November 23

What Is The Biggest Misconception About Network Marketing?

Beach Boss Influencers

Table of Contents

Network marketing isn’t a new thing; in fact, it’s been around for decades. Unfortunately, network marketing often gets a bad rap. This is likely due to misinformation about what network marketing truly is. Below, a few business professionals share their thoughts about what they believe are the biggest misconceptions surrounding network marketing. They also help clear up those misunderstandings.
Joshua Martin

Joshua Martin

Get-Rich-Quick Scheme

The biggest misconception about network marketing is that it's a get-rich-quick or pyramid scheme. In reality, network marketing is a legitimate business model that relies on building a network of distributors who promote and sell products or services. It's about building relationships, providing value, and helping others succeed. It's not about solely recruiting people to earn money. For example, let's say you join a network marketing company that sells health and wellness products. Your success depends on your ability to build a customer base and help others achieve their health goals. You earn commissions not only from your sales but also from the sales made by the people you've recruited and trained. It's important to note that not all network marketing companies are created equal, and there have been instances of unethical practices. That's why it's crucial to thoroughly research and choose a reputable company with quality products or services. Network marketing can be a great opportunity for an individual to start their own business with low start-up costs and the potential for significant earnings. However, it requires hard work, dedication, and a genuine passion for helping others.
Jazz Cole

Jazz Cole

President and Founder of Multilingual & Philanthropic Inc.

Multi-Level-Marketing

The biggest misconception is that [network marketing] is associated with an MLM (Multi-Level Marketing) when it's actually a fancy [name] for word-of-mouth business. As an entrepreneur within the network marketing space, it [involves] divesting money from traditional advertising and moving those funds towards paying people to generate a customer/client base through their networks. Some companies don't pay for ads [since] people are more likely to take recommendations from their friends, whom they trust, versus advertising from people they don't know and trust.
Tommy Mello

Tommy Mello

CEO of A1Garage.

Illegal Pyramid Scheme

Network marketing has been around for years, but many misconceptions are associated with it. One of the biggest misconceptions about this industry is that it is an illegal pyramid [scheme], and the top person earns more than others. This is usually [the case] because when that person started, it was way before you, so that person has more links and practice selling the products than you do. This can happen, but everyone earns the same or a bit less with a proper legal company. Now, networking is done by simply sitting at home through your cell phone or social media; the need for house parties and convincing is over. You show your product and give them information about it. If they buy, you gain profit; if they don't, you still gain a client. The idea that such companies use people can hurt those who work for network marketing companies. This is because most network marketing company employees have found success by helping others. People are not being used at all. It's not a scam to use network marketing. A lot of people say this is a scam that makes people think they can get rich quickly, but that's not true. If you work with companies whose products help people, you will make money and be successful while also helping people.
Esther Strauss

Esther Strauss

Co-Founder of Stepbystepbusiness.

Minimal Effort

The biggest misconception about network marketing is that it needs minimal effort. Because of this misconception, people assume it is a quick, get-rich route. But unlike the popular belief, network marketing requires a lot of effort and is not always profitable given that not all marketing efforts lead to conversions. Networking is also vital in network marketing and requires dedication, skill building, and teamwork. The structure of network marketing also makes it hard to earn a substantial income from this role due to the hierarchical structure. Meaning that most of the commission or profit goes to participants at the higher levels. So, like any other business, patience, skill, persistence, and many other factors determine the success of network marketing.

This is a crowdsourced article. Contributors’ statements are their own and do not necessarily reflect the opinion or views of Beach Boss Influencers.


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About the author

The Beaches (Adrian Lindeen, Brandy Shaver, Cari Higham, Fran Loubser, Kat Krasilnikov) offer coaching and mentorship to network marketers who are in the trenches building their businesses using social media right now. Our community is FUN, EXCITING, and focused on our students getting RESULTS; Enrolling customers, teammates, ranking up in their businesses, growing 6&7 figure teams. All without working 24/7 and still having time freedom and a life. 

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