Q&A: what is a network marketing company and what can it do for a small start up business?
by Derek Wilmot
Question by thomashonecker: what is a network marketing company and what can it do for a small start up business?
Best answer:
Answer by bonnieram1962
Thomas,
Network Marketing is not necessarily a specific company. Network Marketing is a form of industry in itself and many companies use its structure in their business. I am in Network Marketing and have been for about 25 years.
Network Marketing, also known as MLM is a business structure that is used in the duplication of hours worked in a business.
It allows anyone from any walk of life the ability to start his/her own business while working in that business on a part-time basis if desired by recruiting and training other members into their business.
You are paid not only for your own performance but also on the performance of other members you recruit on a continual basis, thus causing residual income.
Please don’t confuse MLM or Network Marketing with the Pyramid Schemes out there as the pyramids are illegal and only make money for people who enter the business at the top of the “pyramid”. In MLM, there are no limits to the top positions in the company and is actually in the best interest of the company to move you to the top positions as quickly as possible.
Network Marketing is a $ 100 billion dollar industry worldwide and is one of the fastest growing trends in home based business. More than 10 million people in the US are involved in a Network Marketing business. It allows anyone, from any background or education to create a significant income in a business of one’s own.
Many Network Marketing Companies are Fortune 500 companies, traded publicly on the Stock Exchanges and many are held privately. Mary Kay Cosmetics; Tupperware; Jafra Cosmetics and Avon are just a few well known and well respected companies using a network marketing / direct sales business model.
•Network Marketing has been written about favorably by major publications such as Forbes, Fortune, Success, Fast Company, USA Today and the Wall Street Journal.
There are many MLM companies out there and not all of them have a good structure. If you take the time to do the research necessary, you will be able to determine if an MLM opportunity is right for you and if the company is legit.
If you need further help understanding this structure or would like more help in learning how to research these opportunities, feel free to visit the Hub page link in my YA profile. I have several pages that are helpful in understanding MLM, how to avoid those online scams and what affordability really means in an MLM business. They are not company specific so they do not promote my business or any other. It is useful information that can help anyone who would like to learn how this type of business works and how to look for the right opportunity.
I wish you all the best in whatever path you choose. Feel free to email me if you have any questions or if I can be of any further assistance to you.
Bonnie Ramsey
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about 1 year ago
In addition to Bonnie’s answer…
Your question doesn’t state whether you have already started a business, have a business plan, or what you want to accomplish.
I believe that the benefits/liabilities for your start up depends upon a few key factors, which come around to YOU, and what you want in and from your business, there are any number of things network marketing can do for you personally and for your new baby.
BTW–Those two are ALWAYS both present in any new situation. One key factor is that you first consider, and commit to reviewing the results of incorporating new things into your personal life and business’ life. Those warrant MY personal attention constantly. Try to avoid bringing anything into either that you know you won’t be willing to change or let go of later. Priorities, priorities, and then revisit priorities… both personal and purse-able. Oh…and get some breathing exercises. I have a friend who has a marvelous cd THAT WORKS for several biz owners.
You may contact me by email if you wish.
Rots a ruck!!
about 1 year ago
Bonnie had a great explanation of the process.
As far as what it can do for a small start up, that depends on what your company currently does, and what type of network marketing company you plan to add to the mix.
Diversification in monetization is a very wise move. I personally use network marketing as one of several ways to monetize.
If you find a company that has a product that will appeal to your regular customers, then it could be a very wise move to bring it into your business. Just don’t try to promote candles to your health conscious customers….the two don’t add up.
Because you are already a small business person, you understand that it takes time, money and work to build a business. That knowledge is what the majority of network marketers lack, and the reason there is such high turn over.
If I misunderstood this post, and you are looking to START a network marketing company for your business/products, my advice would be to research, research, research, join a company and learn to build a downline, and make sure you have the capital available to supply product BEFORE you attempt this. Otherwise you will do what so many new network marketing start-ups are doing these days: growing too fast and going belly-up.