Conceptually, Network Marketing or Multi-level Marketing (MLM) offers a very sound way of making money through LEVERAGING...it is like having a bunch of McDonald's franchisees working for you...absolutely one of the best around! That's why there are so many MLM companies everywhere trying to offer a DREAM to people but unfortunately, it became a broken dream for many...
While MLM does offer great potential (making lots of money), i have to caution you that it's not everyone's cup of tea. Often it involves the bold steps of doing things differently and one must be able to take rejections and failures positively, persevere and never give up! For many, it is easier said than done...many network marketeers cannot last more than 3 to 6 months!
Also, it is important that one needs to be prepared to act as a true leader cum motivator of your team. Your growth is obviously limited if you are merely a follower!
Besides, efficient and quality service provided to your customers is also critical, just like any form of business.
Some of the criteria i would suggest to consider when selecting a good MLM company include:
- Sound and visionary management, who has also demonstrated great support for its people
- Genuine products with excellent quality
- a consistent roadmap to introducing new products (This is because every single product out there will reach maturity one day sooner or later)
- Excellent incentive scheme (but beware, stay away from GET-RICH-QUICK-SCHEME!)
- If one is relative new to the industry, best to join someone (directly or indirectly) or a group who has consistently demonstrated leadership skills cum a strong motivator. Even if one doesn't succeed, there are plenty of learning experience to benefit from!
- Opportunity for market expansion, such as overseas expansion and product diversification.
Does it need to be a proven business? Well, most people think it is wiser to join a new or relatively new start up due to the exponential growth potential. However, it can't be a proven business if it's a new start up for sure. So one takes a greater risk for a potentially bigger rewards. Of course, the reverse holds true too! I guess there is no hard and fast rule...it's all an element of how much risk one is ready to take. Although it may be safer to join a Network Marketing business that is age old and proven, the potential rewards may be lesser depending on the level of market maturity. At the end of the day, i believe there is a market as long as there is an opportunity for market expansion and room for new or supplementary products.
Indeed, one can truly enjoy financial freedom if becomes successful in Network Marketing.
What do you think? Do share with me your views.
Thursday, May 22, 2008
Network Marketing: Is It Your Cup of Tea?
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2 comments:
Hi there PS Thoo
The million dollar discussion of MLM. Hehe. Sometimes, I really wonder, why is it that our people loves anything that has got to do with pyramid-like business structure :P
When it comes to MLM, I do think that it is a valid way to make money. However, I don't think income derived from MLM should be treated as passive income at all. That's due to the fact that you've got to work to maintain your downlines. If you don't do anything, downlines will run away, and your whole income structure will collapse.
By the way, I've answered to your comments in my blog :)
Hi Nadlique,
Thanks for the reply!
I absolutely agree with you that income derived from MLM is not passive income, although many people would think so. Passive income is really income derived from a source that any person need not be active in.
I would therefore call this a residual income instead.
In my view, a pyramid like business model is often enticing to people because of the perceived power and potential that are often delivered from a good sales picth! It creates an instant DREAM that many people would not have dreamt of otherwise...
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