Direct Selling ● ●
Network marketing – a business model that offers career prospects to millions of people worldwide (over 120 million) and yet is repeatedly targeted by the mainstream media. Investigative programmes in particular repeatedly focus on the supposed ‘dangers’ of the industry and paint a picture of dubious machinations and naive participants. But why is the reporting so often negative and where is the balance? Time to take a look behind the scenes and dispel some prejudices.
1. The mechanisms of the media: drama sells better than facts
Media and especially investigative formats – whether TV or newspaper – thrive on attention. Formats that deliver lurid headlines and scandalous stories achieve higher viewing figures, more clicks and a stronger public response. Network marketing has provided an ideal target for decades: the concept is not fully known to many people, is often even misunderstood, there are many prejudices and terms such as ‘pyramid model’ or ‘snowball system’ are quickly bandied about – even if they are completely inaccurate in most cases, as many terms are simply lumped together.
Fact:
Serious network marketing is clearly different from illegal systems. While pyramid and snowball schemes are illegal and are based solely on the recruitment of participants, network marketing focuses on selling genuine, high-quality products to customers.
Media logic:
A report on the successes of satisfied network marketers or the ethical standards of a successful company does not come across as nearly as exciting as the portrayal of alleged ‘exploitation’ or ‘manipulation’. This tendency to scandalise distorts the overall picture and reflects badly on the entire network marketing industry.
2. Consumer education or quota hunting?
Consumer magazines and investigative formats are seen as the guardians of consumer rights. They are supposed to uncover abuses, protect consumers and create transparency. This is honourable work, but in reality their reporting unfortunately often follows other motives. Network marketing is a popular target because it is easily polarised and offers supposedly simple stories.
Fact:
Reputable network marketing is based on a transparent business model with ethical standards. It is clearly different from illegal pyramid schemes or dubious offers. Nevertheless, many reports generalise network marketing as opaque or even dangerous. The products are also repeatedly portrayed in a bad light: ‘ineffective’, dangerous, ‘far too expensive’.
Media logic:
A lurid report on supposed ‘rip-offs’ or ‘dangerous products’ attracts more attention than a factual report on the benefits of the model. What is presented as consumer education often actually serves the hunt for ratings.
3. Consumer protection as a pretext for scandalisation, often with one-sided sources and a lack of research
Many reports on network marketing present individual cases as representative of the entire industry. For example, failed or frustrated participants who have had little success are interviewed – often without going into their individual commitment or the complexity of the business model.
Fact:
Success in network marketing – as in any other business model – depends on hard work, commitment and training. This is often concealed in some media in order to paint a predominantly negative picture. The majority of successful network marketers report transparent support from their company and long-term success through continuous work. However, these voices are rarely heard in many media.
Media logic:
A differentiated presentation that shows successes and challenges in equal measure would be less emotionalising. Consumer education thus becomes a pretext for painting a distorted picture of the industry and confirming existing prejudices – this is what the reader or viewer gets. Negative posts such as ‘I lost everything’ or ‘I was cheated’ create more drama than ‘I have built up a solid income’. As a result, one side of the coin is presented disproportionately, while the other side is often ignored. Network marketing experts are rarely or hardly ever featured in the mainstream media.
4 Prejudices as a driver of reporting
Network marketing has to contend with deep-rooted prejudices. Many people associate the industry with dubious sales practices and financial exploitation without knowing the exact differences. Some media like to pick up on these prejudices because they reinforce an already existing opinion in society – and this in turn ensures coverage.
Fact
Modern network marketing companies operate ethically, offer clear earning opportunities and are subject to strict legal regulations. The products are often tested externally and fulfil the highest quality standards.
Media logic:
Admitting these facts would reduce sensationalism and weaken the investigative nature of reporting. It is easier to serve existing clichés than to question them.
5 The power of advertising
Network marketing is not only a competitor for the traditional retail trade, but also a serious challenge for the pharmaceutical industry. Many network marketing companies offer products based on natural ingredients – nutritional supplements, wellness products and alternatives to pharmaceutical preparations. These products are very popular with health-conscious consumers as they focus on prevention rather than expensive medication. Retailers and the pharmaceutical industry spend billions on advertising every year. Whether in magazines, on television or online – the media landscape is saturated with their marketing budgets, because media companies are also commercial enterprises. Network marketing, on the other hand, relies on direct sales and personal recommendations to publicise products. This means: no huge advertising campaigns, no income for media companies.
Fact:
The pharmaceutical industry turns over billions every year with drugs that often treat symptoms instead of tackling the causes. The success of network marketing companies that offer health solutions with a preventative approach undermines this lucrative business model. Network marketing is a business model that relies on personal relationships and bypasses traditional advertising channels. Network marketing thus deprives the media of a lucrative source of income.
Media logic:
The pharmaceutical industry invests heavily in advertising and sponsorship with major media companies. Positive reports on dietary supplements and alternative products would jeopardise the credibility of pharmaceutical solutions. This could also lead to a loss of major advertising customers.
6 Linear television: A system in decline
Traditional linear television has been losing viewers on a massive scale for years. Streaming platforms, social media and digital content have revolutionised user behaviour. Younger target groups in particular, who are often open to alternative working models such as network marketing, consume content via digital channels and no longer via TV or traditional print media.
Fact:
The number of TV viewers is falling continuously and with it the advertising revenues of the major media groups. At the same time, sales are increasing in alternative sectors such as network marketing, which interact directly with their target groups – without the diversions via expensive advertising campaigns.
Media logic:
In order to regain relevance, some investigative formats are increasingly relying on lurid, emotionalising content. Network marketing is an easy target: it is unknown to many people, appears dubious, mysterious and polarises. The perfect fodder for headlines designed to generate clicks and ratings.
7 The perfect enemy: network marketing
The dwindling trust in traditional media goes hand in hand with a growing openness to alternative working models and sales concepts. Network marketing appeals to precisely those target groups that traditional media companies often no longer reach: People who rely on individuality, flexibility and digital networking.
Fact:
More and more people, especially young adults, are looking for income opportunities outside the traditional 9-to-5 system. Network marketing offers precisely this freedom and combines it with innovative products that often strike a chord with the times.
Media logic:
Instead of recognising this development as an opportunity, network marketing is deliberately portrayed as a threat. Buzzwords such as ‘dubious’, ‘illegal’ or ‘rip-off’ are used to reinforce old prejudices that fuel fear and uncertainty – an easy way to generate attention.
Remain critical and scrutinise yourself
Serious and balanced reporting should also take into account the complexity of the network marketing industry: yes, there are black sheep in network marketing, just like in any other industry. But the vast majority of companies and sales partners work seriously, ethically and transparently. Successful network marketing is based on hard work, genuine product quality and a fair business model.
The one-sided portrayal of network marketing is often the result of sensationalism, inadequate research and existing prejudices. This makes it all the more important to seek dialogue with the public, clear up misunderstandings and make the positive potential of the industry visible. Network marketing is not perfect – but it offers millions of people a fair chance to work independently and successfully. And that deserves balanced reporting.
The repeated attacks on network marketing are also no coincidence. They are the result of a combination of supposed consumer education, economic pressure, falling audience ratings and the advertising power of big industries. Negative headlines sell better and protect powerful interests.
Freedom of the press is a central pillar of any democracy. It makes it possible to expose abuses, scrutinise the powerful and make information freely accessible. However, it is not always immune to influence (even if editorial work is strictly separated from advertising), because if reporting is orientated towards ratings, clicks or advertising revenue, it can become one-sided or manipulative. You shouldn’t lump together all media that report negatively on network marketing, but you should take a closer look and scrutinise.
For consumers and the general public, this means remaining critical, doing your own research and not always believing everything you read in the media. Network marketing is not perfect, but it deserves a fair and objective look – because for many people it is far more than just a business model. It is an opportunity for independence and a new, modern way of working.
Image: stock.adobe.com – DimaBerlin