So What Exactly is Network Marketing?

First it will serve us best if we define what network marketing is, what MLM means, and how direct sales fits into the equation.

Usually regrettably, the terms are used interchangeably.

A business which chooses to use network marketing determined to omit the established brick an mortar supply model for one which is more individual through a representative network. It is ordinary for such companies to also have a multi level compensation plan which pays out to the network on more than one level, but this does not apply to all.

So you can see from this definition that all MLM businesses are in fact using the network marketing supply model, but the opposite is simply not the case. There are many network marketing businesses which prefer to just pay their representatives with a simple one or two tier compensation model, and they can be hugely lucrative.

Evidently, network marketing is just a business model, a supply strategy, and it really amounts to “micro-franchising”. The benefit for the network is that the huge price linked with a brick and mortar franchise can be avoided, and it offers a huge upside prospective.

A true win win if done properly.

Here are the main benefits for the representative in a network marketing group:

* usually very low start up price
* for most there’s a huge upside prospective
* individual development and business training included
* no workforce to worry about until very lucrative
* no problematical book keeping required
* flexible work schedule, work when you want
* choice of who to work with, work with who you want
* not tied down to one location, work where ever you want
* no boss to hassle, demean and aggravate you
* amazing tax benefits – keep more of what you make

Of course to go along with the benefits, there are things to consider that make direct sales. The top three prospective down side to consider when looking into starting your own business.

* must be responsible to your self
* you must be self motivated
* must be creative in solving problems
* is your house too noisy?
* must rely on yourself for motivation, focus
* must learn to keep reasonable documentation

Personally I think the benefits far out way the downsides, but the fact of the matter is not everyone is cut out to be an entrepreneur.

Network marketers who are serious about building a business should be treating it like a business and do what other lucrative entrepreneurs do to build their business.

What is that, you ask?

If you study the success habits of top leaders in any industry, you’ll discover that all of them are constantly reading and learning about business basics, staying current on the latest sales and marketing strategies, and spend time hanging out with and networking with their peers. They are constantly striving to create more value which will in turn enhance the bottom line.

Treat it like a business, and you can create massive success.

Treat it like a hobby and go broke.

It’s as simple as that.