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The Truths and Myths About Network Marketing

When the salesperson knocks our door to sell his company product, many times we look through the window and express our attitude towards marketing that now we don’t need the product. This shows how far we believe the guy or the product or the company.

Most of the time the salesperson will not get a chance to explain his product. We always feel that the salesperson is here to flatter us to make a sale and we always think twice whether to hear him or to avoid him.

This misconception about networking still exists in our country. People misunderstand about network marketing that it is not worth for money and it is totally waste of time and effort of ours to make money for the marketing company. They generally have an attitude that there is no benefit for us even if we work hard to earn the profit rather the company earns a profit with our effort for any sale to happen.

In this article, will see some myths about Network Marketing and will also see the truth behind all the myths which will help you to come out of those misunderstandings or misbeliefs of Network Marketing.

The Truths & Myths About Network Marketing

Below is the list of myths about Network Marketing and will discuss the truth behind each and every myth. Myth #1. Organizational structure is an illegal pyramid structure Myth #2. Only the topmost person will make a profit. Myth #3. Network Marketing utilizes people for their business. Myth #4. Network Marketing will not work out. Myth #5. It reaches a saturation point. Myth #6. Never get rich through Network Marketing Myth #7. Overpriced products are promoted and no big demand for it.

Myth #1. Organizational structure is an illegal pyramid structure.

There is a slight difference between an illegal pyramid structure and permissible MLM business. People often misunderstand permissible MLM business with an illegal pyramid structure. Here an illegal pyramid structure, they make use of your money to recruit the downlines. They simply want you to make more distributors without offering more profit to you.But in permissible MLM business, the main theme is to sell their product directly or indirectly to the customers by offering some commission rates for the distributors.

The owners, as well as the distributors, gain profit in this MLM business. In most of the US countries, an illegal pyramid structure in MLM business is banned. So people still have that feel that all permissible MLM business still follows an illegal pyramid structure. Be it any private or government organization it follows basically a pyramid structure like the highly authorized person will be on the top and the middle-level management will report under the top person and working employees will be reporting under middle-level management. So basically, it follows pyramid structure.

Truth :- Look into the MLM business not into the structure to decide whether it yields a profit.

Myth #2. Only the topmost person will make a profit.

People are interested in network marketing only for this that only the topmost person will make a profit. This myth shows that only the owner of the business or the CEO or President makes the profit out this network marketing. We cannot always say ” yes it is true”. Really we cannot blindly accept that no one else will earn money through network marketing.

Not only the main distributors the downlines also make a profit with their efforts and need to more trained and focussed about the business to earn more money. It totally depends on how you promote the business or product to earn the commission or profit whether you joined newly into the team or joined years ago.

Truth:- We have to put our own efforts to make money for any kind of business.

Myth #3. Network Marketing utilizes people for their business.

When people misunderstand about its structure and the profit they obviously get into the confusion that Network marketing simply utilizes people for their business.Simply having more potential recruits will not guarantee you to success. You need to consistently provide your time and support for the business to see the change. People think that we need to talk to friends and family and make use of them for this business which they don’t like sometimes. Network Marketing is not simply making use of only your friends or family.

Truth:- The real fact is that for any business you may need to advertise or promote the product or service to the maximum and of course it is not limited to family and friends or not just simply making use of them.

Myth #4. Network Marketing will not work out.

As you have already seen the above myths it indirectly relates to this myth that Network Marketing will not work out for everyone. For any business, you need to sincerely invest your time and effort and if not, sure it is going to put you down. It does not mean that the business will not work out for anyone.

Network marketing business may not suit some people who do not want to invest their more efforts into the business. Not only in Network Marketing they cannot succeed in any business.

Truth :- Hard work is key to success for any type of business.

Myth #5. It reaches a saturation point.

Reaching a saturation point in network marketing is highly impossible. Daily new customers are into the market to buy some innovative product and daily the population count is getting updated with the newborns. The way you do marketing is important and it is not based on your product.

For example, Almost everyone is having T.V, refrigerators, mobile phones nowadays. Does it make any organization like electronic manufacturers to stop their business? No.

The customers always look for an updated version or high-quality product. So they decide to have a change in their product by buying the new one. In this way, old customers will continue to be your customers and new customers are daily born.

Truth:-Reaching a saturation point in any business market is not possible until there is always a new customer born and old customer looks for a change of product.

Myth #6. Never get rich through Network Marketing.

We cannot always accept this myth that we can never get rich through Network Marketing. Getting rich means it depends upon the individual’s perception. For some getting rich is reaching the goal, for others, it might be earning more profit than other members of the business.

In any business getting rich involves your consistent effort and time. Need to be more focussed and self-trained about the business and the products. Similarly, in Network Marketing getting rich is possible by getting free from debts and comfortable you can sit at home and do this business part-time to improve your income.

Truth:- You can be stabilized with your financial profit or income.

Myth #7. Overpriced products are promoted and no big demand for it.

Most of the people misunderstand that in Network Marketing they end up selling overpriced products where there is no big demand for the products. However, in legitimate MLM business, they promote high-quality products which are worthy and customers request for the new orders only if they really like the product. They try to rebuy the product for its quality so sometimes the price is inflated depending upon the demand and supply.

If there is more demand, the supply will be decreased. In order to meet customer requirements, the price is increased. So it is totally not acceptable that the overpriced products are sold when there is no big demand for it.

Truth:-Only if there is demand the prices are inflated to meet the quality of the product.

Myth #8. Network marketing is all about using innocent people to one’s benefit

In network marketing, you will have mentors to help you on every step. But in the corporate world, people compete with their colleagues. One’s success in network marketing is largely based on the progress of members recruited by them. This ensures that new members always get all the necessary help from their mentors at every step. There are countless examples of people who have succeeded in network marketing by helping people.

Truth:- Network marketing is about helping others for everyone’s benefit.

Myth #9. Most network marketing companies fail

Studies show that 90% of start-ups fail in the first five years. Success and failure are normal in the case of any business and network marketing is no exception. It has nothing in particular to do with the business model. A business can only survive and succeed with hard work, and dedication.

Truth:- Network marketing companies, similar to all other companies can succeed or fail according to how it is operated.

Myth #10. Network marketing is a cult

If you have ever been in a network marketing training session or a major event organized by any network marketing company, the passion, and energy shown by many members can look like fanaticism to an outsider. But the truth is that network marketing does not require fanaticism and it is not a cult.

Truth:- Network marketing is not a cult.


Hope you all came to know about the Truth and Myths about Network Marketing in this article. This will surely help you to start or join the Network Marketing business by isolating all the Myths and by following all the truth about Network Marketing. Finally, you need to invest your consistent time and effort for any successful business. How you do marketing is really important than what business you do. Some lethargic people have the attitude that Network Marketing is not a good business to start with and they came up with all these Myths. Hope now all the Myths regarding Network Marketing are flushed out of your mind.

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john wenham
john wenham
2 years ago

Useful Information.. Thanks

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