Today is is the first day of my 7 day Network Marketing Boot Camp. To start, I';d like to tell you a few things about what I've found about this industry. This will not be full of fluff but will be the nitty gritty – Good, Bad, and Ugly, so that you know what you are getting into and know what to expect and can prepare yourself for it.
Network Marketing : The Good
The greatest thing about the network marketing industry, i my opinion, is that you can start you business for less than $500 and oft times much less than than. Most traditional businesses require investment of tens of thousands, if not hundreds of thousands of dollars just to get started, and they have huge monthly overheads just to stay in business.
Because of the nature of network marketing, you can leverage yourself and build a distribution team that spans the globe. As a network marketer, you are not restricted to a territory, a state or even your home country. And best of all, you don't pay any of the people that you recruit into your business The company that you partner with does that so there is no payroll taxes or other employer headaches for you to deal with.
As a network marketer you can earn passive income ( residual income ). This is money that will come to you month after month, year after year, for work that you did some time ago. The Network Marketing industry is one of very few industries that let you do this . Residual income is far better earned income because with traditional linear income you always start each and every month at zero and every year you have to keep working if you want to get paid. The day that you stop working, your income goes away…
In addition, with network marketing you don't have to do research and development, you don't need a marketing department or as previously mentioned, employees. You don't have to take orders or collect payment or even deliver products to your customers. You don't have accounts receivables, you don't need a separate building from which to run your business and you don't have to ship anything. In other words, as a Network Marketer you don't have to deal with the headaches that come with traditional businesses.
As a network marketing professional you get to benefit from the tax advantages of having a home based business. You get all of the tax advantages that traditional brick and mortar business have. You can deduct some of your lifestyle expenses and minimize your tax burden.
As a network marketer, you will have opportunities to associate with other positive, like-minded entrepreneurs. The people in our industry are some of the greatest people you will ever meet. They have great attitudes, they have goals that they are working towards and they want to do great things in their lives.
By becoming a network marketing professional you will develop a set of skills that will help you build and run a successful business in any industry. The MLM industry is the best business school and personal development course out there. In network marketing you will learn about sales, marketing bookkeeping , lead generation , advertising, communication, leadership, motivating others and a whole lot more. You will learn all of this by doing it and as a result you will get real experience in these business building skills. During my involvement in the mlm industry, I've learn more about business than I ever did in college.
As you become a network marketing professional, you will become a better person because of your constant pursuit of personal development. As a network marketer you will constantly be involved in improving every facet of your life. The power of continuous improvement, growth of your personal skills, and hanging around with other leaders and winners will help you become a leader and winner as well. The person that you will become in the process of growing your network marketing business will be your greatest reward.
In the Network Marketing industry, you have the potential of earning a high six or seven figure income and become financially free at a young age. There are many successful multi-level marketers that are in their 20's and 30's and have retired from the work force for good. Obviously not everyone makes it to the the top ranks, but most people don't make it to the top ranks in any industry. But in network marketing, there is always room at the top for you if you are willing to lay the ground work for a successful business and be persistent in doing the work that is required.
Now that we've talked about the great things about network marketing, let's go over the bad stuff…
Network Marketing: The Bad
The Network Marketing industry is only bad if you are looking to get rich quick or if you have unrealistic expectations about what it takes to build a successful network marketing business. Network marketing isn't a get rich quick business, but if you do the work and apply the lessons that you will learn during the course of your development you will get rich over a period time. In order to accomplish this, though you will learn what steps need to be taken to reach your goals, and then you have to be persistent and consistent in the accomplishment of those steps every single day. Most people in the industry are not successful because they won't take the time to develop their skills or work their business consistently for a sustained period of time.
The network marketing industry has a horrible reputation because it tends to attract the wrong type of peole. Many people who enter the profession are broke, are disgruntled employees, can't find a job or have other personal issues that preclude them from get a “regular” job. Let me be clear, I'm not mocking folks who have had a financial downturn – trust me I've been there, but what I am saying is that oft times these people are not the best candidates to become entrepreneurs.
Because of this, most people who enter the industry quit after 90 days. It takes time and dedicated effort to build a successful business, and many of the folks that enter the industry just don't have the fortitude to “keep on keeping on.” It is rare in any business to achieve a significant level of success within 90 days. This is an unrealistic expectation and when it is not met, these people quit.
One contributing factor in this high drop out rate is that the cost of entry is so low. How many people do you think would just quit if they had invested $10k into their new business. The failure rate would be much lower because they've got more skin in the game and as a result, they would take the business more seriously.
One of the biggest reasons for failure in the industry is that people just never learn the right way to build their network marketing business. They are taught to hit their friends and family ( warm market ) with their opportunity, but are never told what to do when they've exhausted their warm market. This goes to personal development and training. To build a business you must learn how to get your opportunity, products and services in front of the people who are most likely to become customers and partners.
Network Marketing: The Ugly
Most businesses fail within their first 5 years. Most people in the network marketing industry will not make $1 profit in their business. This is not a business that you will achieve instant success in. Their is a huge learning curve, but in then end it is worth it! In order to create the success that you desire you will have to become a person that is worthy of the success that you seek. As I continue to learn the business, I am amazed by all of the “moving pieces”: There is recruiting, sponsoring, marketing, sales, online strategies and tactics and so on and so on. To be successful in this business you will tasks to become a leader, mentor, speaker and coach. It is demanding work but the rewards are worth it!
Network marketing is is a challenging and rewarding industry but it's not for everyone. If at some point you decide that network marketing isn't for you, that's ok. There are many other non-traditional ways to earn money and have your own business. So don't think that just because you left Network Marketing that you can't succeed in some other business.
Finally, if you think that Network Marketing is for you, I'd like to say… WELCOME! This could be the best decision that you will ever make!