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Posts Tagged ‘home based business’

Why MLM/Network Marketing As A Home Based Business?

August 4th, 2009

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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Excited about Home Businesses

May 20th, 2008

I’m seeing something interesting in the home business/network marketing circles.

People who I thought would have no interest in them are all-of-the-sudden joining them.

One person I know well made it quite clear to me a few years back that he would never join one of those “pyramid schemes.” I received a text message from him the other day pointing me to a website with a presentation for a rather well known company.

Personally, I’m excited about what the future holds for home businesses. It is evident that more and more companies are moving to a word-of-mouth or referral method of getting additional business. Banks, retail stores, etc, are all offering affiliate programs geared towards having others advertise their products and services and getting paid a percentage of the cost or a referral fee.

There are many services that are very high quality that are offered through network marketing companies. I work with one fairly new company, but what they currently offer (and will offer soon) will be a huge help to individuals, families, businesses, pets, and everything inbetween.

For instance, on plan they have now is just geared towards helping people save money.

A future plan is going to be geared towards health care, but not in the typical fashion that most plans in this niche are fashioned.

How about tech support?

Legal help?

But here is what is really great about all of this: This is not the only company offering great services to consumers while allowing people to build an additional income stream. And while not every company is a best-fit for any one particular individual, there are companies out there that are a fit for everyone.

Cosmetics

Purses

Vitamins and nutritional supplemtns

Weightloss

Legal plans

Kitchen gadgets

Websites

Adult…umm…nevermind

Candles

You get the point. While any one company may, or may not, be a fit for you, there is one out there.

And if an all-out business is not for you, you can always concentrate on affiliate marketing and simply build websites geared towards driving traffic and generating sales.

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