Before knowing the benefits of network marketing or multi-level marketing let’s go through the introduction of network marketing.
Multi-level marketing or network marketing
Network marketing define the direct sale of products to consumers. Marketers didn’t have higher education in individuals marketing. They take profit of degree programs. Its focus on business administration, marketing, and sales management and e-way bill. It is a type of business opportunity that is very popular with people looking for part time flexible business. Network Marketing programs have such feature of low cost investment. Generally, hundred dollars for any purchase of product sample kit and having to sell product directly to a friend, family and other contacts.
Most of revenue comes from requirement in a network marketing system. Its considered as illegal pyramid of scheme. All these programs are exempt of business opportunity regulation.They didn’t define as franchises. You will have to work your own investigation before investing money. network marketing known as multi-level marketing (MLM), is a direct selling method that uses a network of people to sell a product. Through IRS, network marketers earn money by directly selling products themselves or by recruiting others to sell products for them. Persons who in turn of recruit others to sell the same product, and so on and so forth, until there is a hierarchy of distributors who are selling and promoting the product, hence the term multi-level marketing.
Some examples of best network marketing are Amway, Melaleuca, USANA, Nu Skin.
Why marketing network?
- No employees
- No real inventories
- No accounts payable
- No account receivable
Benefits of network marketing: –
I Don’t Have Employees.
I Don’t Have to Stock or Ship Inventory.
My Partnerships Don’t Require Babysitting or Hand Holding.
We Share in Company Profits and Ownership.
It Allows People to Spend Quality Time with Their Families.
No Limitations on Amount of Revenue You Can Generate.
It Can Diversify Your Existing Revenue Streams.
It Can Create Legacy Income.
Low Start Up Costs.
Leverage: –Leverage is by far the single most important advantage in a profession like this by allowing people to work smarter, not harder. We have to work for generating the income, you have to focus on your health and the list goes on with life obligations. Some employers pay employees for units of a product produced or sold – commission based and sometimes capped. Either way, employee wages will always have a ceiling.
Huge Tax Perks:-One of the not-so-obvious advantages of network marketing that people miss are the incredible tax perks which an ‘Employee’ doesn’t have. When you join a network marketing company you’re starting your very own home-based business and even your capital invested can be written off. For those of you who have a traditional job, you too can be earning extra income and huge bonus, you will have various tax advantages over your colleagues. if you have a mortgage, car payment, fuel costs, office supplies, etc. then this is possibly the greatest advantage of all as you are allowed to deduct your expenses from your income before calculating how much tax or gst you should pay!
Support: –This is a people helping people kind of business. There is a famous saying in this profession, “you’re in business for yourself, but not by yourself.”
Personal Development: –To become a leader in this profession all network marketers are prolific readers; as the saying goes, ‘leaders are readers’. Network marketing diversifies you in skills that a traditional job doesn’t focus on such as public speaking, coaching, mentoring, how to relate to others, etc.
Personal Branding: –With all that you will learn through this profession, you may become an expert marketer, but if trained properly you will know understand that you’re not a salesperson or a professional marketer for your product or service. You are branding you and your values and what you stand for. People buy into your company or products because they like and trust you. Once you have established this for yourself, and you become a leader in your community by using your voice and helping others.