Five Common Myths About Network Marketing

We get it.  We see it.  It’s all over our newsfeeds.  It’s plastered to our neighbors’ cars.  It’s on the windows of nearly every minivan we see on the road.  What is “it?”  It is the dreaded advertising of any of the countless multi-level marketing (MLM) companies.

To help you understand what network marketing is, I must first explain what it isn’t.


Myth #1: “It’s a pyramid scheme.”

Network marketing (also called multi-level marketing)  isn’t a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money  and “somehow”, they’ll get rich. A pyramid is strictly a money game and has no basis in real business. Normally, there’s no product involved at all, and if there is, it’s clearly there just to disguise the money game. Pyramids are illegal and are based on taking advantage of people. For a person to actually make money in a pyramid scheme, someone else has to lose money. This is why your friend gets insulted when you call her business a scheme. You’re calling her a scammer.



Myth #2:  “There’s no real money in it.”

Network marketing is a legitimate business. First, it’s based on providing people with real, legitimate products they need and want at a fair price. Many companies sell their products at wholesale. While some people do make a lot of money through network marketing, their financial benefit is always the result of their own dedicated efforts in building an organization that sells real products and services. Yes, network marketers work for their money.

Unfortunately, there have been companies over the years that have given the MLM business model a bad name.  But should that matter?  One rotten company doesn’t exactly speak for the entire business model, if we are talking logically.

But in network marketing, each person can multiply his or her efforts, skills and talents by helping others be successful. Network marketing has proved itself as part of the new economy and a preferred way to do business here and around the world.


Myth #3:  “These companies encourage you to attack your friends and family, looking for sales.”

Network marketing isn’t about taking advantage of your friends and relatives. Only a few years ago, network marketing meant retailing to, and sponsoring people from, your “warm list” of prospects. Although sharing the products or services and the opportunity with people you know is still the basic foundation of the business, today we see more people using sophisticated marketing techniques such as the internet, conference calling and other  sponsoring techniques to extend their network across the country.

Let’s talk more about friends and family.  My good friend, (let’s call her Jane) has opened up her own store.  Jane is new to business ownership, but still, is so excited about it, and wants and needs support. Who does she call? Her friends and family.  The point is what business doesn’t start out with support from friends and family? What person just starting out doesn’t  ask for that support? Your network marketing friend sees you as a helpful supporter.  Not someone that can be had.


Myth #4:  “It’s a get-rich-quick scheme.”

Network marketing isn’t a get-rich-quick scheme. Of course some people do make large amounts of money very quickly. Many would say those people are lucky. But success in networking isn’t based on luck. (Unfortunately, money won’t  fly into your bank account no matter what someone has promised you.) Success in network marketing is based on following some very basic yet dynamic principles. You’ve got to know this.  Any successful network marketer knows it is work.  Hard work.


Network marketing is a serious business for serious people. It’s a proven system.  Just be duplicable and follow the system that the good companies provide.

For example, most successful people building a network marketing business do so in an organized method. They work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process.


Myth #5:  “There’s no real growth. They mark up their prices to pay the distributors.”

Any product that you love is a quality product.  You can open your own account at a wholesale retailer, (BJs, Costco) without even flinching and why? Because you like their product and you believe in it.  Do you know what salary the workers make? No.  Do you care? Probably not.

The key is to duplicate yourself.  You learn the process, and you teach others to lead and so on.  As this process continues, you create  growth that can lead to hundreds or even thousands of people coming into your business. You leverage your time by helping others be successful and earn an income from all their efforts.


In almost any company you work for, you will note that you cannot go above your qualification allotment.  If you are a  respected hard working employee, what are the chances of you becoming the CEO?  Not very likely. No matter how big your dream is, no matter how hard you try and no matter how long you wait, you will still be a hard working employee if you don’t qualify.  In network marketing, you have that chance.  The thing is, though, you have to want it.  You have to be hungry for it.  Not only that, but you have to be giver.  Givers help you build and they grow because of that.  Takers take and then they fade out.

If you are in network marketing, here is my advice:  Sell YOURSELF, not your product.  Stop slamming people on facebook with your posts. This is why people are turned off to MLM companies.  Analyze yourself.  I was offered some great advice.  “Use the 5 to 1 rule.  For every five personal posts, you post one business post. ”  What do you think about that guys?  People will be drawn to you if you’re genuine about your life.  They will want to join your team if they love the product.  Just be patient and wait for that.  Avoid making promises of income because you know full well it depends on the person. When you are passionate about your role in any network marketing job, you can easily match or surpass what you make in your exhausting forty hour job.  It’s a possibility, not a promise.

Before you discredit or judge someone who is trying out network marketing, there are some things you must consider first.  Judgement is everywhere.  When a parent is slaving away for a job he or she hates at upwards of forty or fifty hour work weeks, who takes care of their kids? There is a lot of thought behind the person deciding to take a shot at an MLM. It also takes a great deal of courage.

Network Marketing is a proven business model and it can all be yours for a low price of dedication, hard work, and old fashioned effort.

Next on the blog:  “The Staircase to Business Success?”


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