Are Network Marketing Companies Scam or Not? | The Things You Need to Know

I would like first to clarify that networking marketing, multi-level marketing, and pyramiding companies are all the same. They usually call themselves “The fastest growing company in the country”. 

What makes a network marketing company look like a scam?

Most of us upon hearing of a networking company especially pyramiding schemes would most likely think it’s just one of those scams, just like the controversial Aman Futures Investment scam which made a huge issue in the world of network marketing.

I’m pretty sure the recent involvement of networking companies which turned out to be a scam became remarkable with everyone’s mind. By that I would assume this also has a big effect to networking companies even they are so called “legal”.

I have nothing against networking companies and I am not a member of any of them as I’ve attended a few orientations conducted by these companies, so you can say I am not on neither side, either with those who protest against networking companies or those proud members who are proclaimed to be millionaires even if we innocent ones ain’t sure if they really are.

That’s why I wrote this article and try to enlighten those who are in doubt if they should join any of these networking companies and also for those members to know why most of those who they invite to a one on one or group orientation do not pursue on joining.

Let us now go on with the things that makes a networking company appear to be a scam to the  people who are being invited or being oriented.

Members especially the new one would do everything to invite new members. It’s because a new member has a “quota” or number of specific people to refer. And he should also help his referrals to invite also more people. And the more people a member would invite in a short period of time, the more and faster he can expect to earn bigger. So you can foresee recruiters of networking companies to do any means or tactics to invite even a single person a day or two a month.

For everyone to know, joining networking company is no instant way of becoming a millionaire unlike most of us knew in the first place, you won’t even make a double of the amount you paid upon joining on the first month, you would earn a decent amount in a few months, 4 or more to be a little precise, that is 4 months of monthly non-stop looking for new referrals, if you couldn’t successfully invite new members you can’t expect to earn. So if they said you can do it part-time only, they are sure to be kidding.

As alleged by many of those successful in network marketing, they have quitted their job and concentrated in network marketing, and that would be some serious risk especially if you had a hard time to get that job and you are already a permanent employee, though you can also use it (quitting your job) as dedication to take your networking career sincerely instead :)

Inviting people to join these pyramiding companies is tougher these days, as I said before since one of those companies closed and many investors lost their money. You should also “scam”-like other people that is if you can, to be successful in a networking company. Yet again, for the desperateness of the members to refer more people, they might not notice that they already are scamming to accomplish their purpose. 

 Is it really a business? "Employment VS. Joining Network Marketing"

Here’s also a funny thing I got from their orientation, since they are making employment inferior with being on a business or joining their “business”. One of them said, being an employee you are just making the company owner richer and not yourself, but what the hell is different with their so called business?, members are just making the uplines (the old members, new members are also called downlines) and the company owners richer as well. So they can’t really call it a business after all, members do not earn money from selling, it was just a secondary option or cover-up (so that we can’t call it a pyramiding scheme) wherein members can’t really earn that much from selling the products, and instead by inviting new members (the left and right arrows in the “circle and arrow” drawings).

To tell you, no one in network marketing became millionaire by selling their beauty products, it is solely within the number of their downlines.

And another thing networking companies can’t hide no matter how they mislead it in their justification is that all of us know that in these pyramiding companies those old members are the ones who become richer, and the new ones just make them richer. So you can’t ever dream of reaching any of that wealth of the pioneer members, new members will forever be under the previous ones, that’s why it is called pyramid. 

The bottom-line here is that even the company is legal, the members subconsciously scam people just to get referrals.

Again, I do not discourage you in joining networking companies and I respect that we have our own opinions. I’m just one of those who don’t deem on instant success or rely on other people to achieve my dream. I would rather work and invest my sweat and blood, and rely on my own skills, to taste the true sense of success.

Here's a funny pic I just found on the internet, peace :)

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About Author
I'm Alison Alimambo, owner and manager of this blog, an online entrepreneur, blogger, graphic artist, and software developer. Connect with me on Google+ and Facebook. more

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  1. Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.


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