Is network marketing a good business?
Have you ever wondered if network marketing is good business? Network Marketing is also known as MLM (Multi-Level Marketing). One of the first companies to introduce this model was known as Amway. There have been many companies that are using this method for promotions.
Let’s make it perfectly clear that this is an alternative way of promoting products by companies. Instead of paying huge amounts for advertising, they use the word-of-mouth type of marketing. Companies figure that if they give you the opportunity to pay for their products and also earn income, you are more than likely to stay with the company.
Most people seem to think that all you need to do is join and you will become an instant millionaire. Obviously, this is not the case. You can and will earn 6 figures a year, but this will require a commitment from the member. Most companies will provide a sales process for you to follow.
Many people are under the impression that by signing up with a well-known network marketer, they can enjoy the benefits of spillover effects. The overflow is created because most company payment plans are designed with matrices, usually 2 x 9 or slightly different. What this means is that you can only have 2 people on the first level and then everyone else goes to the next level. You will earn some money doing this. The problem is that it will not be sustainable in the long term.
What you need to understand is that this spill will need training, they will need answers to their questions, and they also need to be educated on how to promote their business. Do you really think your business will grow without doing anything? The hardest part of any business is keeping your associates happy by showing them that you care. Most established network marketers are extremely busy promoting the business and don’t always have time to keep track of all their members.
Network Marketing or MLM can be a very effective business model. Here are some things you might want to check before signing up. There is a good chance that your upline may not have time for you at times.
Ask yourself these questions:
1) Am I associated with a good leader?
2) Can all new members duplicate the marketing plan?
3) Is there live training and are they also recorded? Sometimes it won’t be available, so you’d like to check it out on your own time. Remember, you’re not ready to quit your job yet and you’ll need to do it part-time.
4) Does the compensation plan reward you for early success? There is nothing more motivating than being rewarded for your 1st, 2nd and 3rd sale.
5) Is the training easy to follow? Remember this is extremely important so your members can duplicate.
Network Marketing or MLM is a great way to be in business. Once you get established in this business, you will start receiving monthly residual income that can continue to grow to replace your current income. It will take some time but it is like any business where you have to establish yourself.