Alright! So in my previous blog I gave a detailed way in which an individual can carry out basic due diligence on the personal franchise business, specifically network marketing and then use that to help them determine which company and leadership to register under. I also demonstrated how precisely that is critical, as getting under the wrong company and leadership makes it very difficult to ever see long lasting success in this business.
Today, you will learn 10 reasons why you should be in this business that Robert Kiyosaki calls the “business of the 21st Century” is widely supported by leading speakers Anthony Robbins and Dr. Myles Munroe among others. It is also fairly easy to start and is suitable for both existing entrepreneurs and business novices. But do bear in mind that ease of starting does not take away the “work” involved and the discipline required – just like any other traditional business – to ensure its success.
This ease of starting is simultaneously its greatest incentive and its worst weakness. For those committed to success, network marketing provides the most powerful systems, tools and processes that exist in any business for next to nothing in terms of cost to the individual. However, for those with a “lottery” mindset, this ease makes it a terrible option and becomes its greatest weakness ensuring failure by those wishing to start the business as they do not treat it like a real business but like some form of lottery instead – put money in and “hope” to hit gold! It just does not work like that!
#1: Low Start Up Cost
For most companies, the cost to start ranges from $100 to $2,000 which you will agree is nothing considering what that investment comes with. Not only do you get products (for those that offer such), but you also access world class systems, tools and processes plus mentorship and coaching all in that price! Typical traditional franchise businesses cost of buying can range from $5,000 up to $1m!
#2: High Returns
For those that choose the selling route, this model offers immediate returns with incentives for royalties attached to those profits through building an organization of other vendors like you. This industry pays for two things mainly, that being the movement of products and the building of an organization through bringing in of new members.
#3: Unlimited Income Potential
This is where network marketing has its greatest returns. As one builds a large organization of users and business owners, the companies will pay a royalty on all volume generated by that group. With good comp plans, top earners in the world have been known to earn in excess of $500,000 a month with organizations built under 7 years with such paltry starting capital as mentioned above!
#4: Global Business
Depending on which company one joins, there is an opportunity to build the business anywhere in the world provided the company has means to service those regions or countries. This makes it a very exciting prospect for those looking to excel beyond their national boundaries.
#5: Anyone can do it
As Jim Rohn once stated and I paraphrase, “network marketing is the best example on the planet of grassroots capitalism because it allows anyone from any walk of life to use the one thing they have – their human capital (time, effort and value) – to create an enterprise that leads them to true financial freedom”.
#6: Minimal Risks
Typical businesses take years to establish systems and become profitable (minimum of five years) and that in itself is such a great barrier for most. With a failure rate of 99%, one is better off leveraging on an existing company with an established brand, products/services and systems that would be prohibitively expensive for the average person to invest in.
Unlike traditional business, network marketing can be built part time, full time or spare time. The entire system permits for all three time models to work.
#8: Powerful Support System
There are basically two systems to leverage when you get into this type of business. The first is the company brand, systems, tools and processes. If you join the right company (preferably international established brand), you save yourself massive effort on this part.
The second is the leadership under which you connect. If they have the right support through mentorship and coaching, you cut short your learning curve so that what you could achieve in five years can be done in half that time or less.
#9: Determine your own Income
Because the model is known, incomes are predictable – if one is willing to put in the corresponding effort. Thankfully that can be demonstrated easily.
#10: Ready Made Business
This is literally a plug-n-play business. You simply register with the appropriate fees and voila – you are good to go!
If you have read this and really would like to connect to a company I believe meets the four key factors I outlined in the previous blog plus offers you these ten advantages fair and square, then message me here and we can get going.
In spite of what the naysayers and critics may have to say about the industry, network marketing has grown into a respectable size and generates more income annually than the film and music industries combined. In fact, network marketing currently matches the income generated by the gaming industry, that being just under $200bn a year!
This industry has been endorsed by leading entrepreneurs of the day including but not limited to Sir Richard Branson, Bill Gates, Warren Buffet, Robert Kiyosaki and even President Donald Trump and of the list mentioned, some have even opted to invest in the industry too!
Like any other business, network marketing is “work” and will require the same attention and focus any other business requires. The unfortunate part for most people is that they were wrongly started or had gross misrepresentation from those who hardly understand the business itself and opt to use half-truths and exaggerations as a way to “recruit” peoples.
Besides all that, as an entrepreneur, I wholeheartedly recommend it. But before you get there, like all good habits, a bit of due diligence would be in order. For those of you not too familiar with the term, due diligence is the investigation that a business or person is expected to carry out before entering into an agreement or contract with another party or in this case, signing the dotted line and paying to start your network marketing business.
There are four things you must consider before you make your investment. These are critical to ensuring your long term success. It really does matter which company and leadership you get into. These four are the company, the pay plan, the position and the leadership.
Be careful with which sector of MLM you get into. Statistics show clearly that the most successful distributors and companies are in the anti-aging, skin care, health and wellness sector. These have consistently produced long term powerful and great income generating companies as well as income earners. This sector also consistently has the largest share of the entire business.
Furthermore, you must also ensure the company has solid business founders and systems, processes and tools to assist you build your business well. After all, you are leveraging off a large company so its critical systems exist and are robust and tested.
The company should also be preferably DSA (Direct Selling Association) or BBB (Better Business Bureau) registered and also have been in existence for at least 5 years. The top leaders (earners) should be at least among the DSN top 200 earners in the world. If they are not there but boast of being in existence for long (anything above 5 years), it means their “breakage” is terrible and you want to steer clear! Breakage can be defined as the amount of money that potentially would be coming your way had you been in a different and more favorable pay plan (more later).
Also, be weary with any company whose administrative work (processing orders and registrations, product importation and clearance as well as distributor management) is done by distributors rather than their own employees. This is an Achilles Heel and is a recipe for disastrous ends. Just avoid joining such companies until this part is being fully handles by company employees or agents.
The Pay Plan
If the company does not have a Binary System, it’s pretty much ancient and will make you work your back side off only to have most of your income go to the company. Binary is without doubt the best Pay Comp plan today. However, you need to understand some critical truths.
What is the cycling bonus? How many cycles a week? At what level is it capped? Do they pay any matching bonuses? Is there a leadership/royalty sharing pool? And most importantly, how is payment made? What systems do they use to pay? Are you interacting directly with the company or through third party agents or worse still the actual distributors themselves?
These are huge factors that can make a difference between success and failure.
What level are you coming in at? What is your timing? At what evolutionary stage of their growth trajectory is the company? Growing? Plateaued or declining? It’s the difference between riding a wave based on critical mass being achieved at the start or else, finding a company on its way down which will mean being stuck.
In my opinion, this is the “x” factor that can be the difference between 10x'ing your business and really growing into great income, or being stuck in MLM limbo. If you have a lousy leadership, even if the company, products, comp plan and position are great, it won’t help you much. So, the leadership for me is the ultimate factor.
Don't just join anyhow, especially if you are a professional. You want leaders that are making a huge difference with their support systems. That is the “x” factor that leads you to great incomes!
If you are reading this and really want to learn further about this business in a clear and concise way with no hot air or exaggerations, then simply click here.
Rev Walter Mwambazi
Author of "The 7 Principles for Financial Prosperity", Life Coach, Facilitator, Peak Performance Coach, Digital Marketing Professional, Network Marketer, Health & Wellness Consultant, Pastor, Copy Writer, Motivation Speaker & Writer.