Will Network Marketing Benefit Me ?
So What Precisely is Network Marketing?
Let’s start by defining what network marketing is, what multi level marketing means, and how direct sales fits into the equation.
Usually unfortunately, the terms are used interchangeably.
A company which chooses to use network marketing determined to decline the customary brick an mortar distribution model for one which is more individual through a representative network. It is common for such companies to also have a multi level compensation plan which pays out to the network on more than one level, but this does not apply to all.
So you can see from this definition that all multi level marketing businesses are in fact using the network marketing distribution model, but the converse is simply not the case. There are many network marketing businesses which prefer to just pay their members with a simple one or two tier compensation model, and they can be immensely successful.
As you can see, network marketing is just a business model, a distribution strategy, and it really amounts to “micro-franchising”. The advantage for the network is that the huge cost linked with a brick and mortar franchise can be minimized, and it offers a huge upside possible.
A true win win if done right.
Here are the main advantaged for the representative in a network marketing group:
* characteristically very low start up cost
* for most there’s a huge upside possible
* individual development and business training included
* no staff to worry about until very successful
* no problematical book keeping required
* flexible work schedule, work when you want
* choice of who to work with, work with who you want
* not tied down to one location, work where ever you want
* no boss to hassle, demean and aggravate you
* amazing tax benefits – keep more of what you make
Of course to go along with the benefits, there are things to consider that make direct sales. The top three possible down side to consider when looking into starting your own business.
* must be accountable to your self
* you must be self motivated
* must be creative in solving problems
* is your house too noisy?
* must rely on yourself for motivation, focus
* must learn to keep reasonable documentation
Personally I think the advantaged far out way the downsides, but the fact of the matter is not everyone is cut out to be an entrepreneur.
Network marketers who are serious about building a business should be treating it like a business and do what other successful entrepreneurs do to build their business.
What is that, you ask?
If you study the success habits of top leaders in any industry, you’ll discover that all of them are frequently reading and learning about business essentials, staying current on the latest sales and marketing strategies, and spend time hanging out with and networking with their peers. They are frequently striving to create more value which will in turn enhance the bottom line.
Treat it like a business, and you can create substantial success.
Treat it like a hobby and go broke.
It’s as simple as that.
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