First of all, what is network marketing? This question is so big I could write an article on it (and I will). In some quick words it’s a way for companies and individuals to sell (their) products and earn money, the major difference between network marketing (or MLM) and affiliation (affiliate marketing) is in the possibility to create a team (a massive team time to time) and start earning passive income not only on your own work but on the work of your team. And this is the point that concludes that lot’s of people truly believe network marketing is a pyramid scam but in fact, it’s not. You can earn (much) more money than your sponsor and upline (the people who started before your). In my very first MLM company, I did it, I earnt more money than the friend who registered me.
It’s a great school
I am in the network marketing industry since April 2009 so in few months I will celebrate my 10-year anniversary in the industry and (unfortunately for me) I am not yet a top earner nor a millionaire. And this the first pro and con of network marketing! Many people start network marketing to become rich quick but it doesn’t work like that. MLM is probably the best business school, you learn to sale, to promote, to organize the event, to be a team leader (and leadership) and manage to fail. Cause YES you failed or will fail (many times) but it’s not a reason to stop. Success in network marketing is a “15-year overnight success”. If you stop when you got your first NO, you never achieve anything in life.
It’s not a fraud!
Like I said before, MLM is not a pyramid scheme. Lots of people are confused about this and think our industry is just a massive scam that traps lots of people. And this is so hard to convince people that hate our industry that it’s a legitimate business. So how spot legitimate MLM opportunities from real pyramid scheme scam? The number one thing to look at is how do you make money: is it to sell a product or to sponsor people? If the company you want to start with has no product, it’s not a network marketing company and it will shut down sooner or later. Profits in network marketing come from selling not recruiting.
You can develop your team but if you have the “recruiting overselling” mentality, you are planning to fail and everyone will hate you sooner or later.
Don’t make me wrong, you can build a team of 1.000, 10.000 or even 100.000+ people and don’t be just in a recruiting mode IF you and people in your team understand that they must sell products.
When I start writing this blog post I wanted to cover all the pros and cons but they are too many and I don’t want this article to become a book. I divide that into 3 articles.
I’ll publish the 2 others in a few days. I will provide you a list of the Pros & Cons about Network Marketing.
Pros & Cons
- You can build a real-money machine
- You can travel all around the world
- You learn how to sell and how to promote products and events
- You learn how to run a business
- You build wealth
- You meet great people
- You will lose friends
- People will think you are crazy
- … and you get scammed
- You will fail many times
- It’s not a “Get Rich Quick” scheme
- You can also meet the greatest dumbass on the planet
- It’s not for lazy people