Posted by
Icarus on Monday, February 02, 2009 9:30:59 PM
David steps through the double doors and sees a good size group of men and women, milling about, sipping drinks. A young man, smiling broadly steps up holding his hand out. David shakes it firmly.
“Welcome to our business networking group. My name’s Michael. Is this your first time?”
“Yeah, I heard about the group online. A friend sent me a note, so I thought I’d drop by.”
“That’s awesome. We’re glad to have you.”
“My name’s David. Nice to meet you.”
“So what’s your business, David?”
“Well, I help people get into their own homes.”
“That’s cool. How do you do that? Are you a home-builder?”
“No, actually, I work in the mortgage industry. I just acquired a franchise from Edward Jones.”
He steps away from David. A pained and disgusted look washes across Michael’s face, as if someone just dragged a dead rat’s bloated corpse across his palm. “You’re into usury franchise?!? Uh …”
“That term is commonly understood as charging excessive interest, but some think it means charging any fee for the use of money.”
“Sorry, I don’t care what you want to call it, David, you’re not welcome here. I’m going to have to ask you to leave. Our group has standards and money-lenders do not qualify.”
Michael pushes the door open, waiving desperately at security guard standing outside. At the same time, he tries to usher David out without actually touching him.
In the so-called real world, no networking group would a keep out a mortgage franchise. How about banning people who want to start a coffee shop? What about people who design websites? Should we ban so-called webmasters from business networking groups because someone used their services for unscrupulous activity? Don’t even get me started on the Real Estate industry.
These things would never happen. Everyone accepts these industries. They are what most would consider traditional businesses. There is one industry, however, that might get you tossed out if you mention it at a business-networking meeting. That industry is Network Marketing.
I experienced this myself recently with a business-networking group called “Biznik”. Upon receiving an invite to Biznik, I went to its website and completed my profile. When it came to what I do, I openly and honestly laid claim to the title of Network Marketing. I received an email telling me their administrators closed my account a few days after I enrolled online. Here is the heart of
Biznik's reasoning on the subject:
“... we have made the decision not to extend membership to … businesses that provide financial incentives to recruit members, resellers, or distributors of products or services that do not originate with those seeking membership in Biznik, such as a percentage of sales made by each person recruited.”
The interesting thing is that this sentence describes just about any business that actually sells a product or service.
Let’s say I decide to open a coffee shop. Let’s call it “Biznik Coffee”. The first thing I want to do, if I don’t have the money to get it going, is convince people to invest in my business. I literally have to recruit members into my business, but I’m going to call them “Investors”.
In order to sell my business to these recruits I have to give them a business plan. I’m not actually going to grow the beans, harvest and roast them myself. I’m going to get my beans from StarBiz roasters instead. In other words, I’m going to get my products from someone else then I’m going to resell them.
Furthermore, I’m no barista. I just want to run a profitable business. Therefore, I’m going to recruit more members who will run my shop for me. These members I will call “Employees” and, when they sell StarBiz coffee the shop brews up, I’m going to give them a percentage of the sales. Instead of calling this a commission, however, I will call it an “Hourly Wage” or better yet, a “Salary”. Moreover, the percentage I pay back to my “Investors” I will call “Interest”.
Ta da!!!! Now I have a legitimate business, that any business-networking group will not only accept, will very likely work with me to make my business successful.
Everything that every traditional business does, Network Marketing does. There is one thing Network Marketing offers that not one traditional business does offer. It offers people who create their own business the opportunity to make more money than the person who gave them the opportunity.
No one who remains an Apple Employee for their entire career will ever make more money than Steve Jobs. No one.
If I find and recruit a Steve Jobs into the Network Marketing industry, he will make more money than I do. If he puts in the time and effort and creates a successful enterprise, while I have only a modest business, should he not make more money than me? That is what I call fair.
Apparently, the people at Biznik aren’t into creating a fair business environment. It is an odd, given they promote “
people not professions.” Since so many who reside left-of-center, politically speaking, actually despise wealth creation, Biznik’s anti-MLM prejudice should not really surprise anyone.
And don’t even get me started on how every business other than Network Marketing is the real pyramid scheme.