Hustle Ideas

Why Network Marketing Is Bad

Network Marketing is touted as a way to turn one’s network into money. That is an idea to turn one’s social network; friends, family members, coworkers, church members- all social interactions- into a source of income.

Everybody has some kind of network, and as such it seems that everyone has the potential to make money through network marketing. If everyone can make money through network marketing, then poverty should be solved.

But poverty is not solved. It continues to increase every day, showing that network marketing has not been able to solve poverty. This alone is the focus of this; Network Marketing is not what most people think it is.

Why Network Marketing Is Bad

Network Marketing is just another presentation of Multi-Level-Marketing; they are essentially the same thing. When people attend the seminars they are promised a life of ease. They are told that they will make “residual income,” which will give them “financial freedom.”

To get this financial freedom, they just have to “build their network.” In a typical multi level marketing structure, that means getting as many people to sign up to the scheme under them. Thereby building a pyramid in which they are at the top, and then they get a commission from the registration and sales done by their down-liners.

It is certainly a possibility; they see people at the seminars who have done exactly that.

However, what they often fail to realize is that they are just another block in another person’s pyramid. Most people who join network marketing do not make any money at all. Some people even lose what they invest.

The reason is that friends, family members, coworkers, and church members are simply not eager selling machines as many people imagine. They are human beings who value their social interactions.

One may wonder why we mention social interactions. What does Network Marketing have to do with social interactions?

A lot.

Use Your Social Interactions To Make Money?

Network marketing is a predatory business scheme. People who join this type of business look at their own mothers and see dollar signs. Social interactions automatically stop becoming social as all the network marketer ever wants to talk about is their newfound money minting business.

As a result, people start avoiding them. People get tired after a while; they want to talk about life in general, love, sports, religion, and business. Just not network marketing business that will interfere with other aspects of their lives.

Ruthless people can still succeed in this business; if they are relentless marketers they can get their family and friends to buy their products and register. However, many will only do so to get you to leave them alone. They may reason “if I register, then she stops talking to me about this.”

The Business Still Fails

Even when you can get EVERYONE in your immediate social circle to register to your get rich quick business, it still does not change the outcome. You need everyone to be relentless selling machines; they need to sell the products to an army of people, and register everybody in their social circles as well for you to get rich.

Getting rich off Network Marketing requires you to register an army of people under you as your down-line. Remember that you will get a commission from every sale made by people in your down-line- that is just what network marketing is all about.

That is just where the business fails. Just because you were willing to exploit your mother, alienate your siblings, and lose the friendship of your coworkers doesn’t mean that they are going to be willing to do the same. Some people value friendships.

Converting 10 people into your down-liners is just not enough to make you rich, but it is enough to make someone else rich.

Who Gets Rich From Network Marketing?

The people who get rich from network marketing are those at the very top of the pyramid. Remember that network marketing requires you to build a network of people under you. They have to be very many for you to get the kind of money they preach about at the seminars.

People who join network marketing ventures often see themselves at the top of the multi-level pyramid. What they fail to realize is that they are at the bottom, or at least close to the bottom.

Being at the bottom of the pyramid, what they end up doing is to make the people at the top rich. In order words, they end up being the down-line which contribute to the earnings of the people at the very top.

They work and toil in the rain and sun, only to breakeven. Many of those dear friends and family members who they convince, and pummel to join the schemes will lose their money.

What Happens Next?

What would you do if a sibling or friend forced you to join a business venture, and you ended up losing all the money you invested?

That is exactly what happens next. The brotherly feelings may dry out immediately after, or in some cases, when the people are more forgiving, they may let it go. Even when they forgive, they may not forget.

If they do not forget, then they will be unlikely to listen when you bring genuine business proposals in the future, because they do not want the same thing to happen again.

Further Reading:


Network marketing is bad because it adopts a wrong posture of exploiting existing relationships with the promise of making participants rich. Participants want to build a multi-level pyramid in which they stay at the top, while all those in their social network are under them.

The overwhelming majority of people who enter into such schemes do not make any money. Only those with a structure of recruiting people can. The scheme remains controversial because those professionals who have built a structure for recruiting participants know that while they will make money, they will do so at the expense of the people they convince.

They go ahead to host dinners and seminars where they willfully lie to their listeners; hoodwinking them to join these fraudulent schemes- all for personal gain.

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