Business Networks
Starting up a traditional small business of your own is hard work for most people and many potential small firms never get off the ground.
This is generally due to high setting up costs, the large, ongoing expenses and the enormous effort required.
Also small business often does not produce the expected rewards. Your personal "free" time can be very disrupted and the expected reasonable financial return on investment and effort can be minimal - if any.
For people considering buying or establishing a business of their own and who are seeking healthy returns - without needing a tertiary qualification or high capital investment - building a business network is a worthwhile and viable option to consider.
Networking works by recruiting agents for the respective company in order to establish a lucrative business. These agents then help recruit and train others to become successful businesses. Their reward is a passive (royalty) income. It is effectively a 'word of mouth' referral business, which over a period of time establishes a large distribution and marketing organisation. In reality it is a marketing franchise that you own and operate.
Isn't Networking a bit "dodgy"?
While networking previously has been sceptically regarded as a business opportunity, the concept has experienced phenomenal growth during the past few years and is now an accepted way to earn a living.
Unfortunately at the same time, its reputation has suffered at the hands of unscrupulous business people looking to make a "quick buck" from the naiveté of many people who fail to do their proper "due diligence".
There is also a common misconception that networking involves party plans, direct door-to-door selling or talking your friends into buying products (that they don't really need).
Add to this the reports of incredible wealth and luxurious lifestyles that abound from this industry and it begs the questions of sceptics: "Are these reports really true?"
The answer is paradoxically "yes" and "no".
Getting the rewards
Networking companies that offer "unlimited" incomes for little input have burned many people. The reality is that despite enormous effort, time outlay and cost, people often find themselves running at a net loss in some companies. The adage, "You don't get something for nothing", does bear true.
In contrast there are other networking companies that offer genuine rewards. We have personally found that very significant financial rewards can be obtained, despite having had initial bad experiences in the industry. The saying, "If at first you don't succeed, try again", has proven absolutely right for us. Most importantly, if you want this type of business to work for you, you must have an intense desire to succeed.
This exemplifies the importance of undertaking thorough research before embarking on any new business venture. This should involve careful analysis of:
- The company
- The compensation package being offered
- The products
- The availability and quality of training & marketing materials
Without all these being excellent, then you chance of success is limited and probably non-existent.
Far too many networking companies do not fairly compensate distributors and you should verify incomes of existing distributors to ensure that the respective compensation plan does work. As a guide, we feel at least 50 per cent of the wholesale product price should be returned to distributors.
Consider the benefits of networking:
- The capital outlay is minimal and can vary between $100 and $1000.
- Overheads can be very low, depending on the company
- The duration to establish a business is considerably shorter than traditional small business, usually about 2-5 years
- The time required to develop a business generally is between 2-15 hours of part-time effort per week
- The returns can be enormous depending on how much effort you are prepared to put in
Certainly high six-figure incomes are not unheard of, and $100,000 a year is commonplace (in the right company).
Building a network can be a successful and profitable business. In many instances it offers more advantages than traditional small business, albeit very careful consideration on the selection of a company needs to be made.
More information here
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