I like MLM. A lot. Again, I made thousands last year just from a simple (but profound!) MLM/Network Marketing business that I run. The problem is finding a company that is not just advertising, which I have already talked about in another post. but here are four reasons why Network Marketing or Multi-Level Marketing is a Good thing
1) Cheap Startup Businesses
Starting a business requires money. Period. Anyone who tells you otherwise is trying to sell you something and is simply being dishonest. Consider:
If you want to start a McDonald’s franchise (which I don’t recommend for a dozen reasons), you’d have to shell out over a million dollars just for the franchise fee, just to call yourself McDonalds.
That doesn’t take into account the cost of real estate (where MickeyD’s corporation actually makes most of its money!), or the equipment, or the teenagers to run the equipment, or the training to keep the teenagers from who operate the equipment are burned. his shop and poisoning his customers, etc.
Less expensive franchises like Duncan Donuts can still cost up to a million dollars to start. Others, like the Subway franchises that have sprouted up like weeds in the last decade, cost less, but it’s often hard to turn a profit until you’ve got about 5 or 6 up and running, and THAT is a juggling act.
Most network marketing businesses cost less than $5,000 to start, and most of them less than $500. Overhead costs are generally low (between $0 and $1,000/month in predictable costs).
Now this fact that, compared to the traditional trade route, is surprisingly cheap. However, for most people considering starting an MLM, any cost is generally scary, as these people have no frame of reference for the overall cost of running a business, especially a traditional “brick and mortar” business. (ie, a business in a fixed location, a store or office, etc.).
For most people, starting a network marketing business feels like a big financial decision. and yet, sadly, the financial commitment is not enough to keep many in the game for more than a few months.
However, for those who have tried to start their own business before and have been unsuccessful, realizing that starting a business for less than $5,000 is impressive, especially if it gives you…
2) Residual Income Potential
On this site, I’m going to spend a lot of time talking about the virtue of Residual Income.. If you understand this concept, you would do your best to take advantage of it.
Residual income is income that keeps coming back after you make a sale, market a plan, sign up a customer, etc. It can be a constant flow of change or a flow of dollars in the tens, hundreds, or even thousands. The point is, once it happens, it keeps happening. On. And more. And more.
Residual income is how I get paid for deals I did 8 years ago and haven’t had to touch since. Residual income allows you to invest your time nowin order to reap the rewards in the future.
Now many MLM companies say have this, but they often confuse it with the next number, passive income (also known as leveraged income). Residual income requires a kind of “subscription,” either to a consumable product or a renewable service, that the customer values and agrees to continue using indefinitely. This is the main issue I am going to raise with companies like Avon, Amway, Mary Kay, Pampered Chef, Lia Sophia Jewelry, Cutco Knives, Vector Marketing, Kerby Vacuums, Scentsy Candles, etc. Your product must be consumable, or you will have to keep selling and selling (or getting others to keep selling and selling) to keep making money. Of course, that leads us to…
3) Passive Income Potential
If I had a Redbox DVD kiosk, renting 40 movies a day, at $1 a day, I would have a source that would generate $40 a day for me (before expenses) without having to do anything (or much, anyway) to earn it. Store the machine. Service when needed. Collect income. Nothing bad. Passive income is income earned without having to work for it directly.
If I work 8 hours a day, 5 days a week, without slacking off, I could put in a solid 40 hours a week. In reality, of course, you probably spend more than 8 hours of your day at work or on work-related activities (getting ready, going to work, etc.).
Now, if you hired 10 people, and they each put in a solid 4 hours a week, you could match that 40 hours of work (and probably beat it, because people don’t typically burn themselves out on a once-a-week job). , 4 hour concert So if you have others working for you and generating income then you have a passive income stream.
Think of a car dealership. You can sell your own cars and get a percentage of the car’s sales price (for example, you buy a used car for $4,000, sell it for $6,000, and make a profit of $2,000). Gold You could hire a sales force and split the profits with them (50/50, maybe). If he, on his account, sells 5 cars a month at the same price, he could make $10,000 in profit in a month, or about $120,000 a year. Nothing bad! AimIf you had 5 workers each doing the same thing, you would earn $5,000 for each of those 5 workers, or $25,000 per month.
This increases your revenue to $300,000/year, without ever having to lift a finger (other than running the dealership itself!) That’s powerful!
4) A fair and balanced model
This is where the “MLM” system gains an advantage.
Consider the car dealership scenario above. If you are one of his agents and you make $1,000 on every car you sell for him, what will you eventually want to do? Stay there and continue to make him money? Or eventually leave your dealership and start your own?
Good. And when you do that, you’re 1) taking a passive income stream from him, 2) becoming his competition, and 3) knowing everything he knows, since he trained you.
This is bad! This gives the dealer just enough incentive to train you to sell for him, and all the reasons in the world not to teach you how to run your own dealership!
Where “Network Marketing” excels is that if you were to sell cars, it’s essentially structured to reward everyone when an agent “splits off” and becomes their own manager of a sales organization, including the original “dealer” or “broker.” ” (in an insurance or real estate scenario, which is identical to the previous scenario).
By ensuring that your “upline” gets a piece of all your sales, regardless of their position, he or she has no reason not to want you to be as productive as possible!
By the way, in the text above, “upline,” “broker,” and “dealer” are pretty much interchangeable terms.
5) BONUS: They are a training ground for bigger and better things
This is the real benefit to an MLM/Network Marketing business: it’s one more stream of income. If you want wealth, you must have multiple streams of income, beyond the direct exchange of time for money that occurs in your life as an employee.
Learning how to generate a steady and predictable stream of income can free up your time and allow you to quit your job and then devote yourself full time to your business or use that extra time to pursue other projects and goals you may have.
If you have always dreamed of starting your own business, a salon, a car dealership, an insurance agency or a day care center, one of the topics that has stopped you in the past has undoubtedly been, “What if it fails? How am I going to eat?”
If you quit your job to start your business (and many brick-and-mortar businesses take 40+ hour weeks to run, leaving the notion of keeping your day job a dead option), then you’re taking a big risk.
However, if you had an income stream that could replace your full-time job and free up your time, then you wouldn’t need to worry about the niceties of life and could devote yourself more fully to your other interests.
This is what a potential MLM/Network Marketing business has to offer, if you know how to pick a good one and what to do with it after you pick it.
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