Why MLM/Network Marketing As A Home Based Business?
Why is MLM/Network Marketing a great choice for an entrepreneur to start a new business or home based business?
Let me give you an example of why I believe MLM/Network Marketing is great for home based businesses by talking about an industry I was in while in high school: Computer repair, parts, and service.
I was a techie when I was a kid (and still am to this day). I worked for a local computer shop. We built computers, we repaired them, we sold individual parts, did networking, all of it.
But what I learned here was a simple concept called a distribution channel. I knew we were at the end of the chain and there were some companies between us and the manufactuer.
We bought our product from a wholesaler. The wholesaler either bought from another wholesaler or the manufacturer. There might have been multiple wholesalers involved. What I did know, though, is that every company that touched that product added their mark-up for profit, and we were no different.
So, in a nutshell:
A manufacturer recruited a lot of wholesalers to sell their product.
Wholesalers either sold to us or other retailers for a profit, or sold to other wholesalers for a small profit.
We sold to consumers, for a profit.
With MLM/Network Marketing, you can be the wholesaler and the retail. You can recruit others to sell the products (and you get paid on it) or you can sell retail, and get paid on it.
The difference between MLM/Network Marketing and the example I gave is very simple: You do not have to have $1k+, $10k+, $100k+ or more in inventory sitting around to sell to people.
But the great thing about MLM/Network Marketing is you can receive revenues through multiple channels in your sales organization, or distribution chain.
So just like a manufacturer, you may have many distribution chains going, generating sales and revenue through your MLM/Network Marketing home based business. This creates leverage and residual income or passive income.
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