In 2017, the network marketing industry made approximately $34.9 billion in sales.
Perhaps you’re reading this article because someone has told you about a network marketing company and asked if you’d be interested in the opportunity. Or, perhaps you’re just looking for the answer to the question, “What is a network marketing company?”
In this blog post, we’ll go over what a network marketing company is, and help you decide if it is right for you. Read on for more information!
What is a Network Marketing Company?
So, what exactly is a network marketing company? Well, it’s known by many names, including MLM (multi-level marketing) and direct sales. In a network marketing company, there are two ways to make money. One is from selling the products. The other is by recruiting others to join.
Once others join underneath you, you’ll then make money from their sales. This is why some people erroneously refer to network marketing as “pyramid schemes,” because each person makes more money the more people are underneath them.
However, network marketing companies are perfectly legal and therefore are not pyramid schemes. Instead, they all sell legitimate products that many people swear by.
What Products Does a Typical Network Marketing Company Sell?
There is no typical network marketing company, and as such, there isn’t a typical product. They can sell many different types of products, and there isn’t a one-size fits all. That’s why if you choose to join a network marketing company, you’ll want to choose one that sells a product you believe in.
Network marketing companies can sell anything from make-up to jewelry to clothing to weight loss products, gas and electric services and cellular services. If there’s a niche for it, there’s probably a network marketing company who is selling a product for it.
How Much Does It Cost to Join a Network Marketing Company?
As it costs quite a large sum of money to franchise a new store or restaurant under the name of a popular chain, some might mistakenly believe that this is the case for network marketing. But that isn’t how network marketing works. And since a network marketing distributor selling products isn’t considered a franchise, the initial investment isn’t super costly.
One of the best things about network marketing is that the business opportunity provides you a very low initial start-up cost. Depending on the business you’re working with, you may have an incredibly low start-up cost, such as under $100.
Some companies may offer different level packages to help you get started, with more premium packages costing you a little bit more money.
But, bear in mind that you are starting a business in which you’re a business owner. Therefore, there will be other expenses involved. In this case, you’ll have to pay for training on the products, material for advertising and a few other bits along the way.
The beauty of network marketing is that you don’t have to splash out to advertise, and you can begin with only a little bit of pocket money.
Can Anyone Join a Network Marketing Company?
In theory, yes, anyone can sign up for the business opportunity. But you want to make sure it is right for you before you dive in. Likewise, if you’re attempting to get a friend on board, you want that person to also believe in the business.
If you’re skeptical or don’t necessarily want to put in the work, you’re probably not the person to join a network marketing company.
Is It Just Selling to Family and Friends on Facebook?
Some people believe that network marketing is just selling to friends and family and Facebook, and aren’t keen on joining simply because of that. However, there is a lot more to network marketing than getting your friends and family interested in your products or opportunity.
Instead of selling to family and friends, you can branch out and sell to people you don’t know. In fact, some people are very successful with network marketing by working with their company, working with leads online and taking workshops and courses to make their business successful.
If you’re not comfortable selling to your friends and family, know that it is not a requirement to work for the company.
Do Network Marketing Distributors Have to Store Products?
Some individuals might be put off by network marketing because they believe they will have to order tons of products and try to sell them. Thankfully, this isn’t the case. And with the advent of the Internet, network marketing is even easier.
You don’t need to store any products at your home at all. In fact, you can operate completely by having people place orders online via the network marketing company’s website. Or, they can give you the money and you can order the products to your house.
Some companies will also have distribution warehouses where you can pick up the items and give them directly to your customers. This gives them a bit of a more old-fashioned salesperson feel and makes them see that you care about ensuring your clients are well taken care of.
Can You Work from Home?
You may still be wondering, “What is a network marketing company? Is it the work-from-home business opportunity many people talk about?”
It could be. Most everyone who works as a network marketer works from home. Unless you work for the company’s headquarters, you will work from your own home office. You may also work by going to fairs and trade shows to show off your products.
Most people, however, work mostly from their phones or computers, showcasing their products.
Is There Really Income Potential in Network Marketing?
While people sometimes give network marketing a bad rap, there really is unlimited income potential with network marketing. While it may not be achieved overnight, you can still earn an uncapped income. This means that you won’t have anyone above you tell you how much you can earn. You also won’t have anyone dictating what you should be doing or how you should go about it.
It may not necessarily be easy to turn over a sizeable profit with network marketing, but it isn’t impossible by any means. Many people do it and continue to thrive.
Is Working for a Network Marketing Company for Me?
Working for a network marketing company isn’t just about the model of the business, but the business itself. You need to believe in it and feel that the company has ethics and values that align with your own. If you do not like the company’s products or the way it handles certain aspects of the business, then you shouldn’t work with that company.
But, if you like a specific network marketing company and feel it could provide you with a good opportunity to move forward, then, by all means, go for it.
Network marketing works best for individuals who are well connected, who are natural salespeople and are optimistic about their products. If you don’t like what you’re selling, or think it’s of subpar quality, you won’t be motivated to introduce the product or line of products to family and friends.
But if you do believe in the company, it is something to consider.
Research, Research, Research
Not all network marketing companies are created equal. There are some that have seen mass exoduses of distributors moving from one company to another. Others have dissolved completely, leaving the distributors who worked for them full-time high and dry.
Before you commit to a network marketing company, make sure that you think they really have staying power. Is the company established? What do people working for them say? Are there complaints from other network marketers about the way they run the businesses or have large groups of people left?
All of these things are things to consider before joining a network marketing opportunity. Not only do you want to feel good about the products you’re selling, but you want to feel that the company is, in itself, secure.
What is a Network Marketing Company and Is It Right For Me?
Working for a network marketing company is a legitimate business opportunity, but it is up to you whether you’re the right person for the job. Many individuals thrive in this type of environment, while others find that it just isn’t for them.
At the end of the day, it’s up to you to choose which is best for you.
If you’re looking at other online based employment or working for yourself, visit our website’s list of online business opportunities. Find out how you can carve out your dream life in a way that’s best for you, and your lifestyle.
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