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 enrollment fees, combined with wholesale pricing on products, make this an affordable opportunity. And you don’t stock inventory, the company does.
Which brings me to the next benefit.
A concept that separates network marketing from other home-based business models is leverage, accomplished by the 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 this model 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 people first venture into network marketing, what often impresses them is the quality of the products.MLM companies have a relatively low marketing budget.
And 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. Often, 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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