Is network marketing good?

Your question is akin to asking, "Is business good?"

You could answer that question from many different perspectives because any endeavor as broad and complex as "business" or "network marketing" contains within it much that is bad, good, and in between.

As a business model network marketing has its advantages and disadvantages, just like any other business model.

For example, corporations provide employment to hundreds of thousands of citizens; contribute to the country via tax payments and philanthropy; and help create a healthy economy. On the other hand, corporations can mistreat and exploit their employees; hire lobbyists and lawyers that help them avoid paying their fair share of taxes; and cheat and scam the public, e.g., Enron.

So are corporations good?

The disadvantages of network marketing include pressure in some companies to focus almost exclusively on recruiting new distributors to the exclusion of selling to customers; scam outfits that call themselves a network marketing company; unscrupulous distributors who promise their prospects the moon but don't deliver as soon as they have the cash; and new companies that go out of business leaving the distributors with no residual income despite all their hard work.

The advantages of network marketing include:

1) The relatively low start-up cost, which is usually under $1000 compared to a franchise, which is $50000 to $1500000 or starting a business from scratch which usually involves tens of thousands of dollars if not more.

2) The training and support the good companies and ethical sponsors provide that would cost hundreds to thousands of dollars if paid for privately

3) The opportunity to help others launch their own home business

4) The majority of network marketers work part-time to supplement their income. This is the "big secret" of network marketing and the industry itself must bear most of the responsibility for it. There is too much talk of becoming rich and not enough about the value of a part-time home business that supplements one's income.

5) There are efforts within the network marketing field to rectify some of the negatives of network marketing. The leader in this movement, in my opinion, is Kim Klaver: http://kimklaverblogs.blogspot.com/ and http://networkmarketingcentral.com

[Note: None of these links I'm providing in my answer are affiliate links or referral URLs; in other words, I do not benefit in any way if you click on one of these links. The link under my name is associated with the direct sales company I represent.]

There are other options such as Internet marketing and affiliate marketing both of which naturally have their pros and cons as well. For example, there are just as many scam artists and over-hyped "business opportunities" in the Internet marketing realm as there are in network marketing yet you often hear Internet marketers disparaging network marketing as if their field were free of corruption and deceit.

The positives of Internet marketing and affiliate marketing can be found by reading and exploring the services provided by the "good guys" (and gals ;o) in those areas such as:

Ken Evoy, M.D. -- http://sitesell.com (also see the SiteBuildIt Certified Webmaster who posted an answer to this question--he can tell you about the advantages of SiteBuildIt and Dr. Evoy's other products)

Allan Gardynne - http://AssociatePrograms.com - the king of affiliate marketing. His web site and newsletter provide superb information.

Ralph Wilson, Ph.D.- A minister and entrepreneur, Dr. Wilson provides an incredible amount of information either free or for a very low price in the areas of both Internet and affiliate marketing (there's a lot of overlap between the two areas). http://wilsonweb.com

There's also direct sales, which I personally am doing because I believe it's easier to make a full-time income with direct sales than with network marketing. Again, there are pros and cons with direct sales--just like all the other business models!

You really have to decide if you want to have your own business in the first place and then explore your options among all the alternatives.

I hope this helps.

Mark Worthen, Psy.D.
http://MLM-Cold-Hard-Truth.com

Guess it depends on what you mean by "good". Network Marketing is Great if you're with the right company.

Trouble is there are many companies out there disguising themselves as legitimate network marketing companies but, are True Scams.

The first rule of thumb before joining any network marketing company is do a google search on the owners and put in the word [scam] after it, and use the brackets when you do.

This will pull up all sorts of info if they have a questionable past. The next thing to do is read the company policy and procedure. Do not join any company which has ongoing or continual sales, sponsoring, support, etc. in the policy and procedure or you will be working the rest of your life.

Also, understand the compensation plan. Don't fall for, just start working, you'll understand it later. You wouldn't take a job with an explanation like that, don't build a business that way either.

Just some things to think about. If you'd like more info visit my website www.NetworkMarketingHotspot.com for more good, solid information. You can also download my free ebook at www.TheMLMmom.com

Hope this helps.
Suzanne

WOW is right. Looking at the previous answer, this is why network marketing is not good - it's GREAT! Many people, most of whom have NEVER done network marketing, will rattle off statistics about the "failures" of network marketing. Yes, 90% of people who join network marketing companies fail, but it is not the company's fault. It's amazing, but there are about 450 or so players in the NBA. No one says that the NBA is a scam, but there is less than 1% of those who are successful in the league who tried out, which means that 99% of those who try out for the NBA fail. Hmmm. Is the NBA a scam?

One can quote statistics for ANY profession. The scam is the corporate sector where people spend hundreds of thousands of dollars in "formal education", yet come out of college earning less than $50K/year. One doesn't have to be a math major to recognize that most people start their professional careers in debt! THAT's the scam. Now, the reason most people fail in network marketing is because they DON'T GET TRAINED!!! Also, most people bring all of their habits - the same one's that made them unsuccessful in traditional business - to their network marketing business. Yet, they wonder why they don't succeed. In order for things to change, the individual must change. Two people can have the same vehicle and the same destination. Yet, if one does not have a map, chances are he/she will not reach the destination. Does that mean the vehicle doesn't work? Of course not!

Network marketing is an awesome business opportunity, provide you find a company that has a proven system of training, one that is duplicable and has a reputable product/service. If someone is making money, that means it is not a scam. What are you willing to do? You see, most people fail to realize that this is a BUSINESS, not a J.O.B. If you don't produce, you don't get paid. There IS no steady income until you EARN it! If you expect a steady income, put in the work necessary to earn the results. There is a saying we use - when you start your business you will be grossly underpaid for the work you do. If you remain consistent, you will be grossly overpaid for the work you DID! This is why we say start on a part-time basis until you have reached the level in personal development and growth to transition totally from your job.

Finally, ask this question of yourself: If given the opportunity, would you rather have a lump sum of $500K or a penny a day that doubles everyday for 30 days. If you choose the $500K, network marketing will NOT work for you. You must be willing to delay your gratification. Do what others won't today so you can live as others can't tomorrow.

To your success!

Network marketing is awesome if you can find a legitimate company that has a proven system that helps people make money. Before you sign up with any company and pay a penny of your hard earned money, do research on the company. Find out how long they've been in business. Find out what the business is all about and what they sell. Then find out their "marketing plan". This plan will show you how you'll be paid.

What you must understand is that when you get into this type of business you have to work hard until you can generate enough income to relax a little. If you do nothing, you get nothing. I have a Bachelor's degree in Biology from an awesome university and I make under $35000 per year. I started network marketing to help me with supplemental income. I found the company that I started with to be legitimate and has a great track record. I have awesome mentors who are helping me every step of the way to reach my goals. There are lots of scams out there though. That's why it's important to do your research. I hope this helps.

Because of several companies, I really got burned out on it. I will only do direct marketing from now on. Jennifer

Hi,

Freakanomics is right.

And comparing it to the NBA is a joke. What nonsense. Like comparing apples to computer chips. You will always hear some pretty convincing arguments that it is legitimate - every one is a con and illustrates how creative con artists are. The are very CON-vincing.

Here are the 10 biggest lies of network marketing (http://www.mlmwatch.org/01General/10lies.html); read the truth and steer clear of this world-wide hoax.

MLM is the biggest scam in the world and it is going global with companies like Tiens.

They will tell you that all you need is fresh leads from a good mailing list and people will sign up faster than a NASCAR race car.

Are you kidding me? Fresh MLM leads! Don't fall for that.

Get real.

Remember, There's a sucker born every minute...and two to take 'em. Burn that into your brain.

If their leads are so good, where is their money-back guarantee? Leadbakery is just one example of a list seller and they are even worse than the MLM companies.

Listen! There has never been a successful course or book on MLM success - all boil down to this:

talk to lots of people with questions like "If I could show you a way to make lots of money quick, would you be interested?".

That's the first warning sign that something is rotten in Denmark.

Yes, some will sign up, but unless you are a "heavy hitter" and use illegal methods to trap people into becoming distributors, honest people cannot succeed at this.

Do you know why these courses never work? None of them work because the concept is a con - it's the confidence man's dream, jam packed with hype and hyposcrisy.

The only people that will be making money are the list brokers selling the mailing list - and the course writers and seminar creators. If it was such a good deal, why wouldn't they join a MLM company? The mailing list would be free to them. You don't see them giving up a lucrative mailing list business to get into something that doesn't work. They are smart. They get it. And expensive training courses - what a joke. They offer courses that will never work for the gullible and naive - the GRQ crowd.

And I always wondered why none of the people who worked the administrative side of the "business" were not distributors if it was such a great deal. They knew a job was better than the smoke and mirrors, pie in the sky hype used to sell MLM.

MLM is the world's biggest scam. I have tried it a couple of times, the last being Herbalife. It has now moved into the Internet to trap people into believing that they can Get Rich Quick. It is going global.

The only way to make big money is to sell distributorships for thousands of dollars.

If you do the math, and you are able to sign up lots of people, which is doubtful, you soon run out of people. You get 2, then those 2 get 2, etc. It the old binary progression. Do it 10 times and you are in the thousands. With every progression, the number doubles. 2,4,8,16,32,64,128,256,512,1024, 2024,4048,9096. The problem is those people in the beginning of the progression opt-out and gobble up the progression faster than Pac-Man. This is known as the "Drop Out Rate".

So what happens when thousands of people are doing this and with the internet it could be millions. You soon run out of people to talk to.

Think about it.

In fact, finally, the numbers will exceed the entire world's population. It is a total dream world, completely out of touch with reality. It always looks good on paper, but none of the "heavy hitters" want to talk about drop-out rates.

Hey! What looks good in a spreadsheet, doesn't translate to reality.

The fact is that only the people who set up the program make money. The next level is all those scam artists that sell and give seminars on how to succeed in MLM. None of the schemes work because the concept is fatally flawed.

Why would anyone with a brain pay $30 for an herbal shampoo that they can buy at the local supermarket for $1. The same with pomegranate juice and Noni joice and all the other miracle juices, algae, and other strange things, even flower pollen.

Are you kidding me?

Get real.

Next, you will read all the anecdotal claims that the product will cure cancer and all sorts of other maladies. This is just another form of fraud. Where are the scientific double and triple blind studies? There ain't any.

Listen! Ask about the drop-out rate. Yes, the drop out rate.

Over 98% of the people who sign up will drop out after a few months or less. So even if you sign up a few people, they will be gone in months, if not weeks, when they find out how many people they have to talk to for just one distributor.

And your friends will not like you badgering them to join and will avoid you at all costs.

And most of the people who sign up are down-and-out desperate, who can ill afford to waste their money and who may be liable to criminal prosecution for promoting unregistered securities. And that's just in the USA. Foreign companies like Tiens leave you no recourse to any real legal remedies or enforcement.

Most of these programs die eventually leaving the suckers who signed up holding the bag. I had them die on me and not knowing any better, signed up for the latest MLM scam. After several attempts, I finally came to realize that it was all just a scam - some people became almost like religious zealots when they talked about their program that was going to make everyone rich and quick too. I lost a good friend when he believed my wild claims, put down $3,000 and lost it all.

The "industry" is full of disingenuous people whose mantra is "Fake it 'til you make it". Doesn't work. More fraud.

Here is a trick your upline will employ to get reluctant prospects to sign up. They will tell Ms. Reluctant that they will put some people under her and they take Mr. Hopeful who has already become a distributor and paid the fee and stick him under Ms. Reluctant which forces Ms. Reluctant to either buy in or lose the distributor. This is what happened to me in Herbalife. I was Mr. Hopeful. I thought I was signing up under a successful guy at the top known as a "heavy hitter", but I soon found out I had been scammed. Without telling me, he put me under Ms. Reluctant to force Ms. Reluctant to become a distributor. I did not like my new sponsor and after spending thousands on mailings, I finally dropped out. This is known as "stacking" and is supposedly illegal but it happens all the time.

Listen! My upline in Herbalife made more money selling a sales pamphlet than they did working their MLM business. We mailed out thousands of these pamphlets that we bought from our sponsor for a dime and he probably had them printed for a penny.

Now, it's all done on the Internet via e-mail. But instead of mailing booklets, you get a Web site. But a fraud is still a fraud no matter what the media is that promotes it.

This was right before the Internet became popular and I was buying mailing lists through mailing list brokers and mailing thousands of booklets with not much success. I was lucky if 1% of 1% signed up as distributors. And they dropped out faster than I could add new ones.. Pretty soon, you run out of quality people to mail to. The internet makes this even worse, but they have to be more careful, but the spam continues to explode.

Check out this Web site: http://www.vandruff.com/mlm_faq.html... - for more facts, not hype about MLM and what a world-wide fraud it is.

I will probably get lots of MLMers who will villify me for trashing MLM, but I've been there and done it and I know first hand what a fraudulent scam it is that can destroy your life, drain you wallet and ruin your friendships.

Kindest Personal Regards,

Walt Brown
Site Build It Certified Webmaster
capecod!@capecod-beaches.com/
wab@theworld.com

P.S. Remember, there are no get rich quick schemes that work. If there were, the entire world would be rich in an instant. I used to be gullible and naive and fell for some of them - no more. Be a sceptic. Be a doubting Thomas. Why are there thousands of GRQ schemes, because they work! Thousands of Gullible people believe that there is such a thing as GRQ and con artists take advantage of that. Demand proof, not hype.

Hi..

I'm a marketer...it can be very good.

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wow! that is an age-old question. most people agree that network marketing is a scam. you should read the book by steven levitt called, "Freakonomics". His chapter called, "Why Drug Dealers Live with Their Mommas" pretty well sums up how this network marketing scheme works to the favor of a few and how the bottom majority are just being scammed.

The concept is awesome....unfortunately there is no security....they will fold on you in the guise of a re structuring at any time. If you are at the top you reap the most income. There are many legit companies like Global domains and success university...but you must be willing to keep people under you as motivated as you were when you joined. So always seek leaders as opposed to your friends and relatives go for people who are or have been network marketers..its in their blood. Sometimes the fortunes of the ones promoting cannot be duplicated but there is always a rare diamond in the rough...so do your due diligence and always have multiple income streams just in case. Good luck!

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