The Network Marketing Business Opportunity

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Network marketing business opportunity offers an incomparable way to meet your financial goals because when you pay the small sum to register to become a distributor, you are given access to a multi-million dollar company in most cases with all the tools already in place to create the income you desire. You get a complete product line, warehouse facilities with shipping and handling, customer service, legal, accounting, marketing, research and development, and management. There isn’t another business model where you receive all this for just a few dollars, usually five hundred or less.

In addition to all that you get from the company, usually a new distributor gets support from someone who signed into the company before they did, often called upline members. Upline members share their experience and knowledge with new distributors and help them have a greater opportunity to have a successful business.

A person who becomes involved with a network marketing company can usually work from home and enjoy the tax benefits. Most of the time they don’t have any employees, or they hire their children to do some simple tasks. They usually start out part time and work around the schedule of their regular job until the income from their network marketing business is greater than the income from their regular job. They can make sales and the company will usually ship the products right to the customer’s door. Problems are handled by the company’s customer service. The accounting department tracks their sales and cuts their commission check at the specified time.

A person who becomes involved with a network marketing company has to meet certain requirements to receive a commission. One of them is that they must also be a consumer of the product. Commissions come from two sources, sales to customers and bringing in other distributors who also use and sell the product. It’s very important to study the pay plan and know what conditions have to be met to receive commissions. It’s also important to know how much commission you’ll get at each level of the pay plan.

At any one time there are about 2,000 network marketing companies to choose from. Choosing the wrong company can result in all of your hard work going down the drain if the company goes out of business. For this reason it’s often suggested to choose a company that has been in business from 2 to 5 years. There is also a risk of not finding other distributors that share the passion of building their network marketing business opportunity into a livable income stream.

Compare a network marketing business opportunity to a regular traditional business. Most regular businesses don’t start off at the multi-million dollar level. All the tools have to be developed and the product line purchased independently. If a warehouse and shipping is needed, the business owner has to get it and pay for it.

The business owner often starts out handling the customer service and if profits permit they hire someone or farm it out to a company. They hire legal services, accounting, research and development as necessary. They usually manage the business even if they have no experience in managing that type of business.

The owner of a regular traditional business is alone to make all the decisions. There isn’t anyone who can share his or her experience or give advice. When sales are made, it’s up to the business owner to see that the customer receives their purchases, pays for them and that any problems are handled promptly. If commissions are paid on sales, the business owner is responsible for seeing to it that they are paid promptly and accurately. There is a lot of work in running a regular business successfully.

Most traditional businesses are full time businesses with employee headaches, various taxes and overhead. There is little relief in a traditional business. In all types of traditional businesses the failure rate is 90% in the first five years.

Some people believe that a franchise provides an easier route to business success than a traditional business. Franchises can be very expensive because of upfront franchise fees and ongoing fees and percentages of sales that the franchisor sometimes requires. Depending on the details of the franchise, some of the same services offered by the network marketing company are offered by the franchise, such as research and development, legal, and warehouse. Although training is provided, the services, not offered by the franchisor are the responsibility of the franchisee.

There is still a lot of work involved in running a franchise successfully. They are usually full time businesses with all the employee headaches, various taxes and overhead, including franchise fees. Depending on the contract, if the franchise fails to make a certain profit, the franchisor can force the franchisee to take actions such as advertising to increase business. Also law suits can arise when the franchisor and the franchisee don’t agree.

It’s the training and business experience that people receive that help them succeed with franchises. Still franchises can be a tremendous amount of work. There’s no guarantee that the franchisee won’t go out of business. Unless you’re investing in one of the top franchise opportunities, the risk is still there for failure. Considering the investment in time and money to get started in a network marketing business opportunity, it’s a better investment than either a traditional business or a franchise.