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What is Network Marketing (MLM)?

If you are reading this post then you are probably wondering what is network marketing (also known as MLM or multi level marketing) and whether or not you can make money using this business model. This post will explain to you in simple term, what this awesome business is and how you can take advantage of it to literally change your life.

What is Network Marketing?

Network marketing is simply a business model that allows you to earn upfront cash by promoting a certain product while you build a residual income. By residual I mean income that you continue to earn for past work you have done, without working anymore. Pretty cool, huh?

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It requires you to build an organization (known as a downline or team in the industry) of people who have a VISION of creating more in their lives. You get paid commission based on the volume of product or service that moves through your organization. This is based on the compensation plan of different companies. (See my post on How To Start Your Network Marketing Company)

To fully answer the question what is network marketing, first you have to understand that this is a business you own and run, just like any other business. It is not a “get-rich-quick” and if you are that type of person I suggest you leave this site.

This is a PROFESSION and people from all different backgrounds or even no background at all have an opportunity to create something for themselves, from scratch.

What is Network Marketing: The ugly…

When answering the question what is network marketing, let’s look at the ugly first. If you do a search on the internet, you can see a lot of hype about this profession. You will also hear negative stuff about it, this is a fact and we have to acknowledge it.

This is unfortunately due to lets just say people of a ‘darker’ nature misleading people into something network marketing is not like get rich quick, requires no work, scams, illegal pyramid schemes, etc…

Ugly sweater party shenanigansThis is also due to lack of professional education for the mindset and skill set necessary to operate this business. A lot of people come into it with no entrepreneurial backgrounds. This transition from employee to business owners have a high risk of failure IF the person is not well connected to successful mentors in the industry.

While the facts are that this business requires ethical work, diligence, commitment, continuous action and learning of a certain skill set, again just like any other way to make money, whether real estate, investments, a job, or ….

What is Network Marketing: The bad…

Now that we talked about the ugly, let’s talk about the bad. In the many cases (if not the majority of cases), a person, say yourself, could be introduced to a network marketing opportunity. This is great BUT the bad is that the person or team you are connected to does not have the results that you want to achieve.

Going back to the question of what is network marketing, remember that this is an opportunity for you to create a lifestyle that you want, maybe escape the rat race, or some other reason. The point is that when you choose to do this, you have a compelling reason and you want to get to your goals as quickly as possible.

If you align yourself with a team that is not already were you want, have no skill sets, cannot coach and mentor you in the right action steps to get to your goal asap, then this is where it WILL go bad.

It will also go bad if you have no success mindset. It will go bad if your belief system is set in a way that allows you to achieve success and attract money. We’ll need a whole new training to discuss this subject by itself. It will also go bad if you do not have the skills to talk with people and present to them information.

And really this is why the majority of people who try this business, don’t achieve results. It is mainly their fault. You and only you can create your success, no person or business can do that for you.

What is Network Marketing: The good…well, the great!

What is great about Network Marketing is that it is a fantastic business model that provides anyone with a desire to learn and achieve a massive return on their efforts and money.

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A lot of successful marketers now live a lifestyle that so many people only DREAM can have.These people were willing to do what most will not, they paid a price for their success and they deserve it.

This is because they have worked on themselves, their business very hard and smart as well as aligned themselves with the right companies and leaders. (See my post on How To Start Your Network Marketing Company)

Network Marketing generally speaking has a very low start up cost compared to many business and franchises. I am not 100% sure about this, but I have heard that the cheapest franchise these days cost $30,000 on top extra costs, like your employees, rental, equipment… the whole sha-ra-ra.

Return on investment is somewhat capped plus it will continuously require your efforts to maintain a business.

In comparison, once you find the leader and the network marketing company you want to join, you can join and start your business from as low as $50, and up to a few thousand dollars, depending on the company and level you get it.

The return on your investment can be as short as one day, 1 week, 1 month or 1 year, it really all depends on you. However, the income potential is virtually uncapped and your ability to build a residual income while you learn and build your business, means that you can literally retire in a couple of years. (Disclaimer: this depends on many factors, your skill set, leaders, company… but certainly is possible)

The beauty of it is that you also can work from anywhere, not bound by a location and all you need is a telephone!

As a summary to the question what is network marketing company, it is simply a way for you to achieve extra income, this model is perfect for anyone who wants to transition from the rat race, gain control of their time, develop themselves, achieve a life of abundance, or just simply earn the extra $500 dollars a month.

Did you find this blog post valuable? If so, I would appreciate if you leave a comment below and share on Facebook.

To Your Success,

Work With Me - Nerium International


PS: If you are struggling to get more leads, generate more cash and sign up more reps into your network marketing business, then I highly suggest you check this out.

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10 Responses to What is Network Marketing (MLM)?

  1. Val Heisey December 28, 2011 at 4:50 PM #

    Hey John, couldn’t agree more. I have a business. Not a franchise, but start-up costs were around 30k. I got into Network marketing for all the reasons you mentioned and look forward to traveling with my computer and cell phone!

    • johnmoussan December 29, 2011 at 12:54 PM #

      Hehe, it’s that simple right! Thank you for sharing your experience and perspective Val.

  2. Amy Jo Neal December 28, 2011 at 9:55 PM #

    Network Marketing is simply the easiest and best way to create a massive income and a life of freedom. I’m so glad I found Network Marketing because when I got downsized from my corporate job of 14 years a few weeks ago, I didn’t bat an eyelash because I had my network marketing business already going on the side. Now I’m a full-time Network Marketing professional and I can finally be there for my kids and earn a great living. How does it get any better than that?

    • johnmoussan December 29, 2011 at 12:53 PM #

      Amy, wow! What a great story. Congrats!

  3. David Sharp December 29, 2011 at 5:01 AM #

    Network marketing is the business of the future for those brave individuals who have enough entrepreneurial spirit to make it work. Anyone can actually achieve success with network marketing but a lot of folk are just too set in their ways to give it a try.
    Good introduction to the business John, take care.

    • johnmoussan December 29, 2011 at 12:53 PM #

      Thank you for your contribution David.

  4. Chante Epps December 29, 2011 at 5:27 AM #

    This is a really informative post that really shares the overall concept about what the network marketing industry is about. It’s important that anyone seriously looking to get into this industry understands all aspects even the negative ones associated with it that you so clearly point out in this post. By the way John, I love the comparison about the “dark side” glad to see you’re being so honest with your readers and people who are seeking out the real deal about this industry.

    • johnmoussan December 29, 2011 at 12:52 PM #

      Hehe. Thanks Chante. Of course I agree with what you are saying and it is true there is always a darker element in almost everything that we do.

  5. Lilach Bullock December 29, 2011 at 3:01 PM #

    John I love this post. Whilst I’m not in network marketing myself I know a lot of fabulous people (like yourself) who are.

    Like any business, there are pro’s and con’s and you’ve highlighted all of them beautifully.

    • johnmoussan December 29, 2011 at 10:24 PM #

      Thanks you for the compliment :) and stopping by to contribute to the conversation Lilach! I appreciate you!

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