MLM General

8 Reasons Why Network Marketing Has A Bad Reputation

Jun 18, 2022

Network marketing has a bad reputation. Many people believe that it is a scam. Others think that it is too difficult to be successful. In this article, we will discuss the top 8 reasons why network marketing might not be the right choice for you.

My Bad Reputation Story

I recall a time going to a family party. I started to talk about my business and my uncle gave me a funny look. He then told everyone that I was trying to scam them.

I didn't even get to talk about my MLM company yet.

He used to be in MLM for a few months and then he ended up closing shop.

It was super awkward going to family events. I felt that most of my family members felt that I was part of some MLM cult.

Well, that stuff doesn't phase me now and I don't get treated like that anymore. It was a huge obstacle in my life. Just like the old saying goes, when there's a will, there's a way. This sounds kind of cheesy, but yeah, seriously.

My Personal Thoughts About the Industry

Before I going into these common topics, I'd like to give you some feedback. Hopefully this might change how you do business.

When I first started in the MLM industry, leaders would sell the opportunity like it was the best slice of pie in the world. Nothing could compete against it, and we had the best products ever. 

We were like troops, that were marching on the battle field, doing what it takes to convince people that are stuff was the best.

Let me be straight up.

There's no #1 solution that applies to everyone. You don't have the best product in the world. If you think you do, another competitor will make something better.

I know, some the hardcore MLMers might think that I have a mindset issue. For me, I'm just an open minded person that's speaking the truth.

With that mindset, thinking that you have a 1-size-fits-all solution, people WILL feel weird about you. Some MLMs will say that they have the best opportunity in the history of the world. That's another thing that gives off a weird vibe.

If that was the truth, you would be on the world news and everyone would follow in your footsteps.

So if you wonder why MLM has a bad reputation, realize that you or your upline could be the reason why people think weird stuff about this industry.

Over promising, and under delivering sucks. I'm not saying that all MLMs are like this, but it's an industry phenomenon. 

When people are told that they'll make a bunch of money fast, and then realize that most people are failing, they have a good reason to feel misled.

The solution? Don't be part of the problem and build an ethical MLM business.

Hey now. OK. Let's start diving into these common bad rep questions.

1) Why Do People Think that Network Marketing Is a Scam?

Here are some common reasons why people think that this industry is filled with scammers.

1. In order for you to make money, you typically have to recruit other people to join your network. Some people think that this is what illegal pyramid schemes do.

2. Most distributors don't make any money.

3. Some companies use deceptive practices to attract new members.

4. They think that only the people at the top will make money. This is another mental connection with illegal pyramid schemes.

5. The products suck. I've seen this mostly with health-focused shops. This is an example of over promising and under delivering.

2) It Is Too Difficult to Be Successful

In recent years, there has been a lot of talk about the so-called 'bad reputation' of network marketing. It is no secret that this industry has come under fire for a variety of reasons, most notably because it is often seen as being too difficult to be successful.

There are a few key reasons why this might be the case. Firstly, network marketing is not as simple as handing out leaflets or going on sales calls – you need to be able to sell not only your products but also your ability to help others achieve their goals.

This can be hard to do if you don't have any prior experience in the field, and it's also tough if you don't have the right contacts.

Secondly, network marketing can be very time-consuming – if you're not willing to put in the effort, you'll probably struggle to make any real progress. This means that it's not always easy for people who are new to the industry to find success quickly. In fact, it might take several months or even years for them to start seeing benefits.

Overall, these are all factors that can make network marketing seem quite daunting – which is likely why it.

3) You Will Have to Spend a Lot of Time Marketing

Most MLMers know that this business isn't easy.

It's also a type of business that requires your time commitment.

You might have to send out lots of emails, make phone calls, or go door-to-door. This can be tough if you are not good at networking or if you don't have the time to do it.

While these companies do have proven systems, there's also a lot of trial and error. Just because you tried to follow what somebody else did, it doesn't mean that you'll get the same result. Your target audience will be different, your style of communication will be different, and obviously you are not that other person.

It takes time to figure out things and what processes work for you.

4) You Will Have to Work Hard

There were many years where I put a lot of effort into my MLM business, and I didn't feel like I reaped the rewards.

While some leaders say that you must follow blindly, you'll still need to do your due diligence.

That means, you can test different approaches and figure out which one is the most effective. While the system is available, it's like a guideline. The overall idea works, but you need to figure things out for yourself.

All of this requires a lot of time and effort. 

This applies to all businesses, even franchises. Just because you open up a franchise, it doesn't mean that you'll get the same level of success as another franchise owner.

5) There Is a Lot of Competition

There are a lot of reasons why network marketing has a reputation for being a bad business model. The main reason is that there are so many other businesses out there that offer similar products and services, and they are all much more successful than network marketing.

One of the most common complaints about network marketing is that it is hard to make money with it. This is because the majority of people who join networks don’t make any money at all, and those who do usually only make a small amount of money each month. This is because most people in network marketing have to invest a lot of time and effort into the business, which means that they aren’t able to earn as much money as they would in other businesses.

Another problem with network marketing is that it can be very competitive. This means that it is difficult for people to get ahead, and they often have to work hard for little reward. This makes network marketing less attractive than other businesses, which is why it has a bad reputation among many people.

6) You Will Need to Learn a lot of Material

There are a few reasons why network marketing has a bad reputation. The first is that it can be very difficult to make any money with network marketing. You will need to spend a lot of time and effort building your network and selling products. If you are not successful, you may end up with very little money in your pocket.

The second reason why network marketing has a bad reputation is that there is often a lot of deception involved. Many people are fooled into joining networks because they are told that they will make lots of money quickly. However, this is rarely the case. Most people who join networks end up losing money or barely making any money at all.

If you are interested in network marketing, it is important to learn as much information as possible before joining a network or starting a business in this industry. This will help ensure that you make the most informed decision possible and avoid getting into trouble

7) You Will Need to Have Lots of Energy

If you've ever gone to a traditional MLM conference, you might have heard about "the meeting, after the meeting." Perhaps, you've had to wake up early in the morning to show up to the conference 1st to demonstrate your leadership and strong conviction to succeed.

Doing that for the long term will whoop anybody. Yeah, it takes a lot of energy and the ability to perform with a lack of sleep.

What if you haven't attended a conference?

I've still experienced the meetings after the meeting, and the meetings before the meeting. That's a lot time. Yeah, it's business building if you have a bunch of team members. For people that are just starting out, it feels life you've been robbed of your life force.

8) You Will Need to Be Willing to Fail

In order to be successful in network marketing, you must be willing to fail.

You more no's you get, the higher the probability of getting yes'.

Having thick skin is mandatory.

If you are not passionate about the business, then it will be difficult for you to succeed. 

The solution? Focus on your reason "WHY" you started this journey and use it to stay on course.

Some people try, fall, and never succeed. They're not resilient. In business, you have to be able to bounce back up, figure out how to improve your processes, and implement new approaches until you get the desired result.


Network marketing is a great choice for some people. However, it is not right for everyone. You need to make sure that this is the right choice for you before you get started.