Consider this before joining network marketing
If you are living in the current world it is highly possible that a friend, colleague, family or even a stranger has pitched for you to join a network marketing company. In most cases the pitch invitation seems too good to be true and an easy way of making money. So, what is the real deal? In all honesty, network marketing industry it is not easy as how it is made out to be. Therefore, people turn to label it as a pyramid scheme or scam because of misinformation.
As Ray Higdon say, “If you are sceptical about large pay-outs and big passive income with little to no work, well, congrats, you should be.” The emphasis here is ‘little to no work’ this is far from the truth. Network marketing business it is not a walk in the park; that is why many people do not survive long in this industry. Because no sooner they are in then they realise that there is actual work to be done in building the business. Many a time you find that this piece of information is withheld from the prospect. Hence, I am going to share some truths about network marketing in the hopes that you make a knowledgeable decision before diving in.
Change of Mindset
Before I jump in, it is important to know that for any change to take place one needs to work on the mindset. Network marketing is an unconventional business and yet the fast-growing and recognised globally. You will not do well if you come into network marketing with the mindset of a conventional nine to five job. A mental shift must take place and be able to think broadly and out of the box. That being said, here are the realities and things to consider before embarking on this business.
Network marketing business model start-up cost is relatively low and little financial risk can be incurred. Unlike traditional businesses where you have to build a company from scratch and have a brick and mortar premises or a ready-made business like a franchise. The start-up cost of these businesses is relatively high compared to a network marketing business. You do not need to have premises to run the business. Therefore, no worries about renting an office space; the business can be conducted in the comfort of one’s home. There is no need to have specialised skills, however, being techno-savvy can work in one’s favour. So, if all does not go well, financial loss is at a minimum.
As Ray Higdon mentions in his article “Ever watch Shark Tank? You get a glimpse as to what it takes to run a business. You will hear things like trademark attorney, supply chain management, commercial overhead, outsourcing, research and development, etc. Well, you don’t need any of that to start a business as a network marketer.”
Network marketing grant an opportunity to people who endorse a certain product or service to share with others and thus allowing them to grow in the field and make residual income. In network marketing you just have to focus in building your team. There are no complex situations that comes with traditional businesses.
Management of time is an important aspect of any business. It is not different in network marketing as well. You need to know where you are going before you can take the journey. Hence the importance of goal setting and having a schedule. More about time management in my previous article.
As I have stated earlier no special skills are required to be a network marketer. Nonetheless, training is of paramount requirement in understanding the business you are representing. You have to be willing to learn and be coachable in order to grow as an individual, and as a team leader. So as to accomplish the set goals. Network marketing business model is growing globally and drastically, becoming popular even though many people still do not understand it. If you are driven, then network marketing is for you.
Nature your network marketing business
This simply means take the time to know what is going on. Be educated about the product, service or opportunity and the company you are representing and presenting to people. Again, Ray Higdon states that some network marketers pitch horribly, and are spamming social media with pompous posts of huge pay-outs in a short space of time and doing little to nothing. Furthermore, he says that new entrepreneurs need education, with no proper training to adequately represent the opportunity they are bound to learn the hard way. To avoid this, that is why it is important to nature and learn about the business.
Teamwork in Network Marketing
Network marketers work best when working in teams and when teamwork is the order of the day. Consequently, in this regard the saying teamwork makes the dream work is true to form. You cannot work in isolation indefinitely otherwise the industry would not be ‘network marketing’ in this business you need people as the fish needs the water. It can be overwhelming in this business, feelings of self-doubt, or the thought of giving up wreaks havoc in one’s mind. When support systems are available and in place, you know who to turn to when afflicted by uncertainty. Unfortunately, not all network marketing companies or teams in network marketing offers this invaluable support.
Network Marketing is not a Pyramid Scheme
As Ray Higdon states in his article, “Those that don’t understand how to explain it or hound their friends and family with the “next best opportunity” can definitely create some sceptics that instantly think pyramid. But again, this is just because of improper experience and training of the reps, not because of the actual model. A pyramid or Ponzi scheme operates on the principle of “robbing Peter to pay Paul.”
As a result, this renders pyramid schemes illegal and its operation does not last long. In the same vein network marketing is a legitimate business model. The structure might resemble a pyramid scheme but if one takes a closer look in any of the traditional businesses and corporates, one will find that there is no business that is not structured like a pyramid scheme. To distinguish between a pyramid scheme and network marketing, look at how the company pays. If it pays solely for recruiting, then there are red flags.
However, when you do find a concrete company that pays based on the sales of products or services you and your team provide, then this is the perfect way to make another stream of income.
Establishment of the company
Another point, when considering to be part of network marketing it is important to know how long the company has been in operation. This though does not guarantee that the company will be around in the long run. Seemingly, you do not want to join a company that has been there for too long and promoted immensely. For ideal results join a company that is established but still has room to grow.
Is the compensation plan good enough?
Ultimately, this is the primary factor that attracts us to the company to begin with. So, you do not want to waste your time promoting and representing a network marketing company and its products or services if the financial rewards are not up to your standard.
To end, network marketing is not for the fainthearted, it is work and needs to be treated as such. How you put in the effort in your work will determine your pay cheque.