Best Tips For Successful Network Marketing

Apr 13, 10 Best Tips For Successful Network Marketing
Welcome to the number one recession survival blog! Sign up for our RSS feed and follow us on Twitter to get the most out of the information provided here. Thanks for joining us!

by Terrance Howard
There are many people who want to be an entrepreneur but believe they do not have the capital to start a business.  Maybe they should consider MLM or network marketing.  There is no other type of business organization that requires such a small initial investment.

Actually, the other requirements are the ambition to be successful and the willingness to work hard.  You can keep your current job and work your business on the side.  You can operate the business from your home office.  You are your own boss. You get to call the shots.

Network marketing is a model that differs from traditional retail or direct sales.  There are all sort of products and services sold by many companies that use a networked sales organization model.

In networked sales, the customer consuming the goods can become a sales person who also sells the goods.  In direct sales, a sales person earns a commission for the sales they make to customers.  The sales person does not share their commissions with anyone else.

The customer is never recruited to become a sales person.  The role of sales person and customer is very defined.  Usually the sales person has a sales territory designated by their company.  The sales person is restricted from selling outside their territory.

The people working in these sales organizations are usually called associates.  To begin, you are sponsored by an active associate.  Once you are sponsored you can sell the products and you can sponsor associates to be under you.

Your “up line” is your sponsoring associate’s organization.  The associates under you will also sponsor associates.  Your “down line” are your associates and the associates under them.  Many levels are created as associates recruit associates forming a “pyramid” like structure.  This is where the term multi-level marketing comes to be.

You will earn commissions based on the sales of your down line.  Your up line also will earn commissions based on your organization’s total sales production.  The revenue sharing aspect of networked sales promotes the continuous recruiting of new associates.  Each company has its unique variation on the revenue share and compensation structure.

A business operating with a network organization does not use traditional advertising to promote their products.  Instead, they sell products to friends, neighbors, acquaintances, family, and co-workers.

The products that tend to do well within a networked sales organization framework are consumer goods like personal care products, home cleaning products, vitamins and food supplements.  These are things that people use on a day-to-day basis and will have to buy regularly.

Some people avoid starting their own company because of the huge amount of work and administrative responsibilities that come with running a company.  One of the best things about network marketing is that most of the boring and physically intensive chores are taken care of for you.

The products you sell are shipped by the company to the customers.  Thus, you do not need any product inventory and you are spared the labor of having to pack and ship goods.  Customers order their products from the company web page so you do not have to call customers to get their re-orders.

You will receive regular reports and tax documents.  This makes bookkeeping a lot easier.  You should invest in a good CPA and attorney though.  It is a good investment because it helps you avoid tax or legal problems.

There are definite tax advantages with running your own business.  Set aside a room in your house for your office and you can deduct it on your taxes.

You can also deduct the use of your car for your business. If you are able to recruit new associates when you are on a trip, then you can deduct the trip as a business expense.  Check with your attorney and CPA though to make sure you are in compliance with tax laws.

While MLM or network marketing may not be for everyone, if you are the sort of person who wants to be your own boss, then you really should give it a closer look.

There are no other business opportunities that can offer the so much potential for such a small investment.  It is easy to find out more about network marketing.  The internet is filled of very interesting information and knowledge about this great career opportunity.

About the Author:

You can get all of the details and information you need to learn how to succeed network marketing today! When you get the list of the best network marketing companies and begin planning your future, you will find the answers fast and easy!

Related Posts:

Leave a Reply


CommentLuv badge