Introduction
Network Marketing, or Multi-Level Marketing, is a hot button issue. While many have found success under this business model, it has also been regarded with much skepticism. Because of this, many people find themselves wary of starting or entering a network marketing business. If you find yourself unsure of whether network marketing is the correct approach for you, this article is here to break down the pros and cons of the increasingly popular business model. Below you’ll find the benefits and constraints of a network marketing business, as well as some additional information about what owning and operating your own business can do for you.
Low Overhead
One of the largest draws to a network marketing approach to business is the simple fact that it requires little overhead and minimal risk to start. Most business require a lot of preliminary purchases before you can begin to create your products and execute your business strategies, let alone before you can begin to sell and earn profits of your own. When you throw in the additional burdens of finding investors or saving capital of your own, starting a business can become a huge burden.
A Network Marketing business allows you to start your business in minutes, with low overhead and far fewer hoops to jump through. All you need is a laptop, an internet connection, and a dedicated mind. From there, you can quickly find the companies that work with your vision and partner with them quickly, starting you well on your way to financial peace.
Low Operating Costs
In addition to having low overhead costs, network marketing business also have minimal operating costs. The costs associated with keeping the lights on and the products flowing through a traditional business are gone. In fact, many network marketing businesses only become cheaper to maintain as you continue to grow and expand your partnership with a company.
Another benefit that adds to low operating costs is the lack of a need for physical inventory on your part. Drop shipping is a key component of network marketing businesses, and that means that you don’t have to burden yourself with purchasing and storing product, you can minimize the risk by shipping only once sold, and directly to the customer.
Low Risk
Multi-level marketing companies come with low risk. This is due in part to the minimal start-up, overhead, and operating costs. If you don’t have a lot of money invested into the initial business, then you have less at stake if you are to abandon the business. However, this is also do to the structure of the business model. Because your business is merely involved in a partnership with the manufacturer of the products or services you sell, you can remodel your business as you see fit with relative ease.
Think of it this way; if you find that the first network marketing company you partnered with just isn’t a good fit for your brand or your personality, then you can slowly exit the business without risking your personal business or your personal brand. This also allows for flexibility as you can partner with many different businesses, ensuring that your business is secure should one market go belly up.
Potential Gains
With the plethora of partnership options available to any network marketing business, there are exponential gains to be had. Not only financially, but physically, mentally, and socially as well. A network marketing business puts you in charge, and it allows you to make the decisions that will lead to your best life.
Financially, there is no boss there to cut your paycheck from what you’ve earned for the company. Rather, what you earn through your network marketing business is yours to keep. Because of this, your earning potential is defined entirely by what you are able to generate, not by some fixed number that you agreed to on day one. A network marketing business of your own means that there are no more carrots and no more sticks keeping you from your potential.
Flexibility
In addition to the financial benefits of a network marketing business, there are ample benefits in terms of flexibility. Because there is no brick and mortar location or no clock-in requirement, you can work from anywhere. Suddenly your home, your local coffee shop, and even your hotel room can become your office. You are no longer limited by location but are able to pursue your business with as much or as little time as you want.
Your hours can be determined by you and you alone, allowing you to have limitless freedom with how you spend your time. When you operate your own network marketing business, you don’t have to worry about asking off, instead you can schedule your work around your family, friends, and personal time.
Mobility
As stated above, there are no limits when it comes to where you can manage your business from. Whether you’re at home or on vacation, you can stay in control and earning money regardless of your environment.
Earning off the Clock
Not only does a network marketing business afford you the opportunity to free yourself from having to clock in or clock out, but it also allows you to earn even when you’re not earning. By creating appropriate sales funnels and passive income streams, your business can earn even while you sleep. These passive income streams continue to generate leads, convert leads to customers, and transact business long after they are first established. This means that you require less input yourself under a successful network marketing business, enabling you to earn far beyond your own potential.
Teamwork
Network marketing can be a solo endeavor, but it doesn’t have to be. While you don’t need to have employees or even co-workers to run a successful network marketing business, no business can succeed without the appropriate partnerships. These partnerships exist between your company and the parent companies, as well as between you company and other companies working with the same parent company. Together you can create and distribute the highest quality products and services for the mutual benefit and gain of every party involved. The better your network marketing team, the greater the results that you and your business will encounter.
Networking
In addition to ample teambuilding and partnership opportunities, networking marketing provides you with limitless networking opportunities. While this seems obvious (it’s in the name), many people fail to understand that the crux of this business model is the interaction it provides for businesses and their owners. As you expand your business, you expand your network of collaborators and even competitors. By getting to know and understand each of these people and their businesses, you can create opportunities with them, allowing both parties to achieve greater results.
Whether you stick with your network marketing business for a week, a year, or a lifetime, the networking opportunities it provides will never cease to bear fruit.
Tax Incentives
Starting your own business can be a heavy burden under the nation’s tax laws. However, when your business is based online and based on passive income, the tax burdens lessen greatly. When you own and operate your own network marketing company, you are no longer an employee. Your employer doesn’t take large chunks out of your check and the government takes much smaller chunks out as well. Passive income isn’t taxed the same way that earning from an employee salary are, in fact you can shield these revenues under the expenses you incur and assets you own on account of the business. This means that more money goes to your pocket and more money stays in your pocket.
Cash Flow
Cash Flow, as coined by Robert Kiyosaki, is a straightforward concept. The idea is that your incomes must be greater than your revenues. It’s simple, right? Yes, but what most people don’t realize are that assets and liabilities also have a hand in your financial security, not just what you earn and spend independently each month. A Network Marketing business helps free you from the rat race by enabling you to generate passive income without taking on large liabilities or letting go of helpful assets. Instead, a network marketing business allows for you to create more and more revenue streams while your existing revenue streams continue to bring you financial security and peace.
Education/Training
Network Marketing may seem a daunting market to enter. With so many competitors, businesses, and products already in existence, it may seem overwhelming when trying to decide what companies to work with and what products to sell underneath your business. However, Network Marketing also offers plenty of training both online and in person. In fact, there are dozens, if not hundreds, of network marketing conference and meetups in cities all across the nation each year. Remember that network marketing is a collaborative business model. It does not succeed with out partnerships. So there is plenty of training available at the click of a button that can help launch you into your successful partnership today.
Branding
Managing your own network marketing business also means that you are in charge of your own brand. You get to determine the face of how potential customers see the products you have to offer. In addition, you also get to take advantage of existing brands. Because a network marketing business is based on partnerships with other business, there are a plethora of recognizable and renowned brands available to your business with a few simple clicks. Take advantage of these other brands to help build your own.
Niche Markets
Internet Marketing also allows you to enter into specific markets that may not work on a small scale or in your hometown. Because of the flexibility of internet marketing, you can market and sell your products on a global scale with relative ease. This means that you are not limited by how far you can drive or how quickly you can package and ship. Internet Marketing allows you to reach your niche market and customers wherever they are located. When you partner with the appropriate brands and businesses, your network marketing business will flourish and reach more customers than you would be able to sell to on your own.
No Employers/Employee
Network Marketing is built on partnerships. When you partner with a large company, you aren’t signing up to be their employee. Rather, Network Marketing is about mutual success. When you partner with an existing entity or bring someone else into the organization, you don’t work for one another; instead, you work with one another.
This means that you are always your own boss. There is no one to tell you when to clock in or out and no one to take credit for your hard work. The results of what you put in are yours and yours alone.
No Salary Cap
Unlike a desk job, your network marketing business doesn’t come with a salary cap. There aren’t any commission caps either. The amount of work you put into your business is the only limiting factor that you need to worry about. The more your business earns, the more money you get to take home.
Diversification of Revenue Streams
Diversity is the key to a steady financial portfolio. Internet Marketing businesses allow you to operate within multiple industries without having to receive substantial training or putting forth heavy investment into them. Internet Marketing allows you to make real partnerships with businesses in many different industries. So, if one market slows down, your company is already invested in other markets that are going up. This helps you achieve greater financial strength and security.
Conclusion
Network Marketing is a burgeoning industry that has brought financial stability to millions of people worldwide. By allowing you to build your own business by partnering with existing brands, Network Marketing equips you with a multitude of tools to start and grow your business with minimal overhead or risk. The collaborative nature of network marketing also ensures that you are able to grow your business with plenty of help and support. If you are looking for a way to free up your time, become your own boss, and take control of your finances, a network marketing business may be for you.
