Network Marketing, also known as MLM (multi-level marketing) or Referral Marketing, is growing at a rapid rate. Starting in America back in the 1930′s, and gaining strength in the 1980′s and 1990′s, it is now seen by more and more mainstream companies as a cost effective method of marketing.
What is it exactly? It’s essentially a means of distributing products based on recommendation, without the need for advertising. Attached to it is usually a compensation plan that allows ordinary people to build themselves a part-time or full-time business.
One of the reasons for its ‘rise and rise’ is the increase in people’s desire for a better lifestyle. Increasing concerns about health, crime, traffic chaos and the safety of our kids have started to make people think more about their family and less about the demands of the ‘rat race’. One way you can satisfy this desire is to work for yourself.
Another reason is this: many people are realising that purely ‘working a job’ is never going to make you wealthy. It only makes someone else wealthy. One of the best routes to wealth is to own your own business.
So, why not set up a traditional business?
Well, setting up your own business is not easy, and many people wouldn’t know where to start. If you’ve done it, you’ll know how difficult it is.
What options do you have? You could start from scratch or buy an existing business.
If you start from scratch, what line of business would you choose? The logical choices are to specialise in the job/ profession that you’ve been working in all your life or to make a business out of your hobby. Either way, you’ll have to locate premises, source suppliers, buy stock, employ reliable staff, advertise for clients, and so on. It may take years to get established and it comes with a risk.
Not only that, it requires a substantial amount of investment in money and time, and will probably mean giving up your day job.
If you purchase an established business, you’ll have the advantages of premises, staff, and the added bonus of paying customers already coming through the door, but you’ll be paying tens of thousands for this kind of investment. And let’s face it, not many of us have that kind of money to invest.
How about buying a franchise?
The franchise industry has also become popular in recent times and although it provides less of a risk than a traditional business, they do come at a price. Franchises usually cost thousands of pounds, and normally come with a ‘post-coded’ area. This means that you can only operate your business within that post-code area! This may be okay for some business owners but for ambitious owners it can restrict growth. Add to that, some franchises don’t even guarantee break-even in the first 5 years.
So, the cost involved with traditional businesses and franchises is one of the main reasons that people don’t start their own businesses. Without mortgaging themselves up to the hilt, the cost is way out of the reach for the average person.
So, why Network Marketing?
Initial start-up costs are extremely low in comparison. And if the cost is so low, the risk attached to it is also low. The strange thing is though, the potential for you to build yourself a big business is extremely high, and that’s due to the MLM business model.
Additionally, most people who join the industry do so on a part-time basis, while at the same time holding down a part or full-time job, a business or even a career. So, there is no need to give up your day job. This means you can sleep at night while building your dreams at the same time!
So, if you can commit yourself to a 4 or 5 year plan, to improving your circumstances, you ought to take a good look at investing in Network Marketing.
{ 0 comments }