Network Marketing Facts

Network Marketing FactsNetwork Marketing Facts – waste of money, or ticket to freedom?

The short answer is, network marketing isn’t necessarily either.

But that begs the question, what are the network marketing facts?

  • How does network marketing differ from a pyramid scheme?
  • And what’s involved?
  • Are network marketing companies not financially stable?
  • How can you do succeed in network marketing?
  • And what on earth makes the difference between being an average network marketer, and the top 10%?

So. As you see, there are lots of angles to the network marketing facts. Let’s get rolling!


What is Network Marketing?

Network marketing, sometimes also called multi-level marketing (MLM), is a legal business model where you exchange goods and services for money.

And instead of paying multiple middle-men, in a network marketing company a small commission is paid to a few people above you in the organization, who in turn train and mentor you in your business.

There’s no advertising budget, no marketing department. All those dollars go directly in the pockets of the people pounding the pavement. As a result, network marketing companies have the highest quality products out there. – Because the money goes into a quality product and the people who represent it, not for the ads on TV, etc.

Network marketing companies tend to carry the very highest quality items, for the best price. Click To Tweet

That’s really all it is. It’s not complicated. – And if it is complicated (and I’ve heard of one), then stay far away from such a company! The compensation plan and where the money goes should be easy to understand. (As with working with any company, you want to do a little research first.)


How Does Network Marketing Differ from a Pyramid Scheme?

Good question. You should know this answer, because you’ll get this question from time to time, and this is one of those network marketing facts you really need to know.

In a network marketing company, you exchange money for a product or services, as I mentioned above.

In a pyramid scheme you exchange money for… nothing.  You get nothing in return.

That’s why they’re illegal.

(Makes sense, doesn’t it?)


Are Network Marketing Companies not Financially Stable?

I have no doubt that there are some network marketing companies whose founders didn’t think things through, and didn’t allow for enough profits to flow back to the company for paying the bills.

That being said, however, I’ve never heard of any such businesses.

I’ve heard of companies who were unethical in their outreach.

And I’ve heard of companies that didn’t make enough money, and went under.

But realize that one of the very oldest network marketing companies in America, Amway, is still in business after all these years.

So is Mary Kay. And they make great stuff, too.

And Reliv is a worldwide business that’s been going for over 20 years.

These three examples should say something about the sustainability of the business model. It can and does work, when it’s planned out properly.

People who say that network marketing is entirely dependent on new business builders have sour grapes, I suspect, as far as I can tell. This is most probably due to  either by getting involved with a shoddy company (they do exist, which is why you need to do some research), or getting fed a “you’ll make $10,000/mo. in your first 9 months in business” line.

Seriously. (If you read articles by these people, the articles really do sound bitter!)

I feel sorry for those people, but if any such people are listening, please don’t spread bad and inaccurate vibes out there on the web.

I know a lot of people in network marketing of all sorts.

The companies I have personal experience with all good companies, and are ethical people represent those good companies. And the networking companies are stable.


What’s Involved in Growing a Network Marketing Business?

Now this is the million dollar question.

The short answer is you speak to people who buy your product, and they in turn tell their friends and spread your good reputation.

The complete answer is, it typically takes a lot more than that.

A whole lot more.

It takes really good training (which is the purpose of this blog, so be sure to sign up for the newsletter), and remember this important fact: network marketing is a long term wealth strategy.

I’ll say it again: network marketing is a long-term wealth strategy.

Because plenty of people do bring in extra money this way. But it’s not an overnight success, as some would lead you to believe. It takes time, as you grow your skills and sales finesse.

By the way, the very best thing I ever read on how to improve my sales finesse is from this freebie 10-day Boot Camp. Get it. It’s fantastic!

And this leads me nicely to the next point…


What is the Difference Between an Average Network Marketer, and Being at the Top 10%?

Here’s the big secret. Say it over and over to yourself. Write this down on a few post-it notes and stick them around the house.

Your success has nothing to do with the company you join, and everything to do with the

SKILLS you develop, and the

ACTION you take on a consistent, daily basis.


Notice I said consistent, and also notice I said daily.

Some people think if they join this or that company, they’ll rocket to the top. As matter of fact, I suspect that’s a common belief among newbies.

However, in reality, your success is not dependent on the company you join. It’s what skills you have and what actions you take.

And quite frankly, it’s also largely dependent on your upline, or next person above you in the organization (personally, I have a fantastic one!!!).

But at the end of the day, you are responsible for the success (or failure) of your business.

It’s on your shoulders.

And now for the zinger:


What are the Network Marketing Facts?

For Real? In Action?

What are the real network marketing facts? What does it truly mean to be involved in network marketing?

It means:

  • The highest quality products and services
  • Integrity
  • Value
  • Time flexibility, and can lead to time freedom
  • Helping others – in many ways, through financial and charitable causes directly associated with your network marketing company – because many companies give back (I personally wouldn’t join one that didn’t do that.)
  • It can mean financial freedom

What more could you ask for? What does network marketing mean? Good things, that’s for certain.

Besides, (pardon me while I get on my soapbox) if I need to purchase something , I’d much rather spend my money directly benefiting my friends and neighbors, rather than someone I don’t know, overseas, being paid pennies on the dollar.

So if you don’t want to join a network marketing business, then at least buy from those who are in one. You’ll get the best bang for your buck.

Wrapping Things Up

What’s the next step?

  • If this article answered your questions, then please comment below and share what you found most helpful.
  • If you’re curious to learn more about what the top 10% do, then start with this article on SMART goals and the power of 90 days of action.
  • And if you’re searching for a solid network marketing company, and an energized and motivated team, then contact me and let’s talk.

If you got value from today’s post on network marketing goals or know anyone that could use this information, please share on social media using the media icons below or to the left.


Have a great day,

Reach Ruthanne

PS – Click here for my favorite way to get leads & prospects to call YOU about your business.


Related Posts:

Powerful Lessons from a Top Network Marketing Leader

How to Talk About Your Network Marketing Business

Top Earners’ 10 Steps from Eric Worre


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  • Kathleen Gage

    Reply Reply July 6, 2017

    Excellent article about network marketing. I especially like the question, How Does Network Marketing Differ from a Pyramid Scheme?

    Your information is detailed and digs deep into the areas of concern many people have about network marketing.

    • Ruthanne

      Reply Reply July 7, 2017

      Thanks for the feedback, Kathleen. Much appreciated.

  • Paul Taubman

    Reply Reply July 6, 2017

    Good explanation fo all things MLM! As with everything in life, people need to do their due diligence since there are good, and not so good, companies out there!
    Paul Taubman recently posted…Earn Money Online through Publishing Web ArticlesMy Profile

    • Ruthanne

      Reply Reply July 7, 2017

      Absolutely, Paul. Some are good, and some aren’t. And some expectations are realistic, and some expectations set you up for trouble.

      Doing your research is key.

  • Martha

    Reply Reply July 6, 2017

    This is way above my head, but very interesting. I need to spend more time learning about things like this.

    • Ruthanne

      Reply Reply July 7, 2017

      Thanks, Martha. I’ve heard a lot of people ask these questions – not everyone will be raising these points, but for those that are, I hope these answers help.

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