It’s true that network marketing, also know as MLM or multi-level marketing, has gotten a bad rap because of poor business practices by some companies and marketers in the past, but don’t let that stop you from taking a good hard look at the business. I'd like to give you 7 reasons why a network marketing business is the best kind of home business to own.Even financial greats like Donald Trump and Robert Kiyosaki (Rich Dad) are now strong advocates of network marketing. Why? Because it works like nothing else to build income with very little start-up money.
1. Your chances for success are better in network marketing.
I am a college business professor, and through personal experience, as well as watching countless others, I have seen how much people will risk to start up and run a traditional “brick and mortar” business.
If you start a "traditional" business your odds of success are terrible! According to the SBA, at least 50% of small businesses fail in their first year and 95% fail within the first five years. So, after 5 years of 12-15 hour days, in debt up to your eyeballs, you only have a 5% chance of succeeding. For some reason that just doesn't do it for me.
Sure, a lot of people fail in network marketing, too. In MLM you will often find that 20% of the people are making 80% of the money. Do you know what? That is exactly the same as the church I belong to-- 20% of the people who attend are actively involved and do 80% of the work that needs to be done.
This dynamic has a name: Pareto's Principle or the 80/20 Rule: it says that 20 percent of something always are responsible for 80 percent of the results.
I'm not surprised that it is similar in network marketing. Some of the people who fail at network marketing are not motivated, some aren't cut out for self employment, some are in the wrong company for them, an many are just not properly trained. But a motivated and well trained person in a good company has a great chance of succeeding in their business. And believe me, lots of people are doing it.
The truth is, for those who really want to work at this business, 95% of all people who stay with their network marketing company for 10 years will reach the highest level of their company’s compensation plan, which is usually at least $500,000 annually.
I’ll take those odds any day!
2. The costs are much less to get into a network marketing business.
It is true that most network marketing companies ask for a monthly minimum order to keep an active distributor status. This is part of what keeps the machine running. It is part of the business operating costs. It may be as much as $200, depending on the company.
Now compare that to the costs of traditional business ownership, like rent, utilities, inventory, insurance, taxes, employees, marketing and advertising, and much more. I think you get the idea. I’ve seen people’s lives ruined and marriages fall apart all because people followed their dreams and started their own small business. And that was in a good economy!
The income needed to start and run a network marketing business is nominal compared to a traditional business! You don't have to be rich or go deep in debt to have your own home based network marketing business. It truly is an equalizer, giving everyone a fair chance at succeeding, no matter what the financial background or credit history is.
3. A network marketing business is simpler to run.
If you had your own business hopefully you could afford to hire an accountant and a secretary who would keep all your red-tape, paperwork, receipts, bookkeeping and such. If not, you would spend much of your time doing this.
With MLM, the company you are with handles most of the paperwork. You just need to keep your own financial records for your income taxes. This frees you up to spend your time and energy making money.
4. A network marketing business is easier to market and promote.
Most people who have their own "traditional" business are on their own when it comes to marketing and advertising. They usually try a little of everything to see if something will actually work. Often desperate business owners get taken in by slick sales people who promise results with their newest expensive advertising scheme.
A network marketing company has a proven marketing system that has been tested and used by many people. They will usually have their own marketing material that can be purchased at a lower cost because they can order in larger quantities.
5. With a home based network marketing business, taxes are on your side.
There are many deductions you can take with a home based network marketing business that will help you reduce your taxes.
On the other hand, the government (federal, state, and local) all seem to have it in for brick and mortar small businesses. And the way things are going today, it looks like it is only going to get worse for the traditional small business owner.
6. Network marketing is the future.
Some people say that network marketing or MLM is a pyramid scheme. That is not true. A pyramid scheme is illegal because it doesn't work. There is no product, and thus no value to it. The people at the bottom put money in but the value doesn't flow down to them. It is a scam because only the people who got in at the top make any money. Most of the people get ripped off. A good example of this is chain letters or the airplane game.
A pyramid the natural shape of structure for all businesses, including governments. A network marketing organization is no exception. Network marketing is just a new way to distribute and market goods and services. It is the way of the future. Even many huge traditional companies see this and are jumping on board. Network marketing is a very financially effecient way to run a business. Often you will will see very advanced cutting edge products become available to consumers only because of Network Marketing. I believe that network marketing will take over much of the retailing market in the next 10-20 years.
7. You can get the business training and tools you need to succeed in network marketing.
You don't need to know anything about business to be successful in MLM. Your company and your sponsors have done much of the work and research for you. They really want you to succeed and will do everything in their power to help you. Be sure to utilize those connections in your company.
Even if your company doesn't have very good tools and training programs in place, there is an excellent marketing system online that will teach you and give you all the tools you need to succeed with your network marketing business online, no matter what company you are with.
The network marketing system works. There are people in every network marketing company making money. But you have to know how to work the system to do well! And, of course, you have to do the work it takes to succeed.
Are you ready to give it a try? There are a lot of great network marketing companies out there. Do some research and try find the company that is the right fit for you. Then hook up with a good online marketing system to ensure your success.
I don’t know about you, but I love a business where it is all up to me. The key to my success is that I know what motivates me to succeed, I know what to do, and I have found the best network marketing company for me.
So, don’t give up. Success in MLM and network marketing is a choice. Choose to succeed!
I can do that. How about you?
I'd love to help you succeed in your network marketing home business.
Go to my website today for more information: http://Power-Income.com
Check out our free weekly marketing webinars at http://internet-marketing-webinar.com
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