What Is Network Marketing And Can I Benefit From It?

The Million Dollar Question

What is Network Marketing? Many people ask this question, and the truth is, many get a different answer as well. So Let me explain what Network Marketing is all about, and most importantly, if you can benefit from it.

What Is Network Marketing?

Think of Network Marketing like a franchise. You see many fast food chains all over the interstates and cities, and each store has a different owner. Each location of Burger King, or McDonalds, more than likely has a different owner of that location than the next store in the next city. Same way with a Network Marketing company. You own a piece of this company, that will pay you based on the volume of products that your business sold.



You will also build other stores in Network Marketing. This is where some say “It’s a pyramid” or “It’s a scam”. Truth is, if the company pays what was agreed on, for what was sold, then it wouldn’t be a scam. If a company holds back what you have rightfully earned, then it is a scam. Of course any company that would withhold their distributors checks, never last long. So if you are looking into a Network Marketing company that has been around for years and already distributes millions of dollars in volume, you can rest assure they are not a scam.

The reasons for building other businesses, or recruiting others to help sell, is to increase volume. If a Network Marketing company did not pay me for introducing someone else to the opportunity, I would never tell anyone. If I did, I would be creating my own competition. So it is important they share a percentage of sales from those you refer, in order to keep the company alive.

However, there are many more benefits to a Network Marketing business than there is owning a franchise like Subway or Taco Bell. With these traditional style businesses, the overhead cost and startup costs are out of the range for most people. In Network Marketing, the startup and overhead cost is less than their car payment.

Can I Benefit From Network Marketing

Anyone can benefit from a Network Marketing opportunity, but that doesn’t mean YOU should jump into one. It takes a certain type of person to make Network Marketing successful.

If you are a negative minded person, or you seem to focus your attention on what is wrong with things vs what is good about things, then it may not be a good choice for you. Just like a traditional business, Network Marketing takes work, and a lot of work that may take more time than some are willing to invest in order to begin earning big profits.

If you see it as worth it by what you make an hour in your first few months, you more than likely will be disappointed. This is the mindset of an employee, not a business owner. The reason so many people work in Network Marketing is because they see that in the long term effect, they will be more successful than they ever would be if they spent their life working for someone else. This is why it takes a motivated person, with a good attitude and professional mind.

If you like to run businesses, then Network Marketing will be a good choice for you. Or if you want to start a business for the first time, then Network Marketing would be the least risky way. More advantages of Network Marketing is you can earn more than you could in most traditional businesses, without employees, high overhead costs like rent, and can build it from your home if you wish.

How To Tell Which Of These Answers Is Right


Like I mentioned in the beginning of this article, you may hear different answer  when asking “What is Network Marketing?” So there are usually the answer of “It  doesn’t work” which you hear from those who are not involved in it or tried it once  before, or you hear “It is a wise choice” by those who are making a lot of profit  from it.

You should look at the person themselves to decide. Does the person saying it  doesn’t work, seem to be a negative person? Is this person successful? What  results in life has this person got?
Then when you see a person who says “It is a wise choice” ask the same questions about that person. Is this person successful? Do they seem to enjoy working in Network Marketing?

There are many people who do not make millions in Network Marketing, however they do earn profits, and are satisfied. So if you have a smaller goal in mind, you may be more able to reach it. It is much easier to earn an extra $1,000 a month, than it is to build a business that pays $1,000 a day. You decide.

Do I Need To Be At The Top Or The First In?

The myth that you must be one of the first in to make it work, is way beyond wrong. You do not have to be the first few to join a company in Network Marketing to become successful. As a matter of fact, many people in the start never become successful at all.
The pay plans are setup so that you have to achieve results to make money. So you can be the 100,000 person join the company, and still make more than the person who joined 1st. In the minds of some people, they see a pyramid and assume that the top gets all the money. But, in most Network Marketing companies, you must build 2 teams and base pay from the 2 combined.
If you look into almost every Network Marketing company, you will see some of the most successful and highest earning reps, were not the first to join, or even close to it. So you should never let that myth effect your decision on which company you choose to become a part of.

Did This Help?

Did this help answer your question “What is Network Marketing” and explain if it is good for you? If so, please leave a comment below and share with your team and friends.

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About The Author

Jaye Carden

Self Employed Network Marketing Entrepreneur

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  • Steve Stark

    Reply Reply July 27, 2015

    Great info Jaye! There are so many myths about network marketing and it is such an awesome profession.

    • Jaye Carden

      Reply Reply July 30, 2015

      I agree Steve. But so many of those myths that are not true, come from those who do not know it.

  • Diomedes Rentoy

    Reply Reply February 14, 2016

    Thanks for the explanation Jaye. But I still think that others prefer to go on the traditional. There are some who wouldn’t really want to sell since network marketing is not their line.

    By the way, do you have scripts on how to answer objections or negative reactions to network marketing?


    • Jaye Carden

      Reply Reply February 15, 2016

      Thanks for the comment. I have done past webinars on objection handling and mentioned some throughout my site. I will put together a specific page and piece of content on all the best objection handling tips I know soon. Thanks for the suggestion.

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