Network Marketing Top 21 Frequently Asked Questions

In my 15 years with network marketing industry I have heard tons of questions about the industry. Network Marketing (NM) or Multi Level Marketing (MLM) is a method of distribution however this method is quite often misunderstood.

In my opinion Network Marketing provides the best option for people who want to generate income from home. It offers unlimited income potential (based on your effort) with very low risk and now with technology the ability to literally build a Global Business from anywhere in the world, at any time giving you complete freedom.

I will list the top questions I have been asked about this industry over the last 15 years to help you understand this industry. These are some of the frequently asked questions however if you have a question that is not covered here please contact me and I will be happy to answer it.

1. Isn’t Network Marketing One Of Those Pyramid Schemes?
It’s very important to understand the difference between illegal pyramid schemes and genuine Network Marketing companies.

Network Marketing has a pyramid structure just like everything else in life. Take for example the structure of any corporation, any government and even the church. They all have a pyramid structure.

Pyramid schemes are illegal. With illegal pyramid schemes you get paid for recruiting other people and not on genuine distribution of products to the end consumer. Generally, illegal pyramid schemes tend to disappear within the first 2-3 years.

In a legitimate Network Marketing company people are rewarded for their word of mouth recommendation of REAL products to REAL customers. We all know the best advertising is word of mouth advertising. Have you ever recommended a restaurant, a film or any service to your friends?

Legitimate Network Marketing companies are just using the power of word of mouth advertising to distribute their products and rewarding you for your word of mouth recommendation. We all recommend products and services anyway so why not get paid to do it!

Legitimate Network Marketing companies offer everyone the SAME chance to make an unlimited income based on their efforts and it has nothing to do with the people above you making more money than you. It is all based on effort and anyone can make money than anyone else if they are prepared to work hard.

2. Isn’t Network Marketing Just Another “Get-Rich-Quick” Scheme?
There are no “Get-Rich-Quick” schemes in a real world. Network Marketing is really a 3-5 year business and will require effort if you want to make serious income. As this is better than working for 40 years so I guess you could call 3-5 years a get-rich-quick scheme!

3. It’s Not A “REAL” Business Is It?
It’s very real. Network Marketing is now a multi-billion dollar industry. There are 1000’s of Network Marketing companies already operating around the world.

Watch the video to hear what President Bill Clinton had to say about Direct Sales and Network Marketing. Since he recorded this video, when he was the President of the USA, the Global figures have gone through the roof!

4. If Network Marketing Is So Good Then Why Aren’t More People Involved?
Good question! The answer can be summed up in one word, “Misconception”. People just don’t understand what Network Marketing is and the potential of Network Marketing.

However this is changing very fast and in 2014 in USA alone there were 18.2 million involved in Network Marketing with $34.5 Billion in sales.

5. Why Choose Network Marketing Business?
Network Marketing business allows you to:

Build a part-time business without jeopardizing your current salary
Create a secondary income
Create multiple streams of income
Generate a residual income (which a regular job generally does not offer)
Work at your own pace
Have control of your time
Opportunity to earn amount of money you desire (based on your effort)
Create a lifestyle of your dream
You are your own boss.

6. Do People Really Make Money From Doing Network Marketing?
Most definitely! People make part time secondary income and life changing income. It really depends on what you want and how much effort you are prepared to put into your business.

It is a business and if you treat it like a business (this means putting in daily effort!) it will pay you like a business. If you treat it like a hobby then don’t expect much from this business.

Your biggest advantage is the fact this business can be started with $200-$300 which makes it a low risk for you. Unlike starting up a traditional business where you will need to invest tens if not hundreds of thousands of dollars to start!

Network Marketing companies provide training and support to help you succeed however the most important help is from your sponsor, working with the right leaders is very important to your success in this business.

7. How Much Money Can I Make?
That really depends on what you do in your business. If you put in small effort you will make small amount of money. If you put in a lot of effort (right type of effort) then you have the potential to earn money beyond your wildest dreams.

Remember the income you will be creating will be residual income. This means the work you do today has the potential to earn money for years to come.

8. I Don’t Like Selling So This Probably Isn’t For Me?
Once you “get it” you will understand Network Marketing isn’t about selling. In fact people with no sales experience actually do great in this business. Network Marketing is about sharing the benefits of the products of your company with your contacts in a non-salesy way.

You will be recommending the products just as you would recommend a movie or a restaurant. In order to recommend the products it’s a good idea to use the products so you can share your experience and excitement of the products. I mean how can you recommend something to your family and friends if you have not used it!

9. Do I Have To Go Door-to-Door To Sell Products Or Host Home Parties?
No.. you don’t need to go door-to-door and you don’t even need to handle the products if you don’t want. Many Network Marketing companies are using technology to the full and giving you a website that has your id in the website address.

When your contacts go to the your site they order the products directly from the company and pay directly to the company. The company delivers the products directly to the consumer. They know the customer came through you so they credit the commission due to you.

However, if you want you are able to use other methods to grow your business, and using some of these other methods will grow your business much faster, e.g. Webinars, Home Parties, 3 way calling with support from your sponsor, etc. It’s your business and I would suggest use as many tools as possible to grow your business faster.

10. How Much Time Will I Need To Devote To This Business?
This really depends on your goals. If you just want to earn supplement your income with little extra then you will probably need to invest less than 5 hours per week. However, if you want to develop a full time job replacement type income giving you time and money freedom then you will need to invest a minimum of 15 hours per week.

Good news is that there are tools to help you leverage your time. All good leaders will have systems in place to help their team grown faster.

11. Do I Need To Invest A Lot Of Money To Start?
Personally, I think this is the best part because most Network Marketing companies just ask you to buy a starter pack with products that you should try.

Product packs are generally less than $300 and included with the starter product pack they also provide you with your own website and training to help you succeed.

Compare this with traditional business where you may need to invest tens or hundreds of thousand to start and still no guarantee of success. To me, this is on side of high risk where you could end up losing your house!

Low entry level with a high upside makes it a perfect business model for anyone to wants to build a better lifestyle for their family.

12. Do I Have To Convince My Family And Friends To Join?
In the old days this was a great starting point however now there are other ways of building a Network Marketing business without harassing your family and friends. Using the internet and social media it is possible to build the business without even talking to your family and friends.

Network Marketing can be a life-changing business and those who succeed enjoy complete time and financial freedom so I would suggest you should offer this business to those that also want to have time and financial freedom.

13. Do I Need To Sponsor Lots Of People To Succeed In This Business?
Network Marketing is not about going out and sponsoring 100’s of people. It is about sponsoring one or two people per month and working with them to train them so they can train the people they sponsor.

14. Do I Need To Buy A Ton Of Products To Sell Every Month?
Most good Network Marketing companies don’t require distributor to keep an inventory. Most companies will have a minimum purchase/sell requirement however generally this is very low and most people just buy these products for personal consumption.

15. If I Am Sponsored By Someone At The Other End Of The Country Or Even In Another Country How Do I Get My Questions Answered And What About Training?
These days with fast efficient global communications (mostly free!) this is not an issue. I regularly speak with my team through Skype, Email, Whatsapp and Viber. As for training these are done using videos, webinars and teleconferences.

Remember it is in your sponsor’s and upline’s interest to train you to help you succeed.

16. I Was With A Network Marketing Company Before And It Didn’t Work For Me?
Let me ask you a question, “If you went to a restaurant and had a bad meal does that mean you wouldn’t eat out again?” Just because you had a bad experience does not mean all Network Marketing companies are the same.

There are good Network Marketing companies, there are great Network Marketing companies and yes there also some bad Network Marketing companies.

Network Marketing works.. period! You just need to partner with the right company.

17. I Don’t Have The Money Right Now To Start?
If changing your future is important to you then find the money! Just imagine if the tyres on your car burst what would you do? You would somehow find the money to replace the tyres …right? Find the money to start!

18. I Am Too Busy I Don’t Have Time To Start A Network Marketing Business?
If you don’t have time this is exactly the reason why you should consider a Network Marketing business.

Apart from creating financial freedom, Network Marketing is designed to create financial and time freedom so you can enjoy the things you want to do and don’t have time for now.

19. You Have To Get In At The Beginning To Make Any Real Money, Doesn’t The Market Get Saturated?
This is another misconception perpetuated by the media. Network Marketing is like any other business in that a lot of Network Marketing companies also go bankrupt in the first 3 years.

Personally, I never consider any company less than 3 years old with a track record.

As for market saturation Network Marketing is still a very young industry and there are hundreds of millions of people around the world who still have not heard of Network Marketing. Every year there are millions of new prospects who come of age or are at a point in their life where they want to start their own business. Then there are the people who have lost their jobs or their circumstances have changed and they too are looking to start their own business.

Personally, I feel number of people looking to start their own home business is going to increase dramatically as there is no longer job security in the marketplace.

20. How Do I Know Which Is The Right Network Marketing Business For Me?
Choose a Network Marketing company whose products you feel excited and passionate about. You must have belief and be enthusiastic about the products you will be sharing with people.

There are thousands of Network Marketing companies so choose the one with products that really excite you and people can benefit from.

21. What Can I Do To Be Successful In Building A Network Marketing Business?
Before joining any Network Marketing company take time to do your own due diligence and learn about the following: