Network marketing business is one of the best ways to keep your business life profitable and make a perfect fortune. Well, there is a talk in the marketing world that network marketing can be kick-started with a low investment. It’s a truth, and however, you need to be keen enough to make that investment. Let’s see how things flow in network marketing business and what exactly does it offer with a small investment.
Network marketing is one of the best business ideas with low investment but, one has to be very careful before making that move. It’s a common myth that anyone who has the least knowledge about the network marketing can join in and make a fortune as mentioned above. Forget about the myth and come back to the real world where you have seen up and down of this marketing world. If you have good leadership and influence marketing qualities, you are good to go with the business part.
The other option for you will be joining a reputed MLM company as a representative, and there are many such reputed companies in the world market.
Join in with a small enrollment fee or basic package and make your own network, spread it with your marketing abilities. When you refer more and more to the system, you get more and more contacts. These contacts are too valuable that you cannot ignore them at any stages of marketing life. They come in handy once you get good exposure and start your own firm. Become a boss of your own business. Recruit an efficient team under you, they will make the business progressive and deepen up the downline users. A regular flow of income will be received in the form of commission and bonus. Once a certain target is achieved you can upgrade to the next level and improve the potential earnings.
Things to consider while starting your own network marketing business
There are many things that you have to plan properly when you start such an initiation i.e. your own business. You probably need to prepare for it before engaging in the system and the business. Go through these points for best results and as a to-do list.
- Do a proper market study (connecting in past, present, and probable future scenarios)
- Improve your soft skills
- Prepare a proper business plan
- Take the help of a reputed consultant (as guidance and analyzing)
- Prepare your compensation plan with the help of a consultant
- Identify your vision, mission, and milestones to achieve
- Analyze the profitability
- Do a feasibility study to recruit a talent professions
- Buy an efficient MLM software
- Identify the customers and understand them
- Understand more amount the advantage and disadvantage of MLM business etc.
Probably there are much more to check out. Then, you’re set to go!
Pro’s to check while starting a network marketing business
1. Huge income return
The income returns you earn after forming a successful network marketing business is very high. Network marketing business can generate profits just as large, and in some cases, even more, than a business model that takes hundreds of thousands or even millions of dollars to invest in. You also have a chance to earn a residual income once you have reached certain levels.
By leverage, it means that use of a small initial investment to gain a very high return in relation to one’s own investment.
The initial cost to start a network marketing business is comparatively low. You can start an MLM business with $100 or less.
You need to invest a relatively small amount of time to build your business.
The cost of rent, inventories, etc. is less than what you require for some other traditional business.
3. Unlimited freedom
Here in MLM, you have the complete freedom to make decisions regarding:
- When and where to set up company?
- How long you need to work?
- Who can be made as your downline members?
4 .Tax efficiency
If you are the owner of a network marketing company, you need to pay tax only after deducting the expenses from what you have earned. But if you are an employee then you pay tax from what you have earned only them you can spend money on your expenses. Businesses have various tax advantages over ordinary employees. Note that tax laws differ from country to country, from state to state.
5. Easy Entry
The entry into network marketing business is easy since:
- You don’t require any particular educational qualification or certification to do the business.
- You don’t require any sales experience to start this business. You don’t need any form of business background.
- You can follow your own tactics to do the business. There are various online and offline resources to support you.
6. Personal Development
A network marketing company helps you to develop your set of skills very efficiently. As your business grows, you will have an opportunity to meet many people, sell products from different reputed brands, create big connections, do international business, etc.
Cons of starting a network marketing business
1. Less success rate
Due to the lack of proper planning and implementation, many of the network marketing companies will end up in failure. Many people consider it only as a secondary source of income and may not be willing to spend time on it. This, in turn, results in degradation of the company.
2. High rejection rate
If you are doing the business for the first time, there is a great chance that you will face a lot of rejections. Many people will not believe you at first. This is because of the fear of pyramid scheme pertaining in the market. At the initial stage, your potential business conversion rate will be only 1%.
3. Time to grow
Sometimes, it will have years to build a strong basement and earn a proper income return. Building an efficient downline tree and making them capable of work will take time. Also, convincing the people about your products is not an easy task. You will need to consistently market your products and business and keep going for some time until you are established.
4. Inexperienced members
The members you are recruiting will not even have a basic knowledge of this industry. You will need to provide the necessary training and workshops before making them do business. Remember if they are not able to convince the customers of the products then slowly you will start reducing your potential customers. Also, one member having a negative approach can affect the entire members under him.
5. Misinterpretation with pyramid scheme
There are many illegal MLM companies that are scams in this industry. First of all, you should be able to make clients feel that you are not scams only then you can build a successful network.
Before entering into network marketing business, have a look at the top 100 earners who have climbed heights in MLM.