Is Network Marketing the Best Business Model in the World?

Is network marketing the best business model in the world?  A lot of people have asked me this question at one point or another in the past, so I thought I would do my best to answer it objectively and write a blog post about it.

First off, I am a bit biased.  I have been in love with this business model since I first learned about it in 2002.  I’m more excited about it today than I was when I first saw the plan.  I think it’s the BEST business model for me, but I’ll be the first to admit that it is not for everyone.

Here are a few things I love about the business model:

  • Low start up cost
  • Leverage without employees
  • Residual income
  • Learn new business skills
  • Great for personal and professional development
  • Very little, if any risk
  • Start part-time, while you keep your day job
  • Great tax advantages
  • Low monthly overhead
  • No inventory required
  • Work out of your home

These are all very powerful things, especially when you compare them to the traditional business world.  Most traditional businesses come with the following challenges:

  • You need to hire employees
  • You need to quit your day job and work in your business 40 to 80 hours per week
  • You need a separate office or building
  • You have a huge monthly overhead
  • You have huge start up costs
  • You have a high risk of failure
  • Your income is linear income
  • You have tons of headaches and stress

When compared to traditional business, I honestly believe network marketing is a no brainer.

Once again, our business model isn’t perfect and it’s not for everyone.  In fact, we tend to attract a lot of people who should NEVER have their own business in the first place  A lot of folks join our industry out of desperation and financial despair, because they have very few other options.

Who is Network Marketing a Good Fit for?

I think certain types of people do very well in our industry.  Certain “groups” of people are a great fit for our industry. This includes:

  1. Anyone looking to easily start their first business
  2. Anyone who wants to develop their business skills
  3. Anyone who wants to improve their people skills and leadership skills
  4. It’s a great stepping stone for other businesses
  5. Anyone who wants leverage and residual income
  6. Anyone who wants a business, but can’t afford a traditional business
  7. Anyone who wants to keep their day job and do something part-time
  8. Anyone looking to make new friends, find a mentor, and expand their network
  9. People who like to teach and help others

Who Isn’t a Good Fit for Our Industry?

On the flip side of the coin, some people shouldn’t get involved in the industry. This might include:

  1. Lazy people and people who want something for nothing
  2. People looking to get rich quick or people with the lottery mentality
  3. People with the employee mindset
  4. People with no people skills
  5. People who are unemployed with no income
  6. People who aren’t willing to talk to people
  7. People who are constantly changing their mind and can’t stick with a decision
  8. Overly excited people

Common Issues in Network Marketing

Here are the major issues in our industry as I see it:

  • High failure rate
  • Ineffective training
  • Attract low quality people (when it comes to business)
  • Low cost to join means no skin in the game
  • Low commitment from people involved
  • Bad reputation with general public

Other Business Models to Consider

If network marketing isn’t a good fit for you, here are some other options you could consider:

# 1 Franchising – This is a very popular business model with a high success rate, but it does typically come with high start up costs.  You also need employees and lots of money to get started.  Examples include McDonald’s, Burger King and KFC.

# 2 Freelancing – This is when you offer your services as an independent freelancer by writing articles for others, doing editing, proofreading, creating videos, etc.  You basically charge people by the hour or by the project.  This is really more of a job than a business, since your income is linear and you have no leverage.

# 3 Traditional Business – This would be your traditional mom and pop business such as a barbershop, liquor store or dry cleaners.  These businesses also involve significant upfront capital and require a FULL-TIME commitment.

# 4 Online Business – This could be an eBay business, a blog, affiliate marketing, information marketing or something else done online.  There are lots of possibilities in this area.

# 5 Service Business – This could be a landscaping business, pool care, lawn care, or something else. You typically need to be good at a technical skill to do this.  Unless you have employees, this is really a glorified job, because you have no leverage.

Things to Consider When Choosing a Business Model

  1. How much time do you have to work the business?
  2. How much money do you have to invest in start-up and ongoing costs?
  3. Do you want employees?
  4. What are you ultimately trying to accomplish?
  5. What skills do you already have?
  6. Is the income linear or residual?

My Challenge to You

Here is my challenge to you.  Before you knock our industry, ask yourself the following questions:

# 1 Name one other industry that you can get started in for less than $500?

# 2 Name one other industry that you can earn residual income?

# 3 Name one other industry that gives you leverage without employees?

# 4 Name one other industry where people want you to succeed and will help you do so, free of charge?

# 5 Name one other industry that you can work for a few years part-time and build up into a full-time income?

# 6 Name one other industry that will teach you the business skills that you will learn in network marketing?

If you can name even one industry that will offer you ALL of these things, please let me know. I’ve searched high and low and I’ve never found it.

Final Thoughts

There you have it folks.  These are my thoughts on why I personally believe that network marketing is the best business model in the world for me, and for many other people as well. No, it’s not for everyone, but if you truly take a closer look and do your due diligence you might quickly discover that it is a good fit for you.

What are your thoughts about network marketing?  What is your favorite business model? Leave a comment below to let me know what you think.  I look forward to hearing from you.

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Chuck Holmes


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5 thoughts on “Is Network Marketing the Best Business Model in the World?

  1. Diamond Grant

    I agree that training is a major factor that is missing. People need leadership and guidance in order to go in the right direction. Otherwise you run the risk of having people with a lot of talent and a lot of enthusiasm who go down a completely wrong path. Also, it is up to us as leaders to be honest and upfront. I think we could cut down on a lot of people leaving if they knew upfront what to expect.

  2. Mickiyas

    Network marketing is a great business model. However, a lot of people baseless generalization about the entire industry. But just because it doesn’t work for you (or more accurately, you can’t make it work for you), doesn’t mean there’s something wrong with the business model. It’s probably that the industry ins’t for you.

    For me, the best business model is affiliate marketing. As a matter of, MLM and affiliate marketing have a lot in common. I like almost everything about it.

  3. Greg Boudonck

    Very good post Chuck!

    Like you, I am also biased. My primary business is freelancing, but I also take part in Network Marketing. Because of my primary business, I don’t have enough time to give to the network marketing side, but I am still attaining products I love much cheaper than normal, and I make a little side money.

    I feel that whatever a business model a person takes on, if they are lazy, it is doomed. No matter the business, it takes hard work and diligence.

    Network marketing is a great business model, and if you are considering a business, the costs involved are much lower than the traditional side.


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