binary systems, pyramid schemes, and market saturation in network marketing

Here's a question I recently got via email:

I would like to ask you several question about network marketing and multi level marketing. it's a binary system and a pyramid scheme i suppose. what happens if the pyramid collapsed and the market is already saturated? thanks for giving some thoughts in this. i hope you can reply me and give me some inputs. have a nice day

Here was my reply:

Thanks for the questions about binary systems, pyramid schemes, and
market saturation.

Actually, You would want to stay away from both binary systems and
pyramid schemes. Pyramid schemes are illegal so I won't talk about
them much. I will warn you how to spot them: If someone says you can
make money without mentioning products, be wary. If somone asks for a
signup fee (some legitamate companies do charge a nominal fee but I
don't think they should) be very wary.

Binary systems are perfectly legal, and some people have become
successful with these kinds of compensation plans. However, the
breakaway plan is superior.

Regarding market saturation, let's think about two common products in
network marketing: skin care products and supplements.

Chances are, everyone you know who wants skin care products already
has some. However, if your products are better and if you provide
better service than a department store your business will grow.

The dietray supplements industry is growing fast. Many people want
supplements but don't know which ones they can trust. If your company
produces trustworthy products that have been clinically tested for
effectiveness and safety, your business will grow.

When I look at the market, I see tremendous growth opportunities for
quality network marketers distributing quality products. Consumers
want the quality products I ahve because they are tired of overpaying
for low quality products in traditional retail stores.

Well good luck finding the right business opportunity! I'm always
happy to answer more questions if you have any.

After a brief disappearance, I'm back

My blog has been saved again. Apparently my blog had somehow been marked spam and deleted, but you can't keep a good blog down. Thank you to blogger for restoring my blog. Business is going well, and since I don't want to leave you without some practical advice, remember that the best way to overcome the fear of rejection is to be successful. The best way to be successful is to talk to many many people. If 99 people are uninterested and just one person is, you can feel great about helping that one person build their business.