Home Based Business

2 years ago I retired from the Army having served a full career there and I was looking for something different to do; I was invited to take a look at a network marketing company which offered a work from home opportunity. I went to their head office, watched the presentation and it was very informative.

The cynic in me was screaming – it’s a scam! I spent the evening googling network marketing and learned some big differences!

I wanted to share what I learned and inform you about this business model; I do not wish to offer a ‘pitch’ for my business – just generic information so please bare with me.

Network Marketing (also known as MLM) is a business distribution model that supplies products directly into the hands of the consumer from a network of independent distributors, who own their own home based business. There is a plethora of mis-information and negativity about this business, perhaps from people who have had a bad experience from a less than ethical recruiter or didn’t make it and feel aggrieved.

Direct Selling is a proven and efficient method of distribution, now used by some very well known companies – Dell Computers, Amazon, Toyota cars, etc. It is a $200 Billion Industry. A great tool to learn more about this remarkable business is ‘Brilliant Compensation’ and please Google that; you’ll find it is a 20 minute animated video that thoroughly explains the business.

One comment I often hear is ‘why do I have to pay to join?’ Companies are often free to register with, others charge a fee and even an annual subscription; which would you choose? You do have to pay for products (they aren’t free) to begin your business and use them. Very often they are personal care products, so you are redirecting your spending away from supermarket stuff (which is awful) to far superior quality products.

"So if the products are so good, why can’t you get them on the High Street Shops?" Retail is declining as Network Marketing is ascending; companies use it because it is efficient and ethical, plus they do not have to endure the financial overheads of having a shop!

It is really 2 businesses in one package:

• Personal Retailing – also called Direct Selling, Party Plan, etc. Where personal recommendation sells. Perhaps it is an evening party, coffee morning, catalogue drop to the door or a one to one meeting over coffee. The distributor usually buys products at wholesale and sells at retail price, thus making a profit. Typically this creates a monthly supplemental income of a few hundred pounds, which can be very welcome.
• Team Building – within your business you are given an opportunity to duplicate yourself in business; to recruit others into your organisation as independent distributors and they can do the same to. It’s akin to having a franchise, only this one is a free one. You identify interested people, recruit them and then train, coach and mentor them to be successful. For helping them the company pays you a fee for each person, thus the more people you recruit the more money the company pays you. This activity is where people generate substantial incomes. These fees cut off 3 layers deep, so it is fair. The opposite is where there is no cut off, and the fat cats at the top are getting loads of money and people below are just investing money – that’s called a Pyramid.

“So how much are you making on me?” is an often asked question. It infers some form of parasitic behaviour that you are getting money for nothing – far, far from the truth. Consider that to register a person, you have already expended considerable personal time and effort; having registered them you then begin the hard work of training them, coaching their skills and helping them every step of the way – and all for free. It is only right that a person is financially rewarded for such activities. Take a look at conventional business – do they train for free?

Network Marketing is regulated by the Direct Selling Association (www.dsa.org.uk) and the Office of Fair Trading (www.oft.gov.uk); when I saw those logos on literature it reassures me, I doubt the OFT approve of just any company that approaches them. Check out their websites.
Please note that Network Marketing can develop substantial incomes, but you do have to work hard for it and not everyone makes it.

The industry is splattered with ‘Get Rich Quick Schemes’ that promise ‘£50,000 in 3 months’ – you may wish to avoid those. Yet this is an industry that has created more millionaires than any other, and that is true. For the serious person who is committed to the time and effort required, it will be a very rewarding journey. We are talking about giving it at least a year trial.

Naturally the ‘Dream Stealers’, ‘Nay-Sayers’ and ‘it’s too good to be true’ merchants will appear; we seem to exist in an environment of pervasive negativity that finger-pokes anything daring to be different, positive and to offer hope. Please don’t listen to them, if you are serious be open-minded and do your own due diligence to research.

I assured earlier I didn’t wish to offer a ‘pitch’ for a particular opportunity and I believe I have not. This business does offer lifestyle benefits of working from home, at your own pace and with tremendous training and support. Many people join network marketing to benefit from amazing personal development.

So if you wish to enjoy a modest extra income through to a life changing professional income, this business can offer that to you; all you have to do is make the personal decision to do it.

I hope you have found this interesting and please feel free to offer any questions or feedback, I’ll aim to explain as required.