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Is network marketing ethical?

Thursday, December 9, 2010 , Posted by Munib Shaukat at 9:37 AM


Is network marketing ethical?

Lots of people worry about this question. It as a huge problem many people have in the beginning of their time as a network marketer: If you aren't convinced about this question, then how could you realistically share such an opportunity with your friends and family? I suggest you set aside emotions and think logically, then you will be able to make an informed decision. I believe that Network marketing is highly ethical, though there are sadly many people within the industry who act in an unethical way.
Conventional business is very much a tiered system. The chairman or president at the head of a company makes a lot of money, and those beneath him (or her) make proportionately less depending on their level of expertise and responsibility. This seems superficially like NM, except that there are several very important differences:-
 

Issue Conventional Business Network Marketing:
Leadership positions Limited. Usually one or two CEOs, presidents etc. Many at lower levels unable to promote until somebody above them leaves. Unlimited. Anyone can progress to any level regardless of when they started or under whom.
Promotion Limited availability. Decided by candidate's boss or supervisor. Unlimited. Decided by each individual and dependent only on the value they bring to the organisation, i.e. purely on merit. 


Support Superiors don't want their employees rising up the ranks and taking their jobs! It is in the upline's interest to help and support their downline as much as possible, even if that means helping them to reach higher levels than themselves.
Advertising Advertising designed to be as manipulative as possible, e.g. appealing to sexual instincts or desire for personal acceptance. Most NM companies do not advertise. Products are sold based on recommendations, demonstrations or just low prices.
Rewards Most sales posts offer one-off commissions. Often very little personal recognition or encouragement. Commissions based on the ongoing sales volume of your downline group. Lots of personal recognitions and encouragement from the entire team.
Starting Position Generally dependent on education levels and occasionally on favouritism. Often linked to family background, with rich families able to send their children to prestigious schools. Everyone starts at exactly the same level regardless of initial wealth, background or education. 



You may or may not agree with the above points, and I'm sure that some businesses are very different to others. However, overall you should be able to see that Network Marketing is a highly ethical business. Some people have registered with NM opportunities and behaved in a non-ethical manner, but this is not at all a criticism of the industry - just on those particular individuals. Plenty of people abuse their privileges in jobs. We don't boycott the entire medical profession because of the occasional rare example where a doctor has abused their position for personal gain. We don't call for a ban on baseball bats because they are occasionally used by thugs! A business should be judged on its own merits, not on the qualities of some of its ambassadors.  

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