Is Network Marketing a Good Career Choice? Exploring the Reality After 3 Years of Experience
Based on more than three years of experience in network marketing/direct selling. The question “Is network marketing a good career” is common among people who do not have enough knowledge about network marketing. People get some information about this industry from what they hear from friends and family and then based on that they conclude whether it is right or wrong to work in it. But this is not a good way to know about network marketing or any industry. You should do your research and if you are reading this article seriously, it confirms that you are serious about starting your career in Network Marketing/Direct Selling/Multi-level Marketing (MLM).
And I recommend you to read this entire article. Apart from this, you will not need to read any other article, the answer to this question “Is Network Marketing a good career” can make or break your future career. Following this article will help you make the right decision regarding your network marketing career.
Network Marketing as a Career: The Hard Truth Before You Dive In
If I answer the question, ‘Is network marketing a good career?’ in one line, then it depends on the person who wants to do it. Network marketing is all about sales and team maintenance work; some people’s character is suitable for it and others are not. If a person is stable in terms of income and can handle objections, and meet new people then it is okay to pursue network marketing as a career. But for those who do not have stability in their lives and have the responsibility of earning regular income for their family, it is not good for them to do network marketing as a career in starting.
Also, read – How To Join Network Marketing? Secure Way | In-Depth Analysis
But just knowing this is not enough. People want to know about these things before finding a career in any industry. It’s crucial to have a comprehensive understanding of various aspects before diving into any industry. Questions like what the industry entails, how it operates, its scope, advantages, and disadvantages, whether certification is required, earning potential, expenditure, and workload are all essential to consider. Gaining insights into these factors is vital for making informed decisions and ensuring success in the chosen field. And I have explained all these things clearly in this article from my experience.
America’s FTC has said about direct selling
According to the Federal Trade Commission ( ftc.gov – An official website of the United States government ), The fact is less than 1% of MLM participants profit. The 1% figure is an estimate based on various studies and reports. The true percentage may differ based on the particular network marketing company and industry. This means that there is a lower success rate of Network Marketing/Direct Selling/Multi-level Marketing (MLM) businesses.
What is network marketing with an example?
If you are new to the term Network Marketing then you should know before diving into it, Otherwise, you can skip this part. Network marketing breaks into two words ‘network’ and ‘marketing’, network means a group of people, and marketing means the activity of promoting a business or products directly to the right person at the right time.
In simple words, network marketing is a group of people whose job is to promote business products door-to-door or directly to their friends, family, and acquaintances. So that they can earn money by selling the product. Network Marketing is also known as Multi Level Marketing (MLM), Direct Selling, etc.
Here’s an example to illustrate network marketing
Company A sells health and wellness products. You have used some of those products and found them good. Then you join as a distributor and recommend your friends, relatives, and acquaintances people to use the same product. That means indirectly you sell that product to them and earn a commission. And when someone among your friends, relatives, and acquaintances people likes the product and wants money. So they will also go through the same process that you went through. By doing this, you will earn a percentage of their sales. As they recruit more people, you will keep getting commissions. Some get success in this and some do not.
Understanding the Direct Selling concept
- If you sell products worth Rs ₹10,000 and earn a 25% commission, this will result in a profit of Rs 2500.
- To earn more recurring commission you recruit a person named Vikas, who also sells products worth Rs ₹10,000. You then add ₹1500 to your earnings (let’s say 15%).
- Vikas recruits Sonu, and you earn a small percentage (say 5%) of Sonu’s sales, contributing ₹500 to your income.
This structure continues, and distributors can earn income not only from their efforts but also from the efforts of the people they recruit. And from the next layers of recruitment in their downline. Whereas some people get success in this process of network marketing. It is important to note that the industry has faced criticism due to pyramid schemes (fraudulent schemes to extract money by showing unrealistic dreams). As a result, distributors (direct sellers) faced challenges in earning good profits.
What is the scope of network marketing?
There are certain things to measure the scope or future of the network marketing industry.
- It depends on whether the demand for the product of that industry is high or low among the people.
- If the company’s products are being sold mostly by word of mouth. It is a good sign that the product is needed by people. This means that there is more scope for that company’s products.
Network marketing is a profession in which people connect with other people, i.e. a profession that connects people. This means that there are a total of 8 billion people in this world. According to MediaIndia, 401,300 people are born and 158,686 die every day. If we talk about India, there are 1.4 billion people (140 crores). India’s population is the largest in the world. As of 2021, half of India’s population is under 30 years of age. This means that India is the country with the youngest population in the world. So, we can say that there is no absence of people in India or the world for the direct selling industry. So as per the number of people joining, the scope of network marketing is looking bright.
Also read – Network Marketing Skills – 20+ Useful Hidden Skills To Learn Here
What has the government told about the direct selling industry?
Ministry of Consumer Affairs, Food & Public Distribution released the Consumer Protection (Direct Selling) Rule in 2021. Promoting Pyramid Schemes or money circulation schemes companies are banned in India. Due to increasing illegal activities and looting of people’s hard-earned money. The aim of the government in bringing this rule was so that people could easily differentiate between fraudulent network marketing companies and legitimate network marketing companies.
In a report released by the World Federation of Direct Selling Associations (WFDSA). India has ranked 11th among the leading markets for direct sellers. With an impressive retail sales figure of $3.23 billion (approximately Rs 26,852 crore) in 2022, India’s direct selling industry is thriving like never before.
According to a study conducted in 2016 by FICCI and KPMG, it was projected that the industry has the potential to grow up to Rs 64,500 crore by 2025. Additionally, this growth is expected to create job opportunities for approximately 18 million (1 crore 80 lakhs) individuals.
Now Revealing Hidden Benefits And Drawbacks Of Network Marketing
Have you ever considered network marketing a good career? If so, what were your biggest concerns about it, and what potential benefits attracted you? Please share your thoughts in the below comments section.
Many people in this industry tell the benefits of doing direct selling. Many individuals in this field highlight the benefits of direct selling. As they’ll tell you, financial freedom means you’ll have enough money to buy whatever and whenever you want. And having the ability to acquire various skills like communication, public speaking, objection management, creative thinking, selling, personality development, etc. While these benefits are real, achieving them is not as easy as it is made out to be. If that were the case, the failure rate in this industry would not be as high as 95%.
The challenge lies in the time it takes for those big dreams to come true – often much longer than initially promised. This time lag becomes a major drawback of the industry. People join with great expectations, but as reality sets in, some feel it is not right and they leave. Unfortunately, some of these individuals share negative experiences, which affects the reputation of the industry.
Is there any certification required before joining network marketing?
No certification is required before working in network marketing. If you are even slightly educated then you can work in this industry. You need to be able to read and write well. If you want to move ahead in this industry and earn passive income. Then you should have at least a 10th, 12th, or graduation education. A well educated, then you can give good training to the person joining your team and expand the team.
If you want to do direct selling professionally as a career. Then you should look into the post-graduation degree in direct selling provided by Shoolini University in Himachal Pradesh, India. The “Centre of Excellence for Direct Selling in the Academic Sector” was officially launched by the University in collaboration with the Indian Direct Selling Association (IDSA).
What are the earning potential and expenses in the network marketing industry?
The earning potential and expenses in the network marketing industry are highly unstable. You can earn from nothing to six figures or more, but the number of top earners is low. Shockingly, the Federal Trade Commission has revealed that a mere 1% of network marketers manage to earn a substantial income. This eye-opening statistic highlights the challenges faced by the majority in this industry.
The bitter truth of direct selling, I am sharing with my experience.
It is the harsh reality that no one can tell you before joining the direct selling industry. I am telling you from my 3 years of experience in network marketing. The initial expenses of a new person are very high. First of all, money is spent on oneself to learn the work and later money is spent on building a team. There are some initial expenses like buying the dress, paying for the training, and traveling to another place to give the presentation, there are also a lot of expenses during the travel. And during this period there are more expenses than earnings.
If the ratio of earnings and expenditure is calculated in the first year, then the expenditure is more and the earnings are less. More than half of the people often leave within the first year. But the real thing is that if a person has a good financial background and works continuously without having big expectations in the beginning, then he can earn good money. And network marketing is not a one-day job, people work hard for years but still are unable to achieve anything. This is because either there is a problem with the company’s founders or products or business plan or the person is committing malpractices.
What is the workload in direct selling?
The workload in direct selling can vary greatly depending on a few key factors. Let’s take a closer look:
- Experience level: If you’re starting, you’ll need to put more time and effort into learning the work process and building your team base. On the other hand, experienced direct sellers with established networks may also require regular time off to maintain their business. Because when the number of people in the team becomes very large, then one has to stay in touch with them regularly.
- Company Support: In today’s almost all direct selling companies provide support to their direct seller. Different companies offer different levels of support and training programs. Structured training systems increase the success rate. Without education rarely oneself can work in network marketing.
- Sales Targets: There is no target to sell products in MLM. It depends on the direct seller and how fast they want to grow. Your self-sales targets play an important role in determining your workload. Sales sometimes become complex things to do but for those who are passionate, it’s easy to do for them. If you have ambitious goals, you will need to work more than someone satisfied with average earnings.
If you have the support of an active upline then it becomes easier to work. Because they have experienced all the things that you are going to do next. However, not everyone has such active partners due to which they have to face many difficulties alone.
Career Clarity: Opinions on the Realities of Network Marketing
In today’s information age, network marketing has become a popular career path. The person who wants financial freedom wants to be their boss, wants a flexible work culture, travels around the world, and pursues entrepreneurship. However, most people are brought into this industry by false promises. Due to this, the negative impact of the term network marketing has spread. It is the people working there who make any industry good or bad.
Beyond Hype: Cracking the Code of Network Marketing Success or Failure
I was 19 years old when I started working in network marketing. From day one I knew why I was getting involved in network marketing. Like others, I too was shown big dreams like a car, bungalow, and money. But one whose mind has already decided what to do cannot be disturbed. When I was shown the product plan some products seemed important to me, I used them for a few months and got good results.
Before joining I took some time to learn about the company and after everything fell into place I joined. And worked continuously for 3 years, earned good money, and reached a good company level. Ultimately I decided to leave the industry. Due to some dispute with Upline, I had to leave the industry. The purpose for which I was involved in direct selling was almost fulfilled.
The Untold Truth about Network Marketing: Prepare Yourself for the Journey Ahead
Anyone can do network marketing but before joining you should know the real thing (do your proper research).
- There is a lot of rejection in network marketing.
- People will refuse a lot and will not want to join you soon.
- You will have to struggle.
- In the beginning, little or no money will come, whatever is earned will be spent.
- If you do not know many good people then you will not be able to do network marketing for long. Because it is challenging to do direct selling without people. There are many more things.
If you know all these things and then you are joining then you are following the right process. However, there are many things that you can learn by doing network marketing. If you start working with the right company, product, and people, you will grow. Initially, you should join it thinking of it as a side hustle and side income.
Consider network marketing as a career
You can consider network marketing as a career to some extent only if you are getting double the income from network marketing than your current job for one consecutive year. Sometimes, you even need to deeply consider the idea of leaving your studies or a stable job to pursue a completely different career path. Because it has happened many times due to Upline’s advice. People leave their good work or studies and start doing this work from the beginning.
If you are already in direct selling then I am not making you negative, I am just talking real. Looking at your current situation, you should decide whether it would be right to pursue network marketing as a career or not.
