7 Reasons Why a Network Marketing (mlm) Business Is the Best Kind to Own
A lot of people avoid network marketing businesses (also called multi-level marketing or MLM), but I’d like to give you 7 reasons why this business is the best kind to own.
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1. Your chances for success are better in network marketing
I agree, many people fail at this business. In fact, in MLM, you will often find that only 20% of the people are making 80% of the money.
Terrible, you would say.
But do you know what?
That is exactly the same as the church you belong to—only 20% of the believers are actively involved and do 80% of the work.
It is also not different from a traditional company. Only 20% of the people at the top earn 80% of the salaries.
It’s not at all surprising that the church and the traditional company are similar to MLMs. People are what they are. It’s not because they find themselves in a different situation that they will profoundly change their nature.
While the structure of MLM companies can be responsible for the high failure rate, some people fail at network marketing for a host of other reasons.
Some lack motivation and others aren’t cut out for self-employment. Others too are in the wrong company for them and more others are just not properly trained.
But a motivated, trained and right person in a good company has a great chance of succeeding in their chosen business.
On the other hand, if you start a “traditional” business your odds of success are much lower.
According to the Small Business Administration (SBA) Office of Advocacy’s 2018 Frequently Asked Questions, about 80% of small businesses survive the first year.
However, from there … Only about half of small businesses survive passed the five-year mark, ranging from 45.4% to 51%. Then, only about one in three small businesses get to the 10-year mark.
So, after 5 years of 12 hour days, in debt up to your eyeballs, you only have a 50% chance of succeeding.
How is that for comparison?
It makes me lean towards where my chances of success are higher.
2. The costs are much less to get into a network marketing business
It is true, most network marketing companies require members to place a minimum monthly minimum order to keep their distributor status active. This may be as much as $100, depending on the company.
While this amount may seem exorbitant to some people, know that it forms part of what keeps the machine running. In other words, it is part of the business operating costs.
To put things in perspective, compare that to the costs of owning a traditional business. Things like rent, employee costs, utilities, inventory, insurance, taxes, marketing and advertising, and many others would cost you much more.
What this shows is that you don’t have to be rich or go deep in debt to have your own home based network marketing business.
An equalizer, an MLM opportunity gives everyone a fair chance at succeeding in business, no matter what their financial background or credit history is.
3. A network marketing business is simpler to run
If you had your own business at least you would need to hire a personal assistant who would help you do all your red-tape, paperwork, handling, claims, receipts, shipping, bookkeeping, support, and such. If you can’t afford it, you would spend much of your time doing it.
With MLM, the company you are affiliate of handles most of those things. Even their funnels will do the follow up for you. You just need to keep your own financial records for income tax purposes.
This frees up much of your time and energy to channel them into promotion to make money.
4. A network marketing business is easier to market and promote
Most “traditional” businesspeople are on their own when it comes to marketing and advertising. They must decide which methods to use and the best places to go to for them.
More often than not, they try a little of everything hoping that something will actually work. When that doesn’t happen, they become desperate. Then they end up taken in by slick sales people who promise amazing results with their newest expensive advertising scheme.
But a person who joins a network marketing company can depend on their proven marketing system that has been tested over time and by many people.
Many mlm companies have an affiliate manager who puts affiliate resources at the disposal of affiliates. There, one can find email swipe copies, banners, affiliate links, images, articles for affiliates, brandable pdfs, videos, keywords, testimonials, etc.
The companies also usually propose marketing material that members can purchase at a lower cost because they have been ordered in larger quantities.
Lastly the company shows its members where and how they can promote effectively and cheap.
5. You get the business training you need to succeed in network marketing
You don’t need to know anything about business to begin working an MLM opportunity and be successful in it. The company has done all the hard work and research for you.
In effect, MLM companies often hire the best marketers in the business to help them develop a training program for their members. These trainings are often offered in the form of webinars taught by the leaders and other successful marketers.
They do these things because they really want you to succeed. For their success depends on yours and so they will do everything in their power to help you.
In traditional business you have to find the training you need on your own. This may be difficult if you don’t know the exact training you need and where to get it from.
6. With a home based network marketing business, taxes are on your side
There are many deductions you can take with a home based network marketing business that will help you reduce your taxes.
Things like software, shipping, and inventory, and a long list of others to be found here.
Also check Tax Planning for Multi-Level Marketers
However, the federal, state, and local governments all seem to have it in for traditional small businesses. And if you have employees, you are really paying much more for them than their salary, as any employer can tell you.
7. Network marketing is the way to go
A pyramid scheme or a Ponzi scheme is illegal because it doesn’t work to the benefit of its members. It is a rip-off. There is no product, thus the company offers no value whatsoever.
The people at the bottom put money in but receive nothing in return since there is no value to flow down to them. It is a scam because only the people at the top make any money.
You remember the chain letters or the airplane game? That’s a good example of this.
The above should not be confused with a pyramid which is the natural shape or structure for all businesses, including even governments.
In these organizations you find a small number of people at the top and the masses at the bottom. While the bosses make the big money the bottom also gets something, even if it’s a pitifully low income.
A network marketing organization is no exception. It is just a new way to distribute and market goods and services. It is the way to go. Even many huge traditional companies see the benefit of the MLM model and are jumping on board.
Are you ready to give it a try? There are a lot of great network marketing companies out there. Even our reviews tab
will reveal many. Do some research and you will find the company that is right for you.
I found a new online network marketing program that I am excited about. It is called Wealthy Affiliate and it provides true value, can be automated, can earn you a residual income, you can relate to and promote passionately and receive support and help.
Wealthy Affiliate can be a fully automated online business that provides you with the website, tools, training, and resources to start an online business from home.
You may want to read:
- 5 questions you need answers to before joining an affiliate or mlm program
- Which is the best affiliate network?
- 5 winning strategies for mlm success
- 7 poor reasons to join an mlm business opportunity
- 5 ways to incorporate network marketing with your home-based business opportunity
- 5 linking strategy tips to increase website traffic for mlm business
- Multi-Level Marketing – What you must know
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