So What Exactly is Network Marketing?
Let’s start by defining what network marketing is, what MLM means, and how direct sales fits into the equation.
A lot of times regrettably, the terms are used interchangeably.
A business which chooses to use network marketing decided to forgo the established brick an mortar delivery model for one which is more personal through a rep network. It is widespread for such companies to also have a multi level payment 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 companies are in fact using the network marketing delivery model, but the converse is simply not the case. There are many network marketing companies which choose to just pay their distributors with a simple one or two tier payment model, and they can be extremely successful.
Obviously, network marketing is just a enterprise model, a delivery 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 avoided, and it offers a huge upside possible.
A true win win if done right.
Here are the main benefits for the rep in a network marketing organization:
* typically very low start up cost
* for most there’s a huge upside possible
* personal development and enterprise training included
* no staff to worry about until very successful
* no complicated 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 advantages – keep more of what you make
Of course to go along with the advantages, there are things to consider that make direct sales. The top three possible down side to consider when looking into starting your own enterprise.
* must be responsible to your self
* you must be self motivated
* must be resourceful 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 benefits 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 enterprise should be treating it like a enterprise and do what other successful entrepreneurs do to build their enterprise.
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 continually reading and learning about enterprise essentials, staying current on the latest sales and marketing strategies, and spend time hanging out with and networking with their peers. They are continually striving to create more value which will in turn enhance the bottom line.
Treat it like a enterprise, and you can create massive success.
Treat it like a hobby and go broke.
It’s as simple as that.
