Pros and Cons of a Network Marketing Business

| Posted: 08-10-2007 | Comments: 0 | Views: 70 | Rating: (66)

(?)

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 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.

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: MLM, Franchising, Successful Business Model, Direct Sales Income Opportunities, The Direct Sales Companies, Early Retirement Potential

Article Source: http://www.articlesbase.com/online-business-articles/pros-and-cons-of-a-network-marketing-business-229673.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

To find the best home based business ideas and
opportunities so you can work at home visit:
http://www.ProfitMacnine.com

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Rachael Ray MLM Training
By: Scott Miller | 17/10/2007 | Home Business
Rachael Ray from the Food Network can teach all of us a things or two about becoming successful in MLM.

The Best Home Based Business Leads?
By: Jason Paul | 21/10/2007 | Home Business
If you're building a network marketing business and are trying to find the best source for home based business leads, this article may be an eye opener. The very best source for MLM leads is often yourself, and in many cases they don't have to cost you a dime. In...

MLM Training - are you Sugar Coating the Truth
By: Scott Miller | 26/10/2007 | MLM
Are you leading people down the road to self destruction without even knowing it? Are you contributing to the failure rate in your own business? To truly help people succeed you must be willing to tell them the truth.

By: | 31/12/1969 |

Exposed! Why Doing 3-way Upline Calls Will Never Grow your MLM Business
By: Tony Stargill | 05/11/2007 | MLM
This information will show you how doing 3-way upline calls will make you a failure in MLM

MLM Training - How to Get Prospects Past the Initial Presentation
By: Tim Sales | 11/11/2007 | Home Business
Ever get frustrated with prospects who say they'll be available and then don't show up at the appointed time? Whatever their reason for not following through, here is some MLM training advice you can use to get better results with prospecting follow-up.

Is it a Match or a Flame or a True Burning Bush?
By: Robin Rushlo | 15/11/2007 | Business
Well, here we are again and Dr Robin is going to rant and rave about some of the internet marketers that swear that you can "make $300 to $10,000 in a day". Well BAH Humbug! Yes there are always the superstars that fall into the pit of "you know what" and always end up smelling like a rose. They are very few and far between of those. For the most part the average Joe and Joette must work at it and take some time.

How To Write Articles That Are Marketable
By: Rick London | 20/11/2007 | Article Writing
Everyone, it seems, wants to be a writer. If you are a writer, you know that there is a difference between writing articles that mean something and writing articles that don't.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

What is the scope of Multi Level Marketing (MLM) in Israel ?
By: vipan0709 | 14-04-2007
Have any one heard of 'QUEST NET' in Israel and scope of network marketing in israel?

How to be a Facilitator?
By: 1000Club | 02-04-2007
How to be a Facilitator?

Should I join MLM?
By: marlo | 02-02-2007
I have a friend which trys to add me to a business he's in.I read about it a little bit and it's called MLM (multi level marketing). he says that i can make alot of money, but I need to make a little investment and pay every month a little bit. it's like a pyramid but with true products. what do you think about it? should I invest?

Q&A Powered by:

Latest Online Business Articles

The Internet Home Business Opportunities Affiliate Marketing
By: Wazir Singh | 20/08/2008
If you already have a website, then affiliate marketing is the first internet home business opportunity you should think of, if you want to make money online. Affiliate marketing is becoming more and more a huge business part on the internet.

Latest Ten Steps for Niche Marketing System - Niche Marketing
By: Varun Kumar | 20/08/2008
This is a step-by-step article / niche-marketing system that can be used to make money for a long time to come. You may not make much money right away but you will be building a group of sites that will give you a steady income stream down the line.

Online Business Promotion: Part 3
By: Sanjeev Pandey | 20/08/2008
In this part we will discuss about online business promotion tools including Affiliate Marketing and B2B portals. All these tools are successfully used by marketers.

Free Barter Service in Zigime
By: hybridnova | 20/08/2008
Zigime.com is a newcomer to the social networking arena. Picking up where most of the present social networking sites have left off, Zigime.com has many unique features and one that's especially cool - the Friend Manager feature will be a welcome relief for the many members who love to collect hundreds of thousands of friends and then be able to search and sort by age, gender and location.

Different Different Google Adsense Placements Institutes and Websites
By: Wazir Singh | 20/08/2008
In a recent article I talked about Google AdSense placement based on eye-tracking research. However,

British Pound Crashes on Dovish Boe Inflation Report
By: Mike Wright | 20/08/2008
The FTSE finished the week down slightly, but the real loser last week was UK PLC. The pound crashed as various factors come to a head.

Postcard Printing: Direct Mail Advertising
By: Lynne Saarte | 20/08/2008
some ideas that will help your postcards produce maximum results

The Scoop on Full Color Brochures
By: Janice Jenkins | 19/08/2008
how do you make an irresistible brochure that stands out from the rest?

More from Alexandre Sobolevskiy

Building your Own Website to Run Internet Based Business
By: Alexandre Sobolevskiy | 21/11/2007 | Internet Marketing
If you are serious in building an online business, I would say YOU MUST HAVE YOUR WEBSITE.

What are the Advantages and Disadvantages Between Drop Shipping and Affiliate Programs?
By: Alexandre Sobolevskiy | 08/10/2007 | Business Opportunities
So, the question is. Do you feel that you are better finding markets for products? Then you go Affiliate.. If you feel customer service is you strong spot, and you feel passionate about the market/products? Then you go Drop Shipping

A Popular Home Based Internet Business Opportunity
By: Alexandre Sobolevskiy | 19/04/2007 | Home Business
I will present to you one very popular home based Internet business opportunity you may want to take a look at.Getting paid for taking online surveys is a popular home based Internet business opportunity.

One of the Most Popular and Rewarding Home Based Internet Businesses for Starters
By: Alexandre Sobolevskiy | 23/03/2007 | Home Business
One of the most popular and rewarding home based Internet businesses is selling products of others. If you are looking for a business opportunity that does not require an initial investment and does not require you to stock any merchandise, online affiliate programs can be a great venture. As an affiliate, you essentially become part of the company’s sale team, but you work on commission.

How to Start and Succesfully Run a Home Based Internet Business
By: Alexandre Sobolevskiy | 07/11/2006 | Home Business
Any business requires money investment.A home business is a great opportunity to start your own business with minimal cash investment.You don't need to pay rent or hire employees.You can choose the schedule you want to work,you can wear the wardrobe you want to wear,and most important you can be your own boss. If you want to start home business and make money online yourself,you need to learn and apply the secrets revealed by someone who is already doing it succesfully.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Follow ArticlesBase at http://twitter.com

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.20, 17)

Pros and Cons of a Network Marketing Business

Article Comments

Related Articles

Got a Question? Ask.

Latest Online Business Articles

More from Alexandre Sobolevskiy

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter