The Network Marketing Home Business Opportunity
The network marketing home business has gotten a bad rap over the years. Many of these organizations were labeled as “pyramid schemes,” which Wikipedia defines as:
A non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without any product or service being delivered.
In other words, you are recruited by a current member and pay a membership fee to join the organization. You then go out and recruit members as possible by presenting the opportunity to as many people as possible, which earns you a commission each time those members renew their membership. Typically any members your recruits then go on to bring in also earn you a commission, so the more you recruit and the more your recruits recruit, the more money you make.
There is only one small problem with this concept. It is illegal in most developed countries. That’s were the network marketing home business opportunity is often slammed for, but not always for good reason. While Amway and Quixtar , a $7+ billion business, was alleged to be pyramid schemes at one point, after undergoing FTC investigation they were found to be a completely legal entity.
What separates network marketing home business opportunities from illegal pyramid schemes is that they have an actual product line with salable items. This, in many if not most, is the driver of the business. While there still may be a membership fee involved, it is just like having a membership to Sam’s Club or other wholesale network, but you also have a licence to sell the products and earn a commission.
What makes network marketing (or multi-level marketing) such a profitable business is the concept of building your “downline.” The member can sell products directly to consumers, but the real money seems to be by recruiting new members who use the products themselves. Each time that member purchase the product, you earn a commission. And for ever member that your referral recruits and purchases products, you earn a commission off of them as well.
Many people have built great wealth by entering the network marketing home business, but do not get lured by the opportunity. Some are successful and building their own multi-million dollar fortune, and it can bring the passive residual income that it promises, but just like any new start up – the chances of success are no in your favor. There is certainly legitimate money to be made, but it by no means happens over night. Just like any legitimate business, it takes time, consistent effort and a lot of dedication.
Realize, thought, that because of the negative pre-existing connotations that network marketing already has, you are starting with an uphill battle. You may find as you are recruiting new members that you first have to deconstruct misconceptions and misunderstandings.
For a part-time, home based business it may be something worth looking into more. While it’s not for everyone, at least the Internet has helped make the network marketing home business more attractive to people who just don’t see themselves introducing themselves and their company to strangers in the grocery store.