Diversifying Your Network Marketing Business
Diversification is one of the best and yet most overlooked network marketing business strategies available to the home business owner. There are two primary reasons for diversifying your business:
- The creation of additional streams of revenue
- Risk management of business cycle downturns
Additional Income Streams for Your Network Marketing Business
The idea of multiple income streams is not unfamiliar in the world of business. A company looks for additional lines of business that will supplement, enhance or support their primary product line. This same principle can be applied to your network marketing home business as well. Let’s use the example of a primary product that is a berry based health juice. Our primary product is touted for its benefits for the heart. If we were going to build additional streams of income we might look at some of the following ideas:
- Market a line of blood pressure monitors, heart rate monitors or other similar devices.
- Market a health and wellness supplement that is focused on improving heart health.
- Market a heart healthy diet program
These are just a few supporting businesses that could be incorporated to your larger business picture to create an additional revenue stream. Sales from these supporting businesses will actually help fund the building of your primary business. These additional streams of income can be accomplished through other MLM companies or affiliate marketing relationships.
Network Marketing Business Risk Management
The next reason for the diversification of your business is risk management. As most of you are aware, business tends to be cyclical. There are some products and services that are highly sought after for a period of time that then experience a later downturn. If a network marketing distributor has all of their eggs in one basket, this downturn could prove devastating to their business and income. With the addition of other business ventures, these cycles are much easier to manage. When diversifying for risk management, you will typically want to use unrelated businesses as the foundation of your business model. For example in my own business, I am building businesses in the household cleaning, health and wellness and automotive care retail sectors. I use a separate company for each of these sectors. If the business of one of these companies goes bad, it will not negatively affect the other two. By using this combination, I am less likely to see a downturn in my overall business.
Having an all weather business plan is critical to the long term success of your network marketing business. Diversification should be a key component in that plan.
