So What Precisely is Network Marketing?

First it will serve us best if we define what network marketing is, what multi level marketing means, and how direct sales fits into the equation.

Often unfortunately, the terms are used interchangeably.

A business which chooses to use network marketing decided to omit the traditional brick an mortar distribution model for one which is more personal through a member network. It is ordinary for such businesses to also have a multi level comp plan which pays out to the network on more than one level, but this does not apply to all.

So you can see from this definition that all MLM businesses are in fact using the network marketing distribution model, but the opposite is simply not the case. There are many network marketing businesses which decide to just pay their customers with a simple one or two tier comp model, and they can be enormously successful.

Obviously, network marketing is just a enterprise model, a distribution strategy, and it really amounts to “micro-franchising”. The advantage for the network is that the enormous expense connected with a brick and mortar franchise can be minimized, and it offers a enormous upside potential.

A true win win if done right.

Here are the main advantaged for the member in a network marketing group:

* as a rule very low start up expense
* for most there’s a enormous upside potential
* personal development and enterprise training included
* no employees to worry about until very successful
* no knotty book keeping required
* flexible work schedule, work when you want
* choice of who to work with, work with who you want
* not tied down to one location, work where ever you want
* no boss to hassle, demean and aggravate you
* amazing tax benefits – keep more of what you make

Of course to go along with the benefits, there are things to consider that make direct sales. The top three potential down side to consider when looking into starting your own enterprise.

* must be responsible to your self
* you must be self motivated
* must be creative in solving problems
* is your house too noisy?
* must rely on yourself for motivation, focus
* must learn to keep reasonable documentation

Personally I think the advantaged far out way the downsides, but the fact of the matter is not everyone is cut out to be an entrepreneur.

Network marketers who are serious about building a enterprise should be treating it like a enterprise and do what other successful entrepreneurs do to build their enterprise.

What is that, you ask?

If you study the success habits of top leaders in any industry, you’ll discover that all of them are constantly reading and learning about enterprise essentials, staying current on the latest sales and marketing strategies, and spend time hanging out with and networking with their peers. They are constantly striving to create more value which will in turn enhance the bottom line.

Treat it like a enterprise, and you can create massive success.

Treat it like a hobby and go broke.

It’s as simple as that.