The not-so-good things about network marketing:

 

The not-so-good things about network marketing:

 Now before you think I’ve drunk the cool-aid and am now off to start a pyramid scheme, there are some negatives that are very much worth consideration. The most obvious is the clear similarity to pyramid schemes. If you do plan to involve yourself, you need to be sure that you are engaging in a legitimate network marketing system – not a pyramid scheme which is illegal. This will require significant diligence and research on your part to be sure, but a good rule of thumb is to note how the money is made. 

The Federal Trade commission says the following about the difference between network marketing and pyramid schemes:^[4]

“They all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program- not based on profits from any real investment or real sale of goods to the public.”

However, with direct marketing, the focus is money made via sales – not recruitment. When it works, network marketing can be hugely beneficial for all parties involved.

There are other considerations too:

• Most sales you’ll make will be face to face.^[5] Only a small fraction of sales through network marketing occur online and instead will be face to face or over the phone. This is something you’ll need to be comfortable with.
• Even if you are comfortable with selling face to face, you will have to get used to rejection.
• It is not usually a get rich quick scheme. It can take time and some investment to set up and even then you’ll be competing somewhat with other agents. Although it’s possible to make a lot of money, it probably will not happen fast. 

So, how do you start?

The good news is that getting started in network marketing is a relatively simple process.^[6]