Network Marketing, The Good, The Bad And The Ugly.

The Infamous industry of Network Marketing, Who can you trust, who Is getting the truth and who is just High on Hopeium?

In my Opinion the Direct Sales industry should be Aggressively Regulated, If someone “Cooks the Books” Lies about Financial statement, they get Persecuted, in MLMs it goes unnoticed,

there should be Federal laws passed to hold leaders responsible for the advise they give others from a leadership position and they should be financially responsible for the promises and implications they make… (I’m a supporter of the industry) but I have seen too many people loose years, decades and have not a penny to show for it, if that happened in Finance people would be in jail.
I am a big supporter of personal responsibly for our own success I am, but there should be strict test and guidelines for what leadership is allow to say and imply. ( “Millionaire ” is someone who controls assets that total a million dollars, a 25k cash forex trader by leverage can be touted as a millionaire regardless of debt)

With that said I was happy with by last residual check.

I think MLMs are a great 4th source of Income!”

So you are considering joining or just joined a Network marketing company, There are many many thing to consider and most things unlike running your own classic business are out of your control.

  1. The Comp Plan, For many companies it is ever Changing.
  2. The Products update and releases
  3. If the company goes bankrupt so do you and it is entirely out of your hands
  4. They may terminate you without reason
  5. Its not YOUR business it doesn’t have your name on the board of directors or title of the company.

However there are many advantages,

  1. Low barrier to entry, Joining Herbalife, Nerium or ACN is much cheaper than Franchising a McDonald’s or even Filling your own LLC.
  2. You MAY have strong leadership and great mentoring available to you that may be universally applicable in all your business endeavors
  3. You MAY have a Top quality product that works wonderfully without the cost of patents, trademarks and production cost. (This one is a Big one) Nerium is a great example.
  4. Growing and developing as a person, presumably under the right leadership
  5. You have a system in place, this may not seem like a big one, it might even go greatly unnoticed but try to put together a comprehensive classic business plan or start up for  your own business to pitch to Goldman Sachs, and you will come to appreciate how easy its been set up for you.
  6. The Tax breaks you may get for having your own at home business that may not otherwise be available to you


1. You have to deal with some rejection.  (if you can’t deal with rejection, you probably should engage in any business that involves people classic or MLM, in fact you probably shouldn’t deal with most Americans :D) People are going to tell you no, not do what they say they are going to do, not return phone calls etc. Nobody likes rejection, and if you’re going to take it personally you’re going to have a tough time of it.

2. Discouragement. (if you are easily discouraged of fickle network marketing will be difficult to stick to, as would most likely any other wealth generating endeavor, Trading, real estate, fashion)  there are going to be people who tell you it won’t work (see other answers here to your question). people will try to discourage you etc. When you join you’re embarking on a journey of change — to make your life better and some people close to you who are threatened by change will try to discourage you.

3. Not a get-rich quick scheme. Contrary to the popular belief, this isn’t a get rich quick deal. Everything often takes longer than you think it should. In my option it takes much much longer than any other business you may endeavor in, I think its a great 3rd source of income. Patience and continuous action towards your dream is your friend.  You should plan for 6 months for part-time income (1000/mo and under) and 3-5 years to develop long-term passive income. Most people quit within 90 days when the get quick rich didn’t materialize.

4.  It’s not like a job where you work for a couple of weeks and then you get paid. In the beginning its work, work,work for just a little pay. Remember you are building a passive income stream, and down the road it will be pay,pay,pay for little work. I have people on my team who never made more than $1000 a month in the business and quit working the business over 10 years ago who still get checks that cover the cost of their products and then some! For those who stick around you can create a significant cash flow on which to draw from.

5.Smoky Mirrors. It’s Very difficult to believe much of what people say in network marketing, people lie about their income and wealth potential, antagonize classic corporations, and are well leaning fraudsters, products may be subpart or mediocre at best, as well as the services. If someone on Wall St. Cooks the books (lies about profit or income) they go to jail, in network marketing they are praised. I think there should be an ethics exam when joining an MLM that should stand in the court of law that is as aggressive as the financial tests and laws. There are companies calling themselves MLM that are in fact illegal pyramid schemes. Or fly-by-night operations. Or run by unscroupulous individuals — just like in any industry. You want to get with a company that’s a member in good standing with the Direct Sellers Association.

You also want to be wise with the team you sponsor into. Lots of people don’t know what they are doing in this business either because of poor training, no training, or simply because of a selfish attitude.

Get with someone who will not just mentor you, but who will do the calls with you and work side-by-side (even if they’re across the country) with you until you’re making a thousand a month and are confident in your abilities to do it for others as well.

There you have it. Some honest, real advantages and disadvantages. Best to you on your journey!