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A lot of people are down on network marketing businesses (also know as multi-level marketing or MLM), but I’d like to give you 7 reasons why a network marketing business is the best kind of business to own.
1. Your chances for success are better in network marketing.
Yes, some people fail at it. In MLM or network marketing, 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. I’m not surprised that it is similar in MLM. People are people. 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, and some are just not properly trained. But a motivated and trained person in a good company has a great chance of succeeding in their business. On the other hand, if you start a “traditional” business your odds of success are much lower. 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 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.
2. The costs are much less to get into a network marketing business.
Most network marketing companies ask for a monthly minimum order to keep an active distributor status, it is true. This is part of what keeps the machine running. It is part of the business operating costs. It may be as much as $100, 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. 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. You get the business training you need to succeed network marketing.
You don’t need to know anything about business to be successful in MLM. Your company has done all the work and research. They often hire the best marketers in the business to help them develop a training program because really want you to succeed and will do everything in their power to help you. In traditional business you have to find the training you need on your own.
6. 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 traditional small businesses. And if you have employees, you are really paying much more for them than their salary, as any employer can tell you.
7. 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.
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 right for you.
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