I get asked a lot of questions about network marketing and the most common query I seem to receive is in regard to the advantages of it.
The truth is there are many advantages to network marketing and like many avenues of opportunity not all of them apply or are of great relevance to any one particular person. It can depend on your situation, your ambition, whether this is your bread and butter source of income or more of a hobby style business.
Whatever the case may be, the following three advantages of network marketing that I will discuss are three of top advantages for anyone considering a network marketing business. I also share my tips around each one.
1. Cost of Entry
Generally, start-up costs are usually pretty low. For a reasonable investment, you can expect your product, some samples, and your training to be covered. This is usually called a start-up pack and will be delivered to you in either hard or soft formats. Most businesses these days are moving towards cloud-based information, making it easier to update and distribute to all of its associates.
While entry fees are on the lower side, you should expect there to be additional costs in relation to your start up and further business activities just as there would be if you were running in your own traditional business.
You must ensure that you have created a 3-year budget that is both realistic and achievable. Aim high but set a series of small goals for yourself that enable you to reach the ultimate goal. Acknowledge each small goal as being just as important as the other.
It is also mandatory to have some working capital behind you. This amount should be enough to cover your own income for a period of 6-12 months. Working capital is a resource that many new business owners will overlook. It’s so important for you and your business to have it factored into your business plan and budget, allowing you to have the peace of mind that you have a good amount of time to focus your business building efforts without the worry of financial exposure.
Flexibility is one thing that is very restricted in the traditional business world. In network marketing businesses you have a lot more control over it.
You are working for yourself in an environment in which is comfortable to you, at a pace that you desire, creating a working environment of whatever works best for you. You now have full control over how you manage your working day.
An important thing to remember is that you must have a solid process and structure in place to ensure that your time is being spent and managed efficiently. You need to be disciplined that your time is being used efficiently and effectively as time can ebb away quickly.
Ensure that you are as flexible as possible with your time and be disciplined about it.
People are crucial to network marketing and finding a suitable time in someone else’s schedule is not always the easiest thing to synchronise, so your attitude towards flexibility is a key success factor here.
Remember: The time you are investing now will return to you in opportunities and income later. So, make sure that you lay a solid foundation through your networking and flexibility. It’s not something that is negotiable.
The one that everyone asks about more than anything else.
There is no doubt that one of the greatest advantages of Networking Marketing is the Income. It’s also the most important. It’s the reason that we do what we do isn’t it?
In Network Marketing there are two different types of income that you can look forward to generating through your hard work.
The first stream of income is known as your Direct Income. This is the income that is generated from the sales of your products or services directly to clients. This is where your focus will be initially so this revenue will be the larger percentage of your overall income in your start-up year and part of the second year.
The second stream of income is what we call Passive Income. Passive income is generated through the sales of your team members or people you have brought on board who work under your leadership. Your teams’ sales will generate a portion of income for you, usually a percentage-based number, that creates your passive income. Further passive income is generated as your team members build-up their own teams and create a network of sales opportunities.
As your business grows, your passive income stream should also grow. This will then allow you to change your focus beyond year three of your business, where you can start ease back on the amount of direct selling you are doing and work on your next phase of business growth.
You must put the efforts into building your networks fast. Don’t wait for people to find you, get out there and spread the word. The effort you make now will be a foundation for your business and you should see the financial reward from that work later in your second year of business and into year three.
The sooner you start building your networks the better. A good approach would be to commence with network building once you have made the decision to become a network marketer.
So, there you have it. My three biggest advantages and top tips from network marketing. But before I sign off, I will leave you with a couple of extra tips at no charge.
Choose a business that is right for you. Find something that you feel passionate about that you believe would make a valuable impact on another person’s life. Let that be your motivation. Look to make a difference, not a dollar. If you get this part right, you won’t ever need to worry about finances.