I see all over the Internet people claiming to make tons of money from the latest network marketing or MLM program. All of these income claims are usually outrageous and often make your emotions run wild as you reach for your credit card to quickly sign up with the latest program that will guarantee your retirement. So how are there a select few online who can profit, while a majority will never succeed?



I personally believe that it is not possible for the newbie Internet user to make money in network marketing or MLM online and I have listed some of the main reasons below.

I. You do not have a network of people to make you money

Another name for network marketing is MLM or "Multi-Level Marketing". If you want to succeed in a network marketing program it is all about the size of your network. So what is a network? It's an solid set of contacts who know you and trust you. A more common term for networks on the internet is "a list". A list is a group of people sometimes thousands of them who have chosen or opted-in to receive a newsletter or e-mail from the list owner.

All of the major distributors in network marketing have a huge list. When they find a new MLM program to join, they send an email to their list promoting it and you guessed it...their downline grows virtually overnight. Then they can sit back and count their money as their downline promotes for them and does all the work.

II. You are unknown

Don't think that being a unknown counts with all the millions of Internet users. In the world of network marketing being a well known marketer has a huge advantage.

If you build trust with people they are more likely to follow you. As I mentioned before, the top network marketers have a huge mailing list that trusts them and is therefore willing to sign up to almost any program that they promote. It's no different to a top celebrity coming on your TV and telling you to buy a certain brand or product. Familiarity builds trust online.

This can also work the other way around. When you're a well-known Internet marketing guru, people notice you, including the big network marketing distributors. They know that you have good recruiting power so they want you in their downline to build their organization as quickly as possible. However, if you're just a little fish in the Internet marketing pond then you'll never hear about the new network marketing programs until it's too late.

III. You will not hear about the new network marketing program until it's too late

The keys to success in network marketing or MLM is having a huge downline that will do the work for you. That means that you need a downline of experienced and dedicated network marketers. All the good network marketers already know about the program and have already signed up or dismissed it as unviable. They were probably on the mailing list of a big network marketing player and heard about it right after it was launched.

Who will be left for you to build your network? Not many people. Most people you approach will already have heard about the program and might even already be in it or might just be sick of hearing about it. You might be lucky enough to sign-up a few people who were not aware of it before. Unfortunately, those people are very unlikely to bring in lots of new recruits for your downline. In fact, the money they bring in will barely cover your own monthly fees. Eventually they'll become fed up and quit. Leaving you desperately trying to sign someone new up so you can cover your monthly dues.

So, as you can see, network marketing programs are best avoided when you're new to Internet marketing. You can put those dreams of signing up to a network marketing program or MLM and making huge amounts of money every month right out of your mind.

As an experienced Internet marketer you need to forget about all of the "get rich quick" and "early retirement" scams online and concentrate on building a slow and steady residual income and "get rich slow". It is a reality, and you can start with absolutely nothing!