Network marketing is the fastest growing economic sector in North America. Some 600,000 new families are attracted to network marketing each year as a way to create a second income on a part-time basis.
That’s because network marketing doesn’t require a large investment of money, nor does it require special degrees. And you don’t have to have a “sales personality” — shy people can do as well as those who are outgoing.
If you have the right traits, you can succeed at network marketing. Here’s what it takes:
- Desire: If you are a success- and goal-oriented person with a burning desire to better your life, you are an ideal candidate for network marketing.
- Coachability: If you want something different, you will need to do things differently from the way you are doing them now, so it’s important to be open to learning on the job.
- Discipline: Part time does not mean spare time. Network marketing is a business that requires consistent efforts to succeed, so be prepared to schedule regular business hours and stick to them.
- Motivation: You have to be motivated to succeed at network marketing, and frankly, it can’t be just about the money. What will a successful network marketing business give you that you do not have today? It can be time freedom, the freedom to stay home with your children, freedom from debt, etc. Understanding your motivation is the most important factor of all; this is your North Star that will keep your sights in line with your desire.
To begin your journey in network marketing, you’ll need to find the best company for you. Look for a company that is already successful, has a good reputation, and has consumer products. Here are some of the things to look for:
- Affordability: You can start a business for under $1,000 with little to no monthly cost of doing business.
- Time and Territory Flexibility: You can determine the number of hours you work, and you can build a business anywhere the company operates.
- Training & Support: The company provides comprehensive training and support.
- Residual Income: You can leverage both your time and effort to build your business, and your sustained effort can generate growth and build a residual income.
- Proven Track Record: Sad but true, only one in 1,000 new companies ever make it to year five, so learn as much as you can about the history of the company and it’s founders.
- Products: Are the products consumable? For top repeat business consumable staples are best, products that will be purchased again and again and again every time they are used up.
- Quality and Pricing: Pricing does not mean the cheapest game in town, but it should be competitive and deliver good value at a reasonable price.
- Cost of Doing Business: Find out what is costs to run the business each month. Be sure the include the cost of any tools that would improve your success.
- The Financials: Most network marketing companies are not publicly traded, but good companies will provide information about their annual revenues as well as the income you can expect to generate at various levels of progress. Find out what the average person earns, not just the high performers.
- Reorder Rate: What is the monthly reorder rate? If only 10% reorder each month chances are that disappointment will set in long before a residual income does.
- Breakaways: As you sponsor others who enter the business, make sure you will continue to benefit from their activity as they become successful. With a breakaway or an out-promotion, you stand the risk of losing the revenue stream from your enrollee. A good company will ensure that you never lose for having introduced a producer, and also will provide that no one will make more on your efforts than you do.
- Inventory: Find a company that will fulfill the orders – carrying inventory or ordering for your customers and then doing the deliveries, invoicing and collecting is time-consuming and cuts into valuable business-building time.
The network marketing model promotes the concept of helping others in order to succeed yourself. If you choose carefully, you’ll develop an honest business with a good revenue stream, at a very affordable cost.
About the Author: Valentina Bellicova was a successful corporate executive with a Fortune 500 multi-national corporation. Today she runs a successful business from home. She is a published author, enjoys Toastmasters, and volunteers with a local ecological conservation society.