Is A Network Marketing Business For Me?

Is a Network Marketing business the right kind of business for you? Network Marketing has advantages and disadvantages, just like every other kind of business model.

Network marketing is also known as referral marketing, cooperative marketing, MLM or multi-level marketing. At it's root Network Marketing business requires that you build a distribution network.

Here are some realistic guidelines to help you decide if it's a home business option you should consider.

Do Yo Have What I Takes?

Network Marketing is not for everyone. In reality, only a small percentage of those who pursue the industry succeed in it. The reasons are complex, and there are no easy answers because human relationships are unique and cannot be categorized into a set of rules and tasks to be followed.

Good Network Marketers first and foremost have the same positive success mentality that successful business people from all industries possess.

Napoloeon Hill once said:

All people are equal. The successful ones just decide to be different.

• They have a desire to achieve.
• They believe they will make it.
• They have a passion for it.
• They take risks to get there.
• They have persistence.
• They are willing to try again.
• They have never heard of the word failure.
• They have written it down.
• They read it every day and every night.
• They believe in miracles.

Most successful Network Marketers are positive, extroverted people who have a large circle of influence. In other words, they are credible and respected, and have a large number of people who know them, like them and trust them. Successful Networkers have been successful in other areas of life, and can translate that success into the Network Marketing arena.

If you are a quiet kind of person that prefers not to talk with people, then you'll have a fine line to walk in Network Marketing. Some brave introverted souls have tried to make a go of Network Marketing on the internet, hoping this would compensate for their difficulty communicating with others, but this does not work.

Network Marketing at its root will always require good, old fashioned conversation... whether it be in person, via telephone, e-mail or instant messenger.

How Is A Network Marketing Business Different?

Traditional businesses are based on a few business owners selling their products to many customers. The Network Marketing business model is based upon many business owners each selling products to a few.

The traditional business strives to be unique, whereas the Network Marketing business strives to be duplicatable.

The traditional business sells products. The Network Marketing business sells products and offers a business opportunity.

Network Marketing business success requires that you sell products, and that you develop a team of business partners who also sell products.

You need to have or develop good communication skills, to be a positive and optimistic person, and to enjoy helping others to succeed.

To develop a solid, six figure income in Network Marketing business, you really need to have a strong sense of self direction, an unflagging optimism, and the enthusiasm and passion to promote your product and business daily to the people around you. Network Marketing leaders make a point to speak to five to ten NEW prospects daily to keep a regular flow of new people into the business.

You also need to be willing to grow personally as well as professionally, to confront your own inner fears and limitations... and to take the time to learn the skills you need to succeed in the business.

Advantages And Disadvantages

Some of the benefits of a Network Marketing business are:

• Low start-up and maintenance costs.
• The company ships products directly to customer, so no need for inventory or shipping.
• No complicated paperwork since company takes orders.
• Company is responsible for product development, research, legal fees, and more.
• No need for a merchant account or expensive business supplies.
• Network Marketing business is based on teamwork so you're rewarded for helping others to succeed.
• You receive free Network Marketing business support and mentoring.
• You can choose who you work with.
• You can set your own schedule and have the freedom to run your Network Marketing business at your convenience.
• Good Network Marketing companies will provide you with many business tools like websites, fax-on-demand, voice mail, etc.
• Successful Network Marketing companies produce high quality unique products that typically are more effective than most store-bought products.
• You have unlimited income potential.
• Network Marketing business can be rewarding when your friends and team members begin to succeed with you!

Some of the drawbacks to a Networking Marketing business are:

• You are at the mercy of the company you distribute for. If they go out of business, raise the product prices, or make business decisions that you disagree with, there's not much you can do about it. Make sure you choose a reputable company!
• Network Marketing business is a team sport that requires cooperative effort. If you are a "loner" or don't like people then it will not work for you.
• For most Network Marketing business owners, it takes a while to show a profit. Some companies have fast start bonuses so you can get into profit sooner. Because success depends on building a large network this could takes months or years.
• The Network Marketing business can be extremely disappointing. Most people that you enroll into your business as your business parters will not have the commitment and discipline to stick with it.
• Most Network Marketing companies have monthly purchase requirements, so if you don't purchase products you are not paid. This is not a problem if you love your company's products (which you should if you're going to promote them!)
• Network Marketing business works best for positive thinkers and extroverts. If you tend to be pessimistic, or are introverted this is not the business for you.
• Network Marketing business requires a different marketing approach that may be unfamiliar to you. You need to develop teaching and effective communication skills, and to keep your business simple so others can learn and do what you are doing.
• Network Marketing business is simple and for some people the repetition may be boring. You may prefer to develop your own product, or to provide a service instead of a product... or you may prefer a strictly retail business. You need to really enjoy people to be a good Network Marketer.

Why Is Network Marketing Controversial?

Everyone has their own opinion on this. Here is mine...

Market Saturation — Some people believe that the Network Marketing model itself is flawed because an unlimited number of distributors selling products creates market saturation.

Because I am not an economics or business expert, I don't know whether this is accurate or not. I do know that many Network Marketing companies continue their growth year after year.

A good research project would be to compare the relative income levels of distributors coming into a company that is mature and has more distributors, with those of distributors entering a young company without a lot of distributors.

Unscrupulous distributors — Unfortunately Network Marketing can attract lazy people who think they will make money off of the work of their downline without selling products themselves.

It's important in Network Marketing to focus on working hard yourself, not waiting for others to do it for you!

There are also some Network Marketers who do not think about targeted advertising, and instead try to sell their products or their business opportunity to anyone who breathes, regardless of whether they want to hear about it!

This approach can alienate friends and makes a terrible impression, thereby contributing to the 'sleazy' image of Network Marketing.

Even worse, some companies use this as the model of how to start your business.

There are Network Marketing distributors who clog up the internet with zillions of business opportunity unsolicited e-mails, newsgroup posts and other unscrupulous advertising.

Scams — Some scam artists use Network Marketing to distribute their products quickly and then take the money and run, giving the entire industry a bad name.

Tips On Choosing A Network Marketing Company

If you are considering a Network Marketing business, the following part of my site will give you some pointers on what to look for in a Network Marketing company.

 

To your success,

 

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