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Pros and cons of a network marketing business

Alexandre Sobolevskiy

October 08, 2007

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Network marketing is a good and viable business option for anyone who has a goal. Based on my experience, network marketing offers more advantages than disadvantages. Here is what I consider it's general advantages/disadvantages:

The pros are:
-Very minimal startup costs compared to starting a franchise/brick and mortar business
-Flexible Scheduling
-Residual income
-Established infrastructure/plan.
-Potential for time/financial freedom
-Create the only true partnerships in business and make friends as well
-Presence of a sponsor/mentor to guide you throughout.

The cons are:
-Like any other business, there are good companies, and bad companies. If you're not careful, you could get caught up in a bad company
-Certain companies may limit your creativity by putting some restrictions on advertising/marketing.
-You may have to compete with your peers in your area/region
-Frustration for new recruits who don't receive proper support from their upline
-High failure rate
-Have to learn a lot

In MLM the key to being in the 5% (successful) and not the 95% (unsuccessful) is mentoring.

Why is franchising the most successful business model? It is because there is a system to follow which includes ongoing support and training(mentoring).

Because of the low start-up investment in MLM you attract many folks who are not self motivating or business savvy. Thus if there isn't a strong mentoring program or upline mentor to guide them they give up/quit, or as the negatroids call it, fail.

Look for a solid debt free company with a product that is in demand, and, most importantly, make sure your sponsor is willing to take you by the hand and lead you every step of the way.

BUT, you yourself must work hard, invest in your business and eventually go from student to teacher/mentor to your people as well, if you want to be in the 5%. Look for company management with experience, timing in the company and the industry, a remarkable product, a compensation plan that pays its part-timers and a duplicatable system.

In a nutshell, those are the five essential pillars every company must have in place for YOU to be successful. I believe that it works if YOU are willing to work. Think about it like a brick and mortar business. You have to invest in it. You have to be creative. You have to treat it like a job. Determine what hours and days you are going to work on it and Be there!! On time!! Find a mentor who is successful and follow them!

The truth is more people probably make full-time incomes promoting the direct sales income opportunities like | Liberty League International | Emerald Passport | Coastal Vacations | and while the "start-up" costs for these companies may be higher ( at least they are commonly perceived that way ) it takes no more effort to promote a plan where you earn $1000-25,000 per customer than it takes to promote an mlm where you earn a $5.oo residual per customer (who stays on autoship).

The direct sales companies are set up not only to attract people who have some funds to start a serious home business with early retirement potential, but also to sort of screen out those who are not capable of building such a business. People who get reactive over investing $1500.oo in starting a business are not the people you want for any team.

People who are worthy of success will show merit in any situation, however, with the direct sales model it is much easier to spend valuable time only dealing with and mentoring those who are truly serious about building a business and back that up with an investment of time, money, and energy.

Lets have no illusions about what the real product of the MLM industry is: its the dream of easy big money for people with little education and no history of success in business. The vitamins, tonics, magnets, gas pills or whatever are the products that legitimize the industry, no doubt. And its great if you stand proudly behind the product you promote. But the real money is made by recruiting business builders who have been sold on the same dream we bought. Don't forget it.

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