By: Dr. Gwen Smith
There is a lot of misunderstanding when it comes to network marketing as a side income business. Some people call this a pyramid scheme, making general statements about all network marketing companies that are available to choose from. There are thousands legitimately making millions of dollars doing network marketing as their primary income source. There is a lot of misunderstanding when it comes to network marketing as a side income business. Some people call this a pyramid scheme, making general statements about all network marketing companies that are available to choose from. There are thousands legitimately making millions of dollars doing network marketing as their primary income source.
The reality is that a pyramid scheme exchanges income when no products are sold. This is illegal in the United States. In a reputable network marketing company, the income earning opportunities are available to everyone. All levels of every scale are open to anyone who chooses to advance through the ranks, and there is no special bonus just for being who you are.
Another conversation that people tend to have is that in network marketing systems, you are selling other people’s products while they make most of the money at the top and you, supposedly at the bottom makes very little.
When you seriously consider this statement, if you should ask yourself which company compensates the employees at the same level as the owners, I believe your response would be, “None.” I can’t think of a single company where everyone gets equal pay. Can you?
It therefore is pointless to use this as an excuse to not participate in selling products that will benefit your friends and family and ultimately you, just because you have an erroneous view that you should be equally compensated.
A network marketing company operates in much the same manner as a real estate brokerage firm. All the agents sell houses and each time they do, they get to keep a percentage of what they earn, while the broker gets a cut. That is quite legit as the broker uses leveraging to earn her income. As you will see, the power of network marketing is in the leveraging and this is what provides the opportunity for you to make way more than you could by yourself alone.
In the words of John Paul Getty: “I would rather earn 1% off a 100 people’s efforts than 100% of my own efforts.”
Some companies offer greater percentages, making it easier to build bigger incomes with smaller teams. Others offer smaller percentages so your income is challenging to rise unless you have a powerful team with you.
Some companies offer ¼% or ½% at the lowest levels and then more with each progression. Others offer larger percentages, 20% or more in some cases. You will readily see that you can be working really hard to make significant income with smaller percentages, unless you build a team to help you leverage your earnings as John Paul Getty says.
It will become clear, then, that some companies reward you on building large teams so you can maximize your income.
Network marketing requires a mind shift from the employee mindset to the business mindset. It also requires that you get past your own self-limiting beliefs about what is possible for you.
Some people are content telling themselves that they are not able to earn income by building a team. They trap themselves in that self-limiting thought, thereby eliminating a viable option to replace their incomes.
If you are considering network marketing there are a few things to think about that are important before you sign on the dotted line.
1. The Background and Profile of the Company
Doing your research on a company is key. Many people love to jump in startups because the income earning opportunity is greatest at the start of a new company. However, you should consider your initial investment and whether or not you will have a return on your investment before jumping in. Even then, considering restarting repeatedly can save you the time and effort if this is not your preferred way to operate. Always check the company history and how long they’ve been in business.
In general looking at a company that is over 5 years is a good recommendation as many companies go under prior to their 5-year mark. Checking on the financial stability of the company is also important, as also on the credibility of the leaders who are starting the company.
Another consideration is the level of commitment required to get started. Does the company require hundreds to thousands of dollars? Or, does the company require a minimal startup annual fee while providing the opportunity to earn serious income? I’ll share an opportunity to learn about one such company later.
2. The Compensation Plan
As mentioned above, the compensation plan of the company is critical. What percentage is the company offering? In general 10 percent and up is my personal preference on commissions that are paid out. You’ll need to determine what that is for you.
Also, you should find out if you are able to make money regardless of whether or not a team is built. Some people are averse to building teams, and if you’re considering this to be an income replacement opportunity, or even an income generating opportunity, understanding how you get paid so you can set long term income earning goals are important.
3. The Products
The products can make or break your business. You must be able to market your product as a means of replacing what people are already spending on. It’s a much easier process to offer effective, clean products to people who have small children and people who develop allergies and other side effects to chemical-laced products that are a threat to the health of their families.
People will be quicker to buy if they are already spending on something that you are offering and if what you offer is a better alternative.
The next consideration is how useful, practical and safe the products are. You will be able to offer more of your products to more people when you can replace what they already have with something that is practical, safer and more effective.
A product that I am using has a minimal startup cost, which is significantly less than the club cost at Costos or Sams . Additionally, you get to shop at a significantly reduced price for items you already use around your home or on your person.
Additionally, you get paid for introducing others to join the club and save as well. It’s a win for everyone involved. In fact, I have a project that I am currently working on to educate and promote well-being and would love to have you join me. To learn more click the link here and get a free report, and then set up a time for us to connect. What better way is there to earn besides making a significant difference?
A great company has education, either in the form of live events, online videos or other members on your team providing training and education.
Knowing about the products you are offering, what the best approach is to sharing and what the products actually do and how they compare is great information to have. Using the products first hand provides the best first hand education.
Providing education on your personal growth and development is also important to being successful in any business, especially in network marketing.
People say it takes a village to raise a child. I like to say it takes a village to raise a successful business. If you were not raised in a household where doing business was the order of the day, having support in establishing your business is important. Beyond that, even for those having previous business knowledge, getting support is crucial, especially as you get started.
Support can come in the form of team members filling in for you by reaching out to your contacts, or even having meetings or conducting phone calls to model for you how the business works so you will learn how to run your own business in the shortest possible time-frame.
On the Facebook Live video, I talk about some other important elements to consider. Please watch the video to learn more.
The quality of the video is less than desirable. Nevertheless, you can hear most of what’s being said though at times not be able to see clearly.
Don’t forget that if you’re not clear about what it is that you want to do for a business or career, you can download a FREE guide here to help you!