Network Marketing Home Business |

A network marketing home business is a great opportunity for individuals who seek extra income without the restrictions of working for someone else. These types of companies are also known as multi-level marketing (MLM) and direct sales businesses. The products or services are sold directly to customers by independent distributors instead of through the more traditional manufacturer wholesaler retailer customer model. The distributor is usually considered self-employed and a sole proprietor even though she has a contractual agreement to follow the parent company's policies and procedures. The distributor is also part of a team that includes her downline (those she has recruited as distributors) and the upline (the person who recruited her). Many people dream of working from home and a carefully selected network marketing home business can be the fulfillment of that dream. But wisdom and discretion need to be part of that selection process so that the dream doesn't end up a nightmare. One of the psalmists wrote: "A good man sheweth favour, and lendeth: he will guide his affairs with discretion" (Psalm 112:5). An aspiring distributor is urged to conduct the necessary research to make good decisions regarding financial affairs.
Multi-level marketing companies are often reviled as pyramid schemes and scams. Before signing up with a specific company, the wise individual will ask lots of questions and pay close attention to the answers. A company promising quick riches should be avoided. Though it may be theoretically possible to launch an online store and make millions of dollars overnight, the odds are highly stacked against that scenario. New MLM ventures also have an extremely high failure rate and should probably be avoided. A network marketing home business that has been around for several years and gained a good reputation for offering quality products at fair prices will provide more opportunity for success than too-good-to-be-true promises from a company with no track record. There are several reputable companies to choose from so the diligent entrepreneur should have no problem finding just the right one for his interests and financial goals. He just needs to be willing to put in the time and effort to properly research the companies that interest him the most.

Along with longevity and reputation, aspiring distributors should carefully research a company's compensation plan. Income from a network marketing home business is basically generated two ways: through sales and by recruiting others. The individual will want to be sure that the company is selling a marketable product or service at a price that customers will be willing to pay and that distributors receive an adequate percentage of the retail price. Additional income can be gained by recruiting others and receiving a commission from their sales. The individual doing the research may find that the compensation for selling the company's products or services would never be adequate for the time and effort put in to making sales. Instead, the company emphasizes the commissions to be earned from recruiting others. Industry experts advise individuals to avoid companies with these types of compensation plans. A distributor should be able to make enough from selling the products or services that a decent income is earned even without recruiting others.

Signing on as a distributor with a network marketing home business has several advantages. People enjoy the flexibility of setting their own work hours and quickly learn the connection between effort and reward. In other words, income increases in correlation to the amount of time and effort that is devoted to the venture. Additionally, direct sales companies give people the opportunity to work from home with very little initial expense. Compared to launching a business from the ground floor or opening a retail store or even purchasing a franchise, the initial investment to become an MLM distributor is very low, usually only a few hundred dollars and even less for some companies. This initial investment usually pays for sample products and the promotional materials that the new distributor needs to get started. The new distributor also has the support of her recruiter and perhaps other top salespeople. A marketing plan may already be in place and the company may already have an advertising campaign underway. The distributor benefits from all this support from the moment she signs her name to a distribution agreement.

Customer interest in online shopping has opened vast new opportunities for the network marketing home business industry. Traditionally, distributors have launched their new businesses by selling to family members and friends, eventually branching out by gaining referrals and building a customer base. Perhaps, the distributor bought a direct mail list and sent out bulk mail promotions or even made cold calls from the local telephone book. In the internet age, distributors can launch websites and use internet marketing techniques to gain new customers. Some MLM companies even have website templates that the distributors can use for an annual fee to the parent company. All the design work is done for the salesperson who can then spend time marketing the site to others instead of constantly updating the site. Promoting the network marketing home business site can be done by participating in appropriate forums, chat rooms, writing web articles for other sites, and perhaps even starting a separate blog. The website address can be included as part of one's signature line when participating in online forums and should also be on the distributor's business cards and any other promotional materials. The distributor will just need to be sure that all of the parent company's policies and procedures are followed regarding the use of the company name, logo, and trademark. With careful research and selection, a network marketing home business opportunity can be the fulfillment of a self-employment dream.

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