suddenly start wearing suits or expressing yourself differently or trying to integrate new habits into your daily life because "successful people" do it that way.
a suit gives you more charisma and self-confidence; but if you have developed that from within yourself, it doesn't matter what clothes you wear.
It also puts off your environment if you suddenly become completely different and offer them your business opportunity – because many don't want to change as drastically as you are currently demonstrating. Show that you can change without having to be different. Your sponsor will surely help you get your appearance under control.
Breaking off contact
Terrible
It occasionally happens with newcomers to the Network that they perceive themselves as "better" or "smarter" than the rest of the people who weren't smart enough to join this business or take these products.
It occasionally happens with newcomers in the network that they perceive themselves as "better" or "smarter" than the rest of the people who weren't intelligent enough to join this business or use these products.
And when they approach their surroundings or acquaintances and they don't react joyfully or simply politely decline, they break off contact. Because naysayers, spoilsports, know-it-alls or "stupid people" (who don't recognise the great offer) don't "fit them."
Unnecessary
Newcomers to Network Marketing often want to appear particularly correct, do everything right, and believe they need special equipment or appearance for this.
The fact is, however, that no one joins a company just because a particularly good laptop was used in the presentation or because the consultant serves Fiji water or uses a fancy pen.
Your company has published enough approved material that has gone through the hands of many people who have thought about how to describe the business and products sufficiently well and simply enough.
Use these materials and work with your sponsor instead of wanting to reinvent everything.
Would you like to get to know a simple and honest Network? Platinum Europe doesn't make big demands, except for honesty, commitment, and interest in people. And with the available materials, the work is made very easy for everyone. A Platinum brand partner will be happy to explain how easy it is:
In summary:
it is not a "get-rich-quick scheme," you have to work
most "Networkers" only use products for themselves and hardly recruit customers or additional partners
it's not a "get-rich-quick scheme," you have to work
most "networkers" use products only for themselves and hardly recruit customers or further partners
if you have to decide "now," say "No!"
don't let yourself be lulled by superlatives, buzzwords or even friends
if you're supposed to decide "now," say "No!"
Sebastian Schertel
A very creative person who enjoys mowing lawns, Tai Chi, and bad jokes. Health scientist (B. Sc.), hypnotist, and problem solver.
