These remarkable benefits of network marketing vs. traditional business will surprise & intrigue you.
If you want to live an extraordinary life, a life vastly different from the masses, you must have the courage to ask better questions and act accordingly.
Unfortunately, only a small percentage of people question whether a paycheck is the way to go. Like social zombies, people just go to work, get paid, and go home. They never ask the question “is there is a better way“?
Those who do ask this question (and act on it) our society has dubbed “entrepreneurs”. Usually you’ll see them in a traditional business which has become a glorified job that drains them.What if there's a better way to live the life you want to live and it has nothing to do with the 9-to-5? Click To Tweet
Then there’s an even a smaller portion of these entrepreneurs that looks at the traditional business model and take the time to consider whether that model really is the “better way” that they once thought it was. Is it actually providing what they want.
What about you, where are you?
– Do you own or want to own your own business?
– Is just owning a business the end goal?
– Do you really want to own your time?
– Do you want to help people?
– Do you want to be financially free?
– Do you want to have time and energy to spend with family and friends?
I know this all sounds cliche, but bear with me and I promise you’ll get some good insight out of this article.
Usually, people who think they want to own a traditional business really want the benefits (they believe) a traditional business will provide.
Below is a comprehensive list of the advantages of network marketing vs. the traditional business model.
If you’re a traditional business owner, take some time to consider the following questions before you read, such as:
- What’s the most important element of a good business to you?
- If you were launching your current business again, what would you do differently from the first time?
- WHY do you believe what you believe about the network marketing industry?
- What evidence do you have for your current belief system?
- Which elements, ideas, or solutions provided here can you implement into your current business model that you never thought of?
- What might happen if you combined what you are currently doing with the network marketing business model to create an additional revenue stream?
Be sure to refer back to these questions as you explore this topic cause here we go….
Benefits of Network Marketing Vs. Traditional Business:
1) Network Marketing is a Proven Business Model
The origins of network marketing is something that people can’t completely agree on. The two companies that come to the top of the discussion are Nutrilite and Avon, circa de the 1920’s or 1930’s. But who cares?
The important thing to note is that with the birth of network marketing came a new industry that has stood the test of time. The business model basically pays people for their efforts to move products, instead of paying fees to companies for advertising.
Why it Works?
The reason the network marketing model works is because it’s based on a strategy with profit being at the forefront. When a traditional company pays a fee for advertising, they are hoping to sell product.
Unfortunately, hope is not a strategy.
When a business pays the same amount (or more) in the form of commissions that they would for advertising, the product has already been sold and the profits have already been made.
There is virtually no risk. Advertising is paid before sales, commissions are paid after sales. Big difference!
If you combine that with giving people an ability to build massive teams in which they get a piece of the pie for their production; it equates to an opportunity for people with leadership and team building skills to make A LOT of money.
How Do Traditional Businesses Compare?
Almost all businesses and organizations across the globe have an organizational structure like network marketing companies.
Most people just don’t slow down long enough to think about it.
People often ask me “is it a pyramid scheme?”. That’s the first thing they think of I guess. I’m to the point where I just say “yup.”
People don’t know how to respond to that, especially if I don’t say anything else. It’s great. Let silence do the talking.
But I digress. Every business model (if put on paper) resembles a “pyramid scheme”. There is a top level position that typically makes the most money and wields the most power. Then lower levels exist below that.
Think about the typical “positions” of a company:
CEO (top level)
President (top level)
Vice-President (2nd level)
Owner (top level)
Employee (bottom level- depending on position)
This even holds true in governmental organizations.
Check out the typical flow chart for a school district:
Superintendent (top level)
Associate Superintendent (2nd level)
Principal (middle level? top level? – smoke and mirrors baby!)
Assistant Principal (????- I’m getting confused)
Guidance Counselor (??- now I’m really lost)
Teacher (bottom level)
Secretary (true bottom level?)
Here’s my point, every organization has a flow chart with many levels, many responsibilities, and many different pay scales. There are always more people at the lower levels than the top levels and their income reflects their position.All organizational charts are structured the same as #networkmarketing. The people at the top have performed the most and thus, are paid the most. Why would it be different for this industry? Click To Tweet
It’s normal (and okay) for an organizational chart to resemble a pyramid in structure. That structure works.
Why would a network marketing organization be any different? Is it even possible to be different?
It’s something to seriously consider if you want to intelligently consider this industry and to think differently than the masses.
The model works from a profitability standpoint, that’s why all organizations basically look like a pyramid, so the multi-level marketing industry isn’t going anywhere.
2) The Industry is Positioned for Exceptional Worldwide Growth
There’s been a surge of interest lately in network marketing and direct sales as a viable option for making extra income or replacing income, mostly because the world has changed and you can build a successful organization without solely relying on your friends and family.
I recently had somebody ask “is this like amway”?
I was thinking about how to respond because that question is never good, but they quickly followed up with “because I’d like to do something like amway”….
Hmmm… Now I have to be honest… that comment was a first for me!
The paradigm is shifting as access to information makes it easier for people to be informed, instead of simply relying on what their circle of friends thinks.
Additionally, social media and the web makes it easier for people to connect with others across the globe.
Social Media & Technology are Increasing Reach Exponentially
How many of your friends have you seen on social media pushing some product? Maybe they’re doing it correctly, maybe they’re doing it wrong… but they’re learning to market and like any entrepreneur they will either succeed or fail.
But unknown to them, they’re also marketing an idea, a paradigm.
That idea is that it’s socially acceptable to try to build a business like this. So under the surface they are changing people’s beliefs as confidence in the market and around this industry grows.
Now consider how many local business ads you’ve seen advertising on social media?
Both traditional business and network marketing utilize the same tools to grow their business.
So I can literally market anywhere. If you’re a roofer, you won’t be doing a roof in LA unless your business is in that area.
Where are you physically right now?
I’m in Florida. Maybe you are too, most likely though, you aren’t. I would bet money you definitely aren’t in my city.
But I’m sharing information with you right now. The world has gotten smaller and people are grabbing on to the marketing side of network marketing.
As the pioneers figure out how to combine technology with the network marketing business model, explosive growth that was not possible before is becoming possible.
This new trend is going to position us early adopters for exponential growth.
As peoples’ view of the industry changes, it will catapult the ability of those who recognize these market and societal shifts to capitalize financially on these emerging trends.
3) Results Driven – Network Marketing Pays Top Dollar for Performance
That’s the rub. It’s the reason people love it or hate it.
The worst part about having no earning ceiling is that there also isn’t a floor.
You can actually lose money…
Welcome to the world of entrepreneurship.
If you own a traditional business you know this is the reason many people don’t succeed in most businesses. If you don’t perform and execute correctly, you don’t get paid, so you better be darn good at getting it done.
In that respect, it’s pretty close to traditional business. However, there are distinctions that we’ll cover as we go along. One is potential to make a profit.
If you’re in traditional business and haven’t figured it out yet, here’s a secret.
It’s not how much you make, it’s how much you get to keep that matters.
Profit margins matter. I’ll discuss this in detail as well in the profitability section.
If you pride yourself on getting results, this industry will pay you astronomically for being someone who can execute.
If you only think you can get results, this industry, (like any business) will also pay you for your lack of performance (i.e. results) by paying you nothing.
No results- no pay. Commission on zero is zero. If you can’t handle that, entrepreneurship in general is not for you.No results- no pay. Commission on zero is zero. If you can't handle that, #entrepreneurship or #sales is not for you. Click To Tweet
4) Portability – You Can Work Anywhere in the World
Depending on how you build your organization and/or what country your chosen network company does business in, you can build teams and work virtually anywhere in the world.
Our model is to generate as many leads as possible through technology using attraction marketing.
This ensures that in the future we can live anywhere we want.
While local leads offer the advantage of you being able to work directly with people, belly to belly (as they say), the reach that technology provides means you can work with people across the globe.
This portability allows for greater and faster expansion and is something not typically available through the traditional small business model which is usually local in nature.
5) Limited Rules and Regulations to Follow
As a distributor, the rules and regulations are fairly easy to follow.
There aren’t many and the ones that do exist fall into the common sense category. Here are some of the most common rules and regulations you’ll find across the board in this industry.
- Follow the specific guidelines of your network marketing company (do they allow online recruiting, social media recruiting, how do you handle returns, etc.)
- Maintain “active” status, which usually means you’re ordering the minimum (very minimum) requirement of product.
- Some people don’t like this but intellectually we know it makes sense. How can you be in business without product and how can you create a predictable income stream without having recurring orders? It’s simply the cost (and low cost, I might add) of being in business. It’s far less that the cost of admission to a traditional business.
- Don’t make any specific claims about income or about your products “curing or mitigating” disease.
That really about sums it up for this section. Not complicated at all. As I said, basic common sense.
6) Network Marketing Provides a Level Playing Field
To be clear, there is no perfect level playing field because the players are different. We are all people, we have different personalities, strengths and weaknesses, and skill sets.
Just like the pictured boxes on the scale, you may have more or less skills (represented by the boxes) than the next person.
But in network marketing, everybody starts at the same place. How fast you grow your business really depends on you, the quality of people you bring onto your team, and how well you lead them to success.
I used to think it all had to do with when you got in. It’s a common myth.
In the first company I was involved in I spent 2 years building a profitable business. Then an influential person who was well respected in the community got involved and I watched him blow right past me in rank.
Yes, he pushed me to the next level and my pay went up. More fascinating though was that in just 90 days he and his wife went from where I started 2 years earlier and passed me like I was standing still.
It was then that I realized just how much success in network marketing is based (just like a traditional business) on the abilities of the leader.
When you get involved in a company, you are the leader of your organization. You build the team, train the team, and help the team find success. But everybody starts at the same place and everybody has the same opportunity.
7) Speed- An Ability for Rapid Wealth Accumulation
Listen carefully. There is no get rich quick program out there. There are only vehicles for growing wealth. Some are fast and some are slow… lifetime slow. Some are riskier than others.
Let’s look at wealth building from the perspective of a vehicle, specifically a car.
In this analogy, we can all agree that cars come factory made with all types of specifications, speeds, and handling abilities. When a person buys a car they are looking for certain attributes and disregarding others.
For example, if I want something to haul large items with or pull lots of weight, I”m not even looking at a car. I’m looking at a truck.
Maybe reliability is the most important factor to you. Perhaps it’s price.
If you look at traditional wealth building strategies, there are different methods that are considered normal, and they all carry their share of risk. There are 401k’s, stock options, real estate, and a plethora of others.
My experience though has been that these options can help build a small nest egg or hold on to wealth once it’s accumulated, but they aren’t that great at building wealth from scratch.
Especially if you want to build wealth fast.
The one exception would be leveraged real estate, but I’m risk and debt adverse.
If I’m going to build wealth by owing money I wouldn’t be free mentally, spiritually, and emotionally because I’d always be worried about getting them paid off as soon as I could.
Historically, substantial wealth was NOT built using common methods.
If you look at how generational wealth is created it is always through a business venture of some sort that has high profit margins, high scalability, or both.
Do you think the people below made their money saving pieces of their paycheck or building something with reach that was profitable?
– John D. Rockefeller
– Henry Ford
– Bill Gates
– Mark Zuckerberg
– Grant Cardone
– Larry Page
This list could have been 10 times that size with names you’d recognize. These people are all driven. But they also have something else in common, they focus on profits.
Grant Cardone says it like this, “If you really want to get rich, shift your focus from saving to earning“.
Speed is the one thing network marketing can provide that a person can do while they still have a job that pays the bills.
Will everybody build a solid and profitable business quickly? Absolutely not.
But that’s the nature of entrepreneurship.
Many people who start a traditional business don’t find serious success either and eventually quit. The same thing happens with new years resolutions, diets, exercise, breaking old habits, starting new habits, and just about everything else.
Though there are other business models that can also serve as a vehicle to wealth, they all have their pluses and minuses just like a car.
Some models though would require a CDL licence (specialized knowledge). I most certainly couldn’t have built Facebook (Zuckerberg) or Microsoft (Gates) or even Ford (Ford).
I don’t have the specialized knowledge to create the products they created.
The network marketing vehicle is different though. Anybody can get in and drive.
The speed you drive will depend partially on the type of car you’re driving (compensation plan) and also on your skills as a driver (leader).
Maybe you can drive fast from the start because you’ve picked up skills in other industries (you already know how to drive) that can be implemented in this industry.
Maybe you learn to drive as you go and it takes you a bit longer.
Regardless of how fast you go in the beginning, this vehicle can get you to the final destination of building generational wealth.
The last thing I’ll say about network marketing as a wealth building vehicle is that if you crash the car you didn’t just ruin your family’s financial situation.
For example, if you borrow or use $100,000 to open a restaurant or other random business and fail- you just lost $100,000.
If you take 2-3 years building a network marketing business and fail (i.e. quit), then oh well- nothing ventured nothing gained.
What did you actually risk financially for the opportunity to build wealth quickly?
Answer: Very Little.
8) Exceptional Tax Savings
**Disclaimer: I am NOT an attorney, tax consultant, financial adviser, or anything else that has to do with giving out advice reserved for professionals. Any information on this site should be taken at face value as one person sharing their experiences for information purposes only… nothing more.
Please consult your certified tax professional before implementing anything you see anywhere (including on this site).
Now, that being said, network marketing provides some interesting tax write offs that I personally love. My understanding is that Uncle Sam allows you to write off any ordinary and normal business related expenses.
The great thing is, network marketing provides tremendous bleed over- things that you would like to do anyway that you can make part of your strategic business plan.
For example, let’s say you always wanted to see New York. So you target New York City and build a small team there.
Of course, every team needs training, so now you have a legitimate excuse to go to New York to train your team. While you’re there, you take some time to see some of the sights.
Not everything about the trip will be tax deductible but you could certainly write off some of the largest parts of it such as the travel expense and lodging.
If your company is open in various countries around the world you could do this with other places as well… Ireland, China, Thailand, Europe… where do you want to go?
Or how about getting training yourself? There are reasonably priced seminars on all types of topics that could be considered ordinary and normal business expenses.
Find a city you want to see or a part of the world you want to visit.
Then look for a seminar that interests you that bleeds into your business strategy (leadership, internet marketing, sales, regular marketing, social media, website and SEO training, etc.)
Get creative and you’ll find there are lots of things you do or buy (or can do or buy) that are related to your business. Maybe you need office supplies, a new computer, a printer, a scanner, a tablet, etc.
Perhaps you want to have a planning session over dinner with your business partner (husband or wife) once a month?
Trust me, the opportunities are there, you just have to look for them.
**Again, be sure to run everything by your tax attorney or tax person.
9) Low Barrier of Entry Compared to Traditional Business
The Capital needed to Start is Ridiculously Low in the Network Marketing Industry
This is a catch 22.
It’s a blessing and it’s a curse.
It’s both the best part and worst part about the business.
The fact of the matter is, to get started in this industry it takes very little cash up front. Many times a distributor can get started in most companies for less than $500.
You may think that’s fantastic (because it is), but it’s also a serious problem.
If the same person spent or financed $75,000 on a franchise, how serious would they take their business? Probably pretty serious.
The same person can get into network marketing for less than $500 and since the barrier to entry is so low, they can be tempted to not take it seriously at all.
Both businesses can provide them with the same revenue.
Quite honestly, network marketing can provide them with more profit and actual income (because they’re not servicing a $75,000 loan or paying franchise fees).
The problem is, since they only risked a little ($500), they didn’t stop and think whether this is something they are really ready to commit to.
There is something in our psychology that has a hard time getting past the small investment.
When you join our team, I usually recommend you get the biggest package possible if you can afford it. At the end of the day it’s up to you, it doesn’t matter to me.
But this is also a catch 22 as well because people think I”m worried about making as much as I can off their initial order.
That’s not it at all. This is BIG business. I’m building a massive organization here and I don’t care about the petty initial order bonus.
What I do care about is getting my team to take this serious and getting them to profitability as soon as I can.
This might seem counter intuitive… to spend more in order to become profitable faster, but trust me on this.
It’s typically how it works.
I’ve seen it play out over and over.
You want to get in the right frame of mind and to get your subconscious to understand that this is a serious business.
The franchise owner doesn’t just walk away when things get tough.
This is because they already made a substantial financial commitment when they started, which made it easier for them to commit psychologically.
That’s the same mindset a person coming into this business needs to be in.
It’s also a big part of why my wife and I, when we joined our second company, bought the most expensive package possible.
It wasn’t so we had more product to give, sell, or “place” with our friends. It was to feel the gravity of our decision and to force our mind to understand that we were committing to this 100%.
So put that in your pipe and smoke it.
(I don’t know why I said that, but it seemed like a good thing to say.)
10) No Educational Requirements
This is kind of like a barrier of entry as well because it can be a psychological barrier to people taking this business seriously.
However, this one is easier to overcome because it seems more normal to us.
There aren’t educational requirements to open a sole proprietorship in many industries, unless they’re highly regulated industries.
For example, if you want to open a flower shop tomorrow, you don’t need a degree to do it.
But you better know what you’re doing and have specialized knowledge if you want to be successful or you’re gonna lose some capital.
11) You can Learn as You Go
The longer you’re in business, both traditional business and network marketing, the more you learn.
However, since having a network marketing business is so inexpensive to start and to run, it offers a little more forgiveness while you’re learning.
You don’t have to invest your life savings and hope you figure it out because you risked everything.
It’s this lack of urgency and financial commitment though that can cause people to fail because they aren’t invested enough in their opportunity.
You’ve got to create a sense of urgency in network marketing, even if it’s fabricated in your mind, in order to increase the speed at which you learn and succeed.
With traditional business, the urgency is built into the business plan. Let’s use a restaurant as an example. I’ve never owned a restaurant so all these examples will be made up for the purposes of this illustration.
Suppose you open a restaurant and your expenses are $15,000 a month to run it when you factor in sourcing ingredients, employee pay, marketing, rent, electric, water, etc.
The urgency to learn, grow, and become profitable is embedded. You better figure it out or you’re sinking fast!
Now compare that to network marketing, where your monthly expenses may be $150-$500 per month.
The financial risk is nowhere near the risk of traditional business, so it can be easy to not feel the pressure to succeed that you need to feel to build a business.
If you’re a self starter and can discipline yourself to work as if you had the same urgency as a traditional business, your organization and downline will grow exponentially faster.
I think that’s why some people do so well with coaching in this industry. Coaching is valuable not just because of what you learn and the accountability, but also because of the financial pressure it can put on you.
If you hire a coach for $1,500 a month, you’ll feel the pressure to perform!
Regardless of how fast you go though, experience is the best teacher. You can learn at your own pace without stressing about whether your business will fail because of increasing financial obligations.
If you join the right team, your sponsor or upline can serve as your coach, but it doesn’t cause the same financial feeling of loss.
People work in their strengths. We recruit and our upline trains. It’s very systematic. He and his wife have created 187 millionaires so far inside of this industry!
Will you be next?
12) Network Marketing Offers Extremely Low Overhead Costs
Once you join a company, the cost of being in business is ridiculously low.
Consider these benefits of network marketing overhead costs:
– There’s no rent to pay
– No employees to pay (or manage)
– No electric and utility bills
– No permits, licenses, and dues
– No insurance bills
– No equipment and maintenance, upgrades, or upkeep to pay
– No brick and mortar location to keep up
– Very little (if any) marketing costs
Those are just the first expenses I thought of from a traditional business, I’m sure there’s more that should be on that list.
As a traditional business grows, so do the overhead costs. It’s a balancing act that you don’t have worry about in network marketing.
Whether your organization is generating $500 a month
or $50,000 a month, the cost is fixed.
Typically, to stay qualified for commissions, you must order a certain amount of product each month (usually in the ballpark of $100-$500).
I’ve found though it’s usually about a month supply of product for one person.
If you have a family, it’s not even enough for everyone in your family to use the product. So if you pick a product you like, you’re basically getting the product for personal consumption with the ability to build a team and collect income.
It’s a sweet deal!
Many companies urge people to buy more than you need each month and if you have the money, it’s not a bad idea. It allows you to have more product on hand and also helps create the sense of urgency I was talking about in the section above.
However, if you’re not in the position financially to do that, it’s entirely possible to build a business while on the lowest tier a company allows. Somewhere between $100 -250 per month is normal.
Being on the lowest tier works best if you order a large product package when you start (so you have product on hand AND you’re psychologically ready).
Then you can order just enough monthly product for your own consumption and to stay qualified for commissions.
Some leaders suggest that their downlines order much more product than necessary each month, but if your leaders are doing that, question it.
It may not be the right move for you and it may not be in your best interest.
It serves them well, but I would question the validity of that recommendation.
It’s just not necessary if you already have product on hand.
Also, it doesn’t really make business sense to do so.
Low overhead is a benefit of this business and just like traditional business, keeping overhead low should be a top priority and one of your goals.
In the end, low overhead increases profitability.
Sometimes people complain about having to purchase product every month. Usually those people don’t understand that if there was no product moving, it’s not a business- it’s a pyramid or ponzi scheme.
Once you start to see your product order as a monthly business overhead cost and compare it to traditional businesses, you realize how powerful it is.
I know of no other business model where your operating cost is so low and doesn’t grow as your business grows.
13) Minimal to No Competition
There are hundreds, maybe thousands of network marketing companies out there, so why would I say that competition is basically non-existent in this industry?
Because there are so few people who actually take it seriously!
Just because somebody joined a network marketing company, doesn’t mean they’re serious about building a profitable business and large organization.
Your competition really isn’t the other networking companies, it’s the people who are actively building businesses that are your competition.
My business card says “never hope for it more than you work for it” because I want to always remind my team that hope is NOT a strategy!
It may get you 9 points in scrabble, but it’s still not a strategy.
Occasionally you’ll run into somebody in your area from your same company.
But if you’re a serious business builder, you’ll find they probably aren’t really your competition because they probably aren’t doing much.
Rarely will you run into somebody local you need to be concerned with.
This isn’t the case with traditional businesses. If you own an alarm company and there are 5 other alarm companies in your area, you had better keep an eye on them and consider each of them your competition or they will chew you up and spit you out.
That’s not to say you should be resting on your laurels. Many have experienced people they know signing up with somebody else for a home business because they didn’t talk to them.
I’ve not had that happen, but I’ve had a team member who was already on my team, join another company and go after it.
Looking back, I’m not sure there is anything I could have done differently. It is what it is.It is what it is. Some will. Some won't. So what... next. #mlm #networkmarketing #directsales #humannature Click To Tweet
14) Numerous Network Marketing Options
Variety of Product Lines to Fit Any Interest
There are so many great companies out there, that (like traditional business) you can find something that you’re passionate about.
Whether you’re into health and wellness, artsy stuff, jewelry, consumables, insurance, calling cards, clothes and fashion, cooking, etc. Whatever you’re into, there is certainly a company to fit you.
Even sex. Just thought I’d throw that in there. There is a sex toy company in which you can do home parties. Not sure what that looks like and not my thing, but hey, if you want it… it’s there.
Here’s the top 100 network marketing companies by revenue.
I would argue that some of these would qualify more as direct selling companies, but they are lumped together many times.
Plethora of Compensation Plans
This video wasn’t done by me but it’s short and outlines the most common types of compensation plans.
If you’ve got four minutes it’s worth a watch.
There are so many ways people decide on things and compensation is higher on the list than people like to admit.
Some people are super into finding the perfect product line that speaks to them. I take a more pragmatic approach.
Rarely do business people buy a franchise because they are passionate about the burgers.
Seriously, they buy a franchise because they believe they can make good profits with that company.
I look at network marketing the same way. To me, a business has one purpose, to provide revenue for my family.
The 2 most important factors to me in choosing a company are leadership and the compensation plan.
That’s not to say that products don’t matter, but good network marketing companies typically have fantastic products.
Leadership- The company has to have good leadership.
Do they have experience?
Have they successfully been down this road before?
Can I count on them to keep pace with the distributors when the company is growing rapidly?
This means products will be shipped on time, every time.
Commissions will be paid on time, every time.
If they pass the leadership litmus test, I move on to the compensation plan.
Compensation Plan Test– Can it fulfill it’s purpose, which is to provide my team and family with financial freedom?
Here are some of the questions you should think about when choosing a compensation plan:
- Does the structure support infinite growth or will my organization (and profits) break away?
- Is the compensation structure focused on direct sales or building a team and overall product sales through my organization?
- Will my average distributor be able to consistently make money?
- Is it possible for a top level distributor to make at least 7 figures a year (preferably 8)?
- What commission caps or limits are in place and are they reasonable?
- Do unused volume points roll over, if so for how long?
- Are there limits to how a person is allowed to recruit (social media, online, etc.)
Direct Sales (Network Marketing’s Little Brother)
Direct selling is considered network marketing but I see them as different things entirely because the compensation distribution and payout are set up so differently.
The video in the section above describes direct selling as the “linear” compensation model.
So direct sales is like network marketing’s little brother. Yes they are in the same family, but they are two totally different children with different strengths and weaknesses.
The largest initial commissions in direct sales are paid out based on the products that you sell.
For example, if you’re selling pots and pans, there is a cost to you and a cost to the end buyer. The spread between the two is basically your commission.
To make consistent money, you’ve got to be consistently selling. You will probably have more success and make a little more money right up front because people will buy from you because you know them.
But unless they really love the products, it’s hard to build a sustainable income.
Additionally, this model seems to need two sales to get a commission. First, you need to convince somebody to have a home party, then you need to rely on them to get people there, then those people have to buy. Then you start all over.
On top of that, you have to buy product upfront in hopes of selling it. Typically, to earn bonuses you have to purchase a certain amount because though there is a downline, per se, the companies usually leave it to you to produce your own profits.
Most of these direct sales businesses do have an organizational structure and building a huge team will be more profitably eventually. But often, they require you to be purchasing a large amount of product to be paid at those higher levels.
That’s when people end up with boxes of inventory that they purchased just to get paid.
The newer companies (who aren’t direct sales) have a direct to consumer system in which your customers orders are shipped directly to them. You then earn a commission even though you never touched or ordered the product. Kind of like drop shipping.
Lastly, the commissions are directly tied to your activity, which puts you back into trading time for dollars.
Direct Sales and Network Marketing just aren’t set up the same, which makes it harder to make large checks from building a downline in direct sales (my opinion).
That being said, I’ve never done direct sales before, but based on the compensation plans I’ve examined, they just don’t pack quite the long-term punch that I’m looking for.
Wouldn’t you rather have an organization that moves product by default and you get a little piece of the action? That way if you need to go visit grandma (or the grand kids) across the country you can still get paid.
If you think you’d be good at direct sales, it seems to me that insurance or real estate would yield higher earnings.
Those are high ticket items that are based on a direct sales commission model that have historically paid handsomely. Plus, those two industries have a pretty straightforward licensing protocol.
If you’d like to learn more about working a binary system, reach out to us and start the conversation. You won’t regret it.
15) PROFITABILITY of Network Marketing
Extreme Earnings & Profit Potential Available
Many amateur network marketers will tell their potential recruits that there is unlimited potential for earning.
“No ceiling!” they say.
This simply is not the case, at least not in the companies I’ve been involved in. You won’t make a billion dollars and certainly won’t make 40 billion.
But if billions (with a B) are your desire, you could make enough capital to start a project that would earn that much or become a small time venture capitalist. In that sense, the leverage provided gives you options that make the earning potential unlimited.
Extreme earnings and massive profits are definitely available, it’s just NOT unlimited in the traditional sense of the word.
Keep in mind there is usually some sort of cap. Which is okay, you just want to make sure that cap is acceptable if you climb your way to the top ranks.
If the compensation plan is solid and infinite growth is possible, the top level doesn’t necessarily mean the last level. I have seen companies create additional levels for those distributors who hit the highest ranks so they would have another goal to strive for.
That can only be done if the compensation plan structure allows for infinite growth.
Nothing would be worse in my mind than building a massive organization and then doing the math and realizing that if you had done the same thing with a different company, you’d be making 5x, 10x, or 20x more money.
Ouch. That would certainly hurt more than I care to imagine.
So please have somebody explain the compensation plan in detail for you or better yet, go straight to the source and study the compensation plan yourself.
If you really study and understand it, it’s a great way to vet the company.
Passive Income and Residual Earnings
Don’t let anybody tell you network marketing is a totally passive income stream.
It’s not (at least not in the beginning). Yes you get paid if you take some time off, but if you’re going to build a big business you’ll need to be the leader of your organization.
You’ve got to set the pace. Once you find some solid leadership you can hand off the reigns and take more of a backseat, but it’s still your organization and you’ve got to keep it healthy to keep it growing.
I know this isn’t probably the best sales pitch, but I really want to help you understand how things really work in this industry.
While there is an element of passive income and recurring revenue, it isn’t totally passive. Your pay won’t just stop if you do, but over time it can erode just like everything that isn’t given the proper attention.
This is especially true if you haven’t trained up leaders to take your place.
However, the income can be transformed into passive income quite easily by investing the cash generated by your network marketing business into assets that are traditionally more passive in nature.
Springboard to Wealth Creation
So what is a good investment for all that cash? We’ve already discussed that you can make massive checks from building a large organization. If you’re goal is to set yourself up for total retirement you must use the cash flow wisely and start down the road to wealth creation.
I can’t stress this enough.
Just because you make $35,000 one month in network marketing doesn’t mean it will go on forever. I know that’s not a popular thing to say but it’s the truth.
If you put all your eggs in one basket, no matter how big the basket, it’s still one basket.If you put all your eggs in one basket, no matter how big the basket, it's still one basket. #sidehustle #success Click To Tweet
Reinvest Those Profits:
Step 1: Pay off all your debt (consumer debt, student loans, cars, mortgages, etc.)
Step 2: Begin to purchase real estate for all cash (single family, offices, apartments, whatever you like that rents).
Step 3: Find a great rental manager who will manage it.
There you go. Once you have a real estate portfolio that is completely paid off and provides the amount of monthly revenue you want, you officially can withdraw from life.
You may retire indefinitely from network marketing or your career (you probably would have already left your regular job by this time).
Note: If you do this, you’ll be back to life soon enough. Having nothing to do is only fun for so long.
Bonuses and Rewards
In addition to the outrageous payouts a solid company gives it’s successful distributors, they often offer some serious rewards.
These are typically just icing on the cake and are more for show than for anything else. They build excitement and incentivize growth.
Usually compensation plans offer exotic cars, visually stunning trips, and of course large cash bonuses.
This is another thing that is hard to reproduce in a traditional business. If you own the business, of course you can reward yourself handsomely for success.
But in the back of your mind you know that car, trip, or cash bonus comes out of your pocket at the end of the day. Which may make you rethink whether you really need it or not.
In network marketing, it’s embedded in the compensation plan so you don’t have to decide if you really want it. You just get it (if you earn it). Which is a nice little thing to have.
If you’re considering a company because your best friend heard about it and he (or she) tries to entice you by mentioning these cool features, just keep in mind that almost all network companies offer something similar.
The question you should be asking is “what will it take to earn that and am I willing to do that?”
The biggest differences I’ve noticed in companies is the cash bonuses. You want one with an extreme cash bonus available. Why settle for a company where the biggest bonus you can get is $50,000or $100,000 when there are larger ones out there?
Our company offers 100k, 200k, 400k, 6ook, and 1 million dollar bonuses!
You haven’t lived until you’ve seen $1,000,000 in cash and a Lamborghini given to somebody as a bonus.
This is all on top of your regular commissions. If you’re looking to start something, I recommend checking out what we’re doing.
If you climb to the top of an organization and get a top bonus of $100,000 you’re already super invested in that company and now you’re in a pickle.
It would be a difficult decision to go to a different company and start all over because you’re still earning great money and you’ve already done the work.
The problem is, if you had considered that at the beginning (before you built a successful organization), you may have picked a different company that would pay you more for doing the same thing.
Do your homework. Choose wisely. If you’re serious about building a huge organization, make sure you pick a company and team you won’t have regrets about 3-5 years down the road.
So you’re about halfway through this epic article. Take a breather. Thank you for sticking with me this long.
Seriously consider whether we would be a fit for you. If you’ve made it this far, something is resonating with you.
One time I interviewed for a job as a dean at a school and the principal said at the end “Listen, we all like you” (it was a panel interview).
“You had the right answers and I’d like to hire you, but I don’t know any of your references and I just don’t know if you’d be a fit for us or not”.
I leaded forward, looked her in the eyes and said “well, with all due respect, it’s risky for me too, I don’t know any of you and I’m not sure I would like it here either”.
I got the job.
The point? Sometimes you just have to take a step in faith and take a little risk. You’ve got to climb out on the end of the branch because that’s where the fruit is.
16) Luck is Part of the Equation
I almost left this section out because I hate the lottery mentality that is so prevalent in the minds of amateur network marketers. However, it deserves a mention because it is a possibility.
When you’re building a business, there is always a chance that you’ll get lucky and a leader greater than yourself will emerge in your organization with a vision and skillset bigger than yours.
If that happens, it makes profitability shoot through the roof because if they decide to run, they will run fast. Depending on where they are in life, they may run faster than you even thought was possible.
However, an organization is made up of at least two legs (teams) and possibly more depending on which company you pick.
I would never try to build more than two, so I stick with a binary compensation plan which is the easiest one for the average person to earn substantial income in.
Keep in mind that if somebody gets involved that rockets through the ranks and creates massive volume, you’ve still got to create equal volume on your other leg (if it’s a binary) to get payouts.
That’s why I don’t put much emphasis on luck and ignore the critics who think you just want to get rich off them. Compensation plans in this industry really do pay out to the producers.
Those excess volume points a phenomenal leaders creates represent money in the bank but only if you can release them. So you shouldn’t have a lottery mentality, build your business like this would never happen.
But keep in mind that it could happen. It’s a benefit to network marketing that is NOT present in the traditional business model.
17) Scalability is Embedded in the Business Model
The Operating Cost is a Fixed Cost & Not Variable
(Regardless of the Size of Your Organization)
Autoship- Different companies call it different things, but autoship is basically the amount of product you have to order each month to stay qualified to get paid.
This is one of my absolute favorite things about network marketing that traditional business doesn’t offer. No matter how large your organization gets or how much product volume your team is moving… your cost to be in business is fixed, it remains the same.
Your overhead doesn’t grow to scale with your business organization. Regardless of whether you are in one state or fifty, one country or fifty, your cost to stay in business is the same.
The network company uses profits not earmarked for commission to keep up with your growth. They continue to ship and you continue to get paid.
The only time this changes is if you are on the lowest tier of autoship. Sometimes to get paid at the higher rankings you must be ordering a little more product.
But know that going in and it won’t matter. It’s not a ridiculous increase anyway. Maybe instead of $150 a month, it’s $300 a month.
Big deal. At this point, your commission might be 20x that number.
Also, it’s not a requirement to get paid, usually just to earn certain bonuses and more commission. So you don’t need to do it unless you’re leaving money on the table and it makes sense to do it from a business perspective.
This is another one of my favorites. Network marketing companies usually operate in countries around the world and are constantly looking to open more territories. This expansion doesn’t cost you (the distributor) anything.
In the past this put the average distributor at a disadvantage.
This was because the only people in a position to expand in those new territories were the top level distributors who had the money and time to physically fly there and start building another team.
But the world has changed my friend…
Technology has leveled the playing field. Based on my Google analytics, I know the bulk of my readers are from the United States. But I do have some traction in other parts of the world.
Where are you from?… Probably not anywhere near me. But here you are interacting with my content.
If I had a traditional local business, that wouldn’t do me any good. But since my parent company operates in multiple countries, my worldwide reach allows me to sponsor people all over the world.
If I really wanted, I could target specific countries using keywords or by building a social media presence in that specific country. The limit of needing to be physically present somewhere to get to know somebody is no longer a limit.
This industry is changing because of this and people are finding more success than they did in the past because you don’t have to annoy your friends and family (or anybody for that matter) anymore.
You just look for people who are interested in your product or service. Hmmm… it sounds a bit like normal small business marketing.
Well, that’s because it is, but with larger financial potential and less financial risk.
18) The Risk vs. Reward Ratio is Unreal
The Financial Risk Barely Qualifies as “Risk”
Let’s suppose you get into a network marketing company and buy the biggest initial package, spending $2,000. Then you get on their monthy required autoship for $175 a month (I’m making these number up).
At the end of year one, if you make absolutely no money, you’ll have spent $4,100 and the second year to be in business will be cheaper because you don’t have to purchase an initial order again.
If you haven’t made progress in a year you then either you aren’t doing anything or you’re really bad at it.
My guess is you haven’t committed yourself because getting results (at least some) is not rocket science.
Regardless, it’s still an extremely low risk cost of entry.
I spent $25,000 of borrowed money on a masters degree and it was one of the worst financial decisions of my life. I could have spent 12 years trying to build a network marketing business for the same amount of money.
That amount could have financed a business for 12 years!… AND if I wasn’t successful at least I wouldn’t have borrowed the money to do it.
Now take a look at the upside.
What if you spend $4,100 the first year and are only breaking even at the end? I say that’s a success.
What if you spend the same amount, work really hard, find out you are actually good at building teams, and are making $5,000 a week (or more) at the end of year one?
The financial risk vs. reward ratio is off the charts (in a good way).
Biggest Risk is Damage to Your Ego
This is the risk people are worried about the most- failure or perceived failure. Fear of looking like a fool. It’s the one thing that keeps people from taking action in many areas of life.
Maybe things don’t grow as fast as you want. Maybe you don’t make as much as you want the first year or two.
So what. Welcome to the business world, if you can’t handle this fact then you’re researching the wrong business path.
If you’re not willing to risk what people think of you, you’ll never be successful in anything; certainly not network marketing.
Besides, your ego will heal. Especially when you finally figure out that people probably spend a lot less time thinking about you and what you’re doing than you think they do.
Again, look at the upside. Success is the ultimate revenge.Success is the ultimate revenge. 'Nuff said. Click To Tweet
Not that I want you to think in terms of revenge but massive success tends to quiet the haters and also the voices in your head.
Risk of Refunds
Absolutely not an issue at all.
This is not direct sales, so you don’t issue refunds. You just have people send their product back to the company and the company deals with returns and refunds.
I’ve found a lot of times people don’t even do this, they just turn off auto-ship and many times if they quit they ask me if I want their product.
If somebody does request a refund, it simply comes out of your regular commissions. Once you build big enough you won’t even notice it and again, in my experience it doesn’t happen very often.
Rewards and Incentives
We’ve talked about the risks. Basically, all you risk is a little bit of money (in the grand scheme of things) and a few scrapes and bruises to your ego.
Now think about the potential rewards that far outweigh the preceding risks.
Total financial freedom.
Total time freedom.
Incentives such as cash, cars, and trips.
And that’s just the material side of it. Many of the other benefits of network marketing would fall into this category of rewards as well.
19) Ability to Earn Recognition and Respect
I’m not too much into this one, I don’t even like being on stage.
But if recognition and respect is your thing, this industry offers some of the best recognition and genuine respect you will get anywhere.
In a career, recognition tends to be only verbal and is often insincere. In network marketing, the industry as a whole realizes that recognition is a key motivator for many people, even more so than money.
Companies do a fantastic job of recognizing people who perform.
On top of that, respect comes with the territory. Pass others in rank and they may be a little jealous, but they will have a genuine respect for you and for what you’ve done.
They know that you put in the hard work necessary.
Nobody climbs to the top in this industry by accident (even if you have luck on your side).
You may make boatloads of money by getting lucky, but you won’t hit the top level ranks by accident.You could make boatloads of money in #networkmarketing by getting lucky, but you won't hit top level #mlm ranks by accident. #mlmtruth Click To Tweet
There’s a reason why the same poker players sit at the final table every year in the world series of poker. It’s because, like network marketing, success is based on skill, not luck.
The serious builders in this industry know that, so when you climb those ranks, genuine respect is virtually automatic.
In addition, you get to network and compete with people who perform and execute on what they say they’re going to do. Some of the greatest people I’ve ever met have been inside of this industry.
20) Opportunity to Inspire People & Change Lives
This is difficult to describe but changing somebody’s life is not a thing to be taken lightly.
I am forever grateful to my brother for introducing me to this industry, but maybe even more grateful to my upline who recognized my efforts and mentored me to where I am today.
As you build your organization, you’ll find that you get to inspire people to start dreaming again.
Life has a way of knocking us down and making us want to just stay down. But you have an opportunity to help people find hope again.
When my first networking organization fell apart during the down economy I vowed never to get involved again.
Then I went through a period when I was depressed, unhappy, and a little angry.
I had no direction. It’s hard to find hope in a job that you know will never give you what you want out of life.
After pulling myself out of my funk and tinkering with some other income opportunities (some of which were quite successful), I still felt hopeless and down.
The pharmaceutical drug industry has us all convinced that when it comes to any feeling “there’s a drug for that” just like “there’s an app for that” on your cell phone.
I hope that makes sense, it made sense in my head…
Anyway, prescription drugs are not the answer. Plus, they all carry that warning- You know the one…
“May cause headaches, fatigue, drowsiness, dry mouth, aches and pains, or even death. Please consult your physician if you have trouble breathing, an increased urge to urinate, or suicidal thoughts.”
That’s not real, I made it up but if you’ve seen the commercials, it’s pretty much like that.
How about this one, it’s real, see if you can guess which one it is.
“SOME PATIENTS TAKING THIS MEDICINE have performed certain activities while they were not fully awake. These have included sleep-driving, making and eating food, making phone calls, and having sex. Patients often do not remember these events after they happen.”
That’s the warning label for ambien, a sleep aid.
Umm… no thanks.
I bring this up though because the prescription drug industry is masking the deeper issues going on in our psychology instead of helping people.
This industry helped bring me out of my funk again and if I help one other person to go from where I was to where I am now, it’s totally worth it. Which brings me to my next point.
21) Personal Fulfillment
If money was no object, what would you do? Skip your first responses like retire, sit on a beach, sip pina coladas while the sun goes down, or play golf every day.
You may do that for a bit, but you really don’t want to do that forever.
You want to make a difference.
Building a successful network marketing organization allows you to invest in whatever brings you inner satisfaction. You’ll be able to donate your time, money, and resources to a cause that matters deeply to you.
Child trafficking? Drug Abuse? Homelessness? Broken families? Poverty? Missions? The list goes on…
Personally, my wife and I want to open a school that is fully funded by us to help young adults who have messed up get their lives back on track.
No grant fund managers calling the shots.
No donors telling us what to do and how to do it.
Completely free & 100% funded by this opportunity God has blessed us with, to pour into others as He directs us.
How would you change the world if time and money wasn’t an object?
The Networking Industry Can Accommodate Anyone
22) Any Personality Type Can Succeed
Regardless of your personality type, if you join a company that allows you to build it how you want to build it, you can do it.
I’m introverted by nature and my wife is extroverted. We both build this differently.
She will build the business person to person. I’m more comfortable as a writer, planner, and strategist.
So my time is spent on content marketing.
23) Ability to Build on Your Strengths
Regardless of your personality, you can build a successful business if you stick to your strengths. One word you’ll hear a lot in the industry is duplication.
Some say if it can’t be duplicated don’t teach it.
We live in the information age.
What works for me may not work for you.
What works for a charismatic extroverted speaker certainly won’t work for me.
Besides, almost everything can be duplicated if a person is motivated enough.
So I plug along doing things my way. I see it as a hobby that pays.
SEO, attraction marketing, content marketing- these things make sense to me.
I’ll add value to the market place and let people find me.
This website is a great example of building the business in a way that is not easy to duplicate.
Most team members won’t want to build an entire blog to prospect, which is fine. But some will, because, like me, it will be enjoyable to them and make the most sense to them.
If you’re in a company that’s teaching you there’s only one way to build the business (and it’s not working for you or you’re uncomfortable with it), you may need to focus on personal development or…
…you may be in the wrong company or with the wrong team/leader.
Good leaders help people succeed by allowing them to shine in their strength zones.Great leaders help others succeed by helping them develop and build on their natural strengths and abilities. Click To Tweet
24) Ability to Maximize Your Unique Skill Set
What are you good at naturally? Are you a social media junkie? Are you good at talking to strangers, teaching, making videos, learning the ins and outs of something (like lead generation).
There are so many ways in this day and age to utilize the skills you’ve already picked up in life to build a successful network marketing business.
You’ll still need to develop yourself, but you already have some skills you can utilize to get started on your journey.
You just have to find out how to maximize your skills while continuing to work on them.
Don’t be surprised if it’s not exactly like your upline. That’s okay.
Yes, I said it. It’s okay to build differently than your upline. Personally, I want a very diverse team with experts in all areas so we can all benefit from each of our strengths.
If you’re looking, consider reaching out to us.
25) Leadership Style
You and your leadership style is unique to you. This industry is more about leadership than it is about sales. The more people you can lead to large paychecks, the larger your paycheck will be.
Zig says it best:You can have everything you want in life if you help enough other people get what they want. @zigziglar #success Click To Tweet
But leadership isn’t for the faint at heart. If you have no leadership experience you’ll have to learn through trial and error what works and what doesn’t.
If you’re already a leader at some capacity in your current job role, you have some experience and knowledge about leading that you can leverage to be successful. That’s assuming that you’re a good leader.Network marketing separates people who think they are leaders from those who simply hold a leadership position. Those are two very different things. Click To Tweet
26) Traditional Business Liability (& Headaches) Remain with the Corporate Entity
The points below are issues in a traditional business that you can all but forget about in network marketing because they are the responsibility of your Corporate Entity (whatever network marketing company you work for).
** I am not a lawyer, don’t believe anything I say or write. Consult with your certified legal counsel before implementing anything or even before thinking anything I say is true.
- Market Research (International)– Necessary in any good business, but alas!… Not your problem.
- Legal Liability- You are legally responsible for what you say and do. But follow the rules and regulations of your parent company, conduct yourself morally and ethically, and you won’t need to worry about this.
- Shipping Product- Again, not your problem. Yippie! Corporate will take care of it.
- Product Research & Development- Not your problem.
- Accounting- Not your problem.
- Paying Commissions- Not your problem.
- Global Expansion- Not your problem but can be your opportunity (if you choose)
Do you see a common theme?
If you didn’t notice, the theme is- not your problem, not your problem, not your problem.
Network marketing is traditional business minus the headaches, plus some leverage.
27) Network Marketing is a Lifestyle Business on Steroids
What is a Lifestyle Business?
A lifestyle business is typically defined as a business set up to create a particular level of income to sustain a certain lifestyle.
It can also be a business created in a way to offer perks to sustaining a certain lifestyle. Travel and adventure would be examples of this.
Network marketing offers all the benefits of a lifestyle business:
Freedom of time.
Trips and travel.
Ability to help people change the trajectory of their life.
The ability to dream again… like, really dream.
28) Health Benefits of the Products
Depending on the company you choose, you can embed healthy supplements into your life by choosing a company with products centered around alleviating some of the health issues of today’s society.
We all know that the food we are putting into our bodies (on average) is not good for us. If you eat processed food at all, those foods are filled with chemicals and unnatural additives.
I’m not a health fanatic, though I probably should be (we all probably should be), but by consuming the health supplements of a reputable company, you are getting valuable nutrition in your body.
Since a large portion of company profits are spent on research and development, the supplements put out by network marketing companies are usually the best the marketplace has to offer.
Many health issues and diseases are linked to inflammation.
Supplements high in natural antioxidants can combat free radicals in the body and help fight inflammation.
That’s a topic for another discussion, but it’s worth mentioning here because aside from working out and trying to eat healthy, the supplements I use from my company of choice have a tremendous short term and long term effect on my body.
Plus, organic solutions are so powerful. I struggled for years to be able to sleep soundly through the night. I was prescribed medicine very similar to the ones above.
I now take a product that is all natural and gently knocks me out and into a deep sleep.
If you’ve never struggled with sleep, be glad. If you’ve had that struggle or are currently fighting that battle, then you know that just finding a solution has changed my life.
29) Spiritual Sustenance
We all have different needs and wants from a spiritual perspective. But understand this, network marketing is good for the soul.
You are constantly around positive people with fantastic mindsets & attitudes who are moving in the same direction as you.
The speakers you hear all have their different focuses, but they help keep me motivated to continue to learn and grow in my spirituality.
This may be the one thing when picking a company that is more important than the compensation plan.
You’ve got to pick an upline and company that is congruent with you and your beliefs or you won’t be fulfilled during your journey to the top.
30) Successful Organizations Create Time Freedom
This is absolutely one of the best benefits of the network marketing industry. Almost everyone wants to earn more money.
$500 or $1000 a month would make an incredible difference in most people’s finances.
But if you dig deep enough, most people want more than that. You probably want more.
Sometimes you don’t want to express it or admit it though (even to yourself) because this life has a way of knocking people down.
This industry offers you a chance to get back up and start to rise to your potential.
Fortunately, if you can make $500 a month in network marketing, then you can make much more. The same actions that get you to $500 per month can get you to $5,000 or even $50,000 if you’re in the right compensation model.
At then end of the day it’s really not about the money. You have to get past that.
Money is nice, but true freedom is when you have the money as well as freedom of time.
What you really want is the freedom and options you believe the money will provide.
It’s not the money itself you want. It’s the options that go with the money.
Network marketing provides that opportunity, it’s up to you to actually make a commitment and build a solid organization.
I know a good number of people who have “successful” traditional businesses but are miserable.
Trust me, it’s really not about the money. It just feels that way when things are tight financially.Trust me, it's not about the money. It just feels that way when you're struggling financially. Click To Tweet
If time freedom is the biggest benefit, flexibility is a close contender.
If you’ve done network marketing before or are in a company now, you may want to skip this section because it may not be popular with your upline or company, depending on who you are with.
I covered this a little before, but I’m going to go deeper in this section.
So what do I mean by flexibility?
Flexibility is the ability to build the business how you want to build it, as long as you’re in the parameters laid out by your corporate entity.
If you were to pay $50,000 for a franchise, you would be given a system that works (or is supposed to).
Your job would be to implement the system with fidelity which is one thing you’re paying for with the franchise fees.
In network marketing there is a lot of talk that I call mumbo jumbo fluff.
Somebody who built a large business based on their strengths, tells you to do what they did and it will work for you. The problem is, we are all different. You can’t systematize a personality.You can't systematize a personality. #mlmtruth #mlmsuccess Click To Tweet
What works for your charismatic leader may not work for you. The basics are always the same, that part is true.
These are the four fundamental principles of network marketing (in a nutshell):
- Find prospects (marketing or networking or both)
- Show the products or business (or both)
- Move volume by finding customers & building a team
- Lead that team to success
Those are the fundamental four. How you accomplish them is entirely up to you.
Maybe your skills are in online marketing or traditional marketing as a means to find new distributors. Content marketing, video marketing, attraction marketing, etc.
What’s your flavor?
Perhaps you’re a wiz at social media. Maybe your strength is in traditional networking and you can talk to anybody.
Possibly your strength is in sales or team building. You could be an excellent leader and have an innate ability to motivate and get the most from your team.
Regardless of your particular character traits, you can build a successful business if you allow yourself to live in your strength zones.
It’s extremely important you find a company and a leader who understands this basic fundamental principle- people are unique and not carbon copies of each other.
A strong and healthy team will utilize everybody’s strengths.
If you’re with a company that has really rigid rules about how to build your organization and it limits you to areas you feel you are not strong in, it may be time to look for a different company.
I don’t suggest it often because if you’ve started somewhere you may have already built a foundation.
But if you could excel by building the business in a different way, you may be doing yourself a disservice by not looking at other options. you can’t do much when your hands are tied.
Especially social media for example. If you can’t use social media, your company is not with the times and I wouldn’t expect them to get up to speed anytime soon unless the board throws out the CEO.
Of course, that will only work if the CEO is the problem and not the board.
Whatever you do, don’t build a team in a way that goes against company policy. If you do and you attain success and your company finds out, they could very well end your distributorship and thereby end your income.
That’s not a risk I would take under any circumstances.
32) It’s Fun & Low Stress (if done correctly)
I won’t spend a lot of time on this topic but it’s worth mentioning.
If you aren’t having fun, you’re doing it all wrong. Get past the fact that you want it to work so bad. This will allow you to stop taking yourself so seriously.
Once you relax, those you’re talking to will relax too.
Additionally, if you relax and focus on activity instead of the outcome, you’ll stop talking in spammy words that make you sound like a nutjob that just joined a cult.
If you have a bad taste for this industry, it’s probably because someone you know (who did not have success) approached you wrong or you tried it once before and approached it wrong yourself.
I try to have fun no matter what. When people ask me the inevitable “is this a pyramid?”, I like to say “Yup, wanna join?”
It disarms them or at the very least makes them laugh. I mean, what can you say to that?
33) Network Marketing Strengthens the Family Dynamic
I don’t know how to explain this other than the fact that when you’re trying to reach for something larger than yourself, you’ve got to grow into it.
This causes serious business builders to work on themselves and put others first.
This selfless mindset bleeds into the marriage and into the home.
If you and your spouse are both actively building the business, it has a compounding effect on the quality of the relationship because you’re both involved in personal development.
34) The Growth Mindset is Embedded in the Business Model
People with Common Goals & Mindset – This is a scientific growth hack!
When you decide to build a network marketing organization you naturally begin to associate with people who have the same mindset and similar goals.
Those without the grit, stamina, or ability to follow through on their commitments tend to fall to the wayside.
This leaves you to spend your time with those who have the same core values as you.
Unlike traditional business, where you may or may not be around people who are forward thinkers, the networking industry is full of people who not only think of the future but also have the courage to take action rather than sit on the sidelines.
This is more important than you may think.
Recently, Moran Surf, a neuroscientist at Northwestern University, discovered that when people spend time together their brainwaves will actually start to look nearly identical.
Something you always knew was true, now is backed by research.
That’s why you don’t let your kids hang out with whoever they want.
According to Business Insider’s article on decision making, Moran Surf’s research shows “that just being next to certain people actually aligns your brain with them.”
That’s something to respectfully consider when deciding how to spend your time and choosing who you spend your time with.
I’m just sayin’….. It’s science man.
35) You’re Surrounded by Hope and Encouragement
Successful people in network marketing know that discouragement can kill a business.
Hope and encouragement propel people forward. This means that to build a successful and profitable business you’ll need to encourage your team when they are down.
It also means that when you’re down, there will be always be somebody there to help lift you up as well. We all have our ups and downs as we navigate this life.
Traditional business loses in this category because unless you have a partner in business, you are pretty much going at it alone.
Additionally, if your partner is a bad partner it can have a detrimental effect on your frame of mind and negativity can breed more negativity, thus dooming your success.
36) You Have Permission to Dream Again
Helen Keller is purported to have said “The only thing worse than being blind is having sight but no vision“.
As children we are often encouraged to dream big and have big goals, but as we grow older and life starts closing in, people start saying things like “be realistic”.
Pardon my language, but that’s a damn shame. “Realistic” people rarely live the life that dreams are made of.
Nobody who ever built something incredible listened to their inner voice or those around them who were saying “that isn’t realistic” or “that’s never going to happen”.
Network marketing provides an outlet for people to dream big and the framework to bring those dreams to reality.
Additionally, those dreams are not only encouraged by those around you, encouraged to succeed.
They sincerely want you to succeed because it’s a symbiotic relationship.
Your businesses thrive and grow together (with your wallets) or they shrivel up and die together.
Your businesses fuel each others growth and can accelerate momentum in a healthy organization.
As your income and profits grow, that success can be parlayed into other areas and other arenas of business and finances.
There a lot more investing options when you’re not broke. You can’t invest nothing.
In most of the financial crisis situations in this country, those who have profited the most have been people with stacks of cash and no debt, who could capitalize on the opportunity in front of them.
By the way, there’s another market correction coming. It’s cyclical.
37) You Get to Hear (and Meet) Dynamic Speakers
Finally, one of my favorite network marketing benefits.
Some of the best, most dynamic speakers in the world are hiding in plain site, running profitable network marketing businesses in the background of society.
As they build their businesses, they quietly craft and hone in on their skills as speakers.
Often times you never hear of them if you’re not in this industry or even in their particular company.
They rarely speak for others if they’re actively building an organization because their focus is better used working on the front lines of their own businesses.
But this can be such a benefit to you as a business builder because sometimes you’ll go to a small meeting and you’ll be blown away because you weren’t expecting such an uplifting message delivered by such a phenomenal speaker.
Aside from joining toastmasters, network marketing is the next best way to hear excellent speakers as well as develop your own skills as a public speaker.
38) Personal Development Happens by Default
You MUST develop your skills to reach the top income levels
That only happens through personal development.
This doesn’t get said enough in the network marketing industry so I’ll say it here.
Though the barrier of entry to get started is financially low, the barrier of entry for top level success in any reputable company is just as high as other industries and professions.
To make the big money in this industry, you have to develop skills, change your thinking, and have the work ethic necessary for success.
There are only two types of people reading this right now.
- People who are not yet successful but can develop the skills over time.
- People who are currently successful in their life and while working in other industries, have already developed the skills needed for network marketing success.
If you fall into the second category you will be able to go much faster than the first category of people.
Your biggest problem though, will most likely be getting over yourself and your mindset.
That’s where personal development comes in.
You’ve probably built a bit of an identity around your success and may have fear (driven by ego) of being “that guy” (the network marketing guy or gal).
I don’t care what you’ve done in life. If you join my tam, it only matters what you do. Talk is cheap.
Sometimes successful people who have the most pride also have the most fear and lack of courage.
If you think you might be in this situation and feel like you’ve built a good reputation that you don’t want to ruin, that is fear. It’s the only thing standing between you and total time freedom, but it’s a beast to slay.
The more successful you are, the bigger that beast is.
But let me remind you that usually the bad associations people have with this industry have more to do with the person who approached them than it has to do with network marketing.
If you’re moderately successful already, you understand how to network properly so you shouldn’t have that problem.
If you already have the skills, the mindset piece is what you’ll have to conquer in your personal development quest.
It’s similar to salespeople or teachers, the bad ones are so bad that all the focus gets put on them, which makes the general public forget about the great ones.
You MUST learn to sell
The majority of companies have sales training online, through mentors, and at annual events.
They will teach you everything you need to know about the science of the product (if you’re into that) and also the intricacies of the compensation plan so that you can speak intelligently about it.
If anybody tells you that you don’t have to sell, it’s not true.
Those that spout that mantra are generally desperate, confused, or afraid of scaring you off because they initially got involved thinking it would be easy money.
Actually, they are attempting to sell you by telling you that you won’t need to sell.
The only exception to this would be if they tell you that you don’t have to physically handle the sale of products.
In that case, they would be right. You shouldn’t be selling products per se.
You do want customers, but preferably those customers will order online with recurring orders so you don’t physically handle any of it.
What you are selling though is a system of leveraging.
It’s not an easy sell.
People are afraid to take risks, especially with their self-image. Life tends to be brutal and unfair with people.
This business tends to be brutally honest. If you can’t get results you are forced to grow or accept defeat.
It’s a powerful business.
Jim Rohn says it best when he says “Life responds to deserve and not to need. It doesn’t say, ‘If you need, you will reap.’ It says,’If you plant you will reap.'”
You MUST Develop Your Leadership Skills
This industry will sift out the true leaders.
If you have an organization that is not growing, you are not leading well.
Since the entire thing is based on true leadership and not just management or positional leadership, you’ll be able to gauge your true leadership ability by the health of your organization.
John Maxwell expresses it best with his question “Are you really leading or are you just taking a walk?”If you think you're leading, but nobody is following, then you're just taking a walk. @JohnMaxwell #leadership #success Click To Tweet
Attempt to build a massive organization in network marketing and you’ll find out.
You MUST Commit to Broad Personal Development
Reading is an essential part of personal development but the real growth comes when you apply what you learn.
If you read a lot but never apply it, your growth is stunted and maybe non-existent.
Network marketing offers an arena where you can read and apply information from a variety of topics that interest you.
In a regular job, you may be able to spend your free time reading on topics that interest you, but until you are in a position to apply those principles, it’s just theory.
In network marketing you can read about a topic (lead generation, influence, leadership, marketing, sales techniques, social media marketing, etc.) and immediately apply it to your organization.
This accelerates your growth in that area as you gain valuable knowledge about what works through experience, not just theory.
If you’re already in network marketing and struggling, here’s a list of top books for network marketers.
You MUST Develop Your Marketing Knowledge
The 2nd word in “network marketing” is marketing!
Before the internet and social media it was not financially feasible for an average person to set up serious marketing campaigns and run split tests.
The profit margins on acquiring one customer was simply too low.
Then websites and blogs like this one became extremely low cost.
Social media, craigslist, and other online marketing options entered the picture which brought the price down dramatically.
In many cases you can market for free.
The organic traffic I create through this site is one example.
I like to write. It’s my hobby gone rogue and can connect me with people 24 hours a day, 7 days a week, 365 days a year.
This is referred to as content marketing or attraction marketing. It get’s organic traffic to this site for free.
That makes customer and distributor acquisitions affordable, keeping my financial risk at a minimum.
Besides that, I get to help you learn something and be a part of your story, even if we never work together.
39) The Opportunity to Make an Impact
Multi-level marketing offers unique opportunities to make an impact.
Through Corporate Programs– Every network marketing company and direct sales company I’m familiar with has embedded into it’s business plan a worthy cause.
A portion of the company profits are dedicated to this end.
So just by building a business and increasing your bottom line, you’re also helping the company give to a worthy cause.
Maybe it’s providing shelter, food, or economic relief in countries where those things are considered a luxury.
Perhaps it’s drilling water wells for villages around the world without running water.
Whatever the cause, network marketing companies usually do a fantastic job of focusing on a need and directing resources to help with that problem.
In addition, many of them will allow their distributors to go on trips to physically help with the process.
Through Personal Efforts and Resources– There’s a saying that goes something like “you can’t give what you don’t have”. That’s no more true than in the areas of finance and time.You can't give what you don't have. Do More. Be More. Give More. Click To Tweet
If you want to make an impact in the world and give more to a worthy cause, you must create abundance in these two areas (finance and time).
If you don’t own your time, you can’t give it to a worthy cause. If you don’t have financial margin, you can’t give financially to a worthy cause.
If you live in a capitalist society or country where you are free to build income in excess of what you need, then it’s your duty to earn as much as possible so you can alleviate pain in an area you’re passionate about.
You need to help yourself so that you can help others.
I was on a flight this weekend and one of the things they go over with the passengers before the flight is how to use the oxygen masks if they happen to be needed.
The first thing they tell you is to get yours on first so you’ll be in a position to help those around you. Controlling your time and finances is the same concept.
At the End of the Day,
She’s Still the Bearded Lady
This post has taken quite a while to brainstorm, plan out, and share.
There are many benefits to choosing network marketing over a traditional business.
But I’m going to call out the elephant in the room. Here’s a dirty little secret nobody wants to admit.
The network marketing industry is still the proverbial bearded lady in our society.
No matter what you do, you can’t change the fact that she’s the bearded lady.
You can shave her, put some pretty clothes on her, add some make up and lipstick… but at the end of the day, she’s still the bearded lady (for now).
People are curious about the bearded lady.
Always have been.
Always will be.
But people are people.
They don’t want to commit to the bearded lady out of fear of what others will think.
Try bringing a bearded lady to a family gathering as your future wife and see what happens.
I say all that, to say this- if you want to build a successful business in this industry you must let go of your preconceived notions and start seeing past her beard to the beauty inside.
The stigma you probably have about network marketing is due to a bad approach from somebody you know or too much spam in your social media accounts (by the way, if it’s spammy, they were doing it wrong).
Somebody said you could get rich easy or bugged you incessantly, unprofessionally, and annoyingly to join. Maybe you did join with unrealistic expectations but now you’re considering giving it another go.
There’s a right way and a wrong way to build a team- annoying people or telling them it will be easy are both examples of what not to do.
You don’t have to build a team that way.
I would even argue, you can’t build a team that way.
Even though there’s been a wonderful shift in how people (specifically the younger generation) are thinking about this industry. Even though we still have a long way to go, it is positioned for exception growth in the next few decades.
It aint all sunshine and rainbows, but neither is traditional business.
If you think you have the discipline and fortitude to succeed, it’s one of the most challenging industries I know of… but also one of the most rewarding (both personally and financially).
You can literally change somebody’s life and build awesome relationships along the way.
If you want to help intelligently educate the world on the benefits of network marketing, please like, tweet, share, email, or link to this post.
I spent a lot of time putting it together and would appreciate any help getting the message out there. Help us continue educating people on this industry.
Remember… If nothing changes. Nothing Changes.Be content to act, and leave the talking to others. ―Baltasar Gracian Click To Tweet
– Jason & Daniele