What you need to know about Network Marketing

So now you heard a friend of yours telling you about some business they joined and how excited they are about it, or some network marketer prospected you to join his/her network marketing company. But then you kinda heard about all the scams happening in this field, and most probably people with bad experience discourage you to join such business.

Before you decide about anything, I want to enlighten you about what all this “network marketing” is about.


What is Network Marketing?

By definition, according to entrepreneur.com, Network Marketing is:

A business model in which a distributor network is needed to build the business.

In veryyy simple words, network marketing is all about starting a marketing strategy from home where an individual makes use of their personal networks to grow their business. So basically, it’s a home-based business. People join these companies to make use of their products and services and later market them to their friends and families.

Most people who join such company join it as a part-time business. Its flexibility helps making an extra income without the need to quit your 9-5 job.

Even though it can be crazy profitable and rewarding, but not all make serious money out of it. Not because they are incapable of it, but because every person’s goal is different. If your goal is to build your business to its peak, then you can do so by following the right steps to do so. You don’t need to have “special” skills to start a home-based business, neither do you need to invest a big deal on commencing it.

The problem with some people’s failure in this business is because their mission when prospecting people is just to get the job done. They either think about how the person in front of them should just join their team no matter what, or how this customer must buy their product/service no matter what. This causes the person to exaggerate about the truth behind both offers. People’s fear of rejection can sometimes tempt them to over sell their offers, failing to make the person understand what are the challenges they might face while working on achieving goals.

So many people join this business thinking it is a very easy thing and that they don’t need to work that hard. Either because they believe the products/services sell themselves or that their upline told them they can achieve their dream “easily” in no time.

This causes a lot of failures in network marketing and because people don’t really understand what network marketing is all about, they believe that it is a scam. It is not a scam, it is a misunderstanding.


Network Marketing is not a small deal. There are three categories of which network marketing fit in.

Direct Marketing

This is a single-tier marketing method in which an individual sign up into the company and sells their products and services. Their only profit or payment is from the direct sales they make. It is the most direct form of sales in which individuals don’t recruit distributors as a downline. They just get the product they love and tell all about it to their friends and families so they can buy it too. Examples of such companies include AVON Cosmetics, Pampered Chef, etc.

Multilevel Marketing

This is a multi-tier marketing method which includes direct sales with a downline of distributors. It is just like direct marketing except you do recruit distributors as a downline (hence the “multi” part). Most often, network marketing is referred to as this type of marketing scheme.

The problem faced with this scheme is that many people confuse it with businesses that run in a pyramid scheme. So many people think that they are one and the same thing. But they’re not! A pyramid scheme based company asks people to invest while giving them false promises that help increase their wealth. However, a multilevel network market sells legit products and services that prospects can see and believe in. They also provide a reasonable infrastructure where they provide pieces of training to help distributors grow their business and earn an extra reward or incentives for their high performance. Examples of such companies include Herbal Life, Forever Living, Scentsy, etc.

Affiliated Marketing

This is a new form of network marketing where people who own a website or even bloggers insert links to specific product or service using affiliate marketing programs. When a person clicks on the link and purchases the product, then the website owner or blogger gets a referral fee. This is amazing because it helps people purchase products from a site that they trust. The most popular site that uses affiliate programs is….yes, we all know it….Amazon!

People using affiliate programs should always be transparent about it and tell their people buying the product that they are gaining referral fees. They can do that by simply adding a disclaimer by the end of their blog post (if it is only for a post) or their website (if it is something like Amazon).


Network Marketing is the kind of business that helps you earn an extra income by making sales and recruiting people into your business. It is not easy or get-rich-quick kind of business. It is considered as any other business in which you need time to grow and reach the top (that is, become a top earner).

The good thing about Network Marketing is that you don’t invest much like you do when you start other businesses. Also, how much you earn solely depends on no one but you.

Not everybody is the same in this business or any business. People may exaggerate a bit about stuff but that doesn’t mean network marketing is a scam. You don’t define a company by its bad employees, you define it by its services. So it is the same in network marketing. Some people may lie about certain facts but that is on them not on the business.

So now you have an idea of what network marketing is really about and most importantly that it is not a scam. My advice to you is to understand the type of business you’re getting yourself into before getting involved just because your “friend” got in.

After knowing what it is, you need to check if network marking is right for you, if you chose the right company that you see yourself in a long term, and what are the things you will do once you get in.


I hope this post was helpful.

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