“Sales are exploding!” and “We’re experiencing exponential growth!”. You’ve probably heard these two before (and other claims along those lines). They’re very common forms of the marketing hype you find in Network Marketing home business opportunities. Unfortunately those claims are seldom verifiable.
A lot of network marketing companies are privately held companies. In fact relatively few of them are publicly held companies. Why does that matter you might ask? Publicly held companies are closely scrutinized and must make accurate sales data public to their investors. Private companies on the other hand, don’t have such requirements. Therefore “experiencing exponential growth” can mean the company grew during one month but shrank the following two months. “Sales are exploding!” can mean a variety of things. Privately held network marketing companies can stretch the truth and get away with it much easier than publicly held companies can.
Am I saying you shouldn’t join a privately held network marketing company? No – that’s not the message here. But do take the sales and growth claims with a grain of salt. Be especially suspicious if the company is in launch phase. After all, you’d better have growth during a launch phase right? Use your common sense with these claims and if it doesn’t feel right, walk away from it.