The good thing is there have been many authors over the years that have
written about network marketing- both inside and outside the field. One reputable example is Robert Kiyosaki, a
best selling author and entrepreneur.
Though hes not even in the business of network marketing, he is a
strong supporter of the industry due to the potential and influence it has. He offers his explanation for why this
industry presents the best chance of succeeding for anyone wanting to start
their own business. His claim is that
the model used in network marketing is similar to a franchising formula, which
can be counted on to produce satisfying results if you have the required
In order to further evaluate a network marketing business, its a good
idea to think about what starting a traditional business would look like. For instance, what would likely be the first
thing considered a requirement? If
youre thinking money, youre absolutely right. And if you dont have a lot to begin with, youll probably need
to find a bank as a resource. Before
the bank loans you the money, theyll of course require you to prove to them
that the business idea you have is a good one and that its likely to
succeed. Bringing your ideas to the
bank could even cost you money if youve paid for professional services to put
together the business plan. So before
youve profited anything, youve already spent time and money to help your
chances of getting the money for your business.
Once youve got the money you need from the bank by qualifying, then
what? For starters, youll need a
building to house your office, which means renting space, which means that
youll be required to put down a deposit of a month or twos rent. From there its likely that youll have to
sign a contract for a portion of your lease.
You can count on spending at least a couple of thousand dollars for this
process. Next, youll need to furnish
your new office with furniture and equipment.
This could range from hundreds to several thousands of dollars,
depending on your type of business.
If youve guessed that the spending doesnt end there, you are on the
right track. Insurance, taxes,
advertising, and legal fees are all part of the picture. You will probably discover that youll end
of paying for more things than you thought of the first time around.
Besides the high cost aspect, the amount of time that will be invested
is another part of owning your own business.
On average, the majority of entrepreneurs work about 60-80 hours per
week. Youll probably come to the
decision to hire employees to help divide the load. This could end up being more of a headache. The reality is its not their business, its
just their job, and so theyll never have the motivation to work as hard as you
do. And youll still have to cover for
them when theyre sick or late or out of town.
Another drawback to a traditional marketing business is all of the
outside factors such as: customers that
refuse to pay, competition, government regulations, and city circulation
plans etc. Any of these have the
potential to run you out of business in any given time. Its a fact that within the first five years
of existence, 90% of them go out of business.
With this kind of statistic, it can be a scary thought to invest
thousands of dollars to come to such an end.
On the other hand, a typical business in network marketing has much
less requirements. For starters, the
initial investment is typically low, usually under $500. Because you work from home, you wont need
to rent out office space. And you can
forget about the cost of extra insurance, legal fees or expensive marketing
advice. These things will be taken care
of by any respectable marketing company.
A nice advantage to a career in network marketing is that you get to
choose when and where you work. Another
good aspect is the leverage it offers.
If you sponsor others into your company they will each have their own
business. This means that they are not
your employees, and will have the motivation it takes to be successful. Youll have the potential to network
independent distributors in all parts of the world!
In conclusion, Internet marketing may not be the perfect business
opportunity for you. In fact, nothing
is perfect. However, by fairly
evaluating network marketing, its easy to see why some prefer it to
traditional marketing methods.