I had a conversation today that inspired me to write this post. The conversation was not a very successful conversation as the person on the other end of the line seemed to think that Network Marketing was a ridiculous business to be involved in. I asked him if he was a business owner and he said that he was.He seemed to thing that my business in Network Marketing, was not a very reputable business.
So, I would like to do a comparison of the Traditional style business versus a Network Marketing business. So here we go!
Traditional Business
Let’s start with a traditional business, or a brick and mortar type of setup that has a boss, employees and health plan. The boss/owner of an enterprise is the one that obviously makes the most money. Who makes that money for him, his workers. These types of businesses obviously offer a valuable product or service for it’s customers but only the owner makes a real profit. Now I could go into this a lot deeper but we know that the employees aren’t the ones making the most money. Employees struggle to make ends meet. They definitely don’t flourish and what does this do? It makes them more dependent and they are paid the minimum wage possible for their work. The minimum! So we can safely say that the boss, is the profitable one.
The product or service offered obviously varies and can make others money depending on what it is, but usually, the customer does not profit monetarily from your product. They just give their money in exchange for the item or service of value and that’s it.
Network Marketing
Now, Network Marketing is much more lucrative and on more of a level playing field for all involved. In this type of business, which most people call a Home Based Business, the owners of the company still profit the most, which is standard with most businesses, but Network Marketing companies are designed to profit others monetarily instead of just themselves. They provide a product or service of value to the customer attached to a lucrative business opportunity. Network Marketing can be classified as a group of Entrepreneurs working together to market a specific product or service as independent contractors. So instead of being paid employees, they are independent business owners usually paid through commission when a product is sold.
Now this is where the huge difference is between this business model and the traditional one, the independent business owner makes nearly 60% of the total sale as commission! As far as my experience goes, no other traditional style company offers employees that type of a payout. They are usually paid a wage and a small percentage of their sales volume.
Network Marketing is a leadership factory. It teaches, trains and often times is a stepping stone for Entrepreneurs moving on to bigger things, but the basis for their success was learned while in Network Marketing. Donald Trump said that if he had to start from scratch all over again, he would start in Network Marketing. There is so much potential in this type of business model, which obviously most people don’t realize. Every new associate or independent business owner has the same income potential, regardless of the experience, education, or employers point of view. Their level of income is dependent on their own ability to create it. There is a product in place, a system to show you how to do the business and others who have gone before you to mentor you. I don’t know an easier way!
I absolutely love Network Marketing. It allows people complete freedom….time freedom, Financial Freedom and the lifestyle of their choosing. It empowers people to realize their own greatness instead of making them work for the minimum at great sacrifice to their home life. It is a curse and a plague for those who misunderstand it and fail at it but a jewel for those who dicover it and succeed at it. It is definitely not meant for everyone but everyone is welcome. The possibilities are endless and in my opinion, Network Marketing is the business model of the future.
Short Story to emphasize the points above
Now, I won't stop here without sharing a story a Friend and Mentor from United States, Ray and Jessica Higdon, told me to illustrate the difference between Traditional Business and Network Marketing:
Joe was working in corporate America as a big executive. He had a fancy office with a great view, a large amount of people working under him, made good money, and had a fancy title that he could brag about to people. Joe also happened to work 60-80 hours a week and barely got to spend time with his family, but his thought process was “that’s just the price you pay to live a great lifestyle and take care of your family.”
Every day that Joe drove to work, he passed his neighbor’s house. His neighbor, John, had a big, beautiful house. The house had bright green grass, a huge pool and lanai out back, large columns in front and big iron double doors. Joe envied his neighbor because every time Joe kissed his kids good bye at 7 am and got in his car to drive to work, his neighbor would wave from the front steps in a bath robe and then walked right back inside to spend the day with this family.
That day Joe made a decision. He knew that John owned his own business and was completely financially free, so he decided he no longer wanted to be part of the corporate rat race and he would go out on his own! It just so happened that Joe got laid off that day anyways, but he knew it was coming because his company had been in trouble for quite some time.
Joe didn’t panic, he already had a plan to open a coffee shop in his area.
A few months later he spent $250,000 getting his coffee shop off the ground and running and is so excited it’s finally ready to go! He hires a ton of employees, a manager, and holds a grand opening. Long story short, his employees kept stealing from the register, he ended up working 80-90 hours a week (even more than his job), made less money even after 3 years of being open for business, and was actually barely making a profit.
Joe was so frustrated and beaten down, he decided to go see John and ask him what he should do. John, his neighbor, was successful happy and free so he must know the answer. What do you think John did for a living? Network marketing! (this is a true story). John explained the benefits of network marketing vs. traditional business to Joe, even though Joe was skeptical because his unsuccessful brother and sister in law had tried one of “those things” and it didn’t do anything.
Network marketing has created more millionaires than any other industry, but unfortunately more times than most a lot of people have been so poisoned by the mass thinking that people don’t understand it’s true power.
Joe joined John’s network marketing company and after 2 years was making multiple six figures then went on to become a multi millionaire with the industry after 5 years.
Benefits of Network Marketing:
1. No boss
2. Low overhead
3. Low start up cost
4. Unlimited profit potential
5. No employees
6. No headaches or emergencies
7. Financial and time freedom
Benefits of Traditional Business:
1. No boss
Most people think traditional business is “the way of life” because it’s been hammered into our minds over and over again. Of course there are many successful traditional businesses and I commend them for that, however there is also a lot of risk, capital and headaches that come with it.
I used to be a skeptic because I wasn’t properly educated on network marketing and I listened to the masses when I should’ve been paying attention to the people I wanted to model. I educated myself, got involved with network marketing 2 and a half years ago and now I’m the top female income earner and recruiter in my network marketing company.
I was a broke college student who didn’t know anyone, traditional business was not an option for me so I tried something new.
“If you want to get something you haven’t gotten, you have to do something you haven’t done.”
that was my motto for a long time and it’s gotten me to where I am today. I’m excited to be educating people today about what I do and creating a lifestyle for thousands of people through network marketing.
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