What's so Good about Network Marketing?

Back in December, I began a thread looking at different aspects of the network marketing/direct selling business. Life and holidays intervened and I'd like to pick that up again. I'd gotten as far as "defining" network marketing before getting sidetracked, and while I may not have (or even know) an "official" definition, "A non-traditional way of selling and distributing a product or service in which the sales force is compensated not only for the product they sell but also for the distribution network they create" pretty much works for me.

Now I would like to take up the question of "so what, why bother?" What is it about network marketing that, despite the bad press and questionable reputation, makes it a uniquely attractive business opportunity? To me there are four key attributes of a reputable and viable network marketing business. And while these may not each be unique to network marketing, they combine to make it a business model that nearly everyone ought to at least take a look at.

1. Generally network marketing has a very low cost of entry. In the case of my Reliv business, $25.00. For companies that have achieved and maintain Direct Selling Association membership (and the best of them do), any initial inventory purchases should be accompanied by a 90%, one year money-back guarantee. Try asking your Coronary Burger franchise issuer for 90% of your money back if you change your mind a few months down the road. Network marketing offers you the opportunity to establish a real business for, often, less than $100.

2. Network marketing businesses require low or no overhead. You have no employees, no storefront, no equipment and, for the most part, not very much inventory. Large parts of your business can be done online and normally the tools you will need to get there are provided, sometimes for a small fee, by your supplier company.

3. Your potential income is unlimited. There really are people making 5-figure monthly incomes in network marketing businesses. As we discussed in an earlier post, that isn't typical. But it does happen. What are you doing now that even offers you a possibility of earning $10,000, $20,000 or more per month next year? Or five years from now? Or ever?

4. Residual income lasts a lifetime, and often beyond. This is without a doubt the most powerful and compelling feature of a network marketing business. That the distribution network you build today will continue to pay you for the rest of your life. Not only pay you, but continue to grow even if you choose to retire from actively working it yourself (most really successful network marketers never retire because they enjoy working this very social business), because your downline network is full of people who are still out building their own businesses.

There are lots of other attractive features of this type of business. No special background or education or training is usually needed, it can be built up gradually without having to leave an existing job until you are ready to do so, and you can set your own standard for success. But these four reasons top my list. If you need to generate some extra income, implement a Plan B for your retirement or just want to take on the challenge of building a business around your other chores and responsibilities it is hard to beat network marketing.

So then, if its so great why doesn't everyone have a network marketing business? We'll look at the reasons why in a future post.

US - Eurozone Accept Each Other's Organic Food Standards

After about 4 years of negotiations. American and European Union officials have decided that, with just a few minor exceptions, the differences in their standards for being considered an "organic" food were not significant and that they would begin to accept each others standards. This means that the market for organic foods, on both sides of the Atlantic, is about to double (at least from the producers' perspective). This should have the eventual effect of broadening selection and lowering costs (and, we may hope, prices). Good news for growers, distributors and consumers.

Coming Soon to Your Grocery Aisle: Organic Food from Europe

Energy Drink Contents Are Often a Mystery

How much does "proprietary energy blend" on an ingredient label really tell us about what it is we are consuming? With emergency room visits for the effects of caffeine over-consumption up by a factor of 10 between 2005 and 2010, and about half of American college students using "energy drinks" on a regular basis, maybe it would be a good idea to find out?

Listen to this report from yesterday's NPR Morning Edition and decide for yourself.

A Thought for the New year

When I was in the 4th Grade, and dinosaurs walked the earth, there was a boy in my class named Robert. Now Robert had a tough life. He wasn't very popular. He was fat, not especially good looking, or smart, and not blessed with any talent or sports. His social skills were, to be kind, non-existent. Unsurprisingly, he was painfully shy. Fourth graders being who they are, Robert was the victim of ceaseless pranks, teasing and the sort of indifferent and casual cruelties that only other children can inflict. I am not proud to admit that I was one of his tormentors.

That January, right after Christmas Vacation (it was a Parochial school) Robert's mother had a meeting at school about the problem. "This needs to stop," she reportedly said. "I don't know what else I can do. I've told him 'Robert, you have a new shirt, new pants, new socks and shoes, and even new underwear. You're a new boy. Now go into that classroom and act like a new boy'."

But here's the thing. Robert was still Robert. Despite the new shirt, new pants, new socks and shoes and even the new underwear, Robert was not a new boy.

As the clock ticks away the last few minutes of 2011, how many of us are standing in Robert's new shoes? We look back at the year, its triumphs and defeats, and firmly resolve that next year will be better. We'll stop the snackin' and slackin' and get back in shape. We'll improve our diet, and we'll get up and moving more. We'll rebuild that relationship that we have been neglecting. Take our business or career to a new level. Start that new hobby or activity we've always wanted to try. Reduce our debt. Save for retirement. Be better. Be happy.

But here's the thing. You are still you. Despite all the heartfelt good intentions, you are not a new you. If you want 2012 to be different, than YOU need to be different.

I will leave you with a thought from Stephen Covey's wonderful book, First Things First:  "Each decision we make is an important decision. Some may seem small at the time, but the reality is that they add upon one another to become habits of the heart that move us with increasing force toward some destiny. We are not the product of our past, we are the product of our choices."

I wish you a happy, healthy and successful New Year.

Seriously. What is "Network Marketing"

It's a scam. It's a pyramid scheme. Its overpriced products. It's a "get rich quick" scheme. They just want to sell you a garage full of stuff and cut you lose.The products are usually either bogus or are available somewhere else to the public at the same or lesser prices. The idea is recruiting new people to either buy into the program or else to buy products that are grossly overpriced.

Everyone has an opinion about multi-level marketing (MLM). Are there MLM companies out there guilty of all of the above and more? You bet there are. But there are plenty of dishonest traditional companies out there too. Like any other business or financial venture, you have to do your research before getting involved - whether its an MLM, a franchise, a corporation or a mom and pop sole proprietorship. But that's a topic for another post.

What, really, is a multi-level marketing (or network marketing or direct selling) organization?

Here is my take on it, as someone who has been actively involved in MLM for almost 3 years and from my conversations with many business and marketing professionals.

Network Marketing is a non-traditional method of marketing, selling and distributing a product or service in which the salesforce is paid not only for their own sales, but also for the sales of the network of distributors that they recruit, train and support.

That's it, I think. It is simply a method for selling and distributing a product. Whether or not any particular MLM company represents a real opportunity or gives you a reason to run fast and far is an important, but separate question. One we'll look into in a future post.