Wednesday, November 12, 2014

Traditional Business vs. Network Marketing

Traditional Business
vs.
Network Marketing


We all get taught a traditional way of thinking when we grow up, which makes it difficult for us to get our head around the concept of Network Marketing. In my opinion, it's the main reason why most people either don't try or fail to build a successful Network Marketing business.
Marketing is beginning to take a turn in a different direction, leaving traditional methods and strategies behind. However, this doesn't mean that the old ways are going to disappear.
Let's take a look at a traditional business:
If we start a traditional business, we first invest a fair amount of money for the initial set-up. We take out a loan to buy inventory, goods to sell, maybe rent a warehouse and/or shopfront, office etc. However, we feel that we're progressing because we see things developing and taking shape, although we usually haven't had any income at this point. We actively need to run the business to make a profit so that we can pay back the loan with its interest before we're able to save money. Timeframes of 3 to 7 years are not uncommon.

Now, let's take a look at a Network Marketing business:
Anyone can start a Network Marketing business, in particular in Referral Marketing, without investing anything. Of course, products need to flow or it would not be a sustainable business or even illegal. But if we've chosen a business we're passionate about, we buy those products anyway, we've only chosen to buy from our loyalty merchants instead. A well designed business concept should offer products at competitive prices and should not ask for fees or product kits to buy. Now we're up and running.
The first few years we might not receive an executive income, but whatever we receive is profit and can be saved straight away - we don't have debts to repay or fixed expenses like a traditional business. We're already ahead and we'll stay ahead because the income we're building is passive income that continues to flow unlike a traditional business whose income goes to zero as soon as the business ceases to operate.
Network Marketing is like building a pipeline:
I believe that most Networkers fail because their mind plays tricks on them:
"People don't take my business seriously."
"I feel that I'm not getting anywhere."
"I can't see the fruits of my labour."
Stop focusing on the negative! I believe that we do have an big advantage in Network Marketing and we should be proud of it!

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