Why Network Marketing is a Great Industry
Achieving financial independence usually involves investing or starting a business. However, both of these ventures involve risk. One of the best paths to take to financial freedom is network marketing, which technically falls under the category of starting a business. It’s just not the traditional brick and mortar business. Your business will be based online and doesn’t require a hefty startup capital. Network marketing also referred to as MLM, is one of the fastest growing industries and comes with many benefits.
Network marketing provides many benefits, such as the control over your work schedule, extra money in the bank, and happiness knowing that you’re helping improve the lives of others. Many people find it a rewarding industry to be in because they can help others like them get out of a rut and live a better life through MLM. Depending on your financial goal, you can either earn extra money with a side MLM business or become rich dedicating your work life to network marketing. Additional benefits of multi-level marketing include low cost of entry, no inventory you have to take care of, the ability to work from home, and endless potential to grow your income.
Network Marketing Business of the 21st Century
The network marketing industry isn’t just a great industry because it supports individuals living their dream lives. Statistics show that it’s great from a monetary perspective as well. It’s one of the fastest growing industries of the 21st century. Big names like Richard Branson and Robert Kiyosaki have acknowledged network marketing as a viable way to financial freedom. Richard Branson went as far to say that network marketing and entrepreneurship will create most of the jobs in the near future.
MLM has been steadily growing in the United States. In 2015, the industry reached $36 billion in approximate retail sales. Compared to the previous year, it was a 5% increase in MLM retail sales. Network marketing outpaced the growth of overall U.S. retail sales, which was at 1.5%. It was also higher than the U.S. gross domestic product increase of 3.5%. According to MLM Attorney, 150,000 people around the world sign up for an MLM opportunity each week. They also reported that 25% of network marketers have college degrees and over 66% have a high school diploma or some college education. This shows that you don’t need a college degree to become a network marketer.
Choosing the Right Opportunity
Although MLM is a great opportunity, not all network marketing companies are good. Part of your success depends on choosing the right opportunity. First off, you should only get into a niche that you’re interested in. If you don’t like cooking, then you probably don’t want to join an MLM company that sells kitchenware. Secondly, you should like the product or service you’ll be marketing on behalf of the company. Always try their products before committing yourself to the venture.
When you’re looking at network marketing opportunities, check what each company’s compensation plan is too. Not all compensation plans are good. Moreover, you should understand how you will be paid. Five possible payment plans you may come across include:
- Australian 2-Up – Your first two commissions go to your enrolled in a 2-up plan.
- Matrix – Your sponsoring width and depth are limited. A 3-by-4- matrix compensation plan 3. requires three people on your frontline and pays you four levels deep.
- Unilevel – Under a unilevel compensation plan, you can frontline sponsor an unlimited number of people and you’re usually paid a fixed percentage.
- Binary – You can frontline sponsor only two people, but all other recruits are still considered sponsored by you.
- Stair-step breakaway – Distributors are allowed to “break away” in a stair step breakaway compensation plan. Their sponsors will still receive compensation, just a lower percentage.
IML, my MLM company of choice, operates on a Unilevel compensation plan. One of the benefits of this payment method is it encourages distributors to work together for achieving financial goals. IML divides their IBO’s among ranks based on their performance. With a rank increase, you’ll receive extra benefits. To learn more about the compensation plan watch the video below.