Common Questions About Network Marketing

Common Questions About Network Marketing

Common Questions About Network Marketing and how you can identify the answers to your questions is all part of knowing and learning network marketing so you the network marketer succeed.

Network Marketing is an often misunderstood business model. That’s why there are thousands of questions about it and is the things you should know.

This post aims to answer some of the common questions that people ask about network marketing.

It will help you understand network marketing things to know so that you can treat it for what it is.

While network marketing is a legit business opportunity, it is noteworthy that not all MLMs are legit business opportunities.

What exactly is network marketing

Network marketing is a business model that you the network marketer sign up for the company’s or person’s opportunity where you get to join them and get paid for referring new customers and sponsored members in the sales of products and the opportunity.

Here are the common questions about network marketing.

What is network marketing

Network marketing is a simple, ethical, and legitimate business model in which independent sales forces directly sell products and services to consumers.

The key point is that product distributors pass the products directly from the manufacturer to the end-user, meaning no middlemen are involved.

It is a potentially lucrative business system where distributors receive a commission for each product they sell.

Since the partner company requests participants to recruit a sales team, they may receive compensation on the sales of their recruited sales team.

Based on how it operates, network marketing can also be referred to as direct sales or multi-level marketing.

Is network marketing a pyramid scheme

Like any industry, not all MLMs are legit or good business models. That said, it is good to understand that network marketing is a legitimate business.

On the other hand, pyramid schemes are illegal, fraudulent systems that work similarly to network marketing.

Unlike in network marketing, participants of pyramid schemes use hypes to lure potential recruits to join their fraudulent “business” models.

In network marketing, you make money selling legit and useful goods.

For pyramid schemes, you are promised to make money only through recruiting – there are no valid products to sell.

The model of pyramid schemes becomes unsustainable as recruiting continues, meaning that those who join the business later end up losing their money.

Considering that pyramid schemes tend to have a model similar to that of network marketing, it is important to do your research before joining any MLM.

Does network marketing work

Yes, it works. Considering that network marketing is a legit business model, it can be an excellent way to create an additional revenue stream.

However, just like most things, network marketing doesn’t work for everybody.

This potentially lucrative business model can work for you and any other person, provided you treat it like a business and give it the attention it deserves.

Multi-level marketing is not a get-rich-quick scheme. This means you need to invest considerable effort and time to make it work for you.

How do you make money in network marketing

In network marketing, there are two primary ways through which you can make money.

Money generated on sales of the products or services to customers: This is usually the main source of income, particularly when starting out.

Commission on sales made by downlines (recruited sales team): This is passive income that you get when you expand your network by recruiting a team of salespersons, also known as downlines.

In most cases, revenue earned from sales made by downlines overtakes money generated through personal sales. However, this depends on the size of your team.

The compensation specifics can vary significantly from one MLM to another, and this is where you need to show great diligence in researching the legitness of the MLM you want to join.

Although you can make money working as a network marketer, you should avoid any MLM company whose compensation plan doesn’t seem fair or one that seems complicated for an average person to understand.

What is the success rate of any network marketing business

There are speculations that 97% of people who join network marketing do not succeed.

Although there is no scientific proof supporting these claims, I bet that only less than 10% of all network marketers make a significant income from their business.

Like some other businesses or investments, network marketing is not for everyone.

Even though many people involved in network marketing end up earning nothing or losing money, some network marketers earn up to six- or seven-figure income.

Whether you will succeed as a network marketer or not depends on your skill-set plus the effort and time you invest in growing your business.

Another factor that could be affecting the success rate of network marketing businesses is that many people join the system without basic skills or prior experience.

Also, other people join the industry just to get discounts on their products. Such people should not be categorized as failures, though.

Overall, the success rate of any network marketing business is very low. Many people fail because they join the industry thinking that that is get-rich-quick schemes.

Network marketing, like any other investment, requires patience and persistence.

Are network marketing products inferior

Network marketing primarily focuses on consumable products because of their high demand.

While it is easy to identify the various industries that use affiliate marketers to reach customers, telling about the quality of the products and services can be very hard.

Like most other products, the best way to understand products promoted through networks is by doing your research.

Read online reviews, if any, and check how customers are satisfied with the product you want to be promoting.

Whether you are buying or are considering joining network marketing, it is good to make the products are of great quality.

Although you may find inferior products in the network marketing industry, it is good to note that MLM companies use network marketing to cut down distribution, storage, and advertisement costs.

How much do you need to start network marketing

Becoming a network marketer requires little upfront capital. Indeed, it is ridiculously lower than nearly all other forms of small, home-based businesses.

The actual amount you need to start a network marketing business will depend on the MLM company you are partnering with, your needs, and your goals.

Top 3 Secrets of Network Marketing Success


Network Marketing is one of the lucrative industries that many doubt its potential.

Although many questions arise concerning the industry’s legitimacy, it remains an ethical and legitimate business model.

Interestingly, the future of MLMs looks brighter than ever with the power of the digital world that we live in today as everyone is doing business online.


Jim Morrison

I hope you enjoyed this post on Common Questions About Network Marketing

Scroll to Top