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How To Do Network Marketing In 5 Easy Steps (2022 Update)

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Updated: May 19

By: Scam Risk - Expert Reviewer

How To Do Network Marketing In 5 Easy Steps 2022 Update

Multi-level marketing (MLM), also called direct marketing or network marketing, is a way to sell products directly to consumers through independent sales representatives.

MLM companies usually get people to join by promising them money and freedom. Even though MLMs aren’t illegal by definition, some have gained a bad reputation for the way they do business, and others are nothing more than illegal pyramid schemes.

Chances are you heard about How To Do Network Marketing In 5 Easy Steps because someone – a friend or family member – introduced you to the company. Maybe you attended an online workshop or webinar, or maybe an in-person information session.

Your head’s probably spinning. This might be the first time you’ve heard about a real way to make money outside of a typical job.

So first off, congratulations!

DISCLAIMER:
This How to Do Network Marketing In 5 Easy Steps review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.

Table of Contents

Pros: What I Liked

  • Multilevel marketing is a person to person sales
  • There are real Network Marketing Success
  • Independent business owners are highly welcomed
The Good

Cons: What I Didn't Like

  • Multilevel marketing plans are commission-based, and the participants do not receive salaries.
  • MLM industry is too crowded
  • Most Network marketing programs generate a little or no money
The Bad

You’ve just entered a whole new world…the world of making money on your own terms.

However, you came in through the wrong door.

Because How To Do Network Marketing In 5 Easy Steps is – plain and simple – an MLM. Throw whatever fancy name you want on it…multi-level marketing (MLM), network marketing (NWM), direct sales, or anything else, it’s the same concept:

You pay some money upfront for the “opportunity” to sell products.

The products are typically low-quality but with high price tags (because of fancy labels and stuff).

You’re told that the key to building your own successful business is selling these products to friends and family, and getting them on a subscription (so you get “monthly recurring revenue”).

Unfortunately, like most people who get taken in by these types of schemes, you’ll quickly discover that the well runs dry faster than you imagined.

After all, they make it sound really simple. “Just get 5 people you know onto this magic widget, and things will just grow from there.”

And in your head, you think “How hard can it be? I know plenty of people, 5 will be easy.”

But then you do it, and you realize people look at you like you’ve joined a cult. You’ve become “that person”, who joined an MLM, and is now trying to sell questionable products or services to everyone they meet.

It puts a strain on your relationships, and you end up stuck between two worlds.

But it’s not your fault. These companies spend millions of dollars each year figuring out exactly how to recruit people. And that’s why we’re here.

So, what if there was a way you could build a passive income stream that’s actually passive?

An income stream that doesn’t require:

  • Inventory
  • Selling to friends and family
  • Selling to strangers
  • Recruiting people
  • Dealing with questionable products that weigh on your conscience

An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?

An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day chasing, selling, or managing anything?

If that sounds like something you’d be interested in, check out Digital Real Estate. 

TESTIMONIAL - STILL GETTING PAID

This is nothing like MLM, and that’s probably a good thing.

However, if you’d still like to know more about How To Do Network Marketing In 5 Easy Steps, keep reading.

What Is Network Marketing?

What Is Network Marketing

Network marketing is an excellent business model that relies on person-to-person sales of a product or service. A team of people must be formed to get the product’s message out to as many people as possible.

In addition to the products they sell, the leaders of these teams are paid for the effects their team members sell.

It’s also called multi-level marketing, referral marketing, and consumer direct marketing. Whatever you call it, these are businesses where the best entrepreneurs can succeed – and even discover their true talents.

What Is Multi-Level Marketing?

Multi-level marketing companies sell their products directly to customers rather than retail outlets. This shifts the burden of selling to independent distributor networks.

Distributors in the MLM model are not employed by the company. In this context, there is no such thing as a “distributor network.” Multi-level marketing companies rely on this vast network of unaffiliated distributors to make money.

How Multi-Level Marketing Works

How Multi-Level Marketing Works

MLM can be better understood if you visualize a pyramid. Direct Marketing Company hired Alice as its first independent distributor. As a result, Alice rises to the position of absolute power.

Each of Alice’s five independent distributors then recruits five more independent distributors, and so forth. Direct Marketing Company relies on this pyramid to sell their products.

Everyone Alice brings into the program has her as their sponsor or upline. Her downline is made up of the people she recruits and the people they, in turn, recruit.

In most multi-level marketing schemes, the direction of these relationships is important to keep in mind because it affects the amount of money everyone in the pyramid earns. Distributors contribute a portion of their profits to the company and those above them in the organization’s hierarchy.

MLM distributors make money by selling products to people they know, commissions from people they recruit to the company, and commissions from sales and recruits generated by their own recruits, according to Christine Alemany, CEO of TBGA, a branding & marketing support agency. “To be successful, a distributor must always look for new members to join their team.”

A typical MLM compensation plan outlines precisely how these upline and downline relationships work and how distributors are compensated in detail. A member must meet a certain number of new recruits and sales targets to be eligible for compensation under these plans, usually expressed in terms of minimum sales targets and new recruits.

Pyramid Scheme VS. MLM

Pyramid Scheme vs. MLM

Many people are suspicious of multi-level marketing companies because of how they operate. All in all, they both employ a pyramid-like structure.

As a result, how can one be considered legal while the other isn’t? It all boils down to the compensation plan’s focus on sales versus recruitment.

Without recruiting new distributors, you can get paid based on your retail customer sales in an MLM that is not a pyramid scheme.” says the Federal Trade Commission (FTC). To stay afloat, pyramid schemes must continually recruit dues-paying members, even if those members must continue to buy products they may not be able to sell.

MLMs And The 70 Percent Rule

MLMs And The 70 Percent Rule

“At least 70 percent of all goods sold must be purchased by non-distributors” is the 70 percent rule for MLMs to be compliant (i.e., legal and not a pyramid scheme).

This means that most of a company’s products must be purchased by people outside the company rather than by people in the distributor network or by distributors stocking up on inventory. Alemany & Cory Rusin, a researcher who works closely with former MLM distributors after they leave direct sales, note that it is tough to prove if an MLM is not in compliance.

Unsold products are “almost impossible to track,” Alemany, a distributor. “The vast majority of MLMs trust their distributors.”

According to Rusin, the “financial freedom” offered by many MLMs cannot be achieved through direct sales alone, even if a distributor was clearing 70% of their inventory in a given month.

As she explains MLMs’ compensation plans, the real money comes from recruiting new members.

When MLMs Fail

Pyramid schemes fail when their recruiting efforts fail because the model requires infinite recruitment to sustain income. MLM companies usually fail when suppliers or distributors rebel against unethical business practices, like the recent LuLaRoe scandal.

However, individual distributors may struggle within an MLM for a while without the whole thing falling apart.

Class-action suits from dissatisfied customers have also been filed against LuLaRoe by vendors who have not been paid for their goods. They’ve just agreed to pay Washington State a settlement after being sued for allegedly running an illegal pyramid scheme.

Should You Join An MLM?

Should You Join An MLM

There is a perception that multi-level marketing companies allow individuals to become “captains of their own ship” as business owners and generate income from products they believe in.

9 out of 10 people who participate in MLMs lose money as they struggle to resell products and recruit new members for network marketing companies that often skirt the line of illegality and conceal participation costs from participants.

In addition, the strategies employed by some MLMs can harm distributors in terms of their mental well-being and financial well-being.

Dr. Steve Hassan, a leading cult expert, says Rusin ensures that any failures to earn large sums of money through the business model are placed on distributors for their lack of competence or hard work.

The former distributor for two MLMs, Rusin, advises you to think about why an MLM sounds exciting and look for other opportunities to fulfill those values instead of signing up for an MLM.

If you are skimming for a way to make money, work from home, or build a network but don’t want to put in the time and money it takes to join an MLM, there are plenty of other options.

Consider how you can help others with the services you have to offer before starting your own business, advises Rusin. It’s likely to get started for very little money, and you’ll have established a more ethical and sustainable source of income.

Is Network Marketing Business A Scam?

So, is Network Marketing Business a scam?

Of course not. You can make money with this program, but it’s definitely not as easy as the company makes it sound.

There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual commissions are pretty small.

Now, there’s nothing wrong with front-loading the work and making the money later.

But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.

What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?

And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?

And what if you could double it next week?

Well, that’s the power of Digital Real Estate

And, unlike an MLM, you can legitimately do this from anywhere. It’s a true lifestyle business.

Your laptop and an internet connection is all you need.

Some of the most successful students in this program run their entire 6-figure businesses from:

  • A camper in the middle of the woods
  • A beach chair on the water in Mexico
  • A small villa in Greece

TESTIMONIAL - SAYING GOODBYE TO OUR JOBS

They’re able to travel around, living their lives first, and focusing on their income second.

Because even if they stop working for an extended period of time, the money keeps coming in.

So adventure, memories, and experience are the top priority.

And they never have to worry about how to pay for the next trip, or consider asking for time off.

If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.

Are There Alternatives to Network Marketing Business?

Yes, there are plenty of MLM companies to choose from if you want to pursue this business model.  Here are just a few:

Our #1 Recommendation For Making Money Online In 2022?

Make Money With Digital Real Estate

Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.

While there may be no “perfect business”, the research IS conclusive:

Digital Real Estate is the #1 online business model for those just starting out.

Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.

Why?

1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.

And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.

Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.

This is only possible if you have an income stream that’s not tied to your time.

TESTIMONIAL - JUMP ALL IN

2) You Own & Control EVERYTHING: With MLMs and Network Marketing, you don’t really own anything. You have no control over the quality of products. You don’t even own your “team”.
Look at the fine print for most of the agreements folks sign when they join one of these companies. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.
With Digital Real Estate, you own the assets, which means you have all the power and all the control.

TESTIMONIAL - FEELING BLESSED

3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.

Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.

TESTIMONIAL - SCOTT LEAD GEN

4) No Inventory: Alright, so most MLMs don’t make you buy the products and fill your garage with them anymore (unlike the good ol’ days), but you’re still in a physical products business.

And physical products always have physical limitations. Even if you don’t have to manage the inventory, you still have to deal with supply chain shortages that cause major delays.

Imagine finally landing your first customer, and then losing them after one sale because they had to wait 6 weeks to get their order.

With Digital Real Estate, a 100% online business, you never even have to think about that risk.

TESTIMONIAL - ANNA DONE DEAL

5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).

Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.

Because you have more knowledge, more experience, more results, and more momentum.

If you wanted to double your income with an MLM, you’d have to double your customers OR double the average order size of your existing customers. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.

TESTIMONIAL - LANCE LEAD GEN

6) Make Money Helping Real People: This part is what makes it all worth it. In an MLM, your “upline” might convince you that what you’re selling improves people’s lives, but deep down, you likely know that’s not true.

Most of the time, you’re either selling a dream or a poor-quality, overpriced product with a fancy label.

And that makes it pretty hard to sleep at night.

But with Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:

Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.

You make money by helping them make money.

Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.

Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.

TESTIMONIAL - BOSS OF MY FUTURE

Now, the choice is yours.

You could continue browsing, looking at opportunities like Multilevel Marketing which could one day make you money.

You could continue researching, never making a decision.

OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.

A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.

All while genuinely helping real people who are grateful and happy to pay for it.

If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.

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