Network Marketing

If you like the idea of starting a business with training wheels, consider network marketing.  Once you find a product you believe in, and a company that supports you, you will have a guide to business building 101.

What is Network Marketing

You may have heard bad things about network marketing, or multi-level marketing,  This model is often associated with pyramid schemes, but don’t let that deter you.  You will need to do due diligence but, if you are looking for a business opportunity that will allow you to:

• Supplement your existing income
• Allow you to be your own boss
• Let you work from home

a foray into network marketing may be a good place to start.

From My Experience

Back when my children first entered school, (this would be after my earth mother phase) I went looking for something meaningful and profitable to do with my time.  I wanted all the things listed above and, because cooking is a hobby of mine, I choose to join Pampered Chef.  Pampered Chef is just one of many possible network marketing companies.

How it Works

The idea behind the multi-level business model is: as an Independent, non-salaried participant, you are authorized to distribute the company’s products or services.

When you sell the product to customers, you earn profit plus commission based upon the volume of the products sold.

As an Independent distributor you are expected to develop your own organization by either building an active network of enthusiastic, returning customers who repeatedly buy your products, or by recruiting a downline of other independent distributors who also build their consumer network base, thereby expanding the overall organization.

I worked my kitchen tool business for a while and enjoy the perks. I sold primarily to my friends and their friends. I never tried hard to build a downline.  In my short tenure as an independent consultant, I acquired a kitchen full of quality products, many of which I still use, and I traveled a bit with the organization. (Travel being high on my list of personal values.)  After a while, I took what I had learned and moved on, no regrets.

Here are a few things I learned.

Make Good Choices

It important to choose a product that you believe in.  To start your business, you will need to connect with friends and family and convince them of the value of your product. If you don’t sincerely believe in your product, you will not succeed.

Choose Consumables

To maximize profit, choose a consumable product (i.e. vitamins, cosmetics, food, household cleaners).  The opportunity for repeat business is important.  Once you have a loyal customer base of people who will return regularly to replenish their supply, you will have created a steady income and a business that allows time to focus on continued growth.

Take Advantage of the Training

Look into the training program offered by the organization.  Network marketing can offer a valuable education in business building but not all companies offer extensive training.  While doing your research stay focused on your goals and don’t be swayed by hard sell recruiting.  Remember, as a member of someone’s downline you have value. Leverage that advantage.

Know Your Team

Speaking of downlines, every network marketer is recruited by a sponsor. Your sponsor will share in your profits and has a responsibility to work closely with you to both educate and support.  Choose your sponsor wisely.

Do Your Due Diligence

Lastly, and this is the hard part, make sure you understand the renumeration plan. In general, the plans are complex. It is your sponsor’s job make sure you understand how you will make money.  To evaluate a plan, calculate how long it will take to earn back your initial investment.  If it is more than a few

To get you started, here is a list of Network Marketing Companies

Conclusion

It is unlikely you will get rich joining a network marketing company as part of someone else’s downline. But you will learn to make sales, keep track of you finances, establish systems to make the work flow easier and, if you believe in your product, make the world a better place one customer at a time.

If you begin with the goal of learning what you can, you will know when you have gained all there is to gain from your training wheel business venture then you can take your skills and move on

If you’ve read my book and coached yourself through clarifying what is truly important to you, you should be able to know which, if any of these training wheel businesses are right for you: Freelancing, Arts and crafts or network marketing.  Go ahead and get started.  Taking action is the most important step.