5 Things to Know About Network Marketing

The concept of network marketing began with Nutralite in 1945, according to First Class MLM, when distributors who acquired 25 customers could become direct distributors and started earning commissions from others' efforts. Today, network marketing is popular with many young women who dream of large incomes and flexible work schedules. And there have been many success stories in the industry. But before you commence your network marketing career with any company, here are some important facts you should know.

Not as Easy as it Seems


The pink Cadillacs, diamonds, trips and cash bonuses that direct sales companies dangle before aspiring recruits are nice but take a lot of hard work to earn. Recruiters often paint the job as glamourous or “passive income,” but the reality is that this “marketing” job is sales. If you have the talent for sales and the personality to enjoy it, you can succeed at an MLM, but you could probably make more money selling elsewhere.

Work on Commission

Direct sellers and other network marketing professionals work on commission. That means you only get paid if you sell something. This isn’t necessarily bad if you have a self-driven personality and work for a reputable firm such as Succeed at Eagle. However, this industry is saturated with less-reputable products that will be hard to move in any substantial volume. Chances are if you invite the right crowd of friends or family members to your shows or parties, you will sell some items. But your income can vary widely from week to week. You will also need to get referrals from these people to keep your business thriving.

Most Work Part-Time


Eighty percent of people who get into direct sales network marketing start out part time, according to MLMattorney.com. They then work hard to build there businesses as they maintain jobs. Still, only 3 percent earn more than $35,000

The Reality of Business Building
While you will stay plenty busy booking parties and making sales in network marketing, the big money only comes when you start recruiting others to sell for you. Then you must help them build their businesses and be available when they have questions. This requires a full-time commitment which includes ordering items and arranging pick-ups and deliveries for customers. Consequently, you may need to hire a family member or part-timer to assist you. The reality is that this recruiting process saturates your target market with your own competition, which further perpetuates the myth of MLM growth.

Other Professions Pay More
Many MLM’s boast huge earning potential, but relatively few sellers ever make more than a little petty cash. Average sales for most MLM products is extremely low. Most of the time you are better off with a traditional salaried position or a high-commission position (going back to our Succeed at Eagle example).

Network marketing can be a great career choice if you have the drive and energy to achieve your goals. But before you throw all your hopes and dreams into the industry, investigate some other professions that may pay more. 

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