This is part 3 in my series about starting a home business. You can start at the beginning here.
As I stated in yesterday’s post, the Network Marketing business model is an excellent choice for the foundation of your home business. There are several reasons for this.
First is that you can start and build the business part-time. Second is you can launch your business for less than $1000. Third is that with time and success, you will build a team of people who will be generating income for you while pursuing their own success. Let’s look at these a bit more closely.
You can start part time.
The first reason allows you time.
By starting your home business part time, you get to keep your primary income while you are building your side project. I can’t stress enough the value of hustling on the side to get started.
You will be able to work with much less stress while you are ramping up your business. Your bills will be paid. Your kids will still eat. You will have staying power for the times when your business isn’t growing as fast as you had dreamed it would. By gearing up part time, you will be able to build it right without getting yourself under financial pressure to do so.
You don’t need a huge investment.
The second reason for using the Network Marketing business model is that you can get started for less than $1000. Usually lots less.
Also, your monthly overhead will be a pretty small number.
The beauty of this is that you can get into business without having to invest your life savings to do it. Being able to get into business while putting little capital at risk is tremendously valuable. It means peace of mind.
A low overhead means a shorter path to profitability. Joining low risk with very high upside potential is a formula worth looking at closely .
You gain financial leverage.
The third reason for using the Network Marketing business model is leverage.
This one, all by itself would make it a great choice, even if the other factors weren’t in place.
What makes the Network Marketing business model the outstanding vehicle that it is, is that it provides an entirely different method of moving large volumes of product to the consumer. A method without you personally having to do huge sales numbers on your own.
Lets say you were opening a traditional business and needed to generate $1,000,000 per month in sales to generate the profits you desired from your business. To do that, you might hire 100 professional salespeople and give them each a quota of $10,000 per month. Those who couldn’t meet the quota would be fired and you would keep hiring more people until you had the team that could move the volume for you.
Network marketing uses a different paradigm.
We don’t use full time salespeople. What we use is people who like the product and are happy to tell other people about it. They work when they feel like it.
But the people they tell about the product also do the same thing. This means that you get the magic of geometric progression involved as 4 people tell 16, who tell 64, etc.
With time and success, this group can grow extremely large and ultimately move large volume of product. And you didn’t have to find huge numbers of people; you only had to find a few.
Here’s a short video that explains this concept more fully:
