Advantages Of Network Marketing
I have written some things previously on Network Marketing and some people are confused as to what Network Marketing means. Some think that it is the new Social Networking stuff, Web 2.0 stuff, the ‘new’ matrix, and some are completely confused. Network Marketing is NOT new and has nothing to do with Social Networking (you can use social networking in it), Web 2.0, or the ‘new’ matrix.
Network Marketing (which some call Multi-Level Marketing or MLM) has been used for years in quite a few very prominent companies: Amway, Shaklee, Avon, HerbaLife, and many other well know companies are Network Marketing companies. So why is there some confusion about what Network Marketing is and why it is a great vehicle to make money?
The advantages of Network Marketing are many:
Low entry point into a business. Usually a one-time fee or ‘kit’ purchase. Some network marketing companies have free entry and some require a monthly purchase of a product to remain in the organization.
Training and support from the company (usually a manual or online). Some network marketing companies have extensive training and you go to live events for training
Unlimited Earning Capacity. You will make money not only from your personal sales but also the sales of the organization you have built. This is the main advantage of network marketing.
Choose your own hours. Like most other online businesses, network marketing allows you to work your business whenever you want. The more you work your business, the faster it will grow and the more money you will make.
Start small and grow big. Network marketing will allow you can start on your coffee table and grow to have an actual office if you choose.
Earn a residual income for work done in the past. Once you have built your organization, you will continue to make money from all the sales in your organization for years to come. Once you have built up a network marketing business, the sky is the limit!
Robert Kiyosaki recommends Network Marketing, he is author of the New York Times #1 best selling book (for over 6 years) “Rich Dad, Poor Dad“. Robert is a highly respected and internationally famous businessman who recommends you should not exchange 1 hour of work for 1 hour of pay which is what employees do. You should leverage your money and make it work for you. Network Marketing offers that opportunity to work once and get paid over and over again.
So why is this different than Affiliate Marketing?
In Affiliate Marketing you usually get a one-time sale for all the effort you put into the marketing. Granted there are some programs that have a monthly commitment (what is called a continuity program) that you make money from each month; but, they are not considered Network Marketing since the customer is is still the end of the line as they usually don’t build an organization under them.
True Network Marketing companies are tools and products you will use to build your own business. Your sales commissions will usually be related to volume of sales for you and your organization. This means the bigger you get – the more money you make for the same effort. The network marketing companies that have products you can sell online or offline are the best to build a business with because you have more avenues for revenues.
There are some programs that people confuse with Network Marketing that are NOT Network Marketing. You need to be careful when looking at different programs that claim to be a Network Marketing company.
Things to look out for when choosing a Network Marketing company:
There has to be a REAL product. If the ONLY way you make money is to sign people up to pay for a ‘membership’ – you may want to think twice. There are so many programs out there that have the ‘cyclers’ and ‘matrixes’ that are nothing but ponzi or pyramid scams. They are NOT network marketing companies. They do not last long and they are ILLEGAL. In a true Network Marketing company you get a commission that is usually a straight percentage down many levels.
There is usually an ‘Auto-Ship’ or monthly commitment of product purchase associated with some network marketing companies. Make sure it is something you can actually afford BEFORE you get involved. This will be a REAL product that you get each month to keep the cash flowing. High priced auto-ships will give you visions of BIG commissions, but will everyone be able to afford to do this? The hard truth is that in ANY business; whether it be an Affiliate Marketing or Network Marketing, NO sales = NO money. The auto-ship will guarantee money when you get sign-ups, but will also limit your prospects depending on the product and price.
Things to look for in a Network Marketing company:
How long have they been in business? This is a good indicator of company stability and if it actually will work for you. However, there are some great companies that start all the time. Use common sense as to whether the companies products and organization are well structured.
The product is important. If it is a product that has a small market, the results won’t be very high. A company with multiple products is usually the best. Just like in ANY marketing, the wider the audience – the greater the chance of making money.
The pay structure and payout requirements. If you make a very small profit from each sale, it will take awhile to build a good income. If you have to have a gazillion sales to be able to get paid; you can figure that out.
A Network Marketing company will NOT make you rich overnight. They are REAL businesses that give people an opportunity to make a business of their own from home. There are many millionaires produced from Network Marketing companies each day.
The greatest advantage of a Network Marketing company is that, opposed to Affiliate Marketing, the cost of getting customers is much lower as the customer will be a repeat customer. Each customer is a member and will build their own business. Affiliate Marketing is generally a one-time sale as the customer has no inclination to build a business or send you any more customers.
So there you have it! Although this is not a complete covering of the subject, I hope it has given you some insight into the advantages of Network Marketing. Don’t get me wrong as I do use Affiliate Marketing which is great for making some cash NOW. For my long term income plans, I use Network Marketing.
Just as in everything else – the results are entirely up to you.
