There are many people who want to be an entrepreneur but believe they do not have the capital to start a business. Maybe they should consider MLM or network marketing. There is no other type of business organization that requires such a small initial investment. Actually, the other requirements are the ambition to be successful and the willingness to work hard. You can keep your current job and work your business on the side. You can operate the business from your home office. You are your own boss. You get to call the shots.
There many many network marketing opportunities out there. They are selling a lot of different products and services. A networked sales organization works in a different way than direct selling and retail sales operations. With a networked structure you do not only earn commissions from the sales you make to customers. You also earn commissions from others whom you recruit to join your sales organization. These are residual sales that can provide a constant stream of income.
The people working in these sales organizations are usually called associates. To begin, you are sponsored by an active associate. Once you are sponsored you can sell the products and you can sponsor associates to be under you. Your “up line” is your sponsoring associate’s organization. The associates under you will also sponsor associates. Your “down line” are your associates and the associates under them. Many levels are created as associates recruit associates forming a “pyramid” like structure. This is where the term multi-level marketing comes to be.
When you are in a networked business you receive commissions from your down line sales. Likewise, your up line makes commissions from the total sales production of your organization. This type of revenue sharing encourages associates to recruit new associates. There are many different variations of this revenue sharing system.
When you are running a business based on the network sales model, you do not market your goods like a retail store does. You do not buy ads in the newspaper or commercials on TV or radio. You will sell your products among neighbors, friends, acquaintances, co-workers and family. The type of products that work well with a networked sales structure are consumer products that most people use everyday, like vitamins and food supplements, home cleaning and personal care items. These are things that most people use and buy all the time.
Most of the boring administrative chores of managing your own business are taken care of for you. There is no inventory to maintain. Customers order their products from a web site and the products are dropped shipped to the customer. You will receive sales reports from the the company which your CPA can use to prepare your taxes. This frees up time to work on recruiting so you can build your sales organization.
Speaking of taxes, there are a lot of tax breaks with running your business. You can deduct the portion of your home that you use for your business. If you sponsor new associates when you are on vacation then your trip can be written off. Remember to always check with your attorney or accountant if you have any questions regarding tax liability.
While MLM or network marketing may not be for everyone, if you are the sort of person who wants to be your own boss, then you really should give it a close look. There are no other business opportunities that can offer the potential for such a small investment. It is easy to find out more about network marketing. The internet is filled of very interesting information and knowledge about this great career opportunity.
Find all of the details and information you need to learn how to succeed network marketing today! When you get the list of the best network marketing companies and begin planning your future, you will find the answers fast and easy!