I am always a curious person by nature. As long as something has arose my curiosity, I will tend to do research. After reading the Rich Dad's series by Robert Kiyosaki, I have realized that building a network marketing business is one of the ways to achieve financial freedom. Thus, I decide to learn more and research about such business.
Based on my personal opinion, there are 2 general categories of network marketing company namely online and offline. What do I mean by online or offline company? Well, it is actually based on how the products or services are delivered.
A company whose products or service need physical delivery is what I defined as offline. Examples of products are health food, cosmetics and consumable items that required to be delivered physically.
A company whose products or service that can be delivered purely over the Internet is what I deemed as online. Examples of products are online video seminars and online education course. Examples of services are domain name registration and web hosting services.
Since there are two general categories of network marketing company, what are the advantages of online company over offline company?
Firstly, I feel that an online company has a lower cost of reproducing the products or service. For example, an online video seminar cost almost nothing to reproduce. Whereas there is definitely cost to reproduce health food.
What does this mean to me as a business owner as defined in the cashflow quadrant by Robert Kiyosaki? This means that the online company has a higher profit margin with each products or service sold.
If the company keeps the profit to itself, then the company will be much stronger financially as compared to an offline network company since it is earning more money from each sale. A financially strong company is a more stable company. As a business owner, I will definitely like to build a network marketing business with a company with strong financial background.
If the company decides to split the profit with the distributor, then I will benefit as a business owner. That means I will earn more commissions through each sale.
Secondly, I feel that an online network marketing company has no boundaries in terms of countries. This means that I can market the products or service to anyone who is using the Internet. I am not restricted to local market. I can reach out to other people from other countries.
Also, the Internet population is still growing at an amazing rate. This means there is a great potential to grow my network marketing business further. Compare to an offline network marketing company, I can only do it locally.
Thirdly, I notice that online multilevel marketing company usually provide me an online system that is operating 24 hours a day, 7 days a week. That means my mlm business is running even if I am asleep or away on leave. This is usually not true for a offline network marketing company.
Next, I can work anywhere as long as there is Internet. This is because the online mlm business is purely online. So I can enjoy mobility of work. I will not be restricted to work in a physical location. I can be working oversea as well. This may not be possible with an offline mlm business. This is because there will be an issue of shipping products or providing services oversea.
Then, I do not need to worry about the delivery of products or service to my customers since it is an online mlm business. This means that I have more free time compared to doing an offline mlm business. I can use the free time to focus on building relationships with my customers and business partners.
Lastly, I can do the online multilevel marketing business in an offline mode as well. That is I can physically call and approach people to do sales. Also, I can persuade people to join me as business partners in the online multilevel business.
Please note that the list of advantages purely based on my personal opinion. Though there are obvious advantages of online network marketing business over offline network marketing business, I feel that the main disadvantage is how to choose a legitimate online business. This is where the understanding of the laws is important. I realized from the Rich Dad's series by Robert Kiyosaki that it is important to be aware of laws that may affect wealth creation.
If I do a search on the Internet, there is a big list of online network marketing companies that I can join as a distributor to start a business. But which one is real? Which one a fraud? Extra care is needed to select an online network marketing company compared to an offline network marketing company. The best is that I can physically visit the physical office of the online network marketing company and check it out. Also, I will verify the company registration with governing authority.
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List Of Network Marketing Companies
If you are looking to build a successful network marketing business, you will have to face the challenges that come with it. There will be several pitfalls that you should be able to recognize and avoid, if you have to be successful in your network marketing business. Network marketing has attracted a lot of negative stories and it becomes difficult to turn every stone and determine which ones are real and which ones are fake. This situation is further compounded by the fact that a lot of it is a gray area. For example, if you are invited to a friend's birthday party, will you take this chance to meet new people and introduce your network marketing product? Will you pay up more to your network marketing company for higher commissions in return?
These are some questions that you will face in your network marketing business and we take a close look at some common mistakes that are made every day in this business. These are things that you should totally avoid or at least be cautious about.
? Avoid the scams: It is not without reason that people are skeptical about network marketing. A lot of ?ponzi? schemes have cropped up over the last few years which are not totally legitimate and will not help you make money at all. When evaluating which business you should do network marketing for, think of how the company will make money. In order to keep paying you, they should have a sound business model and if it looks to you that they don't have a sustainable business model, then stay away.
? Don't mistake social gatherings for selling opportunities: A lot of people who are new to network marketing mistake social gatherings for selling opportunities. Do not mix your social life with your business life. This will only lead to frustration and failure. There is a difference between using your social network for sales and using your social gatherings for sales. The former is the key to success, not the latter.
? Don't neglect your existing customers: A lot of times it seems that the success of network marketing is in recruiting more members. That is not true. The success of network marketing is in selling more products and not having more members. So, focus on your existing recruits and customers. Keep in touch with them and that will help you sell more to existing customers and make more money. Keeping in touch with existing recruits also helps to cultivate their skills. If they are more successful they will bring more recruits and more profits, which will benefit you eventually.
? Don't get into network marketing without willing to work hard: Don't get into network marketing thinking that you will recruit some people and they will work for you. There will be a lot of hard-work initially that you will need to put in to make the sales and get the ball rolling.
? Don't wait for years to make a profit: It is true that it may take months or years in order for you to make a sizeable profit from your network marketing business. However if the product is good and the network marketing plan is legitimate then you should at least start seeing some profits in the first few months. You should be able to make a sale and make commissions. If you are making commissions but they are being held back to buy more inventory forcibly, or if the company is holding them back for a training program or something else like that, then you need to be concerned.
? Don't get into a program which requires payment for earning bonuses: There are several plans that require one to invest in order to fully reap the bonuses. For example you may not earn a particular bonus till you go through a training program or till the time you buy inventory up to a certain level. All this doesn't make any sense at all. If you have made the sales then you are entitled to all the bonuses and should get it. Do not get into network marketing programs that put in riders on how you will earn your profits.
? Be wary of rewards on just recruiting: There are some network marketing plans that reward you based on the number of people you helped recruit. While this is alright if this is just a small amount, be cautious if the bonus amounts are really big. Such plans often turn out to be fakes.
? Beware of programs that require constant investment: Before you join any network marketing plan, check with someone who is already a member about the kind of investments that are needed. While you will need to buy the inventory of the company to sell it, they shouldn't be forcing you to buy anything else. Everything else should be pretty much voluntary. If you are needed to buy more and spend in the network, then you can investigate more in the nature of such programs.
So, there you have it, some things that you should keep an eye out on when you are looking to evaluate a network marketing program or when you are executing that program yourself.
Both Max Ng & S. Babu are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Max Ng has sinced written about articles on various topics from Investments, Web Development and Finances. Max Ng helps people who desire success to learn from his mistakes and realizations by sharing his personal struggle for success at
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