Direct marketing is very big business. Worldwide it generates over $50 Billion per year and has over 2 Million participants. Time to rethink any out of date and unsubstantiated myths you may have about Network Marketing.
Direct marketing or network marketing is a legitimate and ethical alternative method of distributing goods and services. The traditional method is a manufacturer ships their goods to a wholesaler who adds overhead and profit to the price then ships the goods to a retailer. Of course, the retailer also adds overhead and profit. By the time the consumer buys the goods they have been marked up very substantially.
For example, a full can of Coke costs around 4 cents to manufacture, think about that next time you buy one.
Direct marketing uses a network of distributors who are paid commissions by the company to distribute the goods and services.
This method allows ordinary people to enjoy quality goods and services and be paid a commission.
The main goal of distributors in Network Marketing Home Business is to introduce more people to the products. Some of these people will be customers and others will become customers/distributors.
Network marketing got its start in the 1920’s and has enjoyed stunning growth in the last couple of decades. These days it’s common for top direct marketers to be bringing home millions of dollars in commissions every year. That’s a lot of moola for a home business.
Here’s the big 4 benefits of running a Home Business in Network Marketing
Unlimited Income Potential
In theory, there is no limit to how much income you can earn in network marketing. It really just comes down to consistently doing what is required to build it. Then to train those people in your downline to do the same and doing that over and over.
Many network marketing companies also provide big bonuses, free cruises, lavish gifts and trips to successful distributors. I personally once was given two around the world airfares, diamond rings, boat cruises, special dinners, free tours and a bunch of other nice things.
Low Cost of Entry and Risk
Network Marketing is very low cost to join. Many begin at under $100 and the highest cost are less than $3,000.
With a Network Marketing business, you will have a lots of freedom to work your own hours, not have to borrow huge money from a bank and you won’t need to bother with having employees. That in itself is a blessing.
Direct Marketing Training is Included
All of these organisations include free Direct Marketing training for their distributors. The best people to learn from are those who are successful in your upline. They have a vested interested in helping you be a success. You won’t find that in any other industry. Once you are on your way to the top, you will be wanting to help train your own downline.
Many new people make a huge mistake when they join direct marketing for the first time. They have a “I know it all” attitude. That’s got failure written all over it. Be teachable, be open and learn the ropes and you will be fine and best of all you will meet new people and have a lot of fun.
Home Business Tax Deductions
Network Marketing is a business, as long as you treat it as such and not as a hobby. If it’s a hobby for you then you are most likely not entitled to tax deductions. Treat your business as a business. Keep receipts, keep a travel log in your car and a record of all income and outgoings.
Then you can take those to a bookkeeper or accountant. Like any legitimate business you will be able to deduct all genuine expenses before calculating any tax payable. If you happen to make a loss your first year, don’t be too concerned, you can carry the loss forward to next year and use it in lowering any tax you owe. I’m not an accountant so this is my own opinion you should seek the opinion of a tax professional.
Many people, who don’t really know or understand Direct Marketing, think it’s a pyramid scheme or a scam. Neither are true. The Direct Marketing industry is very tightly controlled by Government and a myriad of rules and regulations which must be complied with.
It always makes me laugh when people say “pyramid scheme” when I ask them about the company they work for I ask how many workers are at that company. Sometimes it might be a few hundred.
How many Managers are there? Maybe 30
How many heads of department? Maybe 10
How many Directors? Maybe 6
You get the point I think. All regular companies are pyramid schemes. There are one or two people at the top and dozens of people at the bottom doing the work. All those workers are making the guys at the top rich.
In Direct Marketing anyone can become the biggest income maker, it doesn’t matter when you started, you can be the next biggest income earner in Direct Marketing.
There are hundreds of Direct Marketing companies with more starting up all the time. When and if you are introduced to Direct Marketing, listen with an open mind to the person presenting the opportunity to you. Evaluate the products, consider the compensation plan and decide if that person is going to be able to teach you and lead you up the ladder fast.
If you have a good relationship with them, give it a shot, you have very little to lose and a heck of a lot to gain.
To be honest, there really is no limit. Unlike a salary, you are free to earn as much as you want.
Because Network Marketing is all about leverage you can go fast and far by recruiting more and more people. Imagine you had 100 people in your downline and you earned a little bit of commission from them all. Maybe that would be giving you an income of $50,000 per year.
Now imagine after 3 to 5 years you had 1,000 people in your downline. That might be giving you an income of $500,000 per year!
I know people who have tens of thousands in their downline.
The sky is the limit for income you can earn in Direct Marketing but, it’s not handed to you on a silver platter. You need to learn the skills and do the work. Trust me the work is not as hard as sitting at a desk all day doing some job you hate. Now that’s hard work!
Here is a list of the top direct marketing companies worldwide. It’s no surprise that over 25% of the most successful network marketing products are related to health, through supplements and health care with many products marketed exclusively via network marketing. These network marketing company rankings based on annual sales:
|Rank||Company||Annual Sales (US$)||Industry|
|1|| Avon Products, Inc.||$11.3 billion||beauty, jewelry, apparel|
|2||Amway||$10.9 billion||cosmetics, personal care, food, home care, wellness|
|3||Herbalife Ltd.||$3.5 billion||cosmetics, personal care|
|4||Natura Cosmeticos SA||$3.0 billion||cosmetics, personal care|
|5||Vorwerk & Co. KG|| $3.0 billion||cosmetics, household appliances, home care|
|6||Mary Kay Inc.||$2.9 billion||cosmetics, personal care|
|7||Tupperware Brands Corp.||$2.6 billion||storage and serving products, beauty, personal care|
|8||Oriflame Cosmetics SA||$2.1 billion||beauty|
|9||Nu Skin Enterprises, Inc.||$1.7 billion||cosmetics, personal care|
|10||Belcorp||$1.6 billion||cosmetics, personal care|
|11||Primerica Financial Services Inc||$1.1 billion||financial services|
|12||Ignite Inc.||$861 billion||electricity, natural gas|
|13||Telecom Plus||$731 million||landline phones, broadband, mobile phones, gas, electricity, cashback card|
|14||Yanbal International||$720 million||skin care, personal care, cosmetics, jewelry, fragrances|
|15||Ambit Energy, L.P.||$664 million||Energy|
|16||AMOREPACIFIC||$600 million||cosmetics, personal care, wellness, beverage|
|17||USANA Health Sciences Inc.||$582 million||wellness|
|18||New Era Health Industry Group, Co., Ltd.||$555 million||cosmetics, healthcare, cleaning|
|19||ACN, Inc.||$550 million||Telecommunications, energy|
|20||Scentsy||$537 million||cosmetics, personal care, food and beverage, home decor, kitchenware|
Many people and articles will tell you it’s all about the product. Pick the right product they say. That’s absolute rubbish and is written by people who have never built a direct marketing business.
I have built two network marketing businesses and the product has very little to do with the success of both of those businesses.
What is need is for you to be like a teachable sponge. You need to listen more than you speak and soak up all the knowledge you can.
Listen to your upline, well not all of them, only the ones who are actively building the business. Spend as much time with them as they will allow. Do what they do, dress like they do, go where they go. Emulate them to be like them.
Ask them to teach you how to prospect people, how to do presentations, how to do follow-ups and how to train your own downline.
Make one of them your mentor and speak to them everyday
Read personal development books because you got this far in life as a result of the books you read and the people you associate with. Like all of us, you need personal improvement.
Some of the very best books to get you started are these:
Get all three and read a minimum of 15 minutes per day.
A wise man once told me that wages are earned 9 to 5, fortunes are made after hours
The point is to get rich in anything you need to change what you are doing now. You’re not going to get what you want by frittering your life away on the couch watching TV.
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