Network Marketing is becoming an increasingly popular business model that people from all walks of life are joining. The old-fashioned belief that network marketing is just for the ‘stay at home mum’ is no longer the case as professionals from the healthcare industry, corporate world and teachers, to name a few, are seeing the incredible benefits that can be gained from starting your own Network Marketing business.
Network Marketing is a business based on individuals making sales of a product or service through their own network and earning a commission. Many companies also offer a second element of payment based on people introducing others to the company and starting their own business. There is usually an initial, low-cost start-up payment with a network marketing company of your choice. This startup is extremely minimal in comparison with starting your own, independent business or buying a franchise. Hence, it is a very popular option for those interested in entrepreneurship without the need for a large financial outlay.
Within the U.S alone in 2017, 18.6 million individuals were involved in direct selling (Direct Selling Association, 2018.), a key element of any network marketing business. These individuals added a substantial $34.9 billion in retail sales to the U.S economy in just one year. Network Marketing is a huge industry that keeps growing due to its financial appeal. However, this is not the only reason people are looking more and more towards network marketing. Here are 7 reasons people are looking to start their own business and join a network marketing company.
As touched on above, with a small initial start-up cost, you are able to start making sales and earn a commission from everything you sell pretty much straight away. Most network marketing companies have a second element to the business model in which you introduce the business to people within your network. Anyone who joins the company through you becomes a part of your team and, essentially, known as your downline. If they then introduce someone to the business, that person also becomes a part of your extended team. Within most network marketing companies, for each individual who is within your downline, you will earn a percentage on anything they sell as well (compensation plans do vary for each company). There is no upper limit to your earning potential and many companies also offer additional incentives such as holidays, monthly bonuses, jewellery and even a high-end car.
Choose your own hours
Though you have joined a network marketing company, they only provide the framework and guidelines, otherwise, you are your own boss. You have the ability to be able to choose the hours which suit you and your present commitments. For example, a stay at home mum might choose to work when her children are asleep and a corporate individual may work in the evenings after the day job or on their lunch break. Network marketing isn’t the standard 9-5 job with an hour break. You can choose the number of hours you would like to dedicate to building your business. The average dedicated network marketer spends up to 20 hours per week building their business around their other commitments.
Business in a Box
In comparison with starting your own business, joining a network marketing company has already done the hard work for you. They provide you full access to marketing materials, training, a range of products for you to sell, most with your own website and other resources that you may require. You don’t have to consider product ingredients, ensuring they meet necessary standards, paying people you introduce to the business or how to go about sharing your products and business. Network marketing companies already have the product and compensation plan prepared along with many resources to help you get started.
With network marketing, there isn’t just one way of sharing your products and building your network to share the business. Unlike a high street shop, where you rely on people to visit you and walk through the door, with network marketing, you have a great deal of flexibility in how you run your business successfully. Depending on what works for you, you can build your business through product demonstrations, testimonies, parties, one-to-one business meetings and attending stalls. Most of this can be done from your own home using your phone or laptop. With the substantial growth of social media, more and more people are using it as a way of connecting with others and making purchases online with a click of a button. Making use of social media is a fantastic way to grow your business from home, such as posting you using products on Instagram or carrying out an online party within your own Facebook group.
System for Success
Each network marketing company has their own system for success. A system for success literally outlines how to achieve each level within the company, which has been modelled on those most successful within that company. There is a detailed plan for what to do, how many sales to make, recommended amount of people to introduce the business to for each level. The great aspect of this within network marketing is that there is no competition. Unlike in the corporate world, there isn’t a limited number of spaces for people to fill in each level. Any number of people, if they work consistently and follow the system for success, can achieve the top level of promotion.
As outlined above, network marketing companies often have other incentives throughout the year for their entrepreneurs to work towards and achieve. Here are a few examples of what some companies offer:
- Monthly bonuses – for achieving a certain amount of sales on top of your commission
- High-end car – some companies once you achieve a certain promotional level, will provide you with a cash bonus specifically towards paying for a branded car e.g. Mini or Mercedes. You can often choose the model and specification for the car, but are usually required to pick a set brand, maybe the colour and have your network marketing companies name displayed on the car.
- Discount – with most network marketing companies, if you start a business with them, you are provided with a higher discount on products that you purchase, than you would if you were just a customer.
- Holidays – Many offer holiday incentives for entrepreneurs to work towards. Companies provide an outline of requirements such as the number of sales or people introduced to the business. In return, they provide an all expenses paid trip, usually with additional add-ons depending on your performance. Also, when reaching the top level within certain network marketing companies, you are provided with an all expenses paid luxury annual holiday.
- Gifts – often, companies will send additional thank you gifts for working your business when you reach a certain level. This can range from flowers, chocolate, products to high-end jewellery.
This list would not be complete without mentioning the incredible networking opportunities when joining a network marketing company. A key phrase often used is ‘you own your own business but never alone in business’. Within network marketing, often you have weekly training calls and monthly in-person training you can attend. This enables you to build relationships and form strong connections with others in your extended team. You are also trained in networking skills to be able to speak to people in all aspects of life, from someone who served you coffee, to an individual via social media who lives the other side of the world to you. The training helps to develop personal skills in confidence, public speaking and self-esteem, helping you to grow positively as a person and form relationships wherever you go.
There are also countless events held within network marketing from car presentations to Christmas parties right the way through to global conferences. People who have started their business in network marketing have formed incredible relationships and made friends for life. Due to the nature of network marketing, within most, you will not find a more positive and friendly atmosphere than that of a room full of network marketers.
If you have started your own business with a network marketing company, I’d love to hear what drew you to start your business and the benefits you have experienced so far. Get in touch and leave a comment below.