Wednesday, December 1, 2010

Why People Start A Network Marketing Home-Based Business

Network marketing has been around for decades since Tupperware. The business model is simple: selling common products such as beauty, kitchen gadgets, and jewelry to consumers through a home party plan format.

Even though there are thousands of direct sales and network marketing home-based business opportunities, why does it continue to attract so many people?

Because there are a lot of benefits to starting a home-based business. But there are also misconceptions about how easy it is to achieve success in network marketing. The reality is that it's not easy but achievable for the right-minded entrepreneur.

Let's start with the benefits of starting a network marketing business:

#1 Low start up cost as well as free or earn-your-kit options.

#2 There are no requirements. You can sign up within minutes online and start your business.

#3 Flexible schedule. Ideal for moms, working professionals, retirees and the opportunity is open to everyone.

#4 An opportunity to earn a great income from home without building a business from scratch.

There are other reasons why people start a home-based business too: including product discounts and socializing.

Network marketing is a great learning ground for budding entrepreneurs. Nearly all of the companies offer solid training such as product demonstration and how to book parties and so forth.

With the growth of the internet, network marketing companies are becoming more internet and social media sophisticated too.

But the best part in my opinion about network marketing is the personal growth transformation.

With the low entry cost, you'll benefit immensely from the free training alone, even if you never sold a product or recruited anyone.

Think about it. For a measely start-up cost from free to $10 and upward in the hundreds, it's hardly a financial risk. The risk often comes from overloading products which ends up in the garage or heavily discounted on Ebay. It's something you should stay away from doing.

Only buy what you plan on re-selling. And never buy products to promote to the next level.

With a home-based business you can cancel your business anytime. There's no long-term lease like a traditional business. The benefits typically outweigh the disadvantages especially if you tap into the free training. Not to mention the free products and trips you can potentially earn.

These are just some of the perks of starting a business in network marketing.

Now the dark side of network marketing that some don't want to talk about.

First, the idea of retiring from home or firing your boss sounds great as a recruiting spiel and great goals to aim for. But the reality isn't nearly as attractive as it appears or achievable for most.

Why? Because ...

As easy as it is to get into network marketing, it's just as easy to get out. In fact, it's not whether you've signed up that matter but whether or not you're actively building your business that determines your success.

Don't fall into the trap of how easy network marketing is because it isn't. You'll need to do a lot more than telling two of your friends and telling them to tell two of their friends and so forth.

Prepare yourself from the beginning with the right expectations. Learn everything you can about being an entrepreneur. Study the mind-sets of successful entrepreneurs and read business and personal development books to stay motivated. Learn business skills such as marketing and how to get leads.

Without new leads your business won't survive for long.

Starting a business by doing what you're excited about is just part of the success equation. If you practice on mastering the principles of success mind-set and marketing skills ... you'll go far in whatever business you choose to represent.

With the fierce competition from thousands of network marketing and direct sales opportunities not to mention traditional retailers ... you'll need to sell beyond your friends and people you know to have any chance of long-term success.

If you're not generating new leads every day ... my free 27-page Report might help you. Just enter your email on the right sidebar and you'll get instant access.

'til next time,


P.S. I just created a new Facebook Page. Will you do me a favor and "Like" it? Click here to Like it. Thank you so much :)


Boyd J said...

Networking is important in any kind of business anyway. When you're just starting and don't have a lot of customers yet, it literally pays to have lots of friends.

buy business insurance

Unknown said...

Which, of course, may require you learn new skills and actually a few things (sales and marketing) you are not comfortable doing in the beginning. So what is network marketing?