Network Marketing Business Model Outlook For 2022

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Network Marketing is a lucrative business opportunity that has been around for decades, but it's experiencing exponential growth right now. The good news is that it’s a great time to learn Network Marketing because the industry is changing for the better. The future is bright.

Cleaning up the Industry

The future of Network marketing favors legitimate business owners who use the model as an advanced distribution method. In the past, people have associated Network Marketing with unethical pyramid schemes. But in the last 5 years, major developments have taken place, cleaning up the industry.

For example, the FTC fined Herbalife 200 million dollars for unethical business practices. The FTC also sued Nerium (a Network Marketing organization), because they “operate as an illegal pyramid scheme and falsely promise recruits they will achieve financial independence if they join the scheme.” These two examples are only the tip of the iceberg. In the last half decade, many legal actions have helped eliminate the unethical sides of the industry.

The Future of Network Marketing

In 2022, Network Marketing will move away from recruiting non-serious sellers. The big issue with companies such as Herbalife is that they recruit anybody. They don't vet recruits because they make money when new recruits join the scheme. As a result, 99 percent of sellers lose money. This behavior triggered the FTC judgments. But in the future, the emphasis will move away from recruiting, and the attention will shift onto the end buyer of the product.

Sellers who succeed in network marketing will be the advanced salespeople who operate as commission-based businesses. They will build up their sales channels like legitimate businesses do. They will ignore recruiting and instead focus on excellent lead generation and distribution of product.

The great investor Warren Buffet loves Network Marketing for this very reason. He has invested in a Network Marketing company called Pampered Chef. It's an excellent example of high-level direct selling. Pampered Chef creates a fantastic customer experience while providing sellers with a way to make money.

Network Marketing will grow in popularity because working from home is a growing trend. Few people wish to return to the office. In addition, the pandemic has caused a massive economic slowdown, so people are looking for ways to make money on their own terms. Many of them will stumble onto Network Marketing. It's attractive because it's low risk, requiring only a few hundred dollars to get started. It allows sellers to set their own time schedules. It's perfect for stay-at-home parents who need a flexible source of income.

The FTC rulings have a positive impact on new sellers who are now less likely to get drawn into pyramid schemes. With a more ethical industry, new sellers are likely to find an excellent network such as Pampered Chef. And developing economies have noticed the potential too. Countries such as India and China have embraced Network Marketing, and they will no doubt revolutionize the industry in different ways.


Overall, there will be a reduction in the quantity of network marketing companies because governments are targeting unethical practices. But the outcome is positive for everybody because the quality of network marketers will increase.