The days of a job for life are history.
With job security a thing of the past and zero-hour contracts becoming the norm in many industries, it’s only natural that people are looking for other ways to earn money.
According to the U.S. Bureau of Labor Statistics, 16.5 million Americans now work remotely as part of what’s becoming known as the gig economy.
As a growingly unstable economy meets an increasingly flexible alternative gig economy, more and more Americans are making the switch from employee to freelancer.
Do you want to join them?
If so, have you ever considered why network marketing is such a popular entry point to making a living as a freelancer?
What Is Network Marketing?
The premise of network marketing is simple. In return for a nominal upfront investment, you buy products and then sell them directly to your personal network.
Most network marketing programs also encourage recruiting other sales reps. Any workers you recruit form part of your downline. Sales from these people result in commissions for those higher up in the program.
When the obligation shifts too sharply toward recruitment without any emphasis on sales, this suggests a pyramid scheme rather than network marketing. We’ll touch upon the difference between these later, but how about legitimate network marketing? How does it work?
Network Marketing: How Does It Work?
For many converts, network marketing is the perfect business. You won’t get tied to an office or an employer, and you’ll have the freedom to schedule your days.
Building up a customer base is up to you, so this business model best suits high-energy individuals with a robust network of friends and family in place. Plus, you must be willing to pitch them about the products you’re selling. If this doesn’t seem like the best approach to you, you can join plenty of local organizations to help you leverage your network and develop new contacts.
The mechanics of network marketing are simple. There’s a pyramid-shaped network of participants working on a commission basis rather than a salary. You get paid commissions for making product sales and for recruiting others into the organization, and you market and sell products directly outside of traditional distribution channels.
As a participant – sometimes called an IBO (independent business owner) – you’ll be accountable only to yourself. The more sales and recruiting you achieve, the more you will earn.
If this is the future of earning a living for you, we’ll give you some handy pointers to get you started the easy way. Before that, though, a quick word of warning about pyramid schemes.
Network Marketing is NOT a Pyramid Scheme
While the terms network marketing and pyramid schemes are sometimes falsely used interchangeably, they are not the same thing. They might feature the same structure shape, but that’s where the similarities end.
Where network marketing commissions come from product sales, with a pyramid scheme, members higher up the pyramid hierarchy are paid with funds from new members’ investments.
While you have every chance of success with network marketing, if you end up suckered into a pyramid scheme, it won’t end well for you. Check out the difference between these business models here.
OK… Now, we’re going to walk you through seven reasons to consider network marketing in 2019 right now.
Network Marketing: 7 Key Benefits
- Start a business with meager start-up costs
- Take advantage of leverage
- Generate a passive residual income
- Enjoy location independence
- Win back your time
- Take the chance for personal growth on your terms
- Significant upside income potential
1. Kickstart a Business With Very Low Start-Up Costs
If you’re looking to start a regular bricks-and-mortar business, you’ll likely need north of at least $50,000 to get going. If you fancy the idea of a franchise, you’ll be looking at double that, at best.
Network marketing, on the other hand, has a remarkably low barrier to entry. With as little as a few hundred bucks, you can get all you need to get started.
CHECK IT OUT: Find out how Loyalty Networking can help create a strong business network.
What’s more, once you’re operating, you won’t have the headache of making enough money to cover salaries and overheads. Monthly operational costs are minimal, and all back-end systems are already in place.
But if you’re looking at a profit for a bricks-and-mortar shop, you might have a long wait. It could take several years before you surmount the brutal start-up costs and start turning running in the black. With network marketing, by contrast, you could start earning on day one. Principally, an excellent network-marketing opportunity serves you up with a ready-made business, primed to start earning from the get-go.
2. Take Advantage of Leverage
You’ve probably heard the phrase work harder, not smarter. All too often, simple effort expended doesn’t translate to the success you deserve.
What can you do to change this?
Given that everyone has the same 24 hours in a day, working for eight of those hours in return for a set wage will cap your income and leave you with no leverage. If you’re not working, you don’t get paid.
Network marketing can change all this. The more active distributors you can recruit in your downline, the more your income will grow – even when you are on vacation. With MLM, you can get paid for passive income – more on that below. It also frees up more time for you because you will be leveraging the time and efforts of others.
So, what about passive income? Why is this so important?
3. Generate a Passive Residual Income
If you’re reliant on active income, what do you do if and when you’re unable to work? Where will you get the money?
The way network marketing works allows you to benefit from the hard work of all those you’ve recruited, while others benefit from you in like manner. If you choose the right network marketing opportunity, you’ll help others make money and, in turn, they will make more money for you.
As with any business, duplication leads to increased profits. Rather than relying on the hours in a day you can devote to work, take full advantage of leveraging the efforts of others. You might not need to deplete your savings when that rainy day arrives.
Here’s where too many people get lured into network marketing with false promises, though. You should be clear going in that you’ll need to put in plenty of productive work before you can kick back and rely on the income generated by others. If you keep your expectations reasonable, building a meaningful residual passive income is readily possible.
4. Enjoy Location Independence
One of the key selling points to a freelance lifestyle is the ability to become location independent.
Depending on the nature of your network-marketing opportunity, you’ll still enjoy the ability to travel. Today, as long as you have access to a smartphone, a laptop, and a Wi-Fi connection, there’s no need to remain fixed in one place to earn a living.
Unlike freelancing opportunities like, say, copywriting, with MLM, you’ll need to remain in one place to build and nurture a network, but where that place remains up to you.
Also, while you’re in the initial stages, you’ll be vigorously growing your business and working hard. As it becomes more established, however, you’ll be able to enjoy the fruits of your labor. As a straight-up freelancer, you’re free to travel, but you don’t get paid unless you’re working. After you have a passive income in place from network marketing, though, you’ll be free to travel without working.
5. Win Back Your Time
While a regular salaried job might pack plenty of benefits, losing at least 40 hours of your week to servicing your duties is not one of them.
When you’re a slave to the time clock, you have little freedom. You can’t start and finish work when you please. Breaks are usually at mandated times. And your holiday allowance will be limited to a few weeks each year, at best.
In an attempt to break free of timeclock slavery, many people become self-employed. But they often realize too late that they are now slaves to their customers, with no more paycheck security.
Get started in network marketing, though, and you can create your own system and downline. You’ll cut wasted time to a minimum because you won’t have a commute eating into your workday and you won’t have aimless water-cooler discussions slicing away more time.
For a useful way of freeing up far more time after you’ve established your business, network marketing is a proven approach. Whether it works depends on whether it’s the right business model for you. The model itself is beyond reproach when it comes to winning back your time and starting to live life as you truly want to, unencumbered by that the hands on the clock.
6. The Chance For Personal Growth On Your Own Terms
The chances for personal development in the corporate sphere are diminishing. If you’re not proactive, you’ll be lucky to experience much personal-growth training at all.
Starting your own network marketing business can change this.
You’ll be forced to learn a range of new skills. Clear and confident communication is a must, and you’ll likely have to hone your public-speaking skills. Because you’ll be looking to build a downline, you’ll also have the chance to develop coaching and mentoring skills.
With any employed position, training will be only related to your specific career. With network marketing, however, your imagination is your only limitation when it comes to growth.
7. Significant Upside Income Potential
There are very few areas where you can achieve a six-figure income without a college degree, but network marketing is one of them. We’re not saying that $10,000 months are the norm for all network marketers, but that income level is eminently achievable. See how Loyalty Networking can help you get started.
Contrast this with a salaried job, wherein that kind of reward simply may not be possible.
Make no mistake, if you want to earn substantially from MLM, you’ll need to put in the work to get things going. Once you have some traction, though, there’s no limit to the amount you could earn if you’ve got a healthy enough downline in the right network-marketing opportunity.
What To Do Next
Some questions to ask yourself before you launch in recklessly to the first MLM opportunity that comes your way:
- Were you pitched the chance to make money by selling products or by recruiting others? If the emphasis is on the latter, look more deeply to ensure that you’re not looking at a pyramid scheme.
- Are you genuinely enthusiastic about the products/business network? Endless enthusiasm is not essential, but you certainly need to believe the products/business network are worthwhile, or you’ll be facing a hard sell every time.
- Are the people you know likely to be passionate about these products/business network? Network marketing depends almost entirely on exploiting your existing social network. So, you’ll be facing an uphill struggle if they aren’t passionate about what you’re doing, too.
- How does the parent company promote? If marketing efforts are not sound and people have no idea what your product is, you’ll be fighting a challenging battle.
- Are achievable profits realistic within a short enough timeframe, or do you foresee a long route to success?
You should also conduct thorough due diligence about the company itself. Check the track record of its founders, and contact people who already in the network. If you are interested in becoming a member of a network of business professionals, check out Loyalty Networking.
And, if you’ve still got any questions you need clearing up about network marketing, get in touch with us at any time. We’ll be more than happy to help!