Why is Network Marketing singled out for special abuse?
Like insurance agents and Realtors, Network Marketers are independent contractors who get paid commissions for distributing products and services in the marketplace. In all three industries, the big money is made by recruiting others to join your network of distributors, thereby enabling you to earn bonuses, commissions, and overrides on others’ time and efforts. The bigger your network of active associates, the bigger your paychecks.
Heads of insurance agencies and owners of real estate brokerages are respected members of the business community. Everyone knows a Realtor or insurance agent. Yet both industries have sky-high drop out rates.
• 50% of new Realtors don’t renew their licenses after the first year.
• 85% of licensed insurance agents quit within 18 months.
Yet no one says insurance and real estate are scams. No one says you have to get in early to make money. No one says they’re illegal pyramids. Why? Because they’re accepted ways of doing business. Insurance and real estate are conventional businesses. Network Marketing, on the other hand, is an unconventional business. So people misjudge it and hold it to a different standard.
Mannatech’s executives say, the company is not limiting its activities to markets close to its
