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The Pros and Cons of Network Marketing

The Pros and Cons of Network Marketing

You may not be familiar with the term network marketing. It is just another term of multi-level marketing or MLM. With the rapid proliferation of online concept of MLM or network marketing, many network experts now finding this as an immensely beneficial business opportunity. If you are interested in this form of marketing and want to expand your business using the huge potential of network marketing, you have to know the pros and cons of network marketing.

The pros of network marketing

  1. The quest way of sharing a product or service

No other medium can spread information about a product or service as fast as network marketing. The omnipresence of social media platforms has made networking easier and faster. Thus, a product or service that you want to sell can achieve a huge market through this process of marketing and that also investing minimum time and effort.

  1. The easiest way to set up a business

If you want to set up a business with minimum effort and investment, network marketing is the best option for you. Here the risk is low since the investment is low. You start earning right away. The investment is low since the product or service you are going to sell is already established in the market. Even if, you are planning to create something of your own, hundreds of downline will invest time and money to expand the same business.

  1. It multiplies your invested time and effort

Hundreds of business partners in your downline put their time in the same business which actually increases your market reach and income. Thus, your working hours and ability actually multiply.

  1. Best way to maximize your profit

Network marketing comes with sales commission, loyalty, downline commission, bonus, and many such things. Actually, the profit out of a group effort is distributed systematically. Naturally, your business profit maximizes.

  1. Guidance and assistance from day one

There is always at least upline in this business that helps the downline members to improve their business capacity. Up line always act as a mentor in every step of your business. In fact, they have their own interests too. If your sales volume increases, they will earn more commission and bonus. Their guidance and support help you expand your market.

  1. Readymade structure in your hand

You know what you have to do, where you have to go, what is your product or service, and many such things right before you join the system. You have not to develop anything; you just need to focus on your business and market.

The cons of network marketing

  1. Competition is stiff and sometimes the market is saturated

As there is no specified zone of marketing, your selected area may already be occupied by one or more members of the same business. Competitors are most probably expanding or targeting the same market as yours. In some cases, it is seen that the market is already saturated making it really tough for the new entrants.

  1. Requires a higher level of physical effort

Even though the internet has become a part of networking, still this concept of marketing is physical. That means, you have to face the clients, prospects, and downline regularly, in some cases almost every day. So, if you are no free to talk to strangers or if you cannot demonstrate your product well, you will not be able to fetch the benefits of networking.

  1. Rejection percentage is high

You have to be patient and persistent as the rejection percentage in network marketing is fairly high. You have to be habituated in hearing “no” several times a day. This is true both in structuring your downline and selling your product or service. When you first start the business, you may face lots of obstacles. Hence, initially, the conversion rate is normally very poor. Many new members in network marketing stop working just due to such a high rate of rejection.

  1. Threshold time is vital

Networking is the best way to expand in any market in minimum possible time but the initial phase of expansion is vital. It may happen that you don’t have any business for several days. You may lose hope when the rejection rate is high and you don’t find any real reason behind it. This is the threshold period where you need to be consistent in order to survive in network marketing.

  1. The market is full of scammers

Sometimes it becomes tough to judge the authenticity of the business. Everyone says that they are the best in the market. There is no authentic data available in this sector that can help you to judge the correctness of an MLM. You have to depend on social media and word of mouth (WoM).

  1. Getting a good mentor or up line is a matter of sheer luck

Your upline or mentor is also trying to expand his business and market. If the system allows them to sell products or services related to the business then the mentor may become your competitor. If you are doing good and expanding your downline perfectly, your mentor may start ignoring you for different reasons. In many networks, new members could not even see their mentor.

Any forms of network marketing are full of pros and cons. In any case, you have to be the best; you have to put your efforts and acumen to expand your downline and business. However, it is always a good decision to understand the hurdles well before joining network marketing.

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Prince Saini

An #entrepreneur who's passionate about solving real world problems and #inspiring people to achieve the next POSSIBLE in their lives.



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