home Exchange rates MLM pros and cons. Network Marketing - Pros and Cons

MLM pros and cons. Network Marketing - Pros and Cons

Network marketing became widespread several decades ago. This is a multi-level structure with many distributors (distributors).

Typically, network marketing is associated with the distribution of various goods according to the “from manufacturer to consumer” scheme.

Let's look at the advantages and disadvantages of network marketing.

Network Marketing - Pros and Cons

Pros of network marketing:

Chance to earn unlimited amount of money. If a person is purposeful and diligent, then you can achieve an abundant life in a similar way. The more people you attract, the more you earn.
Financial independence. You are given a chance to earn money without investments, and if you try, you can gain this very independence.
Development of your own business.
A close-knit team of like-minded people.

Disadvantages of network marketing:

Income instability. It all depends only on your diligence and on the people you arrange for yourself. One month the income may be good, another month it may be very weak.
Moral instability. Many clients believe that they are once again trying to deceive them and sell them nonsense. It may take time to dispel this myth, but your nerves are already getting crazy.
Inevitable expenses and investments. True, the amounts are not so large, several hundred thousand rubles, but you will have to invest.
Responsibility. Network marketing is a team effort. And the superior person is responsible for the inferior employee and his success.

World business stars talk about network marketing

Network marketing welcomes energetic, optimistic, active, and sociable people to its team. And the more these qualities are developed, the higher your chances.

Network business loves leaders and raises them with pleasure. The main advantage of doing network marketing is constant communication with people. Every business requires patience and work.

Where to start a network marketing business?

You need to choose a company where you want to work, study the products, find a strong team and start acting!

We can offer you a company that has already won many hearts. And he is one of the leaders in building an MLM business. The company has its own values and its own culture that is passed on to our newcomers and changes their lives.

The large and friendly Oriflame family is waiting for you. Become part of our successful team. Today is your earnings tomorrow.

Hello! Today we’ll talk about network marketing. We will just tell you about it, but this does not mean that we encourage you to do it. This article is just a review of the tool, nothing more.

It is difficult to say what network marketing is in a nutshell. Some people call this earning scheme a real “scam”; others talk about the only opportunity to open your own business without investing tens of thousands in its development. This article will collect the most detailed information, after considering which you will come to certain conclusions and decide for yourself whether it is worth looking for a job in network marketing or whether it is better to leave this area to others.

What is network marketing and what is its essence?

Network marketing- a way to promote a certain product with the help of a network of people who, in turn, receive a percentage of the sale of the product and rewards for attracting new people to the network. A person tells his friends about it, who, in turn, tell their friends, and the result is a kind of network in which it is very easy to distribute the product.

For each person invited, he receives a percentage of his profit. Of course, to attract people to network marketing, various psychological techniques are used. Not everyone will find this work profitable, so before explaining to a person the essence of the technology for distributing goods, they work with him for a very long time and explain the advantages that he will lose if he does not agree to this work.

Network Marketing - Pyramid

Some people compare network marketing to financial pyramids. Yes, the scheme is a little similar, but in the case of network marketing, no one forces a person to invest huge amounts of money and just sit and wait for a miracle. If you work, constantly increasing your base, you can first break even, and then turn into a plus. Unfortunately, in large networks you will already be too far from the top, so you shouldn’t expect exorbitant fees and life in the Maldives, but a couple of tens of thousands in salary increases is quite possible.

Network marketing system and principles of its functioning

Any network system must somehow serve the distribution of a product, good, or specific service that a company or group of people provides;
If the flow of goods or services stops for even a few days, money stops flowing and the system collapses completely;
The system must have many representatives of the lowest level, because otherwise the scheme does not make sense at all.

If you decide to get into network marketing

It all starts with a banal interview, during which specially trained managers talk to potential buyers, describing all prospects in vivid colors. There may be exaggeration (for example, about the highest income in the first couple of months - even if you are super active and all your friends immediately connect to the network, you will not receive a large amount in the first month).

If you agree to register, some companies may require you to pay an entry fee into the online business. Of course, they will not provide you with any documents, or they will give you something that has no legal force. True, only young and unscrupulous network companies are guilty of this; masters who have been on the market for several decades will never do this, their reputation is too important to them.

After this, the work itself begins. That is, a constant search for new sellers whom you can connect to the network after yourself and make a profit from them. The money is received after the goods are sold, but some companies additionally set a certain payment day, before which it is impossible to receive the full amount. In the latter case, you should strain yourself - often these are scammers who work for a couple of months, after which they disappear along with the money they earned, leaving behind an empty office and a girl manager in a pre-heart attack state.

How to make money from network marketing

There are three ways to make money in such a company:

Resale of products. To do this, a certain product is bought at a wholesale price and sold from friends at the market price. The percentage markup varies from 15 to 30%. This method even has a name: margin;
Receiving bonuses for some actions performed within the framework of work in the company. Typically, bonuses are based on the number of sales, although there are certain exceptions. Such earnings greatly depend on the company in which a person works - some do not offer anything at all for exceeding the plan, while others very generously reward for every important figure;
Receiving funds from interest that drips from employees who were invited directly by you and your friends. The more such people you have under your command, the greater the amount. If you stand at the beginning of a large network, you don’t have to work at all - but you need to spend a lot of time and effort on building it, in addition, if some of the distributors get disappointed and leave, you will have to come back again to expand the network to an acceptable level of earnings for you.

All these methods require one thing from you: you must work. Work hard, constantly disseminate information, look for new clients. Be prepared for misunderstanding, for the fact that you will simply be banned on social networks, that you will be trolled and sent in personal correspondence - unfortunately, not all network users react adequately to network marketing on the Internet.

Network marketing on the Internet

If possible, you can sell goods. Or a website to attract people. True, this will require certain resources, and promotion will take a lot of time (unless, of course, you are an expert in).

Among other things, to succeed in network marketing, an employee is required to have certain character traits. First of all, he must be very persistent, not accept refusals, try to prove his point of view - and, at the same time, be able to retreat if he understands that the situation is taking an unfavorable turn for him. Confidence in this list should probably come first: if people feel that you know what you are doing and have no doubts, then they will follow you and work in the same company, generating income - or they will simply buy something -the quantity of goods.

Are people today interested in network marketing?

Despite the large number of standard “scams” and a small percentage of truly successful people, everyone who surfs the Internet has at least once thought about this way of making money. Modern leaders in network marketing, such as Oriflame, Avon, Faberlic, Vision, Amway, LR, Tian De and Siberian Health, still make it into the top queries, according to a special service that determines which words and in what quantities and combinations users usually Google.

Before moving on to specifics, I would like to consider the main advantages and disadvantages of network marketing.

Pros of Network Marketing

You can make a lot of money if you really try. To achieve your goal, it is enough to create a close-knit team that will gradually help you make a profit.
Financial independence from the company and other people. In other words, you decide for yourself when to sell the product and receive your own revenue; the employer does not monitor this moment at all. Well, a bonus is financial independence from loved ones, for example, from a husband or parents. But complete financial independence cannot be achieved - all risks associated with force majeure will remain.
Having your own business. This is not exactly a business, at least at the very beginning of the development of your particular network. In a year or two things will get better, and you will be able to call yourself a small businessman. Investments, by the way, will also be required, so all those who tell you about the complete absence of investments are either lying or do not fully understand the principle of operation of such systems.
Close-knit team. There won’t even be any nasty “buts” here - in network marketing they pay special attention to this. The people there are quite friendly, but not everyone is ready to go beyond the boundaries of communication limited to work. There have been cases when very interesting people turned into workers who were no longer interested in anything but profit. It shouldn't come to this.

Cons of Network Marketing

Earnings are completely unstable. No one guarantees you that that woman who bought all the goods you purchased this month will do the same next month. If you suddenly get sick, miss a meeting with a client, or simply don’t like someone, you’ve lost money and now you won’t get it back. In general, this is a rather inconvenient scheme that requires constant work and saving in an emergency reserve.
The moral burden associated with constant communication with clients. Even if you are extremely sociable and friendly, people will not always be happy to see you. Not all potential clients with whom you communicate will behave appropriately, and if you gather in person for a meeting, you may get injured or damaged equipment and goods.
Material investments at all stages. They may be insignificant, but this is not so important - the main thing is that you still have to spend money. And it’s not a fact that the purchased product will pay for itself, so at first distributors try to buy something that they themselves will be able to use later. A few thousand rubles is the normal price to start a career in network marketing. If they are not currently available, we suggest that you familiarize yourself with the information.
Responsibility for the people whom you invited to work according to the same scheme. In principle, if a person’s moral principles are not the highest, he may not pay attention to this point. So, he will train a couple of people and forget about them until they leave and his income drops a little.

Myths and fictions about network marketing

This paragraph contains the most common myths about network marketing and a brief description of the facts that debunk them. Read carefully, and if after this you are not disappointed and are ready to start working, proceed to reading the next paragraph.

Myth: The network is the best way to quickly and practically without initial capital open your own business, stopping working “for someone else.”

Reality: Since you will be at the very end of the network, you will have to do a lot of work. Constantly look for interested people, monitor bonus programs and discounts, in general, for the first six months at least life will not seem like sugar. Then you will either be completely tired or reach a more or less normal level of earnings. At the same time, you will still not earn mountains of gold.

Myth: Online shoppers love it when products are offered to them by online retailers rather than official stores.

Reality: Not everyone is comfortable buying such products from online sellers. If you are going to sell such products to your friends and family, you risk ruining your relationship with them. No one will like it if someone decides for him that now he needs just such a shower gel, and no other.

Myth: The whole world will soon abandon trading through regular stores and switch to online trading.

Reality: Pure nonsense. Companies of this kind appeared in the United States in the early 1960s, and until now even a percentage of all sales are not sales in networks. Thus, in the near future you don’t have to worry about regular trading.

Myth: With the help of network marketing, you will free up a lot of time, you will be able to change your lifestyle and just be happy.

Reality: Never believe motivational posters and videos because they often tell lies. In addition, energetic and constantly developing people are unlikely to like sitting at a computer all day and selling a useless product to strangers.

Myth: Trading online allows you to maintain peace of mind.

Reality: There is absolutely no connection. Moreover, if you are a fairly irritable person and cannot calmly respond to rudeness and remark, any call to clients will most likely bring you out of your state of mental balance.

Myth: You don’t even need to look for a permanent network of clients, because you have your friends and acquaintances - they will provide a constant income.

Reality: Now let’s imagine ourselves in the place of such a person: he has lived a conscious life, choosing the means and things that are convenient for him, and then bam - a salesman comes who offers to throw the years of selection into the trash and start buying completely different, untested products.

Myth: You practically do not work, spending only an hour or two a day on sales.

Reality: No no and one more time no. Selling in the initial stages will require a lot of time, which many people probably don’t have. At the same time, you will have to look further, since combining network marketing with your main job is simply unrealistic - if you want to get at least something.

Myth: The employees who are already online are interested in your successful work and development. Working in network marketing allows you to strengthen your spirit and understand that you can run your own business and not depend on anyone.

Reality: Many people play on this, saying “why work for someone if you can open a business right now.” Remember, business and network marketing are different concepts, and such a scheme is unlikely to have anything to do with personal freedom.

What to do if you are still interested in network marketing

Criteria for choosing a network company

Before going to an interview and buying a product, it is recommended to look at the following characteristics of the network company:

Independent rating of network marketing companies

Also, when choosing, you can focus on the rating of companies, which was compiled based on sales volume in recent years:

And now more details about each company.

Amway

An international company offering customers more than five hundred types of products that allow them to maintain beauty and health at the proper level. At the same time, the quality of each unit of goods is strictly controlled, which is rare among network companies in principle.

Features of work

If a person personally buys a large number of company products, he receives an additional reward;
Products are purchased at wholesale prices from the company, and the distributor must sell them at a 30% markup. It is these percentages that are the main income of a person at the initial stage of working in a network company;
Additional earnings begin if a person invites his friends to the team. The more distributors and consumers he brings, the more profitable it becomes for him to purchase goods, and the greater the amount he will receive from one transaction.

This company is a real example of how people can earn money without actually leaving their home. Of course, you won’t be able to achieve the same thing in a couple of weeks, but if you advertise yourself properly and find regular customers, you’ll get a good increase in your basic income.

Avon

One of the network marketing companies in Russia, which has been known on the market since the 2000s. Representation in more than a hundred countries around the world, so there will be no problems with reliability, unless, of course, you contact a real representative and not a charlatan hiding behind a well-known brand.

The company is famous for offering more than just cosmetics: in the catalogs you can find jewelry, perfumes, small nice accessories for women, etc.

Features of work

Cooperation with the company can be carried out on two bases:

As a regular customer with VIP status. Registration is free, each such client receives the opportunity to purchase goods with a standard 30% discount. Every time a client places an order (starting from the first time), he receives gifts from the company;
As a coordinator. In this case, MLM (multi-level marketing) takes place: the main task of the coordinator is to attract new representatives to the company. The coordinator also has a fixed discount of 30%, but in addition to it, he receives another 12% of all sales made by his referred friends. It is worth remembering that for each coordinator there are unique incentives and additional discounts. The only thing is that you need to constantly monitor such promotions.

Herbalife

The company is relatively young, it is not yet forty years old, but there are already representatives in almost a hundred countries around the world. If you want to cleanse your body, improve your health and earn a little extra money, then distributorship with this company is the best option. Natural cosmetics are also available.

Features of work

To get started, you need to purchase a special kit. It will not be possible to collect cosmetics in separate packs, at least for the first time;
The percentage difference is only 25%, unlike previous companies;
Above each distributor is a person who receives a commission once a month.

Mary Kay

A company that has been presenting products for skin care and makeup on the market for fifty years. Fame in other countries is not so great, representatives are in less than forty countries, but this does not prevent the company from stubbornly holding on to the first places in the top network marketing in Russia.

Features of work

Only women over eighteen can get a job;
The consultant is required to purchase a starter kit, without which he will not be able to make further purchases. Income consists of money received from the sale of products and interest that accrues for each new employee invited;
If you plan to use these cosmetics for a long time, you can become a direct client with all the attendant bonuses. Discounts can reach forty percent, and the company also provides all customers with gifts and a monthly magazine. Those interested take several courses absolutely free of charge, in particular, training in makeup techniques and the basics of doing business.

Vorwerk

This company, unlike the ones listed above, is in no way associated with cosmetics and body care. The catalogs present appliances, kitchen equipment, etc. There are representative offices in more than 60 countries around the world, and in Russia specifically, similar products have been available for purchase for more than ten years, so the company’s reliability is at a high level.

Features of work

If a person has just started working in a similar direction and does not quite understand what they want from him, the company provides the opportunity to take good free courses, thanks to which even beginners understand the scheme very quickly;
No one monitors the implementation of the plan; the consultant himself decides when and how much he should work. Of course, only a percentage of sales is paid.

Natura

A Brazilian company that has been successfully selling cosmetics and perfumes for almost fifty years, including in Russia.

Features of work

Both consultants and advisors receive exclusively a percentage of sales. There is no additional income for recruiting new employees;
The consultant can receive preliminary free training in the basics;
The company constantly holds some promotions aimed at encouraging good employees.

Unsuccessful examples of network companies

You must understand that there are different types of network marketing, and not all systems work as they should. This list contains several examples that show that not all areas are suitable for network marketing, and not all organizers can organize the required level of work.

Majerik. Initially, the money was invested in some kind of scientific development, but then the company began to offer completely strange projects, which, for obvious reasons, did not pay off. At the moment, the company has not rehabilitated itself in any way, the reviews are purely negative, the network has practically collapsed.
A company that dealt with fuel additives for cars. The manufacturer itself did not inspire confidence, plus, among men, people who are ready to work according to such a system are less common, in general, the idea did not take root at all.
Internet market Inmarket. The same market, but with a certain commission given to the owners. Prices naturally increased, as a result of which the site fell into disrepair.

How not to break down and work

A few final tips:

Always find out complete information about the product you are going to offer to customers.
Don’t advertise everything at once, let the buyer get used to you, explain what you do, find out about preferences and only then start the presentation.
Watch your appearance and manners. People who look bad tend to sell much less.
Practice. Read books, attend trainings, do everything to become more confident and calm.
Analyze your mistakes and don’t be afraid to ask more experienced friends for advice.
Don't neglect the Internet. There is a great opportunity to advertise yourself and your product.
Find your sales method, and under no circumstances bring aggression into it. If the seller starts to put pressure, people feel it and almost immediately “merge”.
Do not under any circumstances spoil your relationships with loved ones, friends and colleagues. You can stop being interested in network marketing, and then your entire team will forget about you - but the people who were with you before all this will no longer be able to treat you the same way.
If possible, use the products yourself. Make additional advertising in this way - believe me, potential clients will be interested.

Results

So, let's summarize briefly. First off: be extremely careful. Never get involved in an initiative if you don’t like it, never pay money if you are not sure of the integrity of the company, etc.

If possible, google reviews about network marketing, in particular about the company you are interested in, check every word the representatives say, look for the people they are talking about on social networks - sometimes you can find a lot of interesting things in photographs or in groups. Such a brief investigation may well save you nerves, time and money.

If you suddenly fail to earn the expected money, try to think: yes, you can make money in network marketing, but for this you need to have a special mindset and attitude. Perhaps it's just not your thing? There are people who cannot bring themselves to do mathematics - and this kind of work is simply not suitable for you.

This means that no one is forcing you to run to the next network company, in the hope that mountains of gold will begin to fall now - just return to your old place of work and try to console yourself with the fact that many people besides you also cannot stand such a race and refuse from “easy” earnings.

How to distinguish a network company

Many companies that are now appearing on the market position themselves as MLM companies (Multi-Level Marketing). You need to know that any company providing services is not a network company. The network company provides physical goods, sales are carried out from person to person, it does not have retail space.

Is Network Marketing Worth It Nowadays?

The article is based on real stories from network marketing consultants. It expresses the opinions of several cosmetics sellers from different marketing companies that have developed over a long period.

Hello, dear readers! I want to tell you that I, like many others, also buy eau de toilette, shampoos, shaving and aftershave products and much more from consultants of various marketing companies. At the same time, I talked a lot with them about whether such an activity is profitable or not.

They told me that every person strives to achieve financial success throughout his life. Most get a job and work for a salary, and if there is a chance, they do not refuse additional income. My interlocutors chose network marketing selling cosmetics as an additional income, explaining their choice by the fact that:

At any enterprise, everyone uses cosmetics without exception! Both women and men! With the right approach, it is quite possible to find regular customers.
Word of mouth will quickly spread the word about you, and you will have individual buyers outside the organization in which you work.

Network marketing is the same job in which you need to take a training course in addition to sales. With a skillful approach, network marketing can bring additional income and greatly increase the family budget; the main thing is to delve into the very essence of such work, and not be afraid to get down to business.

Before you start active sales, you need to understand that selling cosmetics is not just a job, but in fact is hard and responsible work. The difficulty of such work lies in the fact that you need to constantly monitor new products and updates to the catalogs of the selected products. Tell your customers about them.

The responsibility lies in the fact that every customer is special and each one requires an individual approach. For example, you need to know which cream is best suited to which skin type, and there are many other similar nuances that my interlocutors told me about.

They believe that their business can also be called selling cosmetics at home, since people come to their homes to buy cosmetics. The big advantage of this is that, without taking time away from everyday affairs, you receive additional income and spend time socializing.

However, you should not take your network business as your own business. If you leave the company, the business will not suffer from your absence, because... it has its own owner and its own structure, independent of you. This business is more like a hired job, where you work for results.

Also, you should not count on passive income from such a business. The owner is interested in you constantly working. You will have to invest a lot of time in finding regular clients, recruiting your team, etc. Unlike freelancers, you won't meet networkers on long trips. Also, your work very much depends on which leader you get, what he can teach you, and whether he will provide real help and support.

In addition, you need to be very sociable, because you have to talk a lot. Add here excellent product knowledge, because... Only competent advice contributes to the return of the buyer.

Don't forget to treat people with respect. Buyers are different, some are very meticulous, and before purchasing they try to find out as much information as possible about the product. Therefore, you need to be patient and explain everything kindly and, of course, be well versed not only in the products, but also in the company’s promotions and discounts.

This is what all those women consultants for the sale of cosmetics, from various marketing companies, who have been distributing cosmetics for several years, told me, and do not think of giving up this business.

What other points are important to know?

They will tell you that you don’t need to do anything, you don’t need to make any investments, you don’t need to work. They will tell beautiful stories that someone earns millions in the company and constantly travels. The truth is that to make any money, you need to make a lot of turnover, you need to work even harder than at a regular job, and there is no guarantee that your team will not fall apart and you will earn at least something.

Pros and cons of network marketing

Network Marketing: Pros

The pros are that network marketing is the best sales school.

Here you will learn:

sell;
negotiate;
organize events and activities;
build relationships with people;
painlessly hearing the word “no” to your proposals;
work in a team.

You can also add a free schedule and constant access to your favorite products to the advantages.

Cons of Network Marketing

This is not your own business;
in reality, you should not count on passive income;
team turnover;
no official employment and social package;
no guaranteed income;
takes a lot of time and effort;
Often they use spam to attract clients and recruit teams, which causes irritation and negativity.

See a real review from a person about whether network marketing is worth doing:

Network, or multi-level, marketing as a type of business is developing quite actively. After all, to carry out such activities you do not need a store, and goods are sold with the help of agents who are engaged in retail sales of products. Despite its novelty for Russia, this form of doing business has both its advantages and disadvantages. In our article we will talk about what pros and cons are known, and we will analyze each of them in detail.

Advantages

Let's start with the positives. So, the advantages of MLM business are as follows:

There are no restrictions on the possibility of making a profit. Earning money in multi-level marketing depends entirely on the activity and desire of the agent. The more he attracts new members and clients and makes more sales, the higher his income. But a regular salary always has some kind of limiting framework. The most important thing is to be able to select a worthy team that will move this business forward.
Gaining financial freedom. Those who engage in MLM do not depend on the employer. A person is his own boss and decides what pace of work to choose and what strategy to use. At the same time, a person is not left to his own devices, he has a mentor with whom he can consult and from whom he can gain useful knowledge.
Own business. Many people are attracted to the idea of starting their own business, but this is hindered by lack of money and fear of failure. In network marketing this is easier. Firstly, no financial resources are required to start, and secondly, the risk of failure is minimal, because there is a whole team working, the members of which are ready to lend a helping hand. If the outcome is unsuccessful, everything will only cost you a waste of time.
Friendly staff. In this activity, serious attention is paid to team building, because the overall income depends on the creation of a team. Therefore, trainings are often conducted, aimed not only at training the team, but also at developing team spirit, and this helps in work.
Receiving passive income. Network marketing provides the opportunity to earn passive income over time. But first you will need to work hard to create a developed distribution network. And after that, you can calmly retire from business and receive well-deserved dividends.

Network marketing provides the opportunity to earn passive income over time.

Negative sides

Despite the numerous positive characteristics, this type of business cannot do without. The main disadvantages are:

Earnings are unstable. At the beginning, having entered such a business, a person will receive very little, although distributors promise an increase in income over time. At first, this activity is more like a small part-time job. But if a person manages to hold on, then he will be able to develop further and receive more. People who are sociable and have leadership skills usually succeed because they are the ones who find new clients the fastest.
Nervous tension. It’s not so easy to work with people, offering them your products and regularly hearing refusals. Only a stress-resistant person can cope with this. In addition, newcomers undergo difficult training.
Responsibility for other people. Multi-level marketing assumes that the participant must hire assistants and organize their training. But learning always presupposes moral responsibility for results and experiences.
The need to buy the company's products. Often, a network company sets conditions for participants, according to which they must buy its goods from time to time at their own expense. Such expenses can sometimes even outweigh the income, especially at the initial stage.
Poor attitude from society. Many people consider network marketing to be a deception and a scam, and therefore do not want anything to do with it. It can be quite difficult for participants to find new customers and persuade them to take advantage of their offer. That’s why clients are usually first found among relatives and friends, because it’s easier that way.
Registration as an entrepreneur. Now some people prefer to work in the “shadow” so as not to pay taxes and not make mandatory contributions to funds. But most large network companies operate legally.
High level of competition. There are already many distributors working in the network business, so finding clients is becoming more and more difficult.

In conclusion

We would like to add that this form of doing business is not suitable for everyone. It requires a person to demonstrate organizational qualities and certain communication abilities. You need to be a good psychologist, because you will constantly have to work with living people.

What is its essence and basic principles, and now I want to consider all the pros and cons of network marketing as a main or additional way of earning money, a source of replenishing a personal or family budget. I will try to be as objective as possible.

Pros of network marketing.

First, let's look at all the advantages of network marketing.

1. Opportunity to use quality products. As a rule, serious chain companies produce fairly high-quality products, a level higher than those sold in a traditional retail chain.

2. Opportunity to purchase company products at a good discount. By becoming a distributor of a network company, a person gets the opportunity to purchase all the company’s products for personal needs at a good discount (most often a discount of about 20-30%).

3. To start earning money, you practically do not need start-up capital. To enter network marketing, most often you just need to purchase goods for a certain amount, and in some companies even this condition may be optional.

4. Opportunity to use network marketing as additional income. In order to become a distributor of a network company, you do not have to quit your job or make any drastic changes in your life. On the contrary, it is best to initially consider this type of business as a business, and then look at the results: perhaps it can become the main source of income in the future.

5. Free education. All network companies provide the opportunity for free training in network business, and it is in the interests of the person who brought you into this business to make your participation as effective as possible, because his passive income will directly depend on this. And in general, training in network marketing always plays a very important role: the network company will provide you with a lot of training materials, videos, and will invite you to numerous lectures and seminars. Therefore, even if you cannot build this business, you understand that it is not yours, you will still have very important and useful knowledge, which you will find application in other areas of earnings and everyday life.

6. Possibility of working on the Internet. Recently, network marketing, like many areas of business, is gradually moving into the Internet space. Therefore, today network marketing on the Internet is far from uncommon, but one of the popular ways to make money online. Moreover, it is often much easier to communicate virtually than in person, and the whole essence of this business is built on communication.

7. The ability to independently choose the pace of work and development strategy. In network marketing, you are your own boss: you work when and how you want, however, the effectiveness of your work and level of income will, of course, depend on this.

8. Constant communication with people and self-development. In the process of working in a network company, a person is in constant development, improving his communication skills with other people, the art of persuasion, the art of sales, and these qualities are extremely valuable: a specialist with such qualities is always valued much more.

9. Network marketing is not only active income, but also passive income. It is extremely important that with the help of network marketing you can create a reliable source for yourself, which can very significantly strengthen your personal or family budget. To do this, you will first need to actively work to create and develop your own distribution network, and then you can gradually retire, while your network will work for you.

10. Opportunity to participate in company events. Many people probably know that network companies often organize comfortable, expensive vacations for their distributors, a “place” in which they can secure themselves for free after achieving certain performance indicators. Agree that this will not be superfluous.

11. You will not be left with work alone. If you encounter difficulties during your work, you can always discuss them with your mentor, who is directly interested in your effectiveness, which means he will do everything possible to ensure that you work effectively.

12. Unlimited earning opportunities. Any salary in a traditional job, no matter what position you reach, is always limited, but income in network marketing can be anything, it all depends on you. Moreover, in some network companies, the passive income of the distributor is even inherited.

13. No risk of dismissal. Again, compared to traditional work, network marketing has the advantage that no one will fire you here, because... everyone is interested in you earning money yourself and bringing profit to the company.

14. Lack of pressure from superiors, frequent stress, nervous strain. All these factors inherent in traditional work “for an uncle” are absent in network marketing, or are not expressed so clearly.

15. If you fail, you will not lose anything. Network marketing is one of those few ways to make money in which a person actually does not risk anything, except perhaps his time. If you don’t succeed, you can leave this business at any time without losing anything and gaining some experience that will never be superfluous.

These were the pros of network marketing, now let's move on to the cons.

Disadvantages of network marketing.

1. Opportunity to run into scammers. Often, under the guise of network companies, fraudulent structures or companies operate, focused not on selling their products, but on maximizing money pumping and quickly curtailing the project. Sometimes it is quite difficult to distinguish a fraudulent company from a real MLM company, so here you need to pay attention to the rating, age, reviews and other factors characterizing the network company.

2. Products are too expensive. The products of network companies, as a rule, cost significantly more than their analogues in the retail sales network. This is explained by the advantages in quality, however, most people live by the principle “it is better to buy cheap than high-quality,” so convincing a person of the need to switch to expensive and high-quality goods is always difficult.

3. The need to periodically purchase company products. Very often, network companies have a principle: each distributor is obliged to regularly buy the company’s products for a certain amount. And these investments, especially at first, can “eat up” and even cover all the income received.

4. Most people have a negative attitude towards network marketing. A lot of people believe that network marketing is a deception, a scam and a scam, and as soon as they see any signs of this form of business, they try to run as far away from it as possible and don’t even want to listen to anything. Therefore, working with such people, convincing them of the opposite, will be not just difficult, but extremely difficult.

5. The first results of the work may not come soon. If you're starting network marketing from scratch, it may be days or even months before you even attract your first member to your network. Not everyone is able to endure such long waits, so many quickly become disappointed and leave this business.

6. The need to register a business and pay taxes. Many people prefer only illegal extra income, this is due to our mentality. And the main, serious network companies operate only officially, transferring remuneration to their distributors as the income of the entrepreneur. That is, this requires registration with the tax office and regular payment of taxes, and only this factor immediately scares off many.

7. High competition. In the most effective areas of network marketing (cosmetics, household chemicals, personal care products, etc.) there are already many successful distributors who have their own regular customers and good experience, so it will not be easy to compete with them.

8. Income in network marketing is not guaranteed. If with traditional employment you will receive at least some salary even if you work ineffectively (here, however, you may simply be fired), then in an MLM company your earnings depend only on the results of your work. Even if you work 20 hours a day, but don’t attract a single distributor and don’t sell a single unit of product, no one will pay you anything.

Perhaps these are all the main disadvantages of network marketing that I know.

I will end here. I described the most significant pros and cons of network marketing and, as you can see, there were more pros, about twice as many. With this publication I am not trying to “draw” someone into network marketing, I am only providing information that you yourself must analyze, comprehend and draw conclusions. After all, the main goal of the site is to increase your level of financial literacy and help you establish effective management of your personal finances.

See you in new publications!