Pros and Cons to Network Marketing

Network marketing vs mlmAs with anything in life you should list the pros and cons before embarking on a new project. Keep in mind that listing the MLM pros and cons is not necessarily to convince whether or not to pursue this new endeavor. It will also serve to remind you down the line that these were part of the benefits and challenges to be  expected. Knowing the barriers you may face down the line will assist you to be prepared to push through. So many people only look at the bright side of things when starting a job or business, and think they will just deal with the negative when it comes. This may pose a difficult challenge when the negative does present itself, as you may not know it is a barrier to get through before it is too late. Then many will quit before getting a good start.

I encourage you to review the pros and cons that I listed below in regards to embarking in an MLM business. Keep in mind your pros and cons list may be different, reflecting your current living situation.

Remember to be honest when making your list, many will subconsciously try and  sell the idea to themselves. It is true, I am guilty of this practice myself. I have avoided listing cons from my  list in the past, only to regret it later  as I then was not prepared for such a barrier.

Pros and cons listclipboard excellent

Pros

  1. Home based business
    • expenses, including  % use of your car and % use of home, are tax deductible
    • no need to be commuting / traveling at rush hour /environmentally friendly work practice
    • more time available for family / friends
    • Ability to take care of tasks around the home in between work
    • You can care for your home garden
  2. Low start-up costs compared to a brick and mortar type of new business setup
  3. Entry requirements are equal for anyone willing to make a go of it, no need for degree or special certification
  4. The manufacturing, packaging, and shipping are all managed by the MLM company.
  5. Marketing plan, product documentation, and presentations are already developed by the company
  6. Flexibility-make your own hours / schedule /can run part time
    • ability to easily fit in medical, vehicle or home maintenance appointments
    • if have younger children, may not need to use daycare services – saving money
  7. Meet new people, making new friends
  8. New challenges providing personal growth and development
  9. Independent – be your own boss, you get back what you put into it
  10. Residual or leveraged income. Yes, this is the $$ part! The compensation plans vary from company to company, but generally you earn commission from sales you make and what your downline (your sponsored distributors) make. So as with any business the more you sale, or the more your distributors (sales people) in your downline sale, the more $$$ you make! My wife, Brenda, is currently with an MLM company that has an excellent compensation plan, you can see more about her network marketing story here.

Cons

  1. click to buy nowMost MLMs will want you to start marketing /recruiting family, friends, neighbors, dentist, you name it, to get the ball rolling. They call this marketing to your “warm market.”  You are encouraged to get them to buy now, quickly before others sign up before you, don’t be left at the bottom of the downline. This can cause some strain in your relationships. If you are new to the business, this approach is not one that I suggest using for a number of reasons. Think about how you would feel if you do have a family or friend that does sign up to the business but end up losing money. Now understandably it is not your fault they are not succeeding, but I know I would not feel good knowing that they are not succeeding when I am. They may cause friction within your “warm market” circle making statements that the only reason you are succeeding is on the backs of those family / friends you’ve recruited. If you do decide to go with starting with marketing to your warm market, you will need thick skin. If having to approach family and friends to market the MLM company makes you uncomfortable then it may be better to look at other ways to present it or maybe Network Marketing is not right for you. I will post more on that within my site shortly. To receive the latest posts you can subscribe for our free newsletter here. fail and try again
  2. It takes work, time and effort on your part. Remember that being your own boss bit in the “Pros” list, well that can also be considered a con for some.
    If you never worked for yourself, being responsible and ensure you keep getting customers or new distributors can be stressful. Knowing that you can only blame yourself, and not the company or organization you work for can produce a different level of strain on your life. Also as with most people embarking on this type of business, you may be starting this part time, and still working full time. Having to spend so much on the business may increase the strain or guilt within your family, even with yourself. You will need to keep motivated to continue through these hard times.
  3. money down the drainOngoing cost of the product. You feel ok with the initial start-up cost, but then you usually will need to keep purchasing a minimum monthly amount. This is a major part of how MLMs can provide a compensation plan. If you signed up to the MLM company only because of the compensation plan, and not because you like or can use the product, then you may lose motivation to continue long term. Ensure you sign up to an MLM company that you like and can use the product. Ideally should be a product that you currently use now, but can be replaced with the MLM brand. Then you can feel more confident that you made the right decision, and can continue through when sales are poor. You can say to yourself “Hey if I weren’t in this business, I would be buying this stuff anyways, so may as well make a living with it!” Otherwise spending $50, $100, $200 / month on something you don’t use can cause some strain within your household. Been there, done that! Needless to say, we quit that MLM company.

decidingIn Summary

You probably noticed that the Pro list is longer than the con list, and think well this is a “No brainer, I’m in.” When in fact it would only take one CON that can make you realize that an MLM is not right for you. That one CON can be a barrier you are not prepared or willing to go through for the sake of starting a Network Marketing business.

That is OK, don’t lose hope, remember, this site is here to talk about the multitude of home based jobs that are available and profitable in many ways. If MLMs are not for you then you may just find the right one within our website. We are currently working on an eBook with a list ideas that you can start at home to meet various financial situations and expertise.  You can subscribe for our Newsletter to receive notification when this eBook is available.

I too decided that MLMs are not for me.    =====> Click here to see which way I decided to go!

I am so excited to hear what you think of this information, or if you have any questions I would love to hear from you. You can leave it in the comment box below.

Cheers

Paul

 



14 comments on “Pros and Cons to Network Marketing
  1. Milagro W says:

    Hello Googlmans,
    I think working from home is a great idea to do. I’ve tried many times in doing so. I know a lot of Pros that you have listed in your site but I never thought about the Cons and I’m glad that you know what they are and are sharing it. I’m trying to move away from working outside to inside and this will help me along the way.

    • Paul says:

      Hey! Thanks for visiting my sie and sharing your thoughts, I really appreciate it. I am glad you found the cons helpful. I hope you find your way to working inside like you plan. All the best!

      Cheers

      Paul

  2. Matthew Thomas says:

    There’s usually a negative connotation that goes along with MLM marketing or “pyramid schemes”, but in my opinion, it all depends on the product. I have no experience with MLM’s at al, but if it’s a quality product that offers an attractive compensation structure, then why not? Unfortunately, many MLM’s are shady and offer low quality products, which make people assume “scam” right away. It all depends on the specific opportunity.

    • Paul says:

      Hi Matthew,

      I agree there are certainly a number of products out there that are no good or overpriced. Then there are the distributors, where some can be quite pushy or in the business for the wrong reason. Many of these people are being recruited for the sake of recruiting without even considering the product. Whereas if you have a decent product that can do some good, then maybe it is worth the premium if it is not available anywhere else. Then I say it is not much different than buying a product in a store, look at how many people are taking a piece of commission along the line, not much different than an MLM in my opinion. Unfortunately, many distributors have no sales experience and are told to get all their family and friends on board no matter the cost, and this is where so many have negative experiences. If it were set up the same as any other business or franchise, where you mus have the training first before starting out, I think the outlook would be much better. My wife has signed up with an ML, she is using the product and does find that it is something that is part and worth taking to improve her overall health. She is having success with introducing the product, having customers that are feeling the same benefits, and only then are they approached to becoming a distributor. You can read Brenda’s story here==> About Paul and Brenda

      Funny thing is, when she was approached to sign up for this MLM I did a search online to see if it was a scam (I couldn’t find anything BTW) and that is when I found a guy that tried different MLMs but has decided to do a different business that he can do from home. He introduced me to Affiliate Marketing. Now this topic is way to long to explain her, but you can sign up for free to try it out.

      Warning: It will change your life for the better in so many ways. Consider this before viewing first then option to signing up for FREE here==> Wealthy Affiliate

  3. Brandy says:

    Pretty much anything out there will have some cons. It’s important to make sure the pros and cons apply to your lifestyle, as each person is different. Working from home is definitely a great option, especially when you can create your own schedule and be flexible. I dont know what I would do if I didnt have that flexibility right now!

    • Paul says:

      Hello Brandy

      The flexibility and benefits with working from home definitely outweigh the cons as wrote in my “Working from Home Challenges” blog. you are right everything will have pros and con. It is up to you if you feel you can overcome the challenges presented by the cons.

      Cheers

      Paul

  4. donnacaliegh says:

    This is one of the most useful things I have read about considering whether or not to participate in an MLM. Usually the focus is either on the pros in order to convince you to sign up or on the cons in order to convince you that they are a scam. So I like how you presented both sides equally and objectively. You also made a very good point that in order for an MLM to be a good match for someone not scared away by the cons, the product they will be promoting should be something they are going to want to buy regularly themselves or already buy. For me, this is important for any sales job because the more I am genuinely excited about the product, the easier it will be to sell and promote.

    • Paul says:

      Hi Donna

      As I wrote as a response to Matt, I always like to check out both sides of the story. Like you said, some blogs can be a little (or a lot) biased. All in all the MLM businesses to me is one for people that are comfortable with doing face to face sales. I certainly would not call an MLM a scam (some have been categorized as scams for good reason). However, you do need to be honest with yourself, that an MLM business takes work and dedication that may be beyond what you are accustomed or willing to do. When you are an MLM distributor / member you almost need to live every minute of your life as though every person you see, speak communicate or think about as being a potential customer. Then for each potential customer, you need to figure out how you will convince them to become a distributor on your downline. Not an easy task knowing that most potential MLM customers are at the first stage of the “Customer Purchase Lifecycle”.

      that is why I preferred to sign up and learn how to become an affiliate marketer online. You can check out My #1 Recommended web hosting site to learn more.

      Cheers

      Paul

  5. Matt says:

    Great list of Pro’s & Con’s for MLM! I feel that this is one of the biggest questions… “is this a scam?”. It’s definitely a great idea to create a pros & cons list. I agree that MLM should be a product or service that you’re interested in, or else he/she might quickly lose interest.

    • Paul says:

      Hey Matt

      Thanks for visiting. I always like to look at both sides of the story before calling something a scam. The term scam is a pretty strong term that I find is used too easily at times. There may be some not so up-front information from some companies, but if you do your homework and ask questions the answers should be available. If you are not able to get the answers and things sound too good to be true, then stay clear. my advice is to always research and sleep on it before making any decisions. Now my wife Brenda, on the other hand, has a different approach as you can read from her blog “Work at home business opportunity MLM.”\

      Cheers

      Paul

  6. isaac says:

    Hi Paul. Thank you for this honest review of the MLM business. I’ve heard about it but don’t really delve deep into it as I was busy doing other stuff.

    I really like your point of view on signing up our friends and family. I’ve always thought that they are the ones we need to “capture” first. But it seems there are some drawbacks to do that too…

    • Paul says:

      Although I listed a number of Pros, I feel that the type of Cons listed outweigh the benefit of signing-up to any MLM. I learned from personal experience that getting family and friends to sign-up to an MLM is the best way to increase friction between relationships.

      Now I focus on only helping people that are looking or asking for help, such as this blog. Some have a hard time understanding how something like this blog can actually create an income. I too had the same question until I found my #1 recommended site -Wealthy Affiliate.

  7. Andrew G says:

    I think that ebook will help a lot of people. It really helps to understand who you are what your needs are as an entrepreneur and financial situation. It takes time…..
    It is no quick solutions and a lot of time could potentially be wasted coming from experience. And that’s the most valuable asset we all have!

    • Paul says:

      Oh here you…I lost too much time and energy on MLMs. I still have people approach me all the time…Sign up to Juice Plus+ it’s not a scam, it’s has all the nutrients you will ever need. It only costs 4 times as much as regular food that has all the nutrients you will ever need.

      No more for me.

      Working form home blogging is the way that i am going from now on, no reason to look back. I have found out how to earn money online.

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Paul And Brenda from PBworkfromhomeHello from Paul and Brenda

Combined, we have over 14 years of experience working in home based jobs and businesses. Our site will provide you with many work-from-home options. You will learn what is needed to start a home-based job or business, including how to build a website like this one.

We learned everything we needed to know about starting an online business by following the courses at Wealthy Affiliate

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