If you’re just joining us, we’re having a conversation about network marketing, multilevel marketing, and trying to figure out if it’s worth investing in. Read my initial thoughts on the subject matter here.

What exactly is network marketing and multi-level marketing?

Example of a Network Marketing Strategy

According to Wikipedia, network marketing is a type of marketing strategy that goes through the networks of independent people. For instance, instead of building a network of 50 people and selling my one product to all 50 people. I’m going to sell my product to you, get you to sell it to 50 people in your network, and you’re going to do the same. The idea is to make money from the initial sale, recruiting you into my network, and through your sales and the sales of the people you recruit.

Example of a Multi-Level Marketing Structure

It’s important to note that multi-level marketing is a business model and not necessarily a form of marketing like network marketing. MLM typically refers to the compensation structure of making money on different “levels” or down line as it’s often known as. The more people you have in your down line the higher the commissions you’ll make. However, most network marketing companies or programs have a multi-level marketing structure and so the two terms are often used together or interchangeably (Company XYZ may market it’s products using the network marketing strategy, but have a multi-level marketing compensation structure).

Reason #1 Why I won’t invest in a network marketing business – Too time consuming

As I stated in the introduction to this series, I will never join a network marketing group or program because they’re a bad investment of time. “How is that?” you ask. @nicoleangelo, a member of this blog’s community said it best,

. . .true success depends on others; u don’t advance unless you have a team that’s selling . . .

When you start in a network marketing program you spend so much time building your network that you never really get around to selling much of your product.  Spending too much time building your sales force and less time building of relationships with customers will ultimately hurt your sales.

Reason #1 Why you might invest in a network marketing business – Let your empire do all the selling

On the flip side of the equation, if you take the time to build your sales team you may be able to pull off a substantial amount of sales. I don’t just mean recruiting others to sell the products, you’ll have to train and support them as well (especially if you have inexperienced entrepreneurs). Build up top sellers in your team and you won’t have to sell anything. In theory your team would do all the grunt work for you. Of course, this dream of a sales team that “sells itself,” will only come true if you put in the necessary time to build it.

Biblical Perspective

Here’s where the plot thickens . . .what does the Bible say about how we spend our time? Ecclesiastes 3:1-8 reads;

For everything there is a season, and a time for every matter under heaven: a time to be born, and a time to die; a time to plant, and a time to pluck up what is planted; a time to kill, and a time to heal; a time to break down, and a time to build up;

So, if you’re going to invest your time into a network or MLM business make sure that it’s in the right season of your life. Seek God’s direction concerning it and make sure you keep your motives and mindset in the proper order to be successful.

I want to hear from you, do you think network marketing is too time consuming? Or, will the time and effort invested yield great results? If you’re already working a program like Mary Kay, Pre-Paid Legal, Primerica, and etc., feel free to chime in with your two cents. Next we’ll explore the financial aspects of network marketing and why I think it’s a waste of money.

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