What is Network Marketing & MLM?
Update February 2016: Take a look at our recommended Australian network marketing resource, NetworkMarketingWatch.com.
There is a great chance at some point in your life that someone will approach you about a direct selling, network marketing, or multi-level marketing (MLM) business opportunity.
The more traditional network marketing business relies on attracting a group of friends, family and/or strangers together and not only selling them on your product but also the benefits and freedoms they will receive from joining in on the business.
For most, legitimate top mlm companies with solid track records, your main goal is to introduce your product to people who become regular customers and successful partners in the business.
Investopedia defines ‘Multi-Level Marketing’ as the following:
It’s pretty clear that successful mlm companies (also referred to as network marketing companies) are fundamentally centered around direct sales with a strong recruiting element as well. MLM has proven to be a major part of today’s economy and often a preferred way of doing business for many people throughout the world, including Australia. In fact, the network marketing industry generates well over $50+ billion on an annual basis with over 20 million people involved on MLM direct selling each year!
Benefits Network Marketing
Though MLM marketing has been around since the 1920’s, the past couple of decades has seen a meteoric rise in people joining the network marketing industry, with top MLM earners bringing home millions of dollars per year in commissions and residual income. Here are the top 4 benefits of starting a home based MLM business:
- Unlimited income potential - Though MLM marketing has been around since the 1920’s, the past couple of decades has seen a meteoric rise in people joining the network marketing industry, with top MLM earners bringing home millions of dollars per year in commissions and residual income. Here are the top 4 benefits of starting a home based MLM business:
- Low cost of entry and risk- With network marketing, you’ll enjoy the freedom and flexibility of owning your own business without having to borrow money or hire employees. This means you will have little overhead cost.
- Network marketing training is provided- Generally, when you join a network marketing company, you are provided all the tools and MLM training you need to start down the path towards network marketing success. Most importantly, you learn a system about how to attract people and nurture your recruits so they become successful too!
- Home business tax breaks – Since your MLM business will be considered a home based business, you will have the opportunity to take various tax deductions which may ultimately save you thousands of dollars per year. There is a huge tax advantage to having your own business.
Cons - Dangers of Network Marketing
Network Marketing is easily one of the most misunderstood and misrepresented business models. Those involved in the Network Marketing Industry understand that there is low risk to joining a new Network Marketing company, however, because of the structure of a network marketing business, many people mistakenly believe that all multi level marketing companies (even the best mlm companies!) are illegal pyramid schemes.
Whether it’s a scam or not, any mlm distributor that you talk to is going to tell you their's is a good or the very best mlm company. Before investing any time or capital with a network marketing company, look the company up via the Better Business Bureau (BBB) or consult people you know that have experience with the company.
The last thing you want to get caught up in is a pyramid scheme, which are not only illegal, they are a waste of money and time. If you are presented with any mlm scams that ask you to invest your own money, recruit other investors, and doesn’t sell an actual physical product, do yourself a favor and run! A pyramid scheme distributor's success is heavily dependant on bringing more people into the the funnel of the pyramid… don’t be a statistic. In network marketing, representatives pitch and distribute actual products, while on the other hand pyramid schemes generate revenue by attracting new people and bringing them into the fold.
Another good piece of advice is never sign a contract or pay any money to participate in a multi-level marketing program, or any business opportunity, without taking your time and reading all of the paperwork.
Best Network Marketing Companies to Join?
2016 Best MLM Opportunties
There are thousands of MLM - Network Marketing Companies to choose from, so it can be very difficult to pick a good MLM Company. However, if you find a company with a product you can believe in, network marketing can help you realize the financial goals of your home based business.
Here is a list of the top multi-level marketing (MLM) companies worldwide. It’s no surprise that over 25% of the most successful network marketing products are related to health, through supplements and health care with many products marketed exclusively via network marketing. These mlm rankings based on annual sales:
Annual Sales (US$)
beauty, jewelry, apparel
cosmetics, personal care, food, home care, wellness
cosmetics, personal care
cosmetics, personal care
cosmetics, household appliances, home care
cosmetics, personal care
storage and serving products, beauty, personal care
cosmetics, personal care
cosmetics, personal care
electricity, natural gas
landline phones, broadband, mobile phones, gas, electricity, cashback card
skin care, personal care, cosmetics, jewelry, fragrances
cosmetics, personal care, wellness, beverage
cosmetics, healthcare, cleaning
cosmetics, personal care, food and beverage, home decor, kitchenware
There are thousands of established mlm companies to choose from, there are also new mlm opportunities that start up every single day. It is strongly recommended that you take the time to do the research and develop your own idea of what a good MLM - Network Marketing Company would be for you.
Also, don’t shy away from new network marketing companies as they are some of the most exciting opportunities that one can find themselves in when looking to create financial freedom and can quickly become one of the best network marketing companies or atleast one of the fastest growing mlm companies. If they carry a product that you truly believe in, and provide solid support and the mlm training and systems you need to generate network marketing leads, make sales and become successful dive right in!
How Much Money Can You Earn From MLM?
MLM is one of few home business ideas that will afford you the opportunity to earn more for your time invested than any other home business. The "success" of network marketing lies in the enthusiasm of its participants, and staying focused on your goals. In three to five years, you could make more money in Network Marketing than you would earn working 30 years for someone else in the work force.
When you get to a certain point in a multi level marketing business and you have your team in place, your business then begins to build itself. Choosing multi-level marketing is a way for you to have your own home business without investing in R&D for product development, purchasing and inventorying product, managing employees, and many of the other baggage that comes with starting a more traditional product based business.
Just like any home business, prior to representing a MLM company and distributing their product, it is advised that you review their commission plan very carefully to ensure they are offering the best mlm compensation plan and that it makes sense. I heard a recent statistic that 97% of people are either negative or neutral to network marketing. But this, requires a variety of abilities that you´ll have to master when starting off in Network marketing.
If the product is good, there is a large market for it, and the network marketing company has great management and leaders, and a good compensation plan you can be certain that there is a great possibility that this MLM opportunity can make you unlimited income.
How to Succeed in Network Marketing
First and foremost, you must choose wisely by finding a product that that meets the needs of a market and is in great demand. For best results, choose one or two top multi level marketing companies that have been in business for over ten years and have substantial track records or products which you truly believe in. This can only be done by doing your own research and find out as much as you can about the network marketing company before you sign up.
Choosing the right company and product aren’t the only network marketing success factors. Some people think that a MLM business will afford them the ability to put in little to no effort while expecting a huge gain. It takes a lot of time and effort to learn how to succeed in this business, and your rate of success will be solely dependent on the amount of discipline you bring to the table by focusing on revenue generating activities.
While it is easy to settle for a few sales here and there to be successful in mlm, it is best to go all in and be confident about your business regardless of the feedback you receive from prospects. Everyone will have an opinion (good or bad) about your products, services or network marketing opportunity, even though they may not know the details as thoroughly as you. Because of this, there is a large turnover rate in network marketing since many people give up and do not want to keep bothering their family members. The great thing about network marketing is that you can do it anytime and anywhere with practically zero restrictions!
Success comes only to those who are willing to put in the time and hard work required when doing MLM prospecting and recruiting. When you get into network marketing you will be afforded network marketing training to support your business. Within this training, you will learn a system to market the offering and recruit new leads to convert into distributors as well. There are a lot of network marketing tools out there to help with mlm lead generation but beginning with a couple basic tools like your own personal blog and a means to capture emails will go a long way. It is advised that you follow this system very closely, especially when you are beginning in your business. Many distributors make the crucial mistake of never giving any support to their recruits. This can stagnate your business as the scale of your success is greatly dependent on the success of others. Success in any sales based business is always in the follow-up.
The top mlm earners focus on recruiting new MLM leads and supporting a diverse network partners into their ‘downline’. By utilizing the system you are taught, you will train your new business partners with the skills and knowledge they need so they know how to succeed in network marketing and duplicate your success multiple times over.
Aside from a strong sense of self-confidence and determination, your #1 asset will be your ability to learn from your mentors and develop a skillset that allows you to relate, communicate, inspire, and motivate your partners within your network. Having a strong desire to “pay it forward” will bring you great success in your business as you build a thriving business of happy customers and partners who feel connected, empowered, and inspired by you.
It takes time to learn how to succeed in this business and if you quit early, you will never know if you would have been able to make something of the many network marketing opportunities out there. Network marketing requires dedication, and with enough hard work, can turn into a very lucrative and self-fulfilling home business.