Is Network Marketing a Good Business?
Have you ever wondered whether Network Marketing is a good business. Network Marketing is also referred as MLM (Multi-Level Marketing). One the 1st companies to introduce this model was known as Amway. There have been many companies that are using this method for promotions.
Let's be perfectly clear that this is an alternative way to promote products by companies. Rather than pay large amounts in advertising, they use the word of mouth type of marketing. Companies figure that if they provide you with the opportunity to pay for your products and to also earn income then you are more than likely to remain 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 annually but this will require a commitment on the member's part. Most companies will provide a sales process for you to follow.
A lot of people are under the impression that by signing up with a well-known network marketer they can then enjoy the benefits of spillover. Spillover is created because most companies pay plan are designed with matrices usually a 2 x 9 or slightly different. What this means is that you can have only 2 people at the 1st level and then everybody after that spills over on to the next level. You will make some money doing this. The problem is that it will not be sustainable over the long term.
What you need to understand is that this spillover 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 actually think that your business will grow by doing nothing. The most difficult part of any business is to keep your associates happy by showing them that you do care. Most established network marketers are either extremely busy promoting the business that they do not always have the time to follow-up on all their members.
Network Marketing or MLM can be a very effective business model. Here are a few things you might want to check before you sign up. There is a good possibility that your upline will not have time for you at times.
Ask yourself these questions:
1) Am I associated with a good leader?
2) Can the marketing plan be duplicated by all new members?
3) Is there live training and also are they recorded? Sometimes you will not be available therefore you would like to review on your own time. Remember, you are not ready to quit your job yet and will need to do this on a part-time basis.
4) Does the compensation plan reward you for early success. There is nothing more motivating then being rewarded for your 1st, 2nd and 3rd sales.
5) Is the training easy to follow, remember that this is extremely important for your members to be able to duplicate.
Network Marketing or MLM is an excellent way to be in business. Once you become established in this business, you will begin to receive residual income on a monthly basis which can keep growing to replace your current income. It will take some time but it's like any business in that you have to establish yourself.
Gloss