Network Marketing vs Job: Which Is Better?

Between network marketing vs job, which one should you choose?

The truth is, it depends.

If you are in dire need of money right now, then a job will be a better immediate fit for you. A job is the only make money fast scheme that works.

But if you are thinking more long term, 5-10 years into the future, then I believe that network marketing is way superior to a job.

Before we get into the network marketing vs job comparisons, let’s do a quick description of what network marketing is exactly.

I’m gonna go out on a limb and assume you already know what a job is, so we won’t be describing that in great detail 🙂

What Is Network Marketing?

Network marketing is a business opportunity that allows you to sell products for a company and earn commissions for each sale.

You can also build your own sales team that will sell and earn commissions for you.

Each member of your team can also build their own team, which will also earn you commissions.

The exact compensation structure varies from one company to the next, but you can often earn income from up to 7 or 8 levels of depth within your organization.

Companies use this type of business model in order to save millions on advertising campaigns and retail fees, choosing instead to pass those profits down to regular folks who choose to build a network marketing business.

For a full explanation of network marketing and why it’s a good fit for these crazy times, feel free to check out our full MLM analysis article.

Network Marketing vs Job Main Differences

The biggest thing to understand about network marketing is that it is not a job.

When you initially get started in MLM, you will not make any income at all until you start producing revenue for the company.

You are simply a recruiter and sales contractor, and you are paid for results only. Nothing more and nothing less.

There is no salary or wage in network marketing.

This is unlike a job where you go in to work and you get paid for your time. You put in your 8 hours, and you will get paid for 8 hours. Even if you had a rough day and made some mistakes.

So if you are in a very difficult financial situation right now and it’s keeping you from putting food on the table, network marketing will not be the short term solution you are looking for.

Don’t let anyone tell you that it is.

If you’re unemployed right now and in desperate need of money, go get a job!

But it’s my personal belief that no matter what you do for a living, you should do network marketing in addition to that.

Because if you are able to build your network marketing business the right way, your income will grow exponentially over time.

And it could allow you to eventually quit your job completely and live a life of financial and time freedom.

Network marketing could be a powerful piece of a retirement plan, so I encourage you to take a serious look at it.

Network Marketing Advantages

Not everything about network marketing is sunshine and roses. There are some real downsides to the business model that you should be aware of.

Before we talk about those, let’s go over some of the advantages.

Personal Development

There are no handouts in network marketing. You do not have the ability to ask for a raise if you feel that you are not being compensated for the work you’re putting in.

This forces you to look honestly and objectively at how you are performing in business and life.

If you want better results, YOU are going to have to make it happen.

There are no other options.

Because of this, the culture within network marketing tends to be very focused on personal development and self improvement. 

This is bound to rub off on you and could encourage you to become the best version of yourself over time.

Travel Opportunities

Most network marketing companies will host events all over the world where you will have the opportunity to meet and mingle with other folks in the company.

Folks who think like you and have similar goals.

In addition to that, many companies will reward high performers with free vacations. So as your business grows, you could find yourself flying to a tropical resort paid for by your company.

By this time, your team has probably grown to the point where it starts to span the country… or maybe even the world.

This is another opportunity for you to travel and work with the various legs of your team.

Be Your Own Boss

You may love your boss. Or maybe you don’t…

Either way, I believe everyone would love the freedom that comes with self sufficiency. 

You can start work every morning when you’re ready, not when somebody else says it’s time.

You can make your own decisions based on what you think is best for your life, your family’s life, and your business. 

You Choose The People You Work With

Have you ever worked with people that are just difficult to be around?

But you’re just an employee, so you can’t do anything about it.

In network marketing, it is completely up to you who you work with. YOU choose who you bring into your team. 

You will not be forced to spend time with negative folks who only bring you down.

No Income Cap

There is effectively no limit to how much money you can earn in network marketing.

Though rare, there are folks earning 7 figures per month with this business model.

I know it sounds crazy and I don’t want you to expect to make that kind of income quickly or easily… but it is certainly possible.

If you want to give yourself a raise in network marketing, you simply need to put in more work.

Flexible Schedule

If you need an afternoon off for your kid’s dentist appointment…

Or a week off to attend an old friend’s wedding in Barbados…

You can take the time off without feeling guilty or having to beg for permission. Not to mention, you can still do your work from anywhere in the world if you choose to!

Can Be Done Online

When you think of network marketing, you may think of Avon sales reps going from door to door trying to sell their products.

But those days are long gone.

With modern day technology like social media, blogging platforms, and video calling, there are many effective ways to take your business online.

We have the technology and we as network marketers should take advantage of it.

Feel free to check out our digital network marketing guide.

Network Marketing Disadvantages

As we already mentioned, not everything about network marketing is good. In fact, there are some very real disadvantages to the MLM business model.

Low Success Rate

While it is possible to earn very large incomes with network marketing, the reality is that most people will never make it.

In fact, an AARP study conducted in 2017 revealed that only 1% of all people involved in the business will ever make a full time income.

This doesn’t mean that you can’t do it…

But unfortunately most people quit before they succeed.

Unrealistic Expectations

There is a problem within the network marketing industry of hype and exaggerated income claims.

Many people in the business tend to become a bit too excited and they try to recruit other folks by sharing only the extraordinary stories.

They don’t present the business in a balanced way.

Because of this, many people get started in the business thinking that they will become very wealthy in a year or less.

When this doesn’t happen, people become disenchanted. They feel as though they’ve been lied to.

And they quit.

If you want to succeed long term in this business, you must truly know what you’re getting into.

Poor Reputation

Over the past few decades, there have been several illegal Ponzi and pyramid schemes that operated under the disguise of network marketing. 

When these illegal organizations inevitably collapsed, many people were financially ruined.

When the media covered these stories, they painted the whole industry with a broad brush and the general public got the impression that network marketing itself is a pyramid scheme.

This is categorically false. There are definitive differences between MLM and pyramid schemes, which you can read about in this MLM deep dive.

Unfortunately, these illegal pyramid schemes have caused long term damage to the reputation of network marketing.

No Base Salary

If you spend 8 hours a day on your business for a full year but you never make a sale or recruit a single rep, you will make zero income.

This is important to understand because if you are in an acute financial emergency, network marketing is not your short term solution.

Some may try to convince you that it is…

In network marketing, you only make money when you produce revenue for the company.

Period.

Strained Relationships

One of the problems with network marketing is that it can strain your personal relationships.

Folks in your personal life may not understand your business model. They may ridicule you or try to convince you that you’ve fallen for some type of scam.

Understand that they probably mean well.

Don’t get into arguments about your business with your loved ones.

If they want nothing to do with it, then don’t try to convince them.

In network marketing, you are not looking to force people to join your business. You are looking for those who are already interested.

If someone tells you that they’re not interested, then leave it alone.

No means no.

Don’t let your business come become between you and those that you care about.

Job Advantages

Many folks in the network marketing industry tend to bash a job, constantly pointing out the disadvantages as compared to network marketing.

But the reality is, having a job is not a bad thing.

First of all, jobs are necessary to move our economy forward and allow for human flourishing.

And second of all, there are certain advantages to having a job.

In fact, you might actually love your job. There are some people building a network marketing business with no intention of ever quitting their job… because they love what they do there.

And there’s nothing wrong with that.

Get Paid For Your Time

Trading your time for money is not really a good long term trade. Time is finite, while money is effectively infinite.

But there is a place for it.

If you need money right now, then you should go and get a job. It is guaranteed income. If you show up to your job for 8 hours, then you will get paid for 8 hours.

Income Security

The problem with a business is that your income can fluctuate quite wildly depending on market conditions. 

But if you have a 9-5 job, that income will be constant as long as you keep that job. The owner of the business takes on the market risks while the employees are widely spared.

This makes month-month budgeting much easier.

Health Benefits

Many workplaces offer health benefit plans that will cover basic needs such as dental care, vision, and medication.

As a business owner, you will need to buy your own plan or pay the costs of medical expenses when they come up.

Many workplaces also offer retirement plans. They take a certain amount out of your paycheck each month and put it into a retirement savings account.

This means that you don’t need to have the discipline to put money aside on a regular basis to save for retirement.

It’s done for you, on autopilot.

No Personal Investment Required

While network marketing typically requires only a very small investment to get started, a job doesn’t have any startup costs.

You just show up, do your time, and collect your paycheck.

Earn While You Learn

As a business owner, there will be a learning curve. 

And you get paid for results only, meaning that while you learn, you may only make a small amount of money or maybe even none.

At a job, you start making money right away, even while you’re in training.

Job Disadvantages

As we talked about, a job has its place. We need people to work in the broader economy in order to produce human flourishing.

But that does not mean that you need to stay at your job forever, especially if it makes you miserable.

There are definite cons to working a job. 

Which is why you’re looking into network marketing, right?

Your Income Is Capped

No matter how well you perform at your job, there is a limit to how much money you can earn there. 

You will never earn millions of dollars per year in most professions. 

There is a ceiling. 

And when you reach that income ceiling, the incentive to do better starts to diminish. And you may start to wonder why you are working so hard just to maintain the status quo.

As humans, we need incentives to drive us towards hard work. Discipline alone is just not enough. 

Long Term Economic Woes

Since the 1970s when Richard Nixon took the dollar off the gold standard, wages have simply not kept up with inflation. This started to become a serious problem after the 2008 financial crisis.

Central banks around the world actually target inflation at 2%… 

While year after year wage growth tends to be well below that.

So the longer you work at your average job, the less purchasing power you have.

Strict Schedule

At a job, you will be forced to come in to work at the allotted time, whether you are rested or not.

This is neither good nor bad…

It’s just the necessary reality.

But imagine getting out of bed, not when your boss tells you to, but when you’re rested and ready to tackle the day…

That freedom is simply not there in a 9-5 job.

Workplace Politics

At a job, you will find that some people are very good at befriending management… those who are in charge of handing out pay raises and other benefits.

This is something that you might not be good at, causing your income and experience at work to stagnate.

This can be extremely frustrating since some folks are simply not that gifted at interacting with leaders for personal gain.

Lack Of Choice

If you are after another position at work, you can’t just simply choose to take that position. You will need to play workplace politics in order to convince management that you’re right for the job.

If your manager happens to dislike you, it’s very likely that you will not have any choice in the matter.

Network Marketing vs Job Comparison

Still have many questions about the network marketing model? You may want to have a look at our MLM Frequently Asked Questions page.

Network Marketing vs Job Summary

Look, it’s hard to say whether network marketing is objectively better for you right now…

Because I don’t know your personal situation.

There are pros and cons to both a job and MLM.

The video below features Ray Higdon talking about his experience leaving his job to go work for himself full time. It’s a pretty balanced perspective.

Again, if you are in an acute financial emergency and you don’t already have a job, then you need to go and get one.

Work hard at it and play the game as necessary so that you can put food on the table.

For now.

But I truly do believe that no matter what you decide to do for a living, you should be doing network marketing in addition to that.

The leverage and unlimited income potential in network marketing is simply too big to ignore.

At the very least, do yourself a favor and look into it.

Seriously and intentionally.