Don’t Join an MLM or Network Marketing Company Until You Read This!

Network Marketing

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So ….you’re looking to earn an extra income and this has brought you to look at the MLM/Network Marketing industry (also known as team marketing or multi-level marketing).  Well before you jump in to MLM/Network Marketing why don’t you grab a coffee and take a couple of minutes to read this – it may just save you from making a very costly mistake.

If it’s Affiliate Marketing you are looking at and not Network Marketing then click here instead ==>

So the first question you may have is “What is Network Marketing”?

Well Network Marketing is really a method of distribution of a product or service through independent representatives.  So the affiliates or representatives are self employed and start their own business – usually with a business pack full of products from the Company and traditionally with Companies like Forever Living, Herbalife, Visalus, Avon and many other such Companies you are encouraged to have a home party to sell some product to your friends and family.  This usually brings you some cashflow into your business to pay for the initial cost of getting started.

So let’s start with a little bit of information about the direct sales and Network marketing industry which is now one of the fastest growing industries in the western world.  Network Marketing COULD be a life changing opportunity for you BUT without a few simple hints and tips on the business opportunities out there, it can also be dream shattering and for 95% of people it will end up COSTING you more money than you earn.  (Sad but true! – More on that later)

Before I joined the direct sales industry about 8 years ago, I did some thorough research and would always recommend you do your own ‘due dilligence’ too.

Over the years I have spoken to and spent time with many Network Marketing Leaders who have worked with different MLM/Network Marketing companies and I am happy to share my knowledge and reveal the best and worst things about the industry so that you can make the right decision for YOU to avoid making costly mistakes.

When asked “What is Network Marketing?” Robert Kiyosaki answers
It is the Business of the 21st Century” – so let’s find out why!

what is network marketing

MLM/Network Marketing vs Pyramid Schemes

Okay so let’s clear this one up straight away!  Network Marketing and Pyramid Schemes are NOT the same thing and in fact pyramid schemes are now illegal in most westernised countries, but for some reason some people are still convinced that they are the same.

Pyramid schemes developed after the evolution of franchising which started in the United States in the 1850s, well before Network Marketing was “born”.  Pyramids involve cash payment for direct recruitment of people into their group (to recoup their money) and in some cases there  may never be any product involved at all – or where there is product, it is purchased from the recruiter at an inflated charge.  The model is completely unsustainable as the people at the “bottom” will never recoup their investment – as I said, Pyramid Schemes are illegal in most westernised countries.

Network Marketing on the other hand is a completely sustainable direct marketing model, usually with extremely high quality products and everyone purchases directly from the company and has the same chance of success.  In the UK, Network Marketing is regulated by The Direct Selling Association (, so if you are joining a Company in the UK, then look out for the DSA Code of Practice award as it ensures the Company has assumed the highest level of business ethics and service to customers’.

How Does MLM/Network Marketing Work?

MLM/Network Marketing is based on the concept of ‘networking’ within our social circle.  Network Marketing involves tapping into these networks not only to sell product but also to offer the business opportunity to potential new distributors who then start the process of developing their own networks for retailing and recruiting.

As the networks widen, so the individual leader benefits not only from their own sales but from leveraging a percentage of the sales from their network in return for coaching and training.  As more people join the network, so the income increases and becomes “residual” – i.e payable like a royalty or pension regardless of whether you work or not.

The goal in MLM/Network Marketing is to be at the level to achieve residual income as fast as you can.  This is an income that is generated  by leveraging the efforts of your team members along with your own.

For example in the early days you will be spending a lot of time supporting your team members (for very little reward – other than satisfaction!) – If you train your team well, (by keeping it simple!) then once your “trainees” are up and running and building their own teams, then the company will reward you for your efforts by giving you a percentage of your team’s turnover.

When you achieve a certain level on the pay plan (you will need to check when this is for your chosen MLM/Network Marketing company) then the income becomes “residual” and is payable for life whether you work or not – quite often the income is also bequeathable to your family, should anything happen to you.  You can perhaps see now, why this sort of income can only really be compared to a royalty style income generated by authors or song writers who get paid long after the initial work was done.  Either way – you need to get to this position on the Marketing Plan as soon as possible, so find out from your sponsor when the residual income is achievable (it is not possible in all Companies and in others, you may have to be right at the top of the compensation plan to achieve this).

The key here is to understand that absolutely ANYONE from any race, sex, nationality, colour and background CAN achieve in any MLM/Network Marketing company, but if you fail in one, then you are likely to fail in all and you will go from one opportunity to another each time blaming the product or the company.

Two Sides to Every Story

selling the dream living nightmare

Okay so here’s two awesome and TRUE facts for you to prove that this truly is an unbiased report.

“There are more millionaires created in Direct sales and MLM/Network Marketing than in ANY other industry.

Network Marketing really can and DOES deliver a residual, royalty style income that is almost unequalled in any other form of work and with the right Company and compensation plan, then the earning potential is uncapped.   It CAN give you freedom from the rat race, it CAN give you “job” security, financial freedom and time to enjoy life, BUT the industry has an incredibly high attrition rate and many people will never achieve this, so we need to look at fact number two.

Network Marketing has a 97% failure rate!”

Also true – and for clarity, these statistics have long been branded online as suggesting that only 3% of people will ever earn more than $50 per month from their business (that’s about £35 in UK money).

Wow! – Now even those who were never the best at Maths can probably work out that the statistics of failure are VERY high.  So what does this prove and how do the people who make a success of it really do it?

Well firstly I want to give you some advice on the sort of questions you can ask your potential sponsor if you are looking at a Network Marketing company which will help you with your due dilligence of the Company.

The Three Success Factors in Network Marketing

There are three key Success Factors that you need to consider to achieve success in MLM/Network Marketing:-

•     Belief in the product
•     Belief in the company
•     Belief in you!

There are of course other things to consider – like how you are going to retail if you have never “sold” anything before, how you will build a large successful team in your MLM/Network Marketing company if you have never been a leader before and actually how you will run your own business when you have no business experience, but we will cover these later on.

So, let’s address the first one:

Belief in the Product

You need to find the product or service that feels right to you and you need to feel comfortable using that product or service, otherwise how are you going to talk about it and more importantly retail it with any conviction?  So do you see that it doesn’t matter which MLM/Network Marketing company you join, except that the product has to be right for YOU.  Some other factors that you may want to think about to help you retail the product.

1)   Consider whether the product (or similar) is available in the shops – is it unique or does it have a unique selling point?

2)   Is the product a consumable item or one of great interest like collectable items? (i.e repeat business from the same customer without having to look for new customers all the time) or (even better) is it a TOOL that can be used in the industry to support other businesses?

3)   What industry sector is it in i.e health and well being, household, digital etc – There is no point going in to the VHS video market in this day and age so make sure this is an expanding industry in line with the “baby boomers” demands and not just some short  lived craze.

(For info, the baby boomers are the generation that was born just after the war  and due to the scale of the population increase at this time they are responsible for driving our economy – they are all between 50 and 65 years old now and don’t like getting old or ill – hence the huge rise in anti-aging, natural healthcare products etc etc.)

4)   How can you tell if the product works – do you have testimonials, warranties or money back guarantees or have they won any awards – if they do, then this gives your customers the confidence to purchase.


Belief in the company

Well obviously you need to take a close look at the company and as a guideline I would recommend asking (or researching the answers yourself to) the following questions:-

1)    How long has the company been in operation?

It is reported that 80% of MLM/Network Marketing companies fail in the first 5 years (40% in the first year!)  Since the 1950s when Network Marketing first “took off” out of the thousands that have started – only 50 or so have made it over the 10 year marker.  So, if you are going to invest your time, energy and probably some money in your future, then you want to ensure that the company will be around to pay you, and your next generation for many years to come.

2)   What is the management structure like?

i.e is it a long standing management team or has there been many changes – stability is important for long term residual income.  What is the growth rate of the company – a mature MLM/Network Marketing business should have at least 5% growth a year.

3)   Whose team would you be joining?

I cannot stress enough, the importance of this.  This is vital to ensuring that you are to receive the best and fastest training and support  available.  Your coach and mentor needs to be someone who is committed to YOUR  success and is not someone who just recruits.   At the very least, ensure that you believe in the person who has showed you the opportunity – can you work with them, because they will be your coach and mentor.

Ask them what time they can give you to support  you in your early months in the business.  How successful are they and how have they being mentored?  Can your sponsor show you the latest online “Attraction” marketing, sales and recruiting techniques to ensure your success – particularly if you have no current experience in this area.   “Attraction Marketing” (a method of attracting prospects to you to join your business rather than having to go out looking) is still a relatively new technique, but in my honest opinion it is the ONLY way to generate a life changing income in this industry – otherwise you will be broke before you start to earn any money.  (Key point to note – I FAILED at MLM until I used the attraction marketing technique!)

4)   What training does the company provide?

And what tools (ie websites, literature, DVDs  etc) are available for you and how much does the company charge you for them?  The   training that you have access to either through the company or (if you pick the right person to join) from your sponsor is one of the most important factors in determining the success rate of you and your team.
This is the 21st century – any company or sponsor that does not fully support or train you with some online as well as offline marketing techniques is limiting your chances of success dramatically!

 5)   Probably most importantly check out the compensation or marketing plans

This is how you earn your money and WOW in my years of MLM /Network Marketing I have come across some plans that are clearly designed for the benefit of the company and not the independent distributor!  Beware of:

  • Companies where you can “buy” a position on the marketing plan, (this creates inexperienced leaders who may not be able to coach and train you properly).
  • Companies where you buy the product from your upline (i.e the person who sponsored you) and not the company (this is extremely unethical and probably illegal) or where you get a better purchase price if you buy in bulk.  Make sure you do not have to buy a garage full of stock to get the best price – the price should be the same for all distributors at any level and should only need to be ordered when you receive an order.
  • Companies that “auto-ship” their products to you every month regardless of what you want to order – check what you are signing up to.
  • Companies where you have to be “active” continually to retain your position on the marketing plan – another real pet hate of mine!  A big advantage of having your own business is to work when you want to – if you have invested time and energy qualifying for a position on the marketing plan that will increase your monthly bonus payments, you don’t want to have to lose the position and have to “re-qualify” if you have to take some planned or unplanned time out of the business.

6)       Can you earn your investment back immediately?

Find out if there are costs associated with registering / training or what your first order price will be and what you will need to do to earn that investment back i.e – how soon can you be in profit.   Find out at what point does your income become “residual” (i.e paid for life) and how much volume do you need to turnover in your business to achieve a leadership bonus.

7 )        Is the Company a PLC or a privately owned company?

Check where the profits are going (ie available to you, or to the shareholders!)  Find out if they have additional  incentives such as profit share or a car incentive scheme or any other incentives.

8)         How many active team members do you need in your team to earn $1,000 residual income?

Wow! – Now this is a VERY important one.   It is very likely that most sponsors will NOT know this because they are not yet achieving this themselves.   Most people in MLM are quite literally “selling the dream and yet living a  nightmare“.  So if you are absolutely serious about building a residual income, then you NEED to know an honest answer to this question.  The power of a “downline” is to be able to leverage their sales and earn an income from the turnover that your team produces.   Find out what percentage you can earn from your “downline” – Usually a traditional MLM/Network Marketing company pays out between 5 – 10% which is very low.

Grab my FREE “4 Steps to 5-Figure Months” PDF Blueprint by Clicking Here


Belief in You!

what is network marketing i believe in me


So you are looking at an MLM/ Network Marketing opportunity but what makes you think you can do this?

Do you have a true desire to change things in your life and take control of your future, or is this just another money making opportunity for you to try out to see if it works?  Are you an opportunity seeker, or do you have clear goals and know exactly what you want to achieve in the next 5 years – and are you prepared to work hard for them?  Do you have this nagging feeling inside you that you are an entrepreneur and you are being stifled by what you are doing right now, or do you think that having your own business will give instant rewards for little effort?

Hmmmm – hard isn’t it deciding what sort of person you are?  Well let me tell you that  nobody (yet!) comes into this industry with a degree in MLM /Network Marketing (although this will probably change soon as it is now taught as part of the marketing curriculum in many US and some UK colleges)  and so you need to come in to the business with a learning attitude.  Expect to take about 6 months to “learn the ropes” and then take time to develop yourself.  Remember this is your own business and you have to start thinking as an entrepreneur – ditch your old “employee” mentality and start looking for the positive in everything.  Surround yourself with successful people and NEVER take advice from people who are not achieving anything in their life.

I was talking to a lady recently who had looked at an MLM /Network Marketing opportunity for over 6 months and had decided against joining because she had got back in touch with a friend on a social networking site who had also worked with the MLM /Network Marketing company in question and had dropped out.  So I said to her “…. And is your friend successful in what she is doing now?”  to which she replied  “…..No, she is in-between jobs at the moment”  and YET SHE WAS TAKING ADVICE FROM HER FRIEND ?!

Take advice from the people who are achieving what YOU want to achieve.

One more question for you:

What will happen to your lifestyle if you don’t change anything this year?  More importantly where will you be in the next 5 years if you don’t change anything?

Probably exactly where you are now!  But are you happy with that?  Really ?

Anyway, there are many, many self development books out there and all of them have one thing in common and that is ….

You need to believe that you can do this!

There is a saying that goes:  “If you think you can, or you think you can’t – you’re right!  (Henry Ford)

So go out and make your future happen for you!

It’s not an easy ride…….but are the rewards worth it?

what is network marketing - laptop lifestyle

Well I think so…..!



Have you decided to go for it?  Well I am here to tell you that MLM /Network Marketing can be a wonderful industry if you are totally focused on your goals and will commit to taking daily consistent action.  Do NOT see it as a get rich quick scheme.  It truly can deliver IF you make the right choice for you, but it IS hard work and you need to be self motivated and a positive “people minded” person who can find a way to sponsor at least 10 people a month to account for the huge attrition rate.

As I said before, the reality is that there is a high failure rate in this industry – some of it is down to the type of person you are.  For example, are you the sort of person who frequently “throws a sickie” at work or who joins a gym in January and never goes again after February ….. look in the mirror -are you one of those people?  If you are, then I am afraid that you will probably be one of the 80% of people who start their own MLM /Network Marketing business (or any business) and then give up within a a few short months, or maybe just earn a little bit of pin money.

The key to having a successful home business is self discipline – all the top marketers I know are highly motivated, consistent and follow a strict daily plan by changing their old habits.

They all have one more thing in common too…….

They use a Marketing system to attract new people to their business.

Here’s why….

Personal development is  essential in your business so that you always have something of value to share with your customers or your team.  And of course if you want to scale up to a big business FAST, then you need to know how to “market” your business and your knowledge so that people become aware of your presence.  I teach this to all new members of my team and we all work together by using the best marketing system for Network Marketers on the planet!!  MyLeadSystemPro – Click Here ==>

In Summary…..

I hope you have found this report to be exactly as I intended it to be, which is to be a completely independent and openly frank view of the industry and what to look out for to help you make an informed decision.

If you do not have a business opportunity in mind right now, then please bear with me a second whilst I share a little bit of my vision with you.

You see when I first got started in my Network Marketing company I couldn’t understand why I couldn’t make it work – now there were a lot of reasons that it wasn’t working for me – mainly all my fault – however the compensation plan was NOT designed to really support the distributor.

I am still a customer of this company because I LOVE the products.  BUT once I realised that digital (online) products and tools were ALWAYS going to pay a whole heap better than physical products, I started to look online.  There weren’t too many that I could see online that looked like the sort of product I would want to promote and build a team with until I came across an incredible marketing and training system that provides TOOLS to Network marketers.

Now THAT made a lot of sense to me – why should I want to try and convince people to join my business (who probably didn’t want a business anyway) when I could be helping those that DID want a business, with some simple online tools, that they could make money from too.

The Number One Attraction Marketing Training System for Network Marketers – Click here >>

I am humbled to be working with visionary leaders and I am inspired to help men and women who truly want to make a difference become the leaders that they want to be.  That’s what I do.  I create Leaders.  And I do that by knocking out the hype, the overwhelm and the confusion in the online world and provide clarity for you to see your vision come true.

It’s time to dream BIG again.

Are you with me?

Are you ready to get out of the passenger seat and get in the driving seat and take control of your life?

If you are – then feel free to contact me for a FREE 20 minute independent consultation where we will discuss what you are looking for, your time available to build your business and any other specifics.  I speak to dozens of people where we end up working together and also where we don’t have a match, but where the person has finished the call knowing exactly what they want to do.  Either way, it will be a positive experience for you.

Email me:

Skype me:  NickyVitality

I hope you have found this report useful – I always welcome any feedback so please don’t hesitate to drop me a line to or over to my Facebook or Twitter profile with any comments or questions and I will endeavour to get back to you within 24 – 48 hours.

Oh and if you found this helpful, then please click the share buttons to the left of this page, thank you!

As committed to your success as you are,

Your Coach,
Network Marketing

P.S – Why I joined the business that I’m with…- Click Here ==>

Skype: NickyVitality
Tel: (+44) (0)7587 176155

Work with Nicky: Click Here.

Join my FREE Facebook Marketing Group: Click Here



Network Marketing


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13 Comments on Don’t Join an MLM or Network Marketing Company Until You Read This!

  1. Stacious
    July 17, 2015 at 12:27 pm (2 years ago)

    Great Work. Those are very helpful tips.

  2. Nicky
    July 17, 2015 at 2:15 pm (2 years ago)

    Glad they helped you – thanks for stopping by!

  3. Bernice
    September 28, 2015 at 5:57 pm (2 years ago)

    Great info. I originally signed up for a distributorship so I could get a discount on my product. I am seriously thinking about promoting it as a PT business to supplement my SS. I have no grand illusions and am not of the mindset that I will become wealthy. Also, my sponsor has been in this business for 8 years and I am sure he will be a great help also. He did not push me into anything, this is my own decision. I believe this information will be a great help to me.

    Thank you again.

  4. Nicky
    September 28, 2015 at 6:07 pm (2 years ago)

    Thanks Bernice!
    I think signing up as a distributor to get the goods at cost price is a good idea and in actual fact if you get results from the product then you will be able to refer other customers simply because you will be excited about the product.

    I am glad that this report helped and if you wanted to build a big business, then learning some simple marketing skills is the next step.

    Thanks for stopping by and taking the time to comment,

  5. Nicky
    May 9, 2016 at 1:48 am (1 year ago)

    Thanks for your comment Tracey I will be sure to hop over to your blog to read your article too.

  6. Alastaircooks
    November 22, 2016 at 9:03 am (6 months ago)

    Great post I originally signed up for a distributorship so I could get a discount on my product. I am seriously thinking about promoting it as a PT business to supplement my SS. I have no grand illusions and am not of the mindset that I will become wealthy. thanks for share

  7. Nicky
    November 22, 2016 at 9:26 am (6 months ago)

    I’m glad you found it useful – but I would love to say to you that ANYone can make it in this business and that 95% of it is mindset. If you have the mindset of “I will not become wealthy….” then the fact is that you won’t. There is nothing wrong with being wealthy….you can do so much more for others when you are, but it starts with the mindset.
    I wish you every success with your business – go for it!! :)

  8. Maria Davies
    December 27, 2016 at 6:27 am (5 months ago)

    I once had success with direct sales because their product is good and effective and you will not be having a hard time explaining the product because they can see the result right away and they can see also to me since I personally used the product.
    Maria Davies recently posted..IncomeMy Profile

  9. Nicky
    December 27, 2016 at 9:39 am (5 months ago)

    Well having a great product is key Maria – so are you still in Network Marketing or direct sales?
    Thanks for stopping by,

  10. Maria Davies
    December 27, 2016 at 10:30 am (5 months ago)

    Hello Nicky,
    You’re welcome, No, I am no longer doing direct sales and network marketing. I do coaching and mentoring now.
    Maria Davies recently posted..IncomeMy Profile

  11. Ashley Tewes
    February 16, 2017 at 7:12 pm (4 months ago)

    Nicky i loved the article as well as your comment about mindset. Once you believe you can do something it really comes knocking at your door. I am a firm believer in putting what you want to receive out into the universe!
    Ashley Tewes recently posted..Blog Post TitleMy Profile

  12. Nicky
    February 16, 2017 at 8:32 pm (4 months ago)

    Thanks Ashley – I totally agree with you and I do too!
    Thanks for stopping by,

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