Retailing your way to profit
There are two ways to make money in the network marketing business. The first is to recruit people into your business. Some companies pay you a bonus when you recruit someone. You can also get a small commission off of any products that your new distributors buy for themselves or when they sell the products to other people.
In network marketing, we are taught that you can make a lot of money if you can recruit enough people into your business and they duplicate your success. There are two problems with that. The first is that most network marketers never recruit a single person and even if they did, they would duplicate what you’ve done. In most cases, that’s little or nothing.
The road to network marketing riches is so slanted toward recruiting that the FTC is constantly watching companies to see if they are selling their products to anyone other than new recruits. There have been many law suits filed against network marketing companies because of this practice. The FTC requires companies to sell a certain percentage of their products to people who aren’t distributors, in order to be a legal network marketing company.
Most people, who start a business, are in that business in order to make money. If that business doesn’t make money, then more than likely, it will go out of business. This is what happens to most network marketer’s businesses.
The new distributor goes out and tries to recruit people into their business and they are met with a lot of resistance. They will hear anything from a polite “No, thank you,” all the way to some pretty brutal words and accusations. One of the most common objections that the average distributor will hear is, “No one makes money in those things.” The fact is that some people do make money in network marketing, not many, but a few do. I can understand why most people feel that way. They look in from the outside and see a few people, at the top, who are making a lot of money and then they look at those around them that aren’t making money and in some instances, they are losing money.
I think that most network marketers are missing the boat. They forget that there is a second way to make money. Any distributor can go out and sell their company’s products and get paid for doing that. This accomplishes two things. First, it helps the company to stay legal, in the eyes of the FTC and it allows the distributor to make some money. Since we are in the money making business, I figure that making money is a good thing.
Even if you’re only making a few dollars every month, you’d be in the top 6% of all network marketers, according to income. In my opinion, most network marketers end up quitting the business because they aren’t making money or they are losing money. Wouldn’t making money put an end to people quitting? Or at least it would put it off as long as possible.
Just as an example, I have an upline who doesn’t do very well with recruiting, but she has a nice sized group of retail customers. I believe she has about 40 or maybe 50 people who reorder the products, on a monthly basis. She once told me that she makes about $2,000 per month doing that. That probably puts her in the top 2% of all income earners.
If you’re going to be in the network marketing business, I would suggest that you start by building a customer base that gives you a decent sized income. This will allow you to do some paid advertising and still have money to help pay your bills or whatever it was that you wanted some extra money for.
The retailing side of the business is often over looked. I believe that this the best place for most new distributors to start to build their business and their income.
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