Two thirds of people across the U.S. are considering doing a business from home.
Imagine a national news program in the works to present those folks with some options: “How to choose a home based business.”
Twelve people will discuss different home business options, from franchising to catering to an Internet business. You are one of the twelve. Your topic: Direct Sales and Network Marketing.
Here are the two questions they want you to answer in as few words as possible, and in language a 13 year old can understand:
1. What are the three greatest advantages of doing a direct sales/network marketing business?
2. What are the three greatest disadvantages, or if you prefer, the three biggest red flags to watch out for?
Advantages:
–you can start a business affordably (compared to franchise fees of >$50,000 or more)
–you can benefit from business infrastructure already being present (web sites, products, supplies, communication lines, etc)
–over time, you can develop consistent passive income based on your work, customer base, and sales team if you decide to grow one.
Disadvantages:
–many people distrust network marketing companies and you will need to deal with this in your work
–some companies do not pay as well for customer product sales as they do for ‘new distributors’, and your upline could be less willing to help you grow your customer base (if this is what you want to do).
–some companies insist that all representatives use the same ‘sales’ techniques, which badger others into ‘joining’. You need to examine the marketing techniques the company uses, and make sure these are ethical (just like with ANY organization you might join).
Best wishes,
Pam
http://www.shop-online-and-save.com
drpam.networkmarketingcentral.com
1)
-You do a job once and can can potentially get paid on that activity forever
-You have a sponsor to teach you how to market the products to the end consumer, and how to build a distributor team
-The people in the industry are some of the best people to hang out with because they read and do the same stuff as you!
2)What to watch out for…
-A sponsor that provides no support
-A sponsor that treats you like a “number” and not a person
-Signing up into a program before you know how you are going to build it…I.E. The question you should as is “How am I going to build this business…what do I need to learn and how are you going to teach me?”
Advantages:
1.) Residual income
2.) When you have chosen a company with a comp plan that benefits “you” rather than the company, it is much more fun and easy than having a conventional business. Watch Walter’s… video clip
3.) The networking aspect – you’ll meet a lot of neat people.
I just have to include a 4th benefit… when people buy from a direct seller 70% of the money earned “stays” in the local community!!! Buy from each other!
Disadvantages/Red Flags:
1.) If you don’t hook up with a company who has a good comp plan that is in alignment with the person you already are you’ll be disappointed and loose money.
2.) Unless you go gang-busters in your first few months, it can feel like it’s a long slow haul. Tip: hit the ground running and be creative!
3.) Hype is a BIG FAT HAiRY “red” flag.
Pam captured most of the same comments I would have posted. I would add:
You are your own boss (advantage) which means you are responsible to manage your own time which some people cannot do well (disadvantage).
As with any business there are things you will have to consider such as how much are you willing to invest.
With franchises you will invest a large amount of money, but for that money you will be plugged into a system that has proven itself, but you will have to do everything the company says. You will also have to invest a lot of your time. You will also have a support sytem for dealing with things you don’t understand or need help with. If you get sick, in general, you still have employees that will working the business.
With a traditional business you will have to invest a fair amount of money. However, you have the freedom to operate the business as you desire (within the limits of the law). Most likely you won’t have a support system to help you handle things you don’t know or understand. If you get sick, at least in the beginning and generally, your business will not produce an income.
With a network marketing business you have the best of both worlds. You have a support system. You have the freedom to operate your busness as you desire (again within the limits of the law and the agreement you signed with the company). In general with a network marketing business if you get sick you can still receive an income.
The concept of network marketing is very simple.
How many times have you told someone “you gotta see this movie” or “you gotta read this book” or “you gotta try this restaurant”? Well, they take your advice and tell their friends and before you know it the book is a best-seller! That is how a network of people works.
Now, what if you got paid for every book, movie or restaurant you recommended? That would be great! What if you got paid everytime that someone you recommnended a book, movie or restaurant recommended it? That would be better wouldn’t it?
The biggest benefit of network marketing is creating an ongoing stream of income.
Every time an album is sold, the musician receives money. This is called residual income (specifically royalties). Every time a book is sold the author receives money. This is one of the basis’ behind network marketing – developing an income that that continues after the first sale.
As with any business you need to check out any company that you deal with some are better that others. Some have better pay plans than others. Some have products or services you can identify with. Check them out and check out their pay plan (this may take a bit of time to understand).
If you open a bookstore and don’t advertise it or ignore your customers and only run the register (if you don’t have employees) when you feel like it do you think you will make any money? How about if you do advertise and give each and every customers good service and are always ready to help them check out? Do you you think you will make money? Most likely.
Network marketing like any business will, at the very beginning require you to be on 100% of the time you set aside for it. It doesn’t matter if you do it part time or full time. If you don’t invest your time wisely and learn from the person that introduced you to the buiness.
Network marketing is not just about products and money. It is also about learning about who you are and developing yourself into who you want to be. This is another investment in time that you will have to make.
Network marketing will possibly be the hardest thing you’ve ever had to do. It can also be the most fun and rewarding thing you will ever do.
I feel that the 3 greatest advantages of direct sales/network marketing are:
1. You can work from home and not have to commute to work.
2. If you work hard for a few years, you will be making enough money to be able to take lots of time off after that.
3. You will meet lots of great people who will become your friends and family.
The 3 biggest red flags, in my opinion, are:
1. You must be able to manage your own time and learn to do the right activities. This can be hard for someone who is used to a J.O.B. and a boss.
2. If any company has in their Policies & Procedures that you must have “ongoing sales” or “ongoing sponsorship”, this means you can never retire. Make sure there is no clause that you have to do X amount of NEW work every X amount of time. If your contract says that, you can kiss that retirement you were looking forward to goodbye.
3. There are companies who have in their Policies & Procedures that they can terminate you at any time for any reason. You could build a huge organization and have it all taken away in an instant. Beware of these companies. That is not a secure financial future that you can count on. Look for a company that allows you to do the work right one time and pays you over an over again for it.
I could go on, but you asked for three. 😉 Read my blog for more tips.
~Roxanne Green~
Advantages:
1. We have time flexibility on a daily basis.
2. We help other people.
3. Because we are helping people, we can earn more than we would be able to with any other job.
Disadvantages:
1. It may take us a long time to figure out what to do (years, even).
2. Some companies fail and we then must start over.
3. We must be totally self-motivated and self-disciplined, which can feel lonely, especially at first.