Product Name: Market America
Price: From $129.95 up
Industry: Product Brokering of Various Products
What is it?
Market America is product broker, meaning they don't make their own products. Vendors use them to sell their products, and you, as an independent distributor, sell those products. So they are like the middleman between suppliers and sellers.
Is Market America a scam? No. It is possible to make money from the company, but it is very difficult and you risk spending much more money than you will make. The main flaw I see in this business opportunity is a lack of assistance in setting up a proper business.
Before You Join Market America
Market America is a complex system, and before you join you need to realize a few points:
- There's a lot more detail to the compensation plan that you might think right now.
- Big money makers are going to be the people the recruit a downline, and lead a team
- If you want to pursue this opportunity you need a website to reach online customers
What I Like About This Company
It's interesting that this company has a wide variety of products to choose from, so you could potentially market to a wider audience. Often within the direct selling industry I see companies focus on just a few core products and your whole sales pitch is based on “This is amazing BUY BUY BUY.”. That can get old real fast, both for you and people around you.
As far as products go, I was a little interested in the types of websites they are selling. I read some comments from a user that said he was making money selling sites to small businesses. I know this could work, because lots of small businesses need this service. I am not 100% convinced these websites are actually good, but I think it could be an interesting niche to follow within this company.
What I Don't Like About Market America
Binary Structure Forces Unnatural Business Practices
Although the binary structure that Market America uses for their compensation plan simplifies your earnings calculations and allows you to focus on growing the two legs of your downline, it also complicates things. Without ‘balance' between the two legs of your business, you run the risk of having a high sales volume, but low commissions.
You are only paid ‘team earnings' based on your shortest leg. This seems very unnatural to me. In an ideal world we would be compensated for total sales of the team, not based on some arbitrary rule designed to make growing our business difficult.
There is a LOT of hype about how awesome this company is on their website, and much of it sounds like nonsense to me. For example:
Market America and SHOP.COM are changing the way people shop and changing the economic paradigm so everyone can become financially independent by creating their own economy.
Here's another doozy:
Market America provides systemization, standardization, state-of-the-art management systems, merchandising and marketing tools, growing visibility and the opportunity to own multiple business locations
To me, this is language meant to confuse the average consumer and make it seem like their website is “professional”. If the company really wanted to reach out to the average person and make this an opportunity worth joining, they would be more straightforward and approachable.
Recruitment & Payment
The main way of making money through Market America is by recruiting others into the company. For most people, this unfortunately starts with trying to recruit family members, friends, and coworkers
Now, I don’t know about you, but I won’t try to recruit anyone to a system unless it is highly effective for me. With Market America (and other companies like it), a lot of people end up promoting the system before you are even making money from it. Promoting a business opportunity based on what others have achieved, is always a hard sales pitch unless you “fake it 'til you make it”.
This really isn’t a good practice, and you will probably end up losing friends from trying it.
It’s also worth noting that the structure of this system isn’t one that works well in the long-term. The money you make comes from your sales and from what the people you recruit buy. This means that for you to make money, someone else has to be doing the work. I find it extremely frustrating to rely on other people to grow my business, and would rather be 100% responsible for sales, and reap 100% of the rewards.
Misleading Information for distributors
The people who promote Market America and the company itself, tend to be misleading about how ‘easy’ it is to make money. They say that you can get paid 30-50% commissions, but fail to explain what it means that you must have a 10-15 preferred customers to get those commissions. It means that you must have at least 10 people on autoship for products to achieve those commission rates.
If you thought making a single sale was hard…try getting people to sign up for subscription services! Plus, what happens if you get 10, then one quits autoship. Is your 50% commission taken away? I didn't see where they covered that!
It’s very important to note that nothing Market America is doing is new and the company is not changing any economic paradigm. They want you to think that this company is like a franchise, but without franchise fees. However, it's just another network marketing company. It's just a different business model. You can see the differences here.
No Steps To Start Your Online Business
Because I really do not like selling stuff to people I know (it's annoying), I prefer to market online. I am free to experiment with different sales pitches, marketing techniques, and test out new business ideas without being criticized by the people around me. Plus, it opens up a whole world of people around the US and abroad to promote things.
Market America does not provide a website for you to market, and does not provide online marketing training for people that sign up. As someone that actually runs a full time online business, I know how important it is to reach a wider audience than just the people you know.
Though there is a variety of products available, and some actually look interesting to me, this is not an opportunity I would go for. The top deal-breaker for me was the confusing language of the website and binary structure of the company that relies on balanced legs to get higher commissions.
Moving Forward With Your Business
No matter what products you decide to promote, you need to get your business online. That's clear. Even with network marketing, the old model of reaching out to your buddies to help you jump start your business just no longer works.
You can combine the idea of online business, without relying on a team or downline to earn commissions. With affiliate marketing you build a website and earn straight commissions based on what you sell. No autoship, no recruiting, and no motivational speeches! This is what I do for a living, and I run my business from my home. With affiliate marketing you can promote any products you want from a large variety of companies.
If you do like Market America, you could actually promote their products on your own website! That means that if later on down the road you decide to cut ties with them, you keep your website and your business in tact. The fact that you I am not dependent on one company for earnings is a real weight off my shoulders!
Whatever type of product you decide to promote, it's important to own your own website to grow your business.
Parties only work if you have a network of friends with money in their pockets. Network marketing only works if your friends are interested in joining business opportunities.
With a website you can reach the entire world, and only promote great products to people interested in what you have to say. Plus, you open up doors to multiple streams of revenue like affiliate sales, ad click revenue, paid advertising, and even selling your own digital products.