Why do people join network marketing?
Network marketing is a business model that involves the movement of products from the manufacturer directly to consumers through a network of independent business owners. The high costs of having middlemen in the traditional distribution channel are eliminated and the manufacturer’s savings are being paid out in commissions to independent business owners.
Most people join a network marketing company for one or more of the following reasons:
• consume products at wholesale prices
• work toward financial independence
• working towards time freedom
• achieve a desired lifestyle
• working to escape the rat race
The network marketing business does not involve large capital investments and there is virtually no risk. Since no experience is necessary, people from all walks of life have an equal opportunity to be involved in the business.
People working to achieve financial freedom must understand that there are generally 3 types of income:
Active Income it is what most people earn from their work. Employees trade their time for money when they work for people. If they stop working for whatever reason, they are no longer paid.
leveraged income it is earned when people get paid for the efforts of other people. For example, a business owner gets paid when employees work hard to generate revenue for the business.
residual income it is earned when people work once and get paid repeatedly. For example, music authors and artists are paid royalties if their music books or albums continue to sell.
How do you create leveraged and residual income for yourself? You can start a business or buy an ongoing business. However, most people do not have enough capital or experience to start a business. They also can’t afford to buy a franchise or an existing business, not to mention the high risk involved in leaving their full-time jobs to start new ventures.
Unfortunately, people do not have enough hours in the day to trade for enough money to allow them to retire young or live the desired lifestyle. So what can the average person do? Without the high startup costs, associated business risk, and no barrier to entry, this is where network marketing comes in to help people start businesses. Therefore, most people get into network marketing businesses to capitalize on both leveraged and residual income with the goal of achieving financial freedom for themselves.
A network marketing business is easy to set up. However, succeeding in this type of business is definitely not easy! A crucial starting point would be to find a great organization to join. Do your due diligence first before starting in business. It’s important to partner with a network marketing company with a professional management team, great products, a good compensation plan, and outstanding growth potential.
With dedication, focus, and a never-give-up attitude, network marketing would provide an incredible opportunity for any everyday person to build significant residual and leveraged income.