Network Marketing: Earn money as a networker

April 19, 2024
5 min read

Network Marketing: Earn money as a networker

Network marketing is a common commission-based sales method for real products, while a pyramid scheme has no product behind it, and the success of the “company” only depends on the number of additional members who invest a certain amount in the system every month. There is a detailed explanation below, because it is therefore not always easy for beginners to decide between reputable and dubious slots.

What is Network Marketing

Network marketing is a clever sales method that is closely related to recommendation marketing. This sales method is particularly common in the finance and insurance sectors, as well as for expensive household products or nutritional supplements. The principle behind it: A company produces products and hires independent sales employees to take care of marketing and sales. For every successful sale, the salesperson receives a sales commission.

At the same time, the salesperson also has the opportunity to form a team of additional salespeople, who in turn recruit additional salespeople. This creates a pyramid-like structure that gets bigger and bigger as it goes down. The fact is, of course, that the more salespeople you have positioned under you, the more money you can earn, as you get a share of all sales below your own level.

By the way, the products don’t just have to be physical goods. The product of structured sales can also be advice, as is the case, for example, in the finance and insurance sectors. Of course, there is only money here if you provide a financial product based on the advice. This can be from different providers.

Network marketing is an opportunity with broad earning potential. However, many underestimate the time commitment and skills required in network marketing. Only very few people manage to become truly successful and generate an above-average income.

Ultimately, the companies whose marketing costs are minimal benefit the most, since each sales representative carries out marketing independently and is not employed, but works independently for the company. Particularly large sales structures therefore often seem like their own company, although it is actually the presence of a sales team.

Advantages and Disadvantages of network marketing


     Independent work

     Flexible working hours

     Building a network

     Further training opportunities

Network marketing itself can have many advantages if you really get involved in it, enjoy it and don't initially depend on the income. Since you work as a self-employed salesperson, your working hours can be divided freely, and it is possible to start part-time.

Since the work itself mainly consists of networking and making contacts, the transition to leisure activities is often fluid. Because if you like going out, meeting new people, or are open to a variety of experiences, you can also use the existing companies in the area directly for networking. Regardless of whether the various contacts join in or not, you are building a large network that will help you make great progress in all areas of your life.

Since companies and sales teams are fundamentally interested in the team growing and staying together, good structural sales companies rely on high-quality training, seminars, and teaching content on relevant topics relating to the product and network marketing. This applies, for example, to dealing with rejection, rhetorical skills, strengthening self-confidence, or sales skills. You should look at these aspects carefully before starting and check whether it is real teaching content or empty motivational speeches with strong emotions (“You'll get rich quick with us.”). It is not uncommon for new members to be recruited through strong images, while the system hides a less serious product.


     GoBD-compliant invoices

     More for extraverted people

     Dependence on the product

     Dependence on the team

     Public image

     Duties such as accounting, etc.

The disadvantages of network marketing vary depending on your own skills and interests, as well as those of the company and sales team. If you don't enjoy dealing with people,

If you are not interested in personal sales or are more of an introvert, you should look for other employment. Networking is not about getting people excited about a product or an opportunity, but rather about building a relationship as a person, leaving the business background completely aside. This is also entirely in your own interest, because you only want to work with people you personally value and would like to have in your team or clientele.

If the focus is too much on financial freedom, network marketing has some disadvantages. The problem is that if you lack enthusiasm for the work itself, you progress much more slowly and get in the way of your own goals. Anyone who approaches other people too aggressively will scare them away, destroy their contacts, and ultimately not achieve any sales. This is especially true if you are trying to include close friends or your own family in your clientele.

Even if you basically work independently as a network marketer, that doesn't make you an entrepreneur (as it is often portrayed). As an entrepreneur, you are responsible for all processes, the product, and the strategic decisions of the company, while as a salesperson, you have no influence on business decisions. In MLM sales, you are always directly dependent on another company. This can also be problematic because the pressure from above is often quite high. The next level ultimately wants you to sell as much as possible or contact as many people as possible. Many people leaving the company also report strong competition between individual salespeople and teams.

In conclusion, network marketing presents itself as a lucrative opportunity for those seeking independent work and the potential for substantial earnings. However, it's imperative to navigate this field with caution and discernment. While legitimate network marketing involves genuine product sales and offers opportunities for personal and professional growth, it's often intertwined with less reputable practices like pyramid schemes.

Yet, success in network marketing demands dedication, interpersonal skills, and a genuine passion for the products or services being promoted. It's not a quick path to financial freedom, but rather a journey that requires perseverance and continuous learning.

Ultimately, individuals considering network marketing should approach it with realistic expectations, a critical eye, and a thorough understanding of both its advantages and disadvantages. By doing so, they can make informed decisions about whether network marketing aligns with their goals, values, and skill set.

This article is a Brand Press post. Brand Press is a paid service for brands that want to reach Techpoint Africa’s audience directly. Techpoint Africa’s editorial team doesn’t write Brand Press content. To promote your brand via Brand Press, please email business@techpoint.africa

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