There is no single answer to this question. There are people who managed to earn a good income and there are people who got meager results or a large group of people who got no results. There is no such thing as a quick rich model. Network marketing can be a challenge and there is an explanation for it. The principles of MLM are neither new nor special. If we look at every successful economic mechanism, we see that the elements of network marketing are also completely related to this.
A product is made by a manufacturer. The latter wants to market this product and does this with the help of various links. For example, a wholesaler that resells it to the retail trade that resells it to the consumer. A lot of profit is made especially between the links because the turnover is large. Each link gets its share of the profit. The higher in the structure, the higher the profit. The seller makes the least profit in such a chain. An outlet owner gets more profit, the owner of the small wholesale warehouse gets more profit. This is similar to the structure of network marketing, but there is one difference: the seller’s chances of becoming the store owner are minimal. This can entail huge investments. Very high financial progress is not expected as a sales associate in a store. The only thing that can be expected from such work is an increase in pay for the work performed to the full satisfaction. It’s no rocket science.
There are differences and similarities with traditional business. The main difference is that the links of the network marketing structure are not companies, but people who are operating as distributors of the company. They ensure the movement of services and goods from the producer to the end user. Because there are no intermediaries as a link, this can help to achieve maximum profit. To move up the ladder you will have to rely on your qualities and it often takes a minimal investment. If you don’t have startup capital or don’t have the right network to start your own business, network marketing is one of the few ways to achieve financial success. Is it a quick rich model? No, it isnt!