Compared to franchising, the cost of starting up is low; often a couple of hundred pounds rather than tens of thousands | Overfamiliarity with the agents drives fatigue amongst potential customers |
Low entry barriers mean low barriers to exit; unlike a franchise where you are contractually obligated to serve out the term of the contract | Likewise, especially at marketing events people are weary of being recruited and may be resistant |
Brand recognition already established | There is sometimes a ‘pyramid scheme’ stigma to network marketing which can be a barrier to finding new clients and also new recruits. Without sales and recruits you won’t earn any commission. |
| There may be limitations to how much you can earn; especially if you are among many operators in your area |