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Network Marketing: Answers to Your Top 5 Questions Our expert explains the most common myths about this misunderstood business.

By Rod Nichols

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

In my 27 years of involvement in the network marketing industry, I've heard tens of thousands of questions. Network marketing is an often misunderstood business, and so often the questions have allowed me to help someone gain a greater understanding of it.

In this article, I'll introduce the top five information-gathering questions and the typical answers I give to them. Since there are many other questions that can and will be asked, I highly recommend that every network marketer sit down with an upline leader and talk about the typically asked questions and how to answer them. Those who learn how to answer them will succeed in business.

Here are the top five questions about network marketing:

1. Isn't this a pyramid?
Pyramids are illegal in all 50 states, and the business I'm involved in is a legal network marketing business. The primary difference, according to the Attorney General (this information is available on most State Attorney General websites), is if this were a pyramid, you would get paid a fee to recruit people into your business. In my business, I only get paid if products are sold from the company to someone within my network--either a customer or associate. Also, in a pyramid scheme, the only people who make money are those who get in first, but in my company everyone has an equal opportunity to make money and become the top income-earner in the company. Can you see how this isn't an illegal pyramid?

2. Do people really make money doing this?
Yes, but the only people who do are those who treat this like a business and work at it every day. Money is made when products or services are sold within your network, so if you want to earn a solid income, you'll need to recruit a network of people who are buying and selling products or services. The company provides excellent training and will be there to help you succeed, but ultimately the success or failure of your business is up to you.

3. Does this require sales?
Do you enjoy sales? If not, that's great, because you don't have to be a salesperson in order to succeed. This is a business of sharing information, and there are great tools that'll help you present the products/services and business to your candidates. All you do is work with those who are interested.

Now, if you like sales, that's also great; people who are good at sales often do very well in this business.

4. How much time does this require?
That'll depend upon your goals. If you would like to make a few dollars a month, you could probably invest five hours a week or less. However, if you want to develop a full-time income so that you can fire your boss and enjoy more freedom of time, then you'll need to invest at least 15 hours a week. The great part is that there are tools to help you leverage that time.

5. Do I have to talk my friends and family into network marketing, too?
This can be a life-changing business. Those who succeed enjoy complete time and financial freedom, and you should only offer this business to those who want the benefits.

Rod Nichols has been involved in the network marketing industry since 1979 as a consultant, trainer and author. His articles, bi-monthly newsletter and books can be found at his website, www.RodNichols.com.

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

Rod Nichols has been involved in the network marketing industry since 1979 as a consultant, trainer and author. His articles, bi-monthly newsletter and books can be found at his website, www.RodNichols.com.

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