According to leading international trade news, the global network market industry was valued at US$ 167 billion in 2019.  Sprouting diversity in product portfolios and boosting participation of self-employed marketing experts has driven the sector’s development and is expected to reach US$ 200 billion by end of 2020.

Network marketing or Multi-level marketing (MLM) is a business model in which a distributor network is required to cultivate the business.It is a kind of business opportunity that is extremely popular with people looking for part-time, flexible businesses and side hustles. Some of the popular network marketing companies in Africa include Forever Living products , AIM Africa, Herbalife, Amway, Tupperware and Avon.

African Youths are rapidly adopting the idea as they find it an incredible alternative to curb  unemployment and make money for themselves. Yet, this kind of business has encountered rising arguments as some professionals assert that several network marketing firms are pyramid schemes. How credible is networking marketing or MLM  and how far can it fulfill its guarantee of life changeover?

Here are pros and cons for young entrepreneurs looking to start their own business and join a network marketing company.With a small initial start-up fee, you are able to begin generating sales and earn a commission from your sales instantly.Several MLM or network marketing businesses have an additional component to the business model in which you induct the business to people or colleagues within your network. Anyone who engages the business through you becomes a part of your team and, basically, understood as your downline.If they again enlist an individual to the business, that individual also serves as a part of your extensive team.

Within network marketing companies, for every person who is within your downline, you will receive a fraction of anything they sell too (bonus plans do differ for each firm). There is no barrier to your earning capacity and several firms also extend extra incentives such as vacations, monthly rewards, jewellery and even cars.

MLM or Network marketing isn’t the regular 9-5 job. You can select the number of hours you would like to commit to creating your business. The normal committed network marketer expends up to 20 hours weekly erecting their business around their other obligations. In short, you are the boss! In comparison with opening your own company, joining an MLM or network marketing corporation has already performed the hard task for you. They furnish you with ample access to marketing stuff, training, a span of commodities for you to sell, most with your own website and other resources that you might need to get started.

With MLM, there isn’t just one means of sharing your merchandise and carving your network to share the business. Contrary to a high street store, where you bank on people to stop by, with network marketing, you possess a considerable deal of flexibility in how you drive your business successfully.

Depending on what suits you, you can carve your business through product exhibitions, testimonies, festivities, one on one  business discussions and attending booths. Most of this can be executed from your own residence using your mobile device, tablet or laptop by  posting products you use on Instagram or running an online party within your Facebook group.With the vast evolution of social media, many people are utilizing it as a means of engaging with others and making purchases online.

You get incredible networking opportunities when joining a network marketing company or MLM. With network marketing, you constantly have weekly training calls and monthly in-person seminars you can attend. This allows you to build relationships and form vital relationships with others in your extensive team.You are also acquainted with networking skills to be able to communicate with people in all elements of life. The training assists in developing interpersonal skills in confidence, public speaking and self-esteem, encouraging you to evolve positively as a person and create associations wherever you go.

There is such an abundance of training material and business building information; that there is always a new latest and greatest training program.

Downsides

You are continuously flooded by emails and updates, it’s virtually unbelievable to encompass them all.It is effortless to lose sight of your business so you need your own technique of handling information.You will be able to keep informed without getting overwhelmed.

Some MLM companies expect that you make a minimum monthly investment to remain in business .It sometimes builds pressure to learn hastily.This network marketing drawback has been the spur of stress for several marketers.Sometimes it gets frustrating for marketers to cope with this cost while striving to understand the business, enlist other people and generate sales.

In short, if you’re well prepared, you’ll be able to plot your technique, so you will be able to get ahead.

Arguably, the greatest drawback of network marketing is that some of the MLM companies end up being  a Ponzi scam such as the 2017 MMM Ponzi scheme. According to the Nigerian Deposit Insurance Corporation, NDIC, an ‎estimated three million Nigerians lost N18 billion in the Mavrodi Mondial Movement, MMM, Ponzi scheme.It is very risky to trust on such schemes and companies which likewise makes the mission of genuine businesses similarly difficult as people will treat every networking company as a scam and therefore might not market their products handily to their networks.

Another drawback of network marketing it is that people who do network marketing are unskilled and inexperienced and that results in good merchandise being marketed poorly ensuing in a general bad impression about the firm and in case of marketing 1 unhappy consumer will steer to the company losing 15 clients and therefore in a way MLM can generate a more disastrous image than a favorable image due to inexperience and unskilled people doing network marketing.

As one can detect from the above , MLM network marketing has benefits as well as shortcomings and any young person thinking of doing it should initially verify the genuineness of the company as there is no simple way of earning money and those MLMs which guarantees you will get rich quickly are mostly scams, therefore you should be wary while considering joining MLMs. After all if it is too good to be true, it probably is!