Network marketing is one of the fastest growing industries in the world today, where entrepreneurs are using this unique business model to create incredible streams of income in their lives. Even with the amazing success of this industry, many people still hold onto some false beliefs about the network marketing industry and how viable it is as a home business.

Myth 1: The Pyramid Scheme

One of the most common myths compares network marketing to illegal pyramid schemes. Illegal pyramid schemes are nothing but a “money game” that lure people in by making exorbitant income claims and do not sell any form of legitimate product or service to retail customers. It’s a system where money is created only by recruiting people.

Fact: All legitimate, modern multilevel marketing and network marketing businesses offer a wide range of excellent products and services that appeal to distributors and customers alike. In fact, most of the best network marketing companies offer extremely unique products that often can’t be found anywhere else, helping to create long term, happy customers.

Myth 2: Only The Top Guys Win

Another famous myth about network marketing is that only the people who are in the top tiers of a company are making the big profits. Admittedly, it can be quite daunting to see the leader board of a company and hear the income levels that some of these top distributors are making. But consider this.

Fact: These top distributors started like everyone else, and earned their way up the ladder of success. In reality, one reason that network marketing is so popular is that there is no limit on the amount of income that anyone can make – even the newest distributor!

Another thing to consider about success in network marketing. There are two ways that MLM entrepreneurs can make money. First, through the sale of products to retail customers. And second, through the sales of other distributors in their network. If a distributor can effectively sell the product and share the opportunity with others, they can build a massively productive organization that can make huge income.

Myth 3: It Takes a Lot of Money to Start

Another popular myth about network marketing is that many people believe that these businesses are all very expensive to start and require a large initial order of products.

For some network marketing businesses, that may be true, but that is not true for all of them.  Because there are so many network marketing opportunities that exist, there is no need to settle for one that requires a large up-front investment. There are businesses that require only a small monthly fee or product purchase that will qualify distributors to earn unlimited income.  For some of the lowest-risk companies, the small fee also includes free products for the entrepreneur as well as extras to teach businesspeople how the products can best be sold. The best thing is to find a product or service and price point you feel comfortable with to fit your personality and budget.

With many network marketing companies offering such low risk, low cost and offering unique opportunities and income potential, these are not the pyramid schemes of the 70’s. These are viable businesses that hundreds of thousands of people run from their own homes for fun and an unlimited profit. A legitimate network marketing home business is a well-rounded business full of profit potential and a future of income growth.

Bob Gatchel is a successful entrepreneur and internet marketing consultant specializing in network marketing and home business programs. His marketing methods have been featured in the the best selling book “Multiple Streams of Internet Income” by Robert G. Allen. He is also the founder of where he offers support, training an

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    1 Response to "The Three Crazy Myths About Network Marketing"

    • Chuck Holmes

      Great post Bob. There are lots of myths in our industry. Most people are simply confused and uneducated about it. Just because you read something on the internet doesn’t make it true. Consumers should spend some time learning the good and bad about MLM before they make a decision. Talk to people who have actually been successful in the industry and find out what they did to succeed. That’s one of the best tips I can share with anyone else.

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