Network MarketingIn this post we take a brief look at whether network marketing is a profitable industry and what it takes to achieve success. We are not looking at a specific opportunity, but network marketing in general.

 

An online search will reveal that there are many people prospering in network marketing. Some have become exceedingly rich.  But is it attainable for the majority of people looking to start their own home business?

 

One must remember that it takes a lot of work to start your own home business.  This means a lot more than working for someone else in a job. In a job you get paid at least for meeting a certain minimum standard.  In network marketing, if you do not produce, you get nothing.

 

So, one has to put in a lot of effort in the beginning and most times not too much happen at first.  What is required is perseverance.  To make network marketing profitable you need the drive to keep going.

 

But personal drive is only one ingredient required to make things happen.  It has to be combined with good training and, of course, a good product. Make sure your network marketing company provides good training.  That is, how to run a home business, how to recruit, and how to build and motivate a team.

 

With a network marketing opportunity income is generated in two streams.  Firstly, commission from personal sales of the product, and secondly, from the sales of your team members.  While the first stream can generate a reasonable income, recruiting and motivating a big team is paramount in making network marketing really profitable.

 

Something else to keep in mind is that it is better to have product with wide appeal. Marketing to a small niche may limit your income.

 

I like to divide network marketing into traditional and top tier.  With traditional the product cost is relatively small and therefore the commission as well. To make it hugely profitable you have to build up a big team and income is distributed over time.  With top tier the cost of joining (product included) is upwards of $1000 and the commission usually 50%. With these opportunities you will get less people interested, but the high commissions make up for it.  Also, with the big upfront income you do not have to build up and rely on a big team as with the traditional approach.

 

The internet is also making it easier nowadays for “ordinary” people to be successful and profit in network marketing. With “old school” network marketing you rely on personal contact, one-to-one or speaking to groups. This is limiting in the amount of people that one can reach and usually requires a magnetic personality to really attract large numbers of recruits.

 

With the Internet you can reach a much bigger audience much sooner and can attract people to you by being of service, and not necessarily by having a special personality (although it may help ;-)).

 

Successful new generation online network marketers also expand their product line.  They sell training modules and other online tools that can assist other marketers, even if they do not join their opportunity.  This income could cover one’s marketing costs, but can add up to a substantial income, on par with income generated from the network marketing opportunity.

 

Is network marketing a profitable industry?  It is clear that a person with the right attitude and drive, equipment with the proper training and tools, and a good product, can achieve immense success.  Most importantly, this can be achieved with a relatively small financial investment.

 

 

To your success

 

 

Johan

 

PS  If you are considering joining a Network Marketing opportunity, check this.

 

Related posts:

  1. Network Marketing And The Power Of Leverage

Leave a Reply

Your email address will not be published. Required fields are marked *


*