Before I answer this question, let me explain the fundamentals of the network marketing system. You can compare the network marketing system to nature's own system. Just look at how a tree-branch divide into sub-branches and repeats this division over and over again. The Type of Tree determines its average life span, its soil and wind conditions, temperature, water and what you feed the tree its strength and look.
People usually compare it to a pyramid, although a conventional company structure looks similar.
A tree may live up to hundreds of years, depending on the species. It's the same with Network Marketing Companies. You see ones jump up everywhere these days, but every now and again you see ones with age old wisdom and integrity behind it. You know it will be their for centuries to come. The oldest company in the industry is still growing, while big companies close their doors as a result of the recession. I think this answer the question, but lets not stop there.
The Soil, wind, temperature, water and food is how you got signed up, how you handle criticism, your ego, how well you duplicate your upline, how often you use the products, constant education and communication.
Like a tree, some distributors (leaves) break of, to be never seen again. Sometimes, a strong wind breaks of a big branch. If this tree's roots are well developed, it will quickly grow new sprouts. The point I'm trying to make is that a good Network Marketing Company will continuously grow even if there is thousand of quitters each year. It may even look to most people(on the outside) that these companies don't work.
On the other hand, network marketers forget that it's not for everyone, just as a Maths Professor don't want to be a History Professor or hasn't got the same thinking structure. "Thinking" defines the secret to success in Network Marketing(NM). What is the ideal prospect thinking about? If a prospect just started a new job and still loves the boss, there is no way he or she will sign up. A Doctor that works 12 hours a day for an active income, will definitely consider a passive income to generate time.
The stats show that the sign-up rate for the upper income groups are 1:3 and drops to below 1:25 in the <$1000/month income group. I believe the reason for this is 50% mentality and 50% finances.
While I was studying (1991), I had my first introduction (plan) to network marketing. I was fascinated by this system, especially the compensation plan. It was so beautiful and I couldn't wait to share it to the World and make a fortune. I explained the system to 3 people, which said no, so I quit.
In 1993, I got my second glimpse and signed up for that one too. This time I signed up 3 people, but they did nothing and after 1 year I quit. I remember thinking to myself: "NM doesn't work!" This company is still in existence till today.
The fourth NM Company I joined in 2008/2009 opened my eyes completely. It has a education program and are continuously trying to help you to succeed. I realized that to get 3 people to work in the business, I had to sign up 20.
Anyway, getting 20 people wasn't that easy, especially if you have contacted your friends and family before, regarding similar opportunities that didn't end up succeeding, due to me. For some people like myself, the rejection cut through you like a knife. To succeed in NM, you must have a thick skin and a big heart. People that do well in this industry are phenomenal people.
To come back to the question; these people live lifestyles you can only dream of. Going on 5-star paid overseas holidays. They get paid to travel the world and talk at seminars. In 2009, the company I was involved in had 5,000 distributors, earning more than $10,000 passively per month.
My verdict, NM is very profitable and I give it 9 out of 10. If it was for everyone I would have given it a 10.
Ps. Do you want people to come to you? As the world evolve, so does Network Marketing(NM). You can now
sign-up and get your training
online. You can
sign-up people from your email marketing list. You can help your downline in another part of the world, using Skype. I recommend helping your frontline with one frontline. (Keep it to one, you don't want to create yourself a full-time recruiting job.)