What does it offer?
Numerous alternative ways of generating money have been developed over the last hundred years.
The last decade has been no exception. A quick analysis of the share market 10 years ago, compared to the present time, will indicate there has been a transformation in the variety of ways that corporate money is being made today. In particular, service companies have become very prominent (distribution companies can also be encompassed in this category).
One particular concept that is becoming much more prominent is that of franchising. In particular, the very non-traditional business of building a network has experienced enormous growth in recent years.
Reports of incredible wealth and fantastic lifestyles abound from this industry and the question has to be asked: Are these reports really true?
Experience within this industry has shown that the reports about the industry are both true and false. Most companies provide no verification of the financial claims that are made.
Experience can be that, despite enormous effort, time outlay and cost, that particular network business can be run at a net loss. In direct contrast to this, other companies (not that many) can be enormously profitable. Literally from the first month, you can make a profit in these companies.
After 5 years of building a network business (part-time) you can make about $200,000 profit per year.
This exemplifies, in the most emphatic way, the very important requirement that should pre-dominate any business decision when getting involved with a new venture. That is a careful analysis -- of the company, of the products (that the company provides) and of the compensation package that is offered.
To a lesser degree, but still a very important consideration, is the group of people that you consider becoming involved with. For the sake of this article, we'll assume that you are considering a stable company with fantastic product(s) and an excellent compensation plan. Certainly we feel that swiftpages.com offers that.
Why would you consider becoming involved with this industry?
It is important to point out, right from the start, that there is an enormous difference between traditional business and building a network.
So large is the divide that it is very hard (maybe impossible) for a traditional-business person (in particular, those who are very analytical), to understand the dimensions of the concept, or indeed to believe that the concept could ever work.
Let's attempt to explain it
- Capital outlay in networking is in the vicinity of $50 to $500 to become involved. This includes a registration fee for your trading name and possibly an outlay for product(s), training and marketing materials. Compare this to most traditional businesses, where the capital outlay tends to be from $10,000 to half a million dollars for goodwill, stock and equipment.
- Overheads in networking tend to run at about 5% of gross income (as long as you are with the right company). These overheads tend to be restricted to petrol and telephone money and purchase of demonstration product(s) and marketing tools. Traditional businesses, on the other hand, tend to have very high overheads, ranging (in most instances) from 50 to 90% of gross turnover. It is important to understand that networking does not have wages, rental, or advertising costs involved.
- The duration to establish a business network is also considerably shorter than traditional business. Most businesses can be established in 1 to 2 years with a substantial income being earned between 2 to 5 years. In some circumstances (depending on the company), net positive growth can be established immediately.
- The time outlay required to develop a business network is generally between 2 to 15 hours of part-time effort per week. In traditional business, time commitment is anywhere between 30 to 90 hours per week.
- The returns in networking can be either low, very good or exceptional. In general it will depend on how much effort you are prepared to put into your business and how smart you are in developing it. However it is possible to generate a six figure income in a relatively short period of time and to sustain that income after it has been established.
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