Network Marketing is often maligned because of the relentless nature of some of the adherents, but nevertheless this method of selling provides an equal opportunity for people to own their own business with what is actually a strongly ethical business model.
Regardless of means, anyone can be successful with MLM and since many people start a network marketing business part time, while still working a regular job, it is it a great leveler in the business world.
Multi Level Marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
More and more companies are looking at this format as a means of promoting new and innovative products particularly in the fast growing Healthcare industry. For some people it is a great way to start building a substantial income for themselves with very little capital.
Worldwide the industry is forecast to continue growing exponentially for several decades. Fortune magazine called direct selling (of which network marketing is the largest segment) “the best kept secret in the business world.
Well known billionaire Warren Buffet, after purchasing a network marketing company, called it the best investment he had ever made.
In recent years, the phenomenal growth of the internet has been a driving force in the success of this type of sales structure. Using well designed websites and online network marketing to leverage time and effort, combined with good old fashioned personal networking can produce residual income lasting for years and even indefinitely.
With the growth in the aged population, more and more health companies are offering products to try and take advantage of the relative wealth of the “Baby Boomers”, However, anyone looking at getting into network marketing of health products needs to look carefully at a number of facets of the business:
1. The first thing anyone looking at to enter the industry must ask is: How difficult is it to demonstrate that these products actually work? In virtually all cases the answer is, extremely difficult. Look for independent laboratory validation.
2. The second question you should ask is: How good is the management?
There is a high attrition rate amongst MLM start ups and a major cause for that is poor management. Most network marketing companies are started by people who have been successful as distributors and think they can start up on their own. Usually these people just do not have the experience or knowledge required to run a sizable, fast growing business.
Tips: Look for a company which has been established for 5 years or more and has senior management with high level executive experience outside of the MLM industry as well as within.
3. Is the company well funded?
4. Does the company have a unique product?
5. How good is the compensation plan?
6. Is there independent validation of evidence behind the products?
7. Who is using the products without being paid for it? Ignore the touting of “big name” networkers, they are often paid large amounts of money to jump to another MLM. Typically they include this payment in their income claims.
8. If it’s a healthcare company, ask are there any prestigious medical people involved in the business? (Obviously the majority of members will be ordinary people but when there are medical specialists involved as well then you can be sure the products have credibility).
9. This one applies to all network marketing offers: Make sure that the company is legitimate and is not promoting an illegal pyramid scheme.
Basically if an MLM organization has little in the way of actual products and is seen to put more emphasis on the recruitment side of their business than on the direct selling aspect then it could be seen to be unsustainable in nature and will be labeled a pyramid scheme.
To summarize; Since the financial crisis making a solid, safe income has become increasingly difficult and there is no doubt that Network Marketing offers a second to none chance for any person with a good work ethic to start their own business. As an extra bonus, discounts on personal trips, incentives for referring friends and family, and an exciting career where you meet with all kinds of people are all part of the benefits of working in network marketing.
The clincher of course is that more and more successful network marketers are joining the ranks of self made millionaires.
Dick Aronson has a background of 35 years in pharmaceuticals and alternative medicines, software development and human resources. He has for a number of years now been retained by companies looking to expand or needing to restructure and recently he has joined a network marketing company selling unique patented health care products that fulfills all his requirements.