Don't get me wrong. Network marketing is great. Even Robert Kiyosaki, in his Rich Dad book series, recommends getting involved in a network marketing company as a means to earn money and learn how to run a business. (And if you haven't read Robert Kiyosaki, put him on your must list, NOW) But network marketing is only great IF you find the right company and the company is right for you.

Isn't Network Marketing a Pyramid Scheme?

Let's get one thing straight. A legitimate network marketing company is NOT a "pyramid scheme." A pyramid scheme is designed to allow only those at the top to make all the money and those poor suckers who bought in at the bottom to do all the work and pass their money up. Pyramids like this are illegal. Network marketing is not. "But wait," I hear you protest. "Network marketing has a pyramid structure. Doesn't that make it a pyramid scheme?" No. EVERY company has a pyramid structure.

Take a look at a grocery store, for example. The one person who owns the store is at the top and makes the most money, yes? And the numerous employees who actually work in the stores working the registers, bagging the groceries, and collecting the carts from the parking lot don't make nearly as much money, right? Pyramid. Period.

How Do I Know If It's Legit?

A legitimate network marketing company has a compensation plan that guarantees that anyone working the business can make money. It doesn't guarantee that they will, just that they can. Making money is up to you. Also, if they're legit, they have an actual product or service to market.

If you get the vague sense that you're handing over your money and you're not sure why - run away. You should see a tangible product or service being offered for you to market. Their business records will also be available for you to look up.

What's So Great About It?

The greatest thing is that the business system is already in place. All you have to do is duplicate the system. You might have to carry some inventory, depending on the company, but all of the gnarly business-y sides of things are usually handled by the company. You just have to market the product or service. And if you work the system, there really is the potential to earn some substantial money. I know. I've done it.

What's Not So Great About It?

Well, it's the nature of the Network Marketing beast. You have to recruit other people to become "Independent Associates." And often that means going after your "warm market" - your friends and family. And, let's be honest, most of them will look at you like you're crazy and you should get a "real job." But let's be honest - your real job is what led you to look into network marketing and a home based business to begin with!!

While many companies tell you to go after your warm market, I recommend otherwise. It may seem more difficult to recruit people you don't know, but really, if they don't know you, you have the power. You have the authority to show them a business opportunity and it lends you credibility if they don't know up front that you're also working at the mall and living in a studio apartment with a mattress and a jar of mustard in the fridge. "Isn't that lying?" Nope. That's selling, baby.

The other downside is the meetings. They don't like to call them "meetings." They prefer the term "Open House" or some such thing. Either way, you have to dress up and go to a hotel ballroom once, twice, three times a week and play excited to hear the same presentation over and over again until you are successful at the business yourself. Then you can call the shots.

So Is It Right For Me?

Ultimately, that's up to you. Go with your gut. Do you trust the company? Do you like the people who are already involved? Do you believe in the product or service you'll be offering? That's the biggie. If you don't believe in it, you won't be able to sell it. You might, but not as well. Do you have the time to devote to a home business? And are you willing to commit and withstand that negative berating you're likely to get? Don't let that put you off, though. People berated Bill Gates, too. Now look.

If you decide to join a network marketing company, good for you. Give it all you got and you can be a huge success.

About the Author:

Dylan White has run three different and successful home based businesses and now operates the Home Business Headquarters which is updated regularly with information and links for home based business entrepreneurs at http://homebusinesshq.blogspot.com