Advantages and Disadvantages Of Network Marketing


In our time, people are related to different network marketing. Someone is very negative towards it, and someone is motivated. Some consider network marketing a promising business and others. A common scam. And for some, it’s an additional way to make money. If you decide to experiment with this type of activity, you must first find out what it is and what are the advantages and disadvantages of network marketing.

According to statistics, only 10-15% of people who decide to do network marketing, get some results. Their income can reach tens of millions of dollars. The rest earn very little or no money at all. There are people who invest their money in this business, but in the end, they do not succeed and live with debt. Leave such people and this business, because of them and have negative opinions about network marketing.

Is It Possible To Get Well In Network Marketing?

Perhaps, many were interested in the question, there is no answer to this question. There are people who achieved success, and there are people who did not achieve a result, or the result was abnormal, and there is an explanation for that.

Many principles of network marketing are not new and special

Its elements are present in any successful economic mechanism. There is a producer who produces goods and a general dealer. The firm that sells its products. In this case, the big business is the dealer’s biggest profit. He saves the product in the warehouse, and from there, it goes into the retail trade.

In this regard, each link receives its own share of profits. The higher you are in this structure, the less your seller gets. This is similar to the network marketing structure, but there is a difference. The seller is less likely to become a shop owner. This will require a large investment. Therefore, the material possibilities of hired people are very low. The only thing that can be expected from this job is an increase in wages for the performance of their work intellect.

Differences Between Network Marketing:

Naturally, network marketing has numerous differences from traditional business. Links to their primary network marketing structure are not the company, but those who act as the company’s distributor. They provide movement of services and goods from producer to end-user. In the absence of intermediates helps to achieve maximum profit. Climb the stairs, depends only on your characteristics, and does not require any investment. If you don’t have the initial capital and the right connections, network marketing is one of the few ways to achieve financial success.

It’s not serious, that network marketing is the same “pyramid,” but that’s far from the case. Unlike “pyramids,” companies engaged in network marketing, sell real goods with real demand and real value. In their pure form, the “pyramid” is not exactly any goods, but there are so-called “hidden pyramids,” which sell goods at unnecessarily high prices, explaining the characteristic of the goods. As a rule, there are no quality certificates for such a product. One of the prerequisites for cooperation with such companies is the purchase of a certain amount of money offered by the company. Usually, more signs of the pyramid are looking for those who want to buy the same set of products.

The Benefits of Network Marketing:
  • You can achieve success, which will bring a steady income.
  • Free work schedule, you work when you want and how much you want, which is impossible in other types of business.
  • No special education and large financial investment required.
  • You can help and encourage those who have attracted you, which will increase your profits.
  • You can use any psychological and marketing knowledge.

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