By Richard Henderson, Publisher of Home Business Magazine
Network Marketing is a Viable and Booming Business Sector
|Economic stresses and strains since 2009 have greatly improved the quality of MLM as a business.|
Network Marketing - also known as Multi-Level Marketing (MLM).- has always been a major player in the home-based business industry. To understand network marketing, first look at what it simply is. Network marketing is simply a way to transact goods and products (and sometimes services) with the consumer market. At its soul is direct selling. Rather than putting goods and services into a store or other more traditional retail outlets, you instead build a network of people to move unique or special goods and products.
So at is core, network marketing is a viable business concept. And the networks of people who operate within an MLM program are 99% home-based. Making network marketing attractive as a home business are its minimal investment, low overhead, and ability to be operated part-time around one’s “day job.” Those who work hard and build a strong network known as a “down-line,” can earn enormous amounts of money and can transition to full-time — the power of leverage!
This is also the source of much of the controversy that can give some network marketing programs a bad reputation. If a specific MLM program focuses too much on recruiting people and the product is not viable, its credibility suffers. Another problem is when compensation plans skew payouts too much to top earners to the detriment of the entire down-line. As with any business, extreme rapid growth can also cause problems. However, since the recession of 2009, network marketing has seen a "shake out" of many of the less credible actors within the MLM industry. Economic stresses and strains since 2009 have greatly improved the quality of MLM as a business.
As a unique type of business, there are certain things more important in network marketing than other businesses such as inter-personal marketing, warm marketing, and co-op advertising. Network marketing can also leverage start-up costs — something important in a tough economy. If you are looking for a business to start, “get real” in how you view network marketing. Give it a fair shake. HBM V17-6 HP: 1/16/14