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Network marketing, also known as multi level marketing (MLM), is a business model that has been around for more than fifty years. What is driving its current rise in popularity?
Why Now?
The employment picture has changed dramatically over the past several decades. Today’s worker is faced with multiple stresses unknown to our grandparents' or in some cases even our parents' generation.
Traffic congestion & long commutes Unpredictable gas prices Stress on the job
High cost of livingInsufficient wages Downsizing & job loss All of these factors contribute to the changing employment landscape. This causes an ever-increasing number of people to seek out viable opportunities to work from home.
A good network marketing company can provide you with the tools to: Survive and Thrive in Any Economy Best-selling author and personal finance expert
Robert Kiyosaki
encourages you to stop punching that time clock and embrace your inner entrepreneur. Now lets take a look at the advantages of MLM, as well as what separates this model from other fish in the home business sea.
Low Overhead, Quick Startup
Compared to launching your own brick-and-mortar business in downtown USA, the start-up cost of an MLM distributorship is remarkably low. In fact, it’s quite inexpensive. Low enrollment fees, combined with wholesale pricing on products, make this an affordable opportunity. And you don’t stock inventory, the company does. When
choosing an MLM company,
check out the compensation plan as well as the company and the products. You will find that time and money engage in a different dance step. One with its own particular rhythmn. Which brings me to the next benefit.
Leverage Your Time
In this fast-paced, 24/7 world we live in, our time has become more and more precious. Careful scheduling and multi-tasking are a given. A concept that separates network marketing from other home-based business models is leverage, accomplished by a team approach. Leverage is a concept familiar to many employers. Lets take a look at how it works in the corporate world. Corporate Model If you work 8 hours a day for 10 days, you accumulate 80 work hours. Now consider that you employ 10 people, who each work one 8-hour day. That's 80 hours of work, plus the 8 that you worked, so it's 90 hours, accomplished in a single day. That's leverage. For it to work to your advantage you must own the business.
Network Marketing Model The team approach in network marketing allows everyone to be in business for themselves, while they are also part of a greater team.
Each team member is self-employed as an entrepreneur. They create their own schedule and marketing plan, which allows for both part-time or full-time commitments. Team members collect compensation on not only their own volume of business, but also on the volume of business for those below them on their team (known as downline). This extends to whatever depth the company allows. This creates
residual income.
Leverage through teamwork. Because of the shape of a network marketing team, with its multi level compensation plan, sometimes people mistake this for a pyramid.
Network marketing, with its multi level structure, is a legitimate business model. Not a
pyramid scheme.
The multi-level structure of compensation not only allows anyone to build a large organization and reap the benefits, it does something else the corporate world does not: Encourages helping others to do the same.
Quality Products, Wholesale Prices
When I entered the world of network marketing, one of the first things that impressed me is the quality of the products. What I soon learned is that because MLM companies have a relatively low marketing budget, they can have a much greater budget for research and development. For the consumer, that translates into superior products. And if you become a distributor, you will get them at essentially wholesale prices. So why the low marketing budget? The multi level marketing model depends on you, the distributor, to do the lion's share of marketing. Marketing materials are made available at no or little cost, and the dissemination of them is accomplished by distributors. While you can certainly market your products and opportunity using old school, offline methods, there is another way. The Internet and Web 2.0 have opened a world of possibilities, and along with that something new has been created:
Internetwork marketing.
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Residual Income
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