Actually, there are a lot of generalizations based on limited experience as I see them. I've been involved in network marketing before, and it is a viable business model. Hell, I was in Amway and made money. But there are 5 things you need to analyze when you're looking at not just this type of business, but any type of business. And this is from Harvard Business School, not me.
1. Timing - i.e. Are you getting in at the beginning of a trend or the end of a trend? At the beginning of a trend, you make money. At the end of a trend, you're the one spending money.
2. The company - Is it a brand, new or fly by night operation or is it established. I wouldn't trust ANY company that isn't publicly traded. They can cook the books, all day.
3. The product - Is it unique or is it a me too product? Most network marketing companies offer the same products and services an ordinary individual can get in the store. You want something unique that basically sells itself.
4. Competition - i.e. why go into a marketplace flooded with similar products. Would any of you be trying to go into the cell phone business, right now?
5. The compensation - Ask yourself (especially in network marketing), will I make enough of a profit, even without recruiting to make this worth my while? If you could make a decent income, regardless of your recruiting efforts, it's something you should look into. With my present company, I make close to $200 off of a 20 minute presentation, and all I have to do is pop in a DVD that does all my talking for me. I've made a few hundred dollars in a day b.s.ing and still have a full time job. Must admit, I NEVER did that with Amway.
The other point that was brought up, which is good, is are there people in your area that you can talk to that are making money? Not everyone is going to be rich, but even if a person is making a few hundred or a few thousand dollars a month and they're happy, that's cool. My sponsor in my present company makes close to $200k a year and I knew him from my Amway days. Hell, I was his sponsor in Amway, so I know what he was doing before. And I have acces sto a lot of people locally who are making 10s of thousands to hundreds of thousands a year. They don't HAVE to import people from 5 states away, which I found very impressive.
I'm not saying this to make my company or network marketing look good, just giving people a point from which to measure whether this business or ANY business is something that they feel is worthwhile.