Is Network Marketing in the Philippines Good Business?

Let's talk about the elephant is the room: "Is Network Marketing Legal? Is it Ethical or Unethical?"

Network Marketing is just a business model. A way to get products from the manufacturer to the end user. Its basically the same as any other business except that it is built upon "word of mouth" - direct selling, and creating a distribution network of individual distributors/members, instead of retail shops and outlets. Yes, it will be a pyramid shaped structure, but heck, everything is a "pyramid" if we will look at the sales and distribution "network" of any big business.

To get it out of the way, these are the local practices and ways that Network Marketing becomes unethical: 1. Product/s is bad. 2. Products are overpriced. 3. Pressure Selling - People practically force their prospects to join by making unrealistic promises. 4. "Kidnap/Budol: - They invite their prospects supposedly to a birthday or party, only to be brought to a sales junket.

It's also, in my opinion, very unethical when the "sponsors" say to their prospects who cannot afford the entry to - "Just take a loan, sell something, pawn something, use your tuition fee." Rings a bell?

In my many years in the industry, I know so many people that have been victims of all these practices, including myself... Due to the binary system, they work on the "greed" or desire of people to get out of poverty, by goading them to buy "multiple accounts"... And when they get in, they would tell the new member to do the same to their prospects. This further propagates the bad practices and broken hearts - those who got burned, disappointed, got into trouble, massive loss and bad consequences… Doesn't sound too good does it?

Due to these practices, a very many people have had negative experiences with Network Marketing here in the Philippines, resulting in the bad image. But that does not mean that as a whole industry or business model, it is evil and unethical overall. In fact, in the US they have laws that declare it as legal and legitimate, with the exception of some compensation models.

Network Marketing, done right, with products that work, and those that the market actually want, sold at fair market value, with a fair and reasonable business plan, is actually a great business to start with. It allows small participants, those who cannot afford to buy in bulk, invest in store fronts and retail outlets, to participate in income generating sales. And not only that, with a good business plan, they can also multiply their income from "leveraging", by developing other distributors under them, where they get "over-riding" commissions - from the sales of products that came through their own distribution "network". This gives them a combination of active and passive income. One that can be very significant, especially if they have built a big group, with the right - professional and ethical, training and culture.

There are many thought leaders who fully understand and support this industry - Tony Robbins, Robert Kiyosaki, etc. Brian Tracy, one of the most well-known authors and motivational speakers, said: "Network Marketing has made the most millionaires than any other industry." Warren Buffet, if you know him(one of the world's richest men) considers his investment in a direct selling company, as his best investment move.

I would recommend that everyone interested in having a great potential, side-business, for low capital requirements, take a closer look at the Network Marketing. Just be aware of the "tactics" that unethical practitioners and companies use. Employ common sense and analyze the viability of their compensation plan… This business, done right, with the right people and company, can provide the extra income, and even a great financial future, for anybody willing to do the work - give time and sincere efforts.