Network Marketing vs. Traditional Marketing

The good thing is there have been many authors over the years that have written about network marketing- both inside and outside the field.  One reputable example is Robert Kiyosaki, a best selling author and entrepreneur.  Though he’s not even in the business of network marketing, he is a strong supporter of the industry due to the potential and influence it has.  He offers his explanation for why this industry presents the best chance of succeeding for anyone wanting to start their own business.  His claim is that the model used in network marketing is similar to a franchising formula, which can be counted on to produce satisfying results if you have the required dedication.         

In order to further evaluate a network marketing business, it’s a good idea to think about what starting a traditional business would look like.  For instance, what would likely be the first thing considered a requirement?  If you’re thinking money, you’re absolutely right.  And if you don’t have a lot to begin with, you’ll probably need to find a bank as a resource.  Before the bank loans you the money, they’ll of course require you to prove to them that the business idea you have is a good one and that it’s likely to succeed.  Bringing your ideas to the bank could even cost you money if you’ve paid for professional services to put together the business plan.  So before you’ve profited anything, you’ve already spent time and money to help your chances of getting the money for your business.

Once you’ve got the money you need from the bank by qualifying, then what?  For starters, you’ll need a building to house your office, which means renting space, which means that you’ll be required to put down a deposit of a month or two’s rent.  From there it’s likely that you’ll have to sign a contract for a portion of your lease.  You can count on spending at least a couple of thousand dollars for this process.  Next, you’ll need to furnish your new office with furniture and equipment.  This could range from hundreds to several thousands of dollars, depending on your type of business.

If you’ve guessed that the spending doesn’t end there, you are on the right track.  Insurance, taxes, advertising, and legal fees are all part of the picture.  You will probably discover that you’ll end of paying for more things than you thought of the first time around.

Besides the high cost aspect, the amount of time that will be invested is another part of owning your own business.  On average, the majority of entrepreneurs work about 60-80 hours per week.  You’ll probably come to the decision to hire employees to help divide the load.  This could end up being more of a headache.  The reality is it’s not their business, it’s just their job, and so they’ll never have the motivation to work as hard as you do.  And you’ll still have to cover for them when they’re sick or late or out of town.

Another drawback to a traditional marketing business is all of the outside factors such as:  customers that refuse to pay, competition, government regulations, and city circulation plans…etc.  Any of these have the potential to run you out of business in any given time.  It’s a fact that within the first five years of existence, 90% of them go out of business.  With this kind of statistic, it can be a scary thought to invest thousands of dollars to come to such an end.       

On the other hand, a typical business in network marketing has much less requirements.  For starters, the initial investment is typically low, usually under $500.  Because you work from home, you won’t need to rent out office space.  And you can forget about the cost of extra insurance, legal fees or expensive marketing advice.  These things will be taken care of by any respectable marketing company.  

A nice advantage to a career in network marketing is that you get to choose when and where you work.  Another good aspect is the leverage it offers.  If you sponsor others into your company they will each have their own business.  This means that they are not your employees, and will have the motivation it takes to be successful.  You’ll have the potential to network independent distributors in all parts of the world!

In conclusion, Internet marketing may not be the ‘perfect’ business opportunity for you.  In fact, nothing is perfect.  However, by fairly evaluating network marketing, it’s easy to see why some prefer it to traditional marketing methods.