Is Network Marketing Legit?

If you’re part of the network marketing business in India, chances are most of you, if not all, have come across people who think you are involved in a scam. No other legitimate business opportunity has perhaps been more misunderstood and demonised than this business.

This is unfortunate because if people took the time and effort to understand how the business works, it would become clear that network marketing is a viable way to start a part-time/full-time business.

The ambition of many young college graduates today is to land a cushy corporate job. Here is what the structure of any corporate organisation looks like.

Today, we help you bust 7 myths about network marketing.

Myth 1: Network Marketing Is an Illegal Pyramid Scheme

Fact: Network Marketing Is a Legitimate Business Model

The shape of an organisation does not determine legality. If it did, most businesses and organisations including the government would be illegal because they are structured like a pyramid. An illegal pyramid scheme provides no real products or services, and pays according to the number of recruits. Legal network marketing programmes offer useful, high-quality products or services and pay commissions based on the volume of sales.

Myth 2: Only the Guy at the Top Makes Money

Fact: The Money You Make Is Determined by Effort, Not Position

This argument more accurately describes a “job”. How often does a minimum wage worker become the CEO? In any corporate structure, it is a given that the guy at the top makes the most money. In good network marketing companies, a person can make any amount regardless of where they are in the organisation. Income is related to effort, not position.

Myth 3: Network Marketing Uses People

Fact: Network Marketing Is About Collaboration, Not Exploitation

Success in network marketing comes from helping others reach their goals. A person cannot earn income off the efforts of their recruits without investing time in helping them earn income, as well. Admittedly, some network marketers see potential recruits as dollar signs, but those people are not as successful as those who are genuine in their effort to help their recruits do well.

Myth 4: Eventually the Programme Will Get Saturated

Fact: Saturation Is Impossible as the Population Is Always Growing

Saturation is impossible because there is never a finite number of people. More people are born every day, adding new potential network marketers to the pool. Tim Sales, in Zig Ziglar’s Network Marketing for Dummies, offers the best argument against the saturation myth. He asks, “Do you know anyone who doesn’t have a refrigerator? No? That doesn’t stop GE from selling more of them.”

Myth 5: Network Marketing Doesn’t Work

Fact: Network Marketing Has Worked On a Global Scale and the Numbers Back It Up

According to the 2024 WFDSA report, the direct sales industry grossed $167 billion globally, growing by  $1 billion from its pre-pandemic numbers. India’s direct selling industry grew by 12% in the past year and boasts $3.43 billion in retail sales in 2023.

These numbers indicate that this business can and does work. Success or failure has less to do with network marketing itself and instead is determined by the amount of effort one puts into the business. Many bloggers, eBayers and other home business owners don’t do well or quit too, but you don’t hear people saying blogging and eBay don’t work.

Myth 6: No One Really Gets Rich in Network Marketing

Fact: Network Marketing Offers Financial Freedom and Personal Growth. Getting Rich Depends on How Hard You Work

It’s true that not everyone succeeds in network marketing. The 2-10% of network marketers earning big money are the same 2-10% who work consistently on their businesses. But getting rich shouldn’t be how network marketing is judged. If getting rich is the measure of success, then the majority of employees in traditional jobs are big failures. Instead, network marketing should be measured by the number of people who reach their goals. Many people in network marketing find success when they earn enough to stay home with the kids or pay off debt.

Myth 7: Network Marketing Is a Cult

Fact: Network Marketing Companies Prioritise Professionalism, Ethical Standards and Factual Information

If you have attended a network marketing training event or a major corporate event organised by your company, it is true that the passion and energy exhibited by many people can seem almost fanatic to an outsider. But fanatics exist everywhere. The truth is that network marketing companies don’t require fanaticism. Most legitimate companies such as QNET work hard to keep our representatives grounded in facts and figures.

Yes, network marketing has its issues, but when you dig deeper you realise most of them hinge on misinformation. Even people like the world’s best investor, Warren Buffet, and former US President, Bill Clinton, have invested and spoken about network marketing in a positive light.

Nevertheless, misconceptions and myths persist. Don’t let false information stop you from considering a network marketing business. You can achieve success in a network marketing venture if you gain a solid understanding of the industry. Choose a company carefully, find a quality sponsor, and commit time and effort to your business.

Read More: How to Start Network Marketing? How do I join QNET?

“The highest form of ignorance is when you reject something you don’t know anything about” – Wayne Dyer