Have you ever been targeted by friends and family about joining their business, or targeted by social media marketers about how you can have a chance to be your own boss? Or better yet, have you been approached about ways you can get your time back or get filthy rich while working from home? If this is true, most likely they’re in network marketing business/direct sales. Most of the time the pitch may vary depending on the company, but they are pitching the same opportunity. It all sounds great but yet there is a skeptical attitude towards the industry. We believe that this industry will see dramatic growth in the next couple of years due to technology or A.I. (Artificial Intellegence}, low wages, bad economy, job security, retirement and time. But the questions is Network Marketing "The Perfect Business? "Note this post may contain affiliate links. Please read our disclosure for more info.
Should You Start a Home-based Business?
If you are looking to start a home-based business then you are certainly not alone! According to Home-based Business Statistics in America. A New Home Based Business is started every 12 seconds and 70% of Americans would prefer to be self-employed. In this blog, we are going to break down one type of home-based business: Network Marketing. When the opportunity presented itself to work with the company we are no longer actively in, we were already looking for ways to increase our income. Initially, we were getting ready to invest into real estate investment (REI). Our mindset was already there to create multiple streams of income and build a legacy. Don’t get me wrong, we were skeptical but after doing our due diligence on MLM and learn how this business work we were 100% committed.
What is Network Marketing?
So what is Network Marketing? Some people consider it an industry and some see it as a philosophy of marketing. There are different styles of marketing, Email Marketing, Telemarketing, Affiliate Marketing, Celebrity Marketing, Trade Show Marketing, Guerrilla Marketing and etc. What is Network Marketing? Marketing your products to your network (Family, Friends, Neighbors, Co-workers). That’s Network marketing.
A bit of background information on Network marketing business. It has been around since the 1920’s; the past couple of decades the market has seen an enormous rise in people joining the industry. A few household names that are associated with network marketing included; Warren Buffet, stock market investor, Roger Barnett, whose family owns Burberry, Michael Johnson, former CEO of Disney and Citi group, one of the largest bank in the world, as the list goes on. This industry has created more millionaires than any other home based industry in the world. However, the "success" of network marketing lies in the enthusiasm of its participants, and their ability to stay focused on their goals. According to ....on average, if you put in the work, it takes about three to five years to make money. While for many that may seem like a long time, take into account how long it would take you after you obtain your degree and enter the corporate world. Depending on your field, you would be lucky to move up the ladder so fast.
Why companies get involved with Network Marketing?
Here’s why. Word of mouth is the oldest way of marketing. Just because you tell your network you enjoyed a product, they’re more willing to try it out then listening or reading any ads. Second, the cost acquisition to get the customer is cheaper. Companies don’t have to spend $500,000 on T.V. ad and billboards. It’s much cheaper to have someone else (distributors) to sell the products and get a commission.
Types of Network Marketing Products
Different types MLM products
- Coffee, Tea
- Sex toys
- Financial Products
Network Marketing Compensation Plans
In Network Marketing you have three typical compensation plans:
Out of all three, linear is the most popular and longest lifespan.
Personal Development Program
In our opinion, we consider Network Marketing as personal development program with a compensation plan. The personal development and training alone are worth it! Not only do you develop as a leader, you build the necessary confidence to take your teaching from this industry to develop other businesses and ventures.
Here are our top 4 benefits that we believe make someone consider Network Marketing business:
- Unlimited income potential - The rise in millionaires and Entrepreneurs.
- Low cost of entry and risk - with network marketing business, you’ll enjoy the freedom and flexibility of owning your own business without having to borrow money or hire employees.
- Network marketing training is provided - Generally, when you join a network marketing company; you are provided all the tools and MLM training you need to start down the path towards network marketing success.
- Home business tax breaks – Since your MLM business will be considered a home based business, you will have the opportunity to take various tax deductions, which may ultimately save you thousands of dollars per year.
- Network Marketing - can be a great alternative to opening a traditional business. However, the structure is mostly misunderstood and misrepresented as a business model. Because of its structure, many people mistakenly believe that it’s a pyramid scheme, it's illegal or its "one of those things".
In Network Marketing, representatives pitch and distribute actual products, while on the other hand pyramid schemes generate revenue by attracting new people and bringing them into the company. No products are ever distributed or sold. Every time someone says, “pyramid scheme” they sound uneducated.
A rule of thumb, before investing any of your time or capital with a network marketing company. Do some research! Look the company up via the Better Business Bureau (BBB) or consult with people you know that have experience with the company. The great thing about the Internet, you can easily find phone numbers and names to consult with any MLM and personally speak and connect with members of the company of interest.
We currently are no longer actively build a network marketing team but being in this business for just over two years, we have seen a lot of ups and downs, people have come and people have gone. We have built a team and then had to start all over again. As Darren Hardy said, The Entrepreneur Roller Coaster. "But here's the truth about Network Marketing, few people Make it, It's a ton of work, too much overselling, too little focus on customers, abusive marketing on social media, scams do exist, it requires long-commitment, there are tax benefits but be very careful, and last Network Marketing actually works." So, do we believe Network Marketing is "the perfect business?" NO, but is any business perfect? absolutely NOT. Network marketing is an industry that can be very effective. Sometimes people in the industry can be too competitive in which they attempt to paint this perfect picture when recruiting prospects but in the end, it can backfire on them. If you’re looking for a get-rich-quick-scheme or the secret to overnight success network marketing is not it. Success in Network Marketing only comes to those who are willing to put in the time, effort and hard work required. It takes the time to learn in addition to money to succeed in this business. If you quit too early, you will never know your true potential. Network marketing requires dedication, consistency, a strong sense of self-confidence and determination. In addition, to having the ability and strong desire to pay it forward, communication inspiration and motivation are essential tools towards success in this business. With enough hard work, network marketing can become a very lucrative business which in return can start the foundation of building your own legacy.
Robert Kiyosaki - Are You Addicted To A Paycheck?
If you are Ready to Take Action, build your legacy, become a business owner please feel free to continue reading our blog. We have so much more to offer.
Did This Help You? If so, I would greatly appreciate it if you commented below and shared on social media
PS: Are you looking to make additional income for the month? YES! Click here to read 16 ways to make extra money.
While there is an abundance of information to be found in network marketing, we hope this post was helpful in providing a simple breaking down of what Network Marketing is.
Thank you for reading as we appreciate our audience!
Blogging related post:
- Why you must attend your company’s convention
- 6 Things we wish we knew before joining a Network Marketing Company