Is Network Marketing Just a Scam?

network marketingNetwork marketing is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods.

This will help you understand what network marketing is and is not:

  1. Network marketing isn’t a pyramid scheme. Pyramids are money game – usually without products and/or with intangible products that need not be mentioned.
  2. When you join a network marketing company you are “signing up” to represent that company’s product and services and business opportunity.
  3. Network marketing is a legitimate business. This is actually a marketing program a company applies to better market its legitimate product/s at a fair price.

If some people do get rich through network marketing, it is the result of their dedicated efforts to building an organization that sells real products and services. This part is no different from successful sales people who make a lot of money in traditional business.

  1. In network marketing, each member multiplies his or her efforts, skills and talents by helping others become successful. Network marketing has proved itself as part of the new economy and a preferred way to do business here and around the world.
  2. Network marketing is a serious business for serious people. It’s a proven system where the design, creation and expense the corporate team has gone through becomes a road map for your own success. Just follow the simple, proven and duplicable system that the good companies provide.
  1. Network marketing is all about leverage. This means multiplying yourself through others, and helping others succeed, as mentioned, is the key. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning a small income on their efforts.

As J. Paul Getty, who created one of the world’s greatest fortunes, said:

“I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts.”

Most successful people in network marketing business work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process.

By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business. You leverage your time by helping others be successful and earn an income from all their efforts.

  1. Network marketing is a low-overhead, home-based business that has no big capital requirements, no geographical limitations, no minimum quotas required and no special education or skills needed. Network marketing is a people-to-people business that can significantly expand your circle of friends. It’s a business that enables you to travel and have fun as well as enjoy the lifestyle that extra income can provide.

You “sign up” by making a small investment and by completing an Independent Distributor agreement. You are not being hired by the company as an employee but, rather, you are volunteering to represent the company as an independent contractor, business owner, dealer, representative or consultant. You are awarded a commission based upon the volume of product sold through your own sales efforts as well as that of their downline organization.

In other words, to make money you need to personally sell stuff AND teach your team to sell stuff because you earn commissions on the AMOUNT of product that moves through your new business.


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