Learn Why Network Marketing Is the Best Business Model
Monday, June 23, 2008 at 07:14PM 1. FREEDOM AND INDEPENDENCE
Freedom and independence are opposite of job security. Why do people seek job security and not so often freedom and independence? There are several possible answers. But first of all it is a mentality issue. The idea of job security was rooted in the majority of families who lived long enough in the Industrial Age when people tried to secure themselves from other “Great Depressions” by obtaining a job that provided steady paychecks and benefits for employees. The Industrial Age deprived millions of entrepreneurial initiative. People deliberately gave up their responsibilities to take care of themselves and their families. They laid this responsibility on the shoulders of their employers and the government. People got to believe in the Social Security system and all sorts of Acts that protected their rights. But what was the price that people were willing to pay for this job security? They sacrificed their most precious asset – time – on the altar of job security. People started trading their precious time for money. They spent their time working for their employer, and he, in his turn, paid them a dollar equivalent for that. The typical characteristic of the job-security mentality is ‘Go to school, get good grades to get a good, secure job’.
Another reason why people seek job security is that they choose to be employees because they do not want to take the responsibility of running their own business, managing employees etc. Of course, it is more convenient when everything is thought through for you and you just follow the plan. But this happens because people, especially young, very seldom think about their retirement. Where will this job security bring you if you rely on the government and your employer? Who cares more about your future – they or you? You and I know the answer.
Job security is actually very expensive. People who prefer job security over freedom and independence have to work at least 6 months just to pay taxes! That’s way too expensive. I personally can’t afford that.
One of the reasons why I started my own network marketing business is that it gives me freedom and independence. To me, freedom and independence are more significant than job security, because I am free in my decisions and choices. I have no boss. I do not get stuck in traffic jams. I am never late for work, because I set my own hours. I spend more time with my family than any employee. And I do not rely on anyone to take care of my future but myself.
2. UNLIMITED INCOME POTENTIAL
When you work for your employer your income is actually limited. Your hour has a dollar value. Your average working day lasts 8 hours. You might have some overtime, but your extra earned money is eaten by the taxes. No matter how good a worker you are and how long you work for you employer, he cannot jump over the salary ceiling to pay you more. Let’s assume he can, your income will still be limited.
What about network marketing. The name itself assumes that you have to build a network. Network is the success model used by all smart business people. How many McDonald’s restaurants have you seen in your area? What about Sam’s Clubs or Wal-Marts? Why do they build networks? That’s right – to make more money by reaching out to more customers. Have you ever heard of Jim’s Tailor Shop? No? Why? And again you’re right – because it is a single shop only known to a limited circle of local customers. No network – no profit.
When you build a network your income grows exponentially. The more people join your team, the more people they will bring to their teams. It is the law of sowing and harvest. If you plant one wheat grain, you’ll get at least 40 times more grains. If you plant 40 grains, you will get 1600 etc. So, your income potential is practically unlimited.
3. LOW START-UP COSTS
If you want to start your own business, other than network marketing, the start-up costs can reach thousands of dollars; with franchises even hundreds of thousands. But you can start your own network marketing business for up to $500, sometimes no money at all. And you don’t have to maintain inventory, lease a space, rent an office, hire employees, pay their insurance etc. As any other business it will certainly require investments into marketing, but with modern technologies even this part can be monetized with little efforts and your marketing campaigns will pay for themselves.
4. TAX WRITE-OFFS
American economy is designed to encourage entrepreneurship rather than employment. That is why business owners are granted incredible tax incentives. If you compare taxation of employees and business owners you’ll see a huge difference. The government takes taxes off employees’ gross earnings while business owners pay taxes off what is left over after all deductions are taken away. An employee is not eligible for most write-offs a business owner benefits from.
5. LEVERAGE
Leverage is the condition when limited resources are used to create substantial financial profit. The great assets that can yield such profits are people and money. Little money can buy you a nice piece of investment property. Likewise small group of people can bring you huge financial profits. In network marketing people are expected to duplicate themselves. This process often creates an impression of a pyramid scheme. But it is not. From a pyramid it only has the shape. The process of duplication causes an exponential growth of your business. You bring two people to your team; those two people will bring two more each, etc. If you’re an employee, you average shift lasts 8 hours. So you have to work 8 hours to make a living. If you are a network marketer and have 7 people on your team besides yourself, each of your team members will have to work 1 hour to achieve the same goal of an 8-hour working day. The more people are on your team the higher is the power of leverage.
6. THE LIFESTYLE CHOSEN BY YOU, NOT YOUR BOSS
In network marketing, you choose the lifestyle YOU want, not your boss, because you are your own boss. Nobody dictates you what to do, when to do it and why to do it. You schedule your own hours. You decide whether to work tomorrow or to go to the zoo with your kids. The truth is you are not going to kick off your shoes, relax and dream all day long and the money will keep raining on you.
There is a Russian saying: “Everyone is a smith of one’s own happiness”. If you want your future to look like I described above, do everything to make it happen. It will not come by itself. But your one-time efforts in the beginning will keep on bringing multiple results. Network marketing resembles a process of book writing. A writer does not work for a daily small result. He/she works for free many hours because he/she knows that when the book is published his/her one-time work will pay off the labor ten-, twenty-, thirty-fold. Again, it’s the law of sowing and harvest.
7. MOBILITY
Your network marketing business is not confined within the walls of your office, your house, or within the limits of the city you live in. It can be everywhere, around the globe if you want. Your back office can be in your laptop in which you have your dashboard. With modern telecommunication technologies you can build international business without being an industrial giant, like GM or Microsoft. You can run your business from anywhere in the world.
8. NETWORK IS THE SUCCESS MODEL
As I already mentioned, all successful businesses and corporations use networks to make more money by attracting more customers. Your telephone company makes millions of dollars every month thanks the built network of phone lines and customers. Network marketing is about networking. If you don’t know how to build your network, I guarantee that you’re going to fail. You might know what to do, but not know how to do it, and it’s not going to benefit you. Once you learn the ‘HOW’ of your business, then the rest of if will not be a problem. Build your own network and succeed!
9. YOUR MARKETING SYSTEM IS YOUR ASSET
Network marketing is not about your company, it’s not about its great product line, and it’s not even about you. It’s about marketing. You will not be able to build your network without effective marketing strategies. If you use a marketing system that yields results, your marketing system becomes your asset. The best marketing system I found for internet marketers is the Renegade Marketing System. The techniques used in the system have never been used by the majority of network marketers, that’s why the majority of newbies quit without seeing any results. Frustration and lowered self-esteem are the typical symptoms in those people. If you want to start your own network marketing business, do not even think about starting it without a marketing system that really works, that helps you build your downline, that pays for your marketing. Does it sound strange? I’m serious, your marketing should pay for itself. Mine does!
10. EASY-TO-LEARN AND EASY-TO-TEACH SYSTEM
Network marketing principles are simple. They are not rocket science. Just follow the plan and teach others to do the same. Be open to learning. If you learn something and can teach others to do the same, you open the doors to duplicating yourself. “Scientia potentia est”, ancient Romans said, which means knowledge is power. It is so true today! The process of learning and teaching is the guarantee of success. The more seeds you plant the more crops you’ll reap.