Networking Marketing Pros and Cons


If you are a self-starter looking to leave behind the world of traditional employment, you may have heard the term ‘network marketing’. Also known as multi-level marketing or referral marketing, network marketing employs a funnel payment system where individual salespeople fund their own stock from a company and sell it within their own personal networks. Some of the big names in the industry include Mary Kay Cosmetics, Primerica Financial, ItWorks and many more. You may already have friends or family members involved in network marketing—it is a growing industry that has provided many entrepreneurs with their start. But if you’ve heard of network marketing, you’ve no doubt heard the many criticisms of the marketing strategy.


Definition of Network Marketing


So what’s the deal? Is network marketing a good way to make your way into the world of sales… or a money pitfall that could leave you lower than you began? Like all industries, network marketing has its pros and cons. We’re here to help inform you about both sides of the network marketing industry so that you can form educated opinions. Our goal is to remain impartial and to get the facts out there to better help you remain informed.



  • Network marketing is an easy way to break into the business world.


For those just starting out in the business world and trying to learn the ins and outs of being an entrepreneur, network marketing can provide real-world experience.


  • Network marketing is a great industry for people who want to spend more time at home.


Network Marekting Working at Home


If you are a working parent or otherwise needing to spend a majority of time at home, network marketing can mean more time available for you to spend at home and out of an office.


  • Network marketing can provide individual sellers a chance to truly share their passions.


Network Marketing Sellers Sharing Passion


Because individual sellers get to choose which company to work with and what products/services they will offer, sellers are able to bring personal passions into network marketing and bring real care into their work.




  • Network marketing takes a lot of time to gain any traction or success.


Unlike other industries where there are teams of experienced individuals happy to help train you, being part of a network marketing company usually means you will only work with a single sponsor who may or may not be helpful.


  • Network marketing involves lots of rejection.


Because most of the sales pitches are ‘cold calls’, there is a high rate of rejection if you are approaching people who are uneducated or interested in the product/service being sold.


  • Network marketing isn’t always a path to getting rich.


Most network marketing companies make their money through representative fees and a portion of what each seller earns, meaning there is a lot of competition and little wealth to go around.

Now that you have a better grasp on what network marketing is and what it entails, are you better able to decide if this industry is for you? Many people have found a way to sustain themselves and their family through network marketing, but it can be a difficult industry to break into and you will face plenty of rejection day-to-day. It can also be hard to amass true wealth through network marketing, but if you are looking for a job that allows you more time at home or with your family, network marketing may be perfect for you. It is also a good opportunity to learn and better understand the business world. The decision is up to you, but just keep in mind: network marketing relies on individual sellers to really push and stick to their goals, so it’s not for the faint of heart.

At Network Marketing Labs we are proud to share the most current and up to date news and information about the direct selling & network marketing industry.

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What is Network Marketing?


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