Risk Assessment of Network Marketing

In my previous blog about the Odds of Succeeding in MLM, Tom brought up something that I have often asked myself as well.

What is the TRUE RISK involved in joining a Network Marketing Company?

My initial response was pretty much same as Tom’s. I would rather just walk away and avoid the “risk” of losing my money or being “scammed”.

BUT, recently my friend Kim introduced me to Sue, a very successful woman who works for a cosmetic MLM company in Japan. I told Sue about my story with yorhealth and how I started this blog. She was excited to hear that I was taking time to understand network marketing before I get involved.

While talking with Sue the topic of “startup fees” and “startup risk” came up. I explained to her that the only MLM I have considered so far is YOR Health, and that they have a 30-day money back guarantee on the products, even if the bottles are empty. She laughed and said, “Well then that is a no brainer.” But I also thought…how do they make any money if their return policy is so lenient?

Sue mentioned to me that nearly all credible MLM companies have very good refund policies. She went on to say that one of the first things she looks for in any Network Marketing company is the return policy, because it is a good indicator of their business ethics.

Sue explained that the MLM Company she works for does not have a return policy as lenient as yor health but it is fairly low initial investment to get involved. Sue also emphasized the same thing that Alex did. She instructed me to first try the product or service and make sure that I like it before I decide to join any MLM opportunity. She said “THIS IS CRITICAL.”

But the best thing to come out of the conversation I had with Sue was when she simply stated to me. “Instead of looking at how you might lose your initial $200 investment as a barrier to your involvement with a network marketing company, you should think more about everything that you stand to lose by NOT getting involved, such as financial freedom and being able to make your own schedule.”

This was a very insightful way at looking at it. I guess you can think of it as small minded vs. large minded individuals, but truthfully I think of it more as an outlook of a seasoned entrepreneur vs. the outlook of a college student thinking people are trying to get my money. The funny thing is, I am not only beginning to see how Network Marketing could be a real full time opportunity, but it also is actually starting to get me mad that I have not been formally exposed or taught about MLM in school as a viable way of building a career. Sure it doesn’t seem to be for everyone, but it would at least be nice to know that it exists and that it could be a vey rewarding form of income.

Since I am now on break, I think I will have more time to update this blog! I think for my next article, I will try to find a college that is teaching courses about MLM and see if I can find a course outline as to how they present it. My quest for MLM greatness continues. =)

Thank you for reading and Happy Holidays all!

Shawn