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Tuesday, January 4, 2011

Network Marketing—The Best of All Worlds by Janet Callaway | The Natural Networker

What Worlds? The worlds of generating an income. Let's face it, unless you marry money or inherit money, you are going to need to do something to make money. Let's explore the possibilities.

Well, you could be like most people and “get a job.” What that means is you check in some place every day, do certain tasks and then you receive a set wage for your actions. Having a job means someone other than you determines how much money you can make, when and for how long you can take a vacation, whether or not you can attend your child's recital, ballgame, scout event, you name it.

The plus side of having a job is, assuming the company does not go out of business or layoff employees, is that you will receive a paycheck every so many weeks. To put it simply, you trade your time for dollars. Many say the true definition of a “job” is Just Over Broke.

How about being self employed? Sounds good; sounds like you will be “in charge.” However, the reality is much different. Even though more people than ever before are starting a home based business or even a small business of some type, there are still some challenges. The first is you have to have an idea for your business. Next you have to develop that idea and plan for its implementation.

Most businesses, whether they are a home based business or a retail establishment, need some start up money. If you have employees, your business will need even more money. Yes, you will be in charge, however, it is not too likely—at least initially—that you will have regular paychecks for yourself nor is it likely that you will be able to schedule your own vacation. To make a success of your own business, you must have or develop discipline to take the necessary actions on time. Are you disciplined?

Speaking of disciplined, this is where owning a franchise sounds good. If you own a franchise, there are set procedures you have to follow. You do certain things in a certain way and at a certain time. While owning a franchise has broad appeal, again there are some significant hurdles. Most all franchises require the payment of an upfront fee to purchase the franchise license as well as a monthly franchising fee. If it is to be a restaurant, auto parts store, retail establishment or some other business that requires a building, you will have both upfront costs as well as ongoing costs. On top of that, if you have employees, you have the hiring/firing issues as well as ongoing payroll costs.

Don't misunderstand me; franchises are great. For a price they give you a business model and a system to follow. Good franchises have a support system in place and do provide ongoing assistance. Also, you know the average amount of money a person generates and nets with a certain franchise.

To recap, a job gives you a consistent paycheck; your own business gives you some control and a franchise gives you a business model with a proven system. Let's look at one more option that has proven itself for over 100 years. In the article The Recession Proof Business That's the Last Bastion of Free Enterprise I give you a bit of the history of the network marketing industry and what experts say about it. Take the time to read that article so you will have the foundation for my next statement.

What makes the network marketing industry such an excellent way to generate an income is the fact that it combines the best elements of each of those mentioned above. Let me explain what I mean.

When a person develops a solid network marketing business, like a “job” they receive a “paycheck” at a set time each month. Thus, they can budget because they know how much they will be receiving. Unlike a “job” if a person who builds a network marketing business wants to make more money--a “raise”-- all they have to do is take more correct actions and their income will immediately go up. They don't have to wait for someone to decide if they should receive more money or if there is enough money to pay them more money.

Like someone who is self employed or owns a home based business, a person who builds a network marketing business is in control. Unlike a person who is self employed, the network marketer leverages the efforts of others to achieve more. One person, no matter how talented, can only accomplish so much and thus is limited in how much can be made. Again, that self employed person is still trading time for money. The network marketer leverages the efforts of team members as they all work together to reach their goals. The good news is, the team members are not employees due wages.

Now let's compare a franchises with a network marketing business. A franchise is a business model with a system to follow. It requires an investment upfront as well as monthly expenses. In a typical network marketing business, a person pays a nominal (usually less than $100) and is in business. When I say in business, I mean exactly that. The membership or distributor fee, gives the network marketer a catalog of products or services; the company takes care of everything else. The company manufactures, warehouses and distributes the products/services. It takes care of payments from customers/clients as well as pay the distributor and other team members. It is a complete “business in a box.”

Network Marketing = residual income + control of your life with a proven business model. Now, what's the question?


  1. I choose to own my own business very early in life. It was a sound decision and I could not be happier I did. What I learned after 20+ years of owning my retail business was I had no leverage. That is why I made the switch to Network Marketing. I now have the leverage I was missing all those years.
    Great article Janet!

  2. It's a whole new way of life, isn't it, Gidget?

  3. Great article! Network marketing is a terrific business model especially when you have great partners and a solid company.

  4. You're so right, Nancy. That's why it is so important for people to spend the time selecting the company--the same as if they had their choice for companies to work for in traditional business. Great partners and a solid company make all the difference.