The Truth about Network Marketing Economics & We Dispel Much Bandied about Lies – Info-graphic!
This episode on Network Marketing Economics was first published on June 3rd, 2015. Here we are in 2020 and it is as relevant as it was then, if not more so, with the global pandemic and Lockdowns.
So, are you an entrepreneur or looking for multi-level marketing jobs… Well, you could have fooled me! Lots of “online entrepreneurs” seem to be stuck in “employee mentality.”
They expect someone possibly their upline or the company to grow their investment and hand them a healthy cheque…! If that doesn’t happen… it’s a pity party, scam alert rumor-mongering all over the show!
Would you like to know how we learned about network marketing economics? You may be surprised how many people don’t even bother to learn the facts and fiction, and still invest!
This whole MLM/Network marketing economics gig started because we want the same things you probably want…
You want to be your own boss, answer to no one, avoid the 9-5 rush, create a nest egg, and earn a good living! Am I right thus far?
You want to go where you want when you want. Spend $500 on tea or a child’s shoe without batting an eye. Precious time NOW with those you love. You want the money & freedom to take a day or 2 weeks off – fly off to Punta Cana on a whim.
Whichever company you are with…you may feel like you are going nowhere when everyone else seems to be banking huge! Well, you are not alone.
There are thousands of people in the same boat apparently over 97%. The difference is you decided to do something about it…right! You decided to look at network marketing economics strategies that can work for you! So enter MLM.
By definition, Multi-Level Marketing or Network Marketing is a business model used by some direct sales companies to encourage new & existing distributors. They are paid a percentage of their sales if they promote their products or services by recruiting new distributors also known as distributor’s “downlines.”
Distributors also make money through direct sales of products to customers.
This is as simple as network marketing economics gets…Yet we are sure you want more! Avon, FLP, Melaluaca, WorldVentures, Amway etc. are examples of well-known direct-sales companies that use the multi-level marketing model.
Today we are sharing with you some network marketing facts and fiction you may have been told…or you may be inadvertently promoting!
Network marketing economics Fact #1– Network Marketing is about Sales, This Is a Lie:

I’ll tell you what doesn’t make business economics to me: many companies talk a great product talk, but their profit centres are NOT their products…!
These companies make sales off the backs of their reps by pushing them to sell a load of training products and charge them for the privilege!
This is where network marketing economics doesn’t make sense to me…!
Have you been told Network Marketing is about Sales? That’s a Lie…IMHO!
MLM is about Entertainment, Teaching, Mentoring and above all Listening...
It’s about Entertainment, Teaching, Mentoring and above all Listening…Ha you probably think I have gone doolally…cuckoo! Nope hear me out!
Your product is people…(but isn’t that a pyramid?) GROW UP!
Who buys stuff from markets, shops, online…You didn’t think it was dolphins’ didja? So study people. Find out how you can help them reach their goals/dreams.

THEIR dreams. Not yours.
People join people, not companies. So Build people & they will build the business…This is the law of multi-level marketing economics!
Part of a growth business strategy that makes economic sense includes building up your people to a good retention rate. And don’t let anybody tell you they have over 70% retention rate in this wonderful industry…It simply isn’t the case. Why?
Because many just don’t have the gumption to stay the course! And in some cases what you offer may not be what’s needed at the time!
Network marketing economics Fact #2 – EVERYBODY Is a Potential business partner:
WHAT? Come on if everybody was meant to be an entrepreneur, we would have no doctors, nurses, lawyers, teachers, truck drivers, admins…you get the picture?
Everyone has a role to play and we just have to fish in the right ponds.
So while a NO is not a great response, it’s inevitable in lots of cases. Not everyone wants your business opportunity. Not everyone is cut out to be a business owner or distributor.
Be happy to have customers…or for a referral or 3 If you owned a furniture store, with all kinds of styles, you would still not be selling to everybody…deal with it!
The key is research & target marketing. Find & talk to people who want your products and services…
This Marketing Masterclub can Help You Do exactly that.
Now you know that not everybody is your target. Lead with value, the OUTCOME, the TRANSFORMATION, the Benefits… So that your audience sees WHAT’S IN IT FOR THEM, that’s the value, and seeks to buy from or work with you.
Network marketing economics Fact #3 – Your Business Life Expectancy Is…
The time you are willing to give it…that’s my answer.
Look at the statistics of most network marketing companies, and you will start to see why many need to look in the mirror! 90% of new businesses fail the 1st year and 90% of the rest fail in the next 4 years.
Ouch…!
You see most people DON’T INVEST IN THEMSELVES. Instead, they invest in network marketing companies without a vision, mediocre products, and even more mediocre leaders or “up-lines! #SorryNotsorry
So they’re excited, get started and boom A million things go wrong. They feel like quitting a dime a day… Guess what, most of them just quit. They claim that it was that multi-level marketing pyramid scheme, it was a scam And so they quit!
Liars…They had no balls to stick it out…truth hurts sometimes!
Taking on board programs that still stand profitably today! Not discounting the scams out there, there are a penny a dime!
So for network marketing success, You need a strong enough reason to stick it out.
You figure out a way, you adjust, skill up, and focus on your target! If you are half-in-half-out, you’re a goner.
The first thing Paul and I do in coaching is help you figure out and hold you accountable to your “WHY”.
Can I just say that your “WHY” is that HUGE, Mahoosive reason that will keep you going?
Why did you get into multi-level marketing? REALLY?
That’s what’ll keep you going through the low moments. So what do you really LOVE or even HATE?
What’s REALLY important to you? What situation in life do you want to get rid of permanently?
See your Why Is not a goal and my dear it’s not money, either! Dig deep, Coz Money is just the vehicle that will get you to that WHY!
And if your “WHY” is huge, a 99.9% burning scary desire, then you will stick it out and find success! Your Business Life expectancy will thus be UNTIL…
And this brings us to examine the next network marketing economics lesson.
Network marketing economics Fact #4 – Find Your REAL WHY:
We are here to help as many people as possible find that why so you can stick it out. If others are doing it so can you. Below are some things you should consider:
- What REALLY excites you?
- How many hours a week do you work?
- What Do you LOVE about your job? WHY
- Do you HATE your job? WHY
- Do you LIKE the people you work with?
- What do your loved ones mean to you?
- Do you want to own your personal growth?
- As an earthling, what do you want to accomplish in life?
- If you had all the money you wanted, what HUGE problem would you get rid of for good?
- What’s that one thing in your life that you absolutely HATE Or Scares you that more money could solve?
- What really, really gets you emotional?
- What do you do in your free time?
- If you had 8 weeks off and money wasn’t an issue, what would you do?
- If you had all the TIME in the world to do anything you wanted, what would that be and with who?
- Other than money, what are you looking for?
Now if these questions don’t expose your real WHY. You need to dig even deeper into the dark recess of your mind.
Find those, lustful desires, unfulfilled dreams, unachieved goals, old frustrations, and negative emotions… And all that other stuff you’ve buried that makes YOU who you’re…! You will find your tear-jerking WHY! It’s waiting to Serve you… HARNESS it all to help you achieve what you most want in life!
MY WHY:
I wanted to be there for my children, do something that would keep me busy and add hugely to our family coffers. I get to see my children’s games, recitals, take them places, go through their homework without stressing. We do fun stuff, and every so often we let them do what they like! I wanted to give them a comfortable life! Paul and I enjoy time away just the two of us. This to me is what network marketing economics boils down to!
Pauli & I talk a LOT. It may be a serious family convo at a meal. Or some crazy pillow talk that makes us laugh till the wee hours of the night. Our family loves to travel and we do, we also love staycations. We exercise together, we jog via the park or simply take our children to Otterspool Promenade!
Paul-Sol Junior & I love to simply walk together and he sometimes plays for me his compositions! We talk about what he’d like to do in the future. He really is interested in what I do, business & computers, etc. He also loves paints, cooking, baking, and playing his guitar.
Paula loves sport, football, bike rides, and all things athletic. She’s a teenager who loves to chat with her mates, listen to music on her iPod, and is looking forward to learning to drive so she and her mates can go away on biking jaunts!
I love to hug them all at the end of the day.
Life is good when you get to do the things that make life really worthwhile!
See it’s never about money! Money is the beautiful ribbon & bow on the gift of life!
Network marketing economics Fact #5 – Be The Leader others What to Follow:
I believe in being that person people feel proud to come to, work with or buy from.
I love to help people, really help them succeed! My credentials? Over 20 years of life lessons in Law, Housing and Construction, NVQ Assessor, and now a Digital Marketer and Social media Strategist.
I’ve been Full-time in network marketing since the end of 2012. I have mental scars, both from life experiences and network marketing. I haven’t seen it all, yet by gosh I have seen plenty.
Every time a company or distributorship explodes and goes pear-shaped; I know without a shadow of a doubt it’s down to greed and ego.
My friends do your due diligence and Stay Away from shiny objects!
My friends do your due diligence and Stay Away from shiny objects!
I truly know that the people we attract are humble people looking to solve their problems, they want success… Are they HUNGRY for it though? And that’s what SOME greedy MLM owners prey on.
We at Kalungi Group exist to mentor & support you to succeed. Not just OUR success. YOURS! It’s an amazing thing your success, and if we can help you create success, then our tomorrow is glorious too!
So using the above exercise, when you’re happy with your “WHY”, email it to me, lets talk about it and how I can Be Of Help.
In order to crack network marketing economics, have network marketing success and create your dream income, you need to be hugely motivated.
Have a business strategy. You are an investor, so start investing in your education, Skill up and above all know that business economics is all about Supply & Demand!
Below we share an Info-graphic with some Facts and Fiction about Network Marketing Economics! (click to enlarge or Download- Please link back to sauce)
Have you found value in our post on “5 Easy Facts about the truth on Network Marketing Economics?”
Then would you consider liking and sharing this article (GUESS WHAT EVEN THE TEXT IS SHAREABLE…I double dare you. Pick any sentence, highlight it and please share, go ahead…Great isn’t it?) And please do share your thoughts below!
As always You Deserve More
Julie Syl
Founder of The number #1 Marketing m,asterclub for Network Marketers: The Winning Entrepreneurs Nation. – “Helping you Build a Lucrative Home Business From Ground Up”.
Here is How To Work With Julie & Pauli
Hi,
It was a great read! You gave me a whole new perspective about network marketing, I used to think very differently about this, but after reading this article, I gained a lot of new and correct information that will help my network marketing a lot. Thanks a lot for sharing this resource, I will definitely share this within my network to help fellow marketers. I really hope it helps them as it has helped me.
Thanks alot for sharing this . This has really opened my mind to network marketing.
Hi Chizy,
Glad you got value and Ta for stopping by 🙂
~Julie S
Wow julie
Thanks for this, you really did Justice to that.
You are most welcome Samuel!
Merry Christmas to you!
J&PK~
Hey Julie- this is so true about network marketing! I have found myself trying to “sell” my business and network marketing in general as my background is sales. Doesn’t work. It’s listening to folks and becoming a problem solver. Keep rockin’ your tips my friend!
Hello Jeff,
Good to hear from you, hope all is well. When we sell, we lose posture when we tell a story and look to Help others we connect and even if they may not buy today, another day the time may be right!
Thanks for taking the time
Paul
TGreat post. Everyone should review your blog to refresh their determination. Thanks
Wow Lewis,
We are humbled and hope people out there do find what they need in our blog posts. Our aim has always been to be a one stop shop for working tips, tricks and strategies and down to earth advice on how to Grow and progress. 🙂
Sure good to hear from you!
Paul & Julie
Thanks Julie, I wish I had read a blog post like this 10 years ago..how much faster would I started 🙂 I was stuck on all these myths about MLM myself.
This is a post that will clarify the air for so many people and help them get started with the right fundamentals. Awesome job.
Hi Marko,
Its never too late and I am sure your lessons are the network Marketing community trainings and value shares! Good to hear from you!
~Julie~
awesome info, thanks for sharing
My Pleasure Sheena, thanks for stopping by!
~julie~
Awesome post Julie and just love your word ‘Mahoosive” So true, too many blame the coompany without admitting they did nothing but wanted the world….
Hello Diane,
Good to hear form you. Oh Yes if our WHY Is not a tear jerking, heart pumping, Mahoosive one 🙂 then we wont be motivated to push on through the speed bumps and days when nothing seems to be happening. Our seeds are meanwhile germinating under the ground…yet many don’t have faith in the fruits to come so put in a lazy effort if any AND expect a fortune wow!
yes you are so right and i have been praying that i reach the right individuals who understand the work ethic behind the work from home deal , i think we all have delt with the ones who think they can just sit and let their website work for them and not interact with others to succeed .
Its indeed by focus on our affirmations because every word yo speak is a “Prayer” or affirmation for your tomorrow. Juanita, those people that want to work with you will find you, as long as you keep sharing VALUE that they need. Many simply don’t have access to the resources that you do have and its your duty to share it. So Keep blogging and vlogging get comfy with that video Camera and I am sure you are on the right path!
Paul
Such a great post about a neglected part of the network marketing business.
Thanks for sharing!
Hello Ken,
We sure hope many do find out more about the facts and let the fiction and nasty negative excuses and mindset behind…
This is the era of the entrepreneur, we got to rise to the occasion.
Thanks for swinging by!
I always get great value from what you guys share here. I love that you say Network Marketing is about people, because that’s soooo true, and what better business to be in. I love it. Thanks for sharing the truth!
Hi Emily, good to hear from you.
To be honest most enterprise is about People and how we relate to them or what we offer resonates with them. Network marketing is even more so for we are the brand and people have to see our value added to their lives before they consider our offers! network Marketing economics is really that simple…for some! Thanks for stopping by!
Thanks for sharing this information Julie! Really great points you made especially the point in finding your why. Finding your why is the heart of why we’re doing what we’re doing isn’t it?
Hi Jackie,
You are most welcome indeed.
A lot of people “Stumble” across network marketing and Fail to do the simple steps to
make it a real viable income producing activity! Network Marketing economics
dictate that we Have a BIG reason why we do what we do! Its one of the things we have to dig deep and find and then
leverage that WHY as a key motivator to staying the course!
I am glad you are finding your WHY and yes its at the heart of what we do!
🙂 Julie
Thanks for dispelling so many myths concerning Network Marketing. There are far too many people who have a ‘negative’ mindset towards it but more importantly…to money in general!
Rory yo just hit the nail on the head. Negative Mindset has kept many a glorious life in lack and delay. And its a good thing to share the Facts and truth so more people have a more realistic outlook on network marketing before they invest. Thanks for your contribution.
Love point # 3. I heard a mentor say this week in reference to failing network marketers (and this is paraphrasing):
“Don’t look at the statistics. The statistics say that 90% of marketers fail – and a lot of people won’t get started because of this statistic. Instead, look at the real statistics behind the statistics. Those real statistics say that people who quit don’t do the work and they’re not committed… but the people who do succeed are the ones who have a vision and take action.”
Wow Alex,
That’s so better put indeed. Network Marketing Economics is simple…
Its a Business and should be run like one! The statistics behind the statistics…
Can I just say that The people that even bother to look at statistics are “GREENS” and
if they let the 90% figure rule their decisions, they didnt have a HUUUGE why in the first place!
In other words they are looking for an excuse not to start and Bingo
They will always Find it…Uncle Google as we well know always delivers! 🙂
Now those who quit were never serious in the first place. They are what we call opportunity seekers!
Yet Time and Opportunity happens to all men…! I love the quote by an anonymous person
“You and Beyonce have the same 24 hrs”
Thanks for stopping by And for your contribution Alex!
Thanks for the in depth look at Network Marketing Julie. You do a great job of dispelling some of the myths.
Hello Gerry,
Someone has to dispel these myths without charging people a fortune. Its all in consistency! Focus on the right tools and leverage the resources at hand!
You make some great points in the post Julie, should dispel some of the myths.
Thank You Gary, The myths have to be dispelled, To many young and even seasoned network marketers seem to think that its okay to invest in a new something every 3-6 months…and they hope to grow a consistent residual from such inconsistent behaviour!
Thanks for sharing these factss about network marketing, another great post Julie and Paul!
Thank You for Stopping by Trishaly.
Glad you found our post great 🙂