The Pros And Cons Of Network Marketing

pros and cons of network marketing

In this article, I am going to look at the pros and cons of network marketing so that you can make an informed decision when it comes to joining one of these companies.

Most network marketing and MLM companies work on similar principles but remember you should always have a tangible product that you are promoting, or you could consider it a glorified pyramid scheme.

There are so many out there to choose from that it can be quite baffling to the brain, and overwhelm can set in fairly quickly.

I find this type of business works for some and not for others, and it depends on what type of person you are, but network marketing and MLM styled business models are definitely not for everyone.

pros and cons of network marketingNetwork Marketing and MLM’s will either have you excited and motivated, especially at the beginning and then unbelieving and disillusioned if you don’t succeed.

There are a lot of Network Marketing Do’s and Don’ts to take into account before deciding what to do and what method is best for you.

I have tried various different network marketing companies, first by selling beauty products, then onto the vitamins and even household cleaners.

Yes, the companies that I tried to do this with are still around and doing well, the problem is that the majority of their distributors are just left along the wayside.

You really have to be motivated and work super hard to make anywhere near the type of profits that are outlined to you before you sign on with them.

The worst part for me was that my family and friends suddenly started avoiding me because I was so desperate to make a sale that all that came out of my mouth when I saw them was business, business, business.

Then just as you think you have it made with a promising distributor on board underneath you, he then decides to take on a better opportunity and takes his down line with him.

The real problem with Network and MLM companies is not them in themselves, just the type of people that they attract.  There are loads of promises to get rich quick, but never a mention of the amount of work and dedication it will take to get there.

Most just don’t have the mindset and the drive for this type of work.  Most of the people that sign into these businesses have no previous sales experience, little or no experience with owning or running a business, have very few investments, and also have unrealistic expectations of the amount of work involved to get the revenue talked about in the sales pitch.

When these recruits start to sell (and I was one of them at one stage), they either oversell the opportunity, come across as desperate to get a sale, or over-exaggerate when talking about their business or their products.

I decided quite a while ago to rather do affiliate marketing, as I have realised that my personality is far better suited to this type of business model.

The Pros And Cons Of Network Marketing


  • You have the potential to make a lot of money.
  • You can make money if people three levels below you sell something (depending on the company structure), so this is like passive income for you.
  • If you are truly passionate about the product or service, you could be helping a lot of people.
  • It is one of the easiest ways to get started with a business opportunity as the structures are already there.
  • If you are successful, you could make a full-time income from the comfort of your home.
  • Flexible working hours, which is great if you have a family to take care of.
  • If you have a good sponsor, you will have support and help, as well as training to help you succeed.

pros and cons of network marketing


  • If you don’t like face to face selling, this type of business may be difficult for you.
  • You will have a lot of rejections, so you need to grow a tough skin and not take it personally. You will find that about 80 % of people will more than likely turn you down.
  • It takes time to grow. You won’t earn a full-time income from the beginning. But this goes for any new business.
  • Most people won’t get rich from network marketing for the reasons I have mentioned below.
  • Sponsors aren’t always the best mentors, as often they are beginners themselves.
  • Products are normally overpriced and thus more difficult to sell, as people can buy similar products in stores.
  • Sometimes you end up spending more than you make, as often you need to purchase a certain amount of stock each month to remain a distributor.

What To Look Out For Before Delving Into Network Marketing

The best thing to do before you start is to research the companies that you are interested in.  There are a lot of dubious network marketing companies and MLM’s out there, so don’t go for the first one that you come across.

Here are some questions to ask yourself before you decide:

  • How much money am I willing to lose before I start making a profit?
  • Are their products unique?
  • Is there a need or demand for that particular product or service?
  • Does the product have good long term appeal, so that you can build yourself a long term residual for retirement?
  • How long has the company been around and do they have good cash flow?
  • More importantly, does the company take full advantage of technology, as not everyone can sell, but everybody can plug into a system and be trained?
  • Is your sponsor committed to your success? Is he or she helpful or is he or she just recruiting you and expecting you to swim on your own?
  • Very important – what do you want from life and what are you willing to do to get it?

Entrepreneurs, who are serious about building their business, should read and learn about business fundamentals, the latest sales and marketing techniques, strategies for networking, business development, leadership, etc.

You as an entrepreneur will need to go beyond just swapping tips at your team’s weekly or monthly meeting.  Treat your business like a business and people will treat you like a business owner.

For me, the most important aspect of working with a company is that they must have Fully Automated Systems that can do the heavy lifting and final sales for you. The products should basically be able to sell themselves.

You should only need to worry about finding the time to generate leads and have fun with your new-found freedom.

If you have experience with the pros and cons of network marketing, please add your comment below. I would love to hear about your experiences.

If direct selling is not your cup of tea, why not look at affiliate marketing? You can read about how I got started by clicking here.



Michel Maling

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