5 Reasons Multi-Level Marketing is a Great Business Model

Network Marketing has continued to grow in popularity. There are many reasons why people will join a network marketing company, such as being tired of being a slave to their career, or wanting more time or money freedom.

Whatever the motivation for joining, the fact is there are a number of benefits to joining a network marketing company over striking out on your own and starting a business from the ground up.

Reason 1: Low Cost of Entry

The fact is that starting any business is extremely expensive. In fact, according to the SBA, the average cost of starting a new business from scratch was $30,000 in 2009. That number has only continued to climb.

A network marketing business, on the other hand, may have an initial cost of a few hundred dollars to maybe a few thousand dollars. For instance, to become a new Lipsense distributor ranges from about $100- Either way, you are looking at a fraction of the cost compared to the “traditional” business model.

Reason 2: It Is An Entrepreneurial Training Ground

What stops many people from starting a business is not having a clue how to run a business, and all that goes with that. The Network Marketing business model allows budding entrepreneurs to start a business on a part-time basis and learn the initial steps of running a business without dealing with all the infrastructure pieces.

Reason 3: It Creates Residual Income

When you think about residual income, think about an insurance agent. They sell a policy once, but continue to get income from it without continuing to have to resell the same policy every month. Sure, there is support and a little work, but how many of us actually contact our agent unless we have a problem? The same is true for the network marketing business model. As you sell, you do not have to keep selling the same people in order to reap the financial benefit of their continued order.

Reason 4: It Creates Leveraged Income

Again, think about the insurance industry. A broker works with multiple agents, and reaps the reward for their continued sales efforts. The same is true with network marketing. As you grow your business, you develop a team of other distributors, known as your downline. You reap part of the reward for their work on recommending and selling the product.

Reason 5: It Allows You To Diversify Your Income Streams

One of the major challenges to the current ideology of a career is that people are addicted to the paycheck, and live in fear of losing it. Part of that is because they have a single source of revenue they cannot afford to lose.

Like a well-balanced investment portfolio, people are wise to diversify their streams of income. Some will continue to work their normal job, but have the knowledge they have the income from network marketing if anything were to happen. Others will use their network marketing business as a launching point for other businesses, such as Ray Higdon launching a training company for network marketers.

What Will Next Year Look Like For You?

Time does not stop, regardless of what you do or fail to do. In a year, you will look back, and you will think, “Why did I not try something new?” or you will reflect “It has been a great year of growth.” What will you choose? Perhaps network marketing is a new option you need to explore and start living the entrepreneurial life you have been dreaming of.