If you are searching around online and thinking to yourself why network marketing? My goal is to shed a little light on this subject for you.

Network marketing is a proven business model that allows the average person to begin his or her own enterprise with very low investment compared to traditional business models.

In this article we will review the real reasons why network marketing is the best most leveraged way to gain wealth today.

We will also examine briefly why network marketing seems to have a negative view amongst some people.

Why Network Marketing is so appealing

There really are many reasons that this business model is so attractive, but the big reasons are leverage, and residual income.Why Network Marketing

The dream of being a business owner is that you will have a company that runs for you while your off enjoying an exotic drink on the beach somewhere.

Network marketing is a business model that typically allows you to get started with low capital for usually under $500.

Considering the average McDonald's franchise initial investment is as much as $1.9 million, you can see right away why network marketing is so attractive.

With the average cost of joining a network marketing company being so low, the little guy can get involved, work hard and make a living just as any business owner using a more traditional manner.

Why network marketing provides leverage

Let me ask you, how man hours a day can you work? Well if you didn't sleep you could work 24 hours a day right?

Now lets say you have a business where you have 10 people who all work 24 hours a day and are doing the same thing you are, that's 240 hours per day right? Do you see the magnificent power of leverage here?

Leverage is what all business owners are seeking and why network marketing is a great choice for business. Let me give you another example of why network marketing leverage is so good.

Lets say you own a landscaping business and you by yourself can cut 2 lawns per day, and make $50 each job for a total of $100 per day.

Now lets say you hire an employee to cut 2 lawns per day in addition to the 2 lawns you cut, and you pay him 50% of your total income from the jobs he does for you.

At the end of the day, he makes $50 and you make $50 in addition to the $100 you make by cutting your 2 lawns. You would end the day with $150 in your pocket and you still worked the same amount of time.

Now take this and hire 100 employees that you pay $50 per day to cut 2 lawns with the same terms and you now make $5000 from your employees.

Now this is in addition to the $100 per day that you brought in, and now you have made a grand total of $5100 for the day for the same amount of work on your part.

Powerful huh?

That is why network marketing is a business model of leverage, you can have a lot of people doing a little bit, and make a significant income in the process.

This essentially is the same as every other business model out there, but with significantly less capital risk involved.

Why network marketing is good for residual income

The concept is simple for residual income. Make a sale once, and get paid over and over and over on the same customer.

How does this work you might ask?

Basically once a person likes and uses a product faithfully, they will continue to buy it over and over, month in and month out which will provide you a recurring income as long as the consumer continues to buy the product.

Now let me ask you, how many times do you brush your teeth? Every day hopefully! 🙂

When you run out of toothpaste what do you do? You go and buy more, and usually you will buy the one that you like the best.

So basically that toothpaste company is making money each time you buy a new tube of toothpaste each and every month. That is exactly how it works in network marketing.

You can earn a residual income not only on your personal sales, but also the sales of the distribution network you build essentially providing you years of residual income as long as people continue to purchase the product.

Residual income is a wonderful thing when you grasp the concept of it and network marketing is the perfect model for some one with low investment risk.

Why network marketing has a bad reputation

This industry as awesome as it is, has a bad reputation among some. Just as in any industry there are people who do business in unscrupulous ways and fashions. This is evident all types of business models, not just network marketing.

For whatever reason network marketing seems to get more attention than most traditional businesses because the average person with no business acuity and mindset doesn't have the wherewithal to make it work, so rather than blame themselves, they blame the company.

Now don't get me wrong, I am not saying all company's are little angels in how they conduct business, but the average compensation plan will work if you work it. That's the key, you must work it!

Rather than sit here and try to explain to you why I think a lot of people fail in this industry, let leader and network marketing legend Mr. Tim Sales tell you why people become an MLM failure.

 

[youtube http://www.youtube.com/watch?v=FclI8hGQgb4&version=3&hl=en_US&rel=0]

Now its your turn, what do you think about this post? Comment below. If you like what read here share on Facebook and tweet it for me.

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Facebook Comments

    8 replies to "Why Network Marketing Just Makes Sense"

    • Brenda

      Mark – awesome content, and I love network marketing. It just makes sense and personally believe that as a persons grows emotionally the need to blame the company for your own non – results becomes less. Taking 100% accountable for your performance or non performace is a great sign of a mature /leading network marketer, who imminently will achieve huge success. Love what you stand for.. your on your way to the ….TOP.
      To your success
      Brenda

    • Wendy Elwell

      Mark,
      Network marketing is the only way to true financial success. Thanks for sharing such a great article about the good and bad about network marketing.

    • Weilin Chang

      Because network marketing doesn’t require an actual infrastructure people mistakenly think that it’s then must not be a legitimate business. Funny because the general public could accept internet business as a business, but not so much on network marketing business.

      Additionally, most people under estimate the skills required to succeed.

      However, looking at the statistics, the failure rate is identical to most starting brick and mortar business with way much less cost and have created more millionaires than any other industry. 🙂

    • Michael Berry

      Thanks for all the information Mark. Your post Why Network Marketing Just Makes Sense was great! I would love for you to join my tribe prosperyourmind. If you do I will auto-syndicate you, if I haven’t already. Take care, Michael

    • Rex Harris

      Exceptional post! From a business perspective I believe there are a lot of times where people overlook the leverage factor in network marketing. I’m glad to see that you included that with this.

    • Nicky

      Great breakdown here Mark. As the saying goes – “I would rather have 1% of 100 people’s time than 100% of my own”. Great post.

    • Richard Brokenshire

      If you can make network marketing work then it is the greatest thing since sliced bread! If you area having difficulty with the business then get good, really good at one skill! THE INVITATION! If you can invite people to see your company’s plan, you can always find someone in your up line who would be willing to do the presentation for you. You only have to get good at that one thing to make a successful business. And this is duplicateable.

    • Brock Blohm

      Agreed.
      Just blows me away that this industry has a ‘bad reputation’. Seem to be a lot of closed-minded individuals out there.

      It is to everyone’s advantage to partner with a network marketing company. Just the tax-breaks alone are worth it, not to mention the fantastic products/services and the income opportunity. A no-brainer if you ask me ;).

      Thanks Mark

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