subject: Network Marketing Opportunities Or Multi Level Minefields? [print this page] Network Marketing is more commonly known as direct sales or multilevel marketing. The term "network marketing" was probably created to change the stigma against the term "multilevel marketing" because people often confuse this for pyramid schemes. In reality, network marketing is simply a business model and is really no different than franchising - although on a more micro scale. The model works like this: individuals sign up to be independent distributors of product which they sell direct to the consumer. They make money by recruiting other independent distributors, and their income (or lack of) is based on the success of those in their downline. It is not a get rich quick scheme and it actually a lot of very hard work. But it affords people the opportunity to work from home and own their own business, without the startup costs of operating a full store front. There are thousands of Network marketing opportunities, and it can be hard to choose the right one.
First, research the company. Have they been in business for more than five years? The longer they've been in business, the better. Some companies have been around for decades. Ninety percent of new network marketing companies fail in their first two years. So look for rooted, established businesses.
The nest step to finding the right network marketing opportunity is to look at the company's financials. Are they publicly traded or privately held? There are ups and downs to both, but novices may be more comfortable with publicly traded companies, who have a board of directors to answer to as well as the SEC. This way they are more likely to have the capital needed to reinvest in the company and keep your paychecks coming in.
Third, research the product. Is it a product people actually need? Want? Will use? The best types of products are ones need to be replenished on a regular basis. Poor network marketing opportunities would be things that people won't replace for years and years, like furniture. The product should never be based on a fad. You can't build a business of residual income based on a fad that will be dried up in a year.
Good network marketing opportunities have good training programs. Ask around. Find out how much information is available for free, how often the company provides web based training or local training seminars and if there is a mentoring program. Companies who are invested in the success of their people give ample training opportunities. Fly by night operations do not.
