Network marketing defines a business model based on the establishment of a network-built sales team. It has many advantages compared to other models. In particular:
Networking offers you the opportunity to live the sort of lifestyle you’ve always dreamed of. It’s up to you. Ditch the daily commute, work from home and eliminate travel costs.
Pick the hours and even the days you want to work, and start part-time if it helps with set-up. You get to choose who you are going to work with, and the communication channels that will glue your network together. And remember it doesn’t all have to be internet-based. You can opt for personal contacts (one to one or in groups), use traditional mail, or pick up the phone. It’s your business, you choose. Freedom and flexibility are the watchwords of a networking career, you can cast off the chains of regular employment and have the sort of life you want.
2. Low Start-up Costs and Leverage
It’s possible to start a network marketing business with very little money, £500 or less in many cases, but even with such a minimum initial investment the potential for exponentially high earnings is very good compared to that offered by other business models. Moreover, leverage grows as your network grows. You will probably need to set aside funds for things such as the purchase of stock, marketing, and telecoms, all the essentials for running the business.
It’s worth considering that rewards similar to those offered by a traditional franchise are very possible, but a franchise will often require investment for premises; this is not an issue for the network marketer.
3. Worldwide Market
The internet can enable the creation of a global network marketing operation, and many companies in the business encourage their marketers to add people from other countries to their network, though it may not always be possible to sell their products in those countries. Where sales abroad are allowed, it’s worth checking your company’s policies to see whether there are any work permit regulations extant in the country in question that may need to be satisfied first.
4. Perpetual Residual Income
Building the business will enable you to collect an ever increasing residual income stream from your network and requiring little or no effort on your part. But make sure that compensation relates primarily to the sale of company products rather than merely recruiting others to the network which could be regarded as an illegal pyramid scheme.
Tax efficiency is one of the benefits of network marketing that can easily be overlooked. Running a business gives you various tax advantages not enjoyed by regular employees. The emphasis is not on what you make, rather it’s on what you can keep. The most obvious benefit is that as a business you can deduct associated expenses from your income prior to working out the tax you need to pay. However, remember that tax laws can vary from country to country and you should have a word with your tax consultant to identify those expenses that in your case will qualify for deduction.
Network marketing offers huge potential and an attractive choice for those seeking an alternative to the usual marketing graduate jobs. Doing your homework is of course advisable as it may not suit everyone. But if flexible hours, a world of opportunities and the option to be your own boss appeal, then this certainly a good option for those fresh out of college.
About the Author: Sabrina Grymen is a freelance writer .