The Truth About Network Marketing

I never used to believe in Network Marketing until I understood the power of leverage that exists in Network Marketing. We grow up being exposed to the traditional way of business that we question anything else that appears to be different.

Let’s define Network Marketing: A business model in which a distributor network is needed to build the business. Usually such businesses are also multilevel marketing in nature in that pay-outs occur at more than one level.

It is basically

Independent Distributors – Which are Entrepreneurs who are involved with direct selling of goods and services to consumers. And if they grow their channels via Multi-Level Marketing, there is multiple levels of commissions paid for goods and services sold by distributors. It is about cutting out the middle man (wholesalers and retailers) by selling directly to the consumer through word of mouth.

Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Though it can be done full-time and can bear great rewards. Some of the oldest best-known companies such as Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.

Network marketing opportunities usually have a low upfront investment, it could be about few thousand Rands for the purchase of a product or sample kit and the opportunity to sell a product directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits become the rep’s “downline,” and their sales generate income for those above them in the program.

It is one of the best ways to use leverage opportunity because each distributor can build a team of other distributors and enjoy commission from sales generated by the entire team. Making this a large network of people helping each other and gaining from it.

It is a system that will benefit you if you put in the work, as you can get commission in all levels.

Things can get sticky when a network marketing network compensates participants primarily for recruiting others rather than for selling the company’s products or services. A network marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme. It’s important to do your research about the company before getting involved.

The difference between a Pyramid scheme and Network marketing

A Pyramid structure is said to exist when you get paid to get a new recruit and even though there is no involvement of any product or service. This is an ill-practice which makes a people earn money by taking advantage of their friends, family and strangers. Companies having a pyramid structure model tend to deceive people while making them believe that they’ll earn in future (which they sometimes do by deceiving more people). These kinds of companies compensate participants by paying them a commission from their new recruit’s admission fees. Such strategies are making money for the company where the participants are at a loss.

Whereas Network marketing involves multiplying efforts by selling of products. This is a win-win situation where the users get what they want, and participants earn a commission. The commissions are budgeted for, because the company does not spend on traditional marketing and advertising, rather they pay the distributors.

This industry is misunderstood by many, but those who understand it and do it right, are able to make a success of it and can build a successful business that allows them to work flexible hours with minimal start-up costs.

Not only can network marketing help you with building a business but it can help you move from continuously being an Active earner to a Passive earner. This is moving to the right quadrant of income. Read more about Active and Passive Income.

Why Network Marketing

  1. No employees
  2. Low overhead & low start-up cost
  3. No special degrees
  4. Unlimited income
  5. Tax advantages
  6. Time freedom
  7. Ability to leverage

One of the top reasons is that this type of business can lead to financial freedom. As mentioned above, being able to earn money without actively working all the time.  The difference with a traditional job is that you are “Selling time for money”. This means that you can never stop working because your income also stops.

The problem accurs when people get involved in network marketing then expect to make it in a short space of time with doing none to minimal work.

Some Network Marketing industry stats

In an economy facing a third possible downgrade, mounting living costs and scarce jobs opportunities, it’s reassuring that the direct selling industry is one of the few sectors showing growth over the past 18 months.

An estimated 1.3 million independent business owners have generated R12.9 billion for the national economy in the form of sales directly to customers.

The Direct Selling Association of South Africa (DSASA) announced its industry results in Johannesburg in July, 2017 at a gathering of the Association’s 34 direct sales business entities.

These entities cover sectors such as health, beauty, homeware, financial and investment products, nutritional supplements and weight-loss management.

Member companies distribute goods and services directly to consumers, in a face-to-face model, away from fixed retail locations.

Globally

  • Network marketing has contributed about $189.6 billion (ZAR 2,5 Trillion) to the global economy in 2017

What I look for when choosing a Network Marketing Company

  1. A product I would buy even if there was no Comp Plan
  2. A Product that can easily be promoted on line
  3. A product that has Mass Market Appeal and everyone wants
  4. Leverage and a System that duplicates
  5. A product that would Enhance my personal brand
  6. Leading product that builds with Online Marketing Strategies
  7. A Stable company that has lasted the test of time

I don’t know if any of those things are appealing to you as they are to me, but if you looking to partner with a company make sure their model suits you.

SO If you’re looking to do something NEW and EXCITING or venture into becoming your own At-Home-Entrepreneur for the very first time.…. I encourage you find something that you’re extremely passionate about. Or go ahead and see what we have to offer…

If you know that you are;

  • Someone that has a burning desire to Create Success
  • Someone that is Dependable
  • Someone that is a Pleasure to work with
  • Someone that has a ‘No-Excuses’ Mindset and that is ready to put is some work
  • Someone who is ready to go from Default to Design lifestyle
  • Someone Coachable

Let’s chat

If you are Interested in learning more and exploring this journey, partner with me.

Quote

The richest people build Networks, while everybody else looks for a Job!