Is Network Marketing Right for You?

"If I had to do it all over again, rather than build an old style type of business, I would have started building a network marketing business." 

​-Robert Kiyosaki, Investor, Entrepreneur and Best-selling Author.

“Of all the entrepreneurial opportunities available today, one of the most important is direct selling, also called network marketing.”

— Paul Zane Pilzer, Famous Economist and Best-selling Author

But is it right for YOU? 

As a professional network marketer for over four years, I can 100% attest to the life-changing awesomeness that having a network marketing business can provide. Time freedom, financial freedom, early retirement, personal growth, amazing relationships, travel, free cars, trips, tax benefits... and the list goes on and on. I can also 100% say that it is NOT for everyone. It takes a special type of person to run their own business, be self-motivated, consistent, and all the other variables that go into becoming an MLM success story. Here is my take on the industry, what you should know, the questions you should ask, and pros and cons to starting your own network marketing business.

Choose the RIGHT company. 

I can't stress the importance of this enough. The reason network marketing companies (or MLMs) have a bad-wrap is because not all of them are legit. Yup. Some of them ARE scams, some of them have bad management, high debt/income, faulty or un-patented products, iffy compensation plans, etc. I'm sorry, I just scared you didn't I? Now that that is out of the way- DON'T WORRY, they aren't all that way. Just be sure to be diligent when researching. 

Where do you start?

I recommend that you start with someone you personally KNOW that has has success, or a referral by someone else that personally knows someone. REAL SUCCESS. Not 'Woohoo, watch me post lots of pictures about kicking booty on social media' kind of success but has a moderate track record (2+ years in ONE company), i.e. not jumping from company to company, has earned some of the 'perks' (all legit MLM's have said perks), cars, trips, bonuses, etc. Most MLM's don't allow income disclosure - so a great way to gauge someone's success is to look at what perks they have achieved. These cars/trips/incentives usually come at the higher income ranks of any company.  Reach out to that person and ask to have a conversation or sit-down! I feel the BEST way to get past the 'shiny fluff' of any company is to ask good, hard questions directly to a real live person. 

What questions should you ask? 

If the person you are working with is any kind of savvy, they won't get offended by hard questions, won't get pushy, won't try to hard-close you, etc. If you start feeling icky- RUN. This should be an educational conversation and they should be okay with that. A good network marketer will WANT you to WANT to join them, they won't try to force you. So here are a list of Questions to ask when looking at any MLM. Additionally, I would find out the following from your personal contact:

1. How long have they been with the company/ how old is the company? (look for a newer (<10 years old, but established company. No debt, etc.)
2. What are their favorite things about network marketing? 
3. What is most difficult about network marketing? (Look for truth here, not diversion or a canned response)
4. Why should you choose that particular company? What makes it different? 
5. How is the compensation plan structured? How will you make MONEY? Personally, I prefer unilevel comp plans and would stay FAR away from binary compensation structures as they are under serious scrutiny from the FTC. 
6. Can you sample the products for free? 
7. What is the average ROI (return on investment) ? I would look for an ROI time-frame of <3 months. Its OKAY to invest in an MLM to get started, just make sure the ROI is reasonable and ask how they plan to help you make that investment back. 
8. Do you have to purchase inventory or maintain stock? What is the all-in monthly or annual costs? There should be minimal inventory requirements and low overhead. 

Benefits and Cons of Network Marketing: 

When I was looking into starting my own network marketing business it was because I was ready to start a family and get OUT the corporate grind. Time freedom was a must. Along with flexibility, extra income, and being your own boss, there are many benefits to starting your own network marketing business! Lets start with a few of my favorites and analyze the pros and the cons.

1. Flexibility/ Time-Freedom

Pros: 

• Your own business is just that- YOUR OWN BUSINESS. You can work it when you want, where you want, with who you want. Its pretty awesome. Personally, I love working my business from my home patio, with my makeup-less face, messy bun, and yoga pants. It rocks. I get to be present for my kids, have dinner made for my hubby, take breaks whenever I feel like it, give myself a day off, and still pull in a REAL full-time income. 
• You have no boss! You run the show honey! Give yourself a day off, go grab lunch with the girls, catch up on your shopping when you choose. It's your time to manage. 
• Work from anywhere. Yep. Anywhere. I can take my business anywhere I can take my phone. Coffee shops, the beach, airports, my car... and with my earpiece I can do it all while chasing little people in diapers, making lunches, and cleaning house. Its true freedom. 

Cons:  

• You have to be self-motivated. Because MLM is so flexible, you might find yourself aimlessly surfing Facebook, Insta, etc and before you know it, whoops you just wasted the whole day!
• There is no boss. While this can be a Pro, it can also be a Con. I.e. you are pretty much accountable to no-one. Except maybe your spouse asking, "where dat money honey?" so bottom line when it comes to flexibility is that it is ALL ON YOU to get to work, and be consistent. Here is where many fail to make network marketing a viable, long-term income. 

2. The Money

Pros: 

• There is literally no income cap! You can make hundreds, or you can make millions. There is no glass ceiling (can I get an amen!). You get tax benefits like crazy just for having your own home-based biz. And my number one favorite thing about the money?
• Its RESIDUAL! That means that if you choose a good company with a product your customer has to replenish and can't live without, they will keep ordering, and ordering, and ordering... and you keep making commission! In essence, you can go on vacation - do nothing, and still get paid! That is the power of creating a residual income stream. In my opinion, making your money work for you is sheer brilliance. Now... for the cons.

Cons: 

• Network marketing is NOT a get rich quick. If you are being told otherwise, RUN. Building a real, full-time network marketing income takes not only lots of effort, but time. The one thing you should not underestimate when looking into building your own network marketing business is the time it will take to truly become successful. Realistically, based on the company and your work ethic- it could take anywhere between 3-7 years to really 'make it' (think 6 figure income)! Have people done it faster? Absolutely. But again, that's 100% up to you and how hard you hustle your product/opportunity.
• The money is not consistent. There will be good months and there will be bad months. It is commission based after all! This is why you want to establish a solid team and customer base and realize that maintaining / growing your income will take consistent effort over a long period of time. ​

3. Relationships / support

Pros:  

• The people. If your experience is anything like mine, you will meet positive, like-minded, empowering individuals that not only become your support network, but your friends. They often lift you into another caliber of people, income, positivity, and faith. It's amazing how the law of association works!
• The support in a GOOD network marketing company is incredible. There should be a wide-variety of training resources available to you from day one. 
• The tools and resources. Whether online, in-person or virtual, marketing tools, a fully integrated website (yay! no website building), phone apps, contact management systems, and literally EVERYTHING is usually already included in your starter investment pack. This was one of my favorite things, no reinvention of the wheel. Along with the huge amount of support and hand-holding to get my business off the ground which was exactly what I needed to excel early on. 

Cons: 

• Depending on the company you may not get the support you are expecting. Be sure the sponsor you choose (YES you can choose who you sign up with!) is the type of person that is going to support you, be in the game long-term, has had success, is positive, motivated, and hard-working. If you wouldn't want that person as a boss or employee, don't sign up with them. Its that simple. You'll be working VERY closely together.
• Your success is somewhat dependent on your team/down-line. No matter how incredibly hard working and amazing you are, to really 'break-though' you will need other people as hard-working as you. Its a numbers game, folks. For every 7 people you recruit, industry standard is about 1-2 that will be a leader/work the business at your level. Bottom line? Gotta keep recruiting and building - consistently. (see a trend yet?)

4. A Low-Start-up Cost / Little to no operating costs

Pros: 

• Extremely low barrier to entry and low investment to get started. Typically between $99-$2,500 for the average network marketing business. Think about this... “If you were purchasing a small business like a Subway franchise, the initial outlay would be over $100,000, and you would need a networth of $500,000 to be approved,” says Garrett Sanders, who operates his own network marketing business in North Carolina. And imagine how long it would take to even break even?! Network marketing on the other hand has a fast ROI. You will be in the black in no-time. 
• Little to no operating costs. Running an MLM is cheap. Like dirt-cheap. Especially if you choose a good company that doesn't have inventory loading or high monthly / annual fees. For example, in my personal experience, I was able to earn FREE inventory and only paid for tax, shipping, and the specialized communication center upgrade (which was optional). So basically, the lowest total all-in monthly overhead that I would HAVE to pay was literally $50-$100 on average. That is nuts right?! 

Cons: 

• There is a start-up cost. While its cheap to start your own MLM, it still costs something. If the company is free to join, just be diligent in researching why. Usually its because they have a high inventory loading program, expensive maintenance costs, etc. Just because something looks "cheaper" to get into does NOT make it better. This is almost always the case. 
• You will have to WORK to make your investment back. As with anything a new business is just that... new. Gotta put in the work, be coachable, and dedicate the time to get a fast return on investment. That isn't really a con, its just up to you how fast you accomplish it. 

5. Social Media Marketing/ Warm Market

Pros: 

• You get to build your business online! Hey-o! Super simple and easy in a world that is transitioning to a virtual, online, tech savvy generation faster than we can spell APP. Nowadays people are addicted to their phones, Facebook, social media.. and this plays in your favor as a network marketer. Utilizing and learning all the social media platforms is free, simple, and the best part? Makes YOU money. I can easily say that 75% of my network marketing business was generated through social media marketing. 
• Utilize your warm market. This is also a great perk of network marketing. You get to start selling through people you already know! They already trust you. Ask for referrals, have them host events, recommend products, sample your goodies, share on social for you, etc. You already have a base of people that want to help you. In my opinion this sets you up for success early on. 

Cons: 

• It is technical. While certain generations are blessed with the inherent ability to know the iPhone inside and out by the age of 3, some of us are less tech-saavy. No worries, there are limitless online tutorials, youtube videos, books and blogs on how to become a social media rockstar. Be patient. Enlist the help of a family member, you can do it. And if you don't, you're dead. To be honest, you probably won't make it in MLM / networking if you don't utilize social media. Its the way of the future. 
• You start by marketing to people you know. While I listed this as a Pro above, it can also be a Con. Family and friends are going to be your harshest critics. Just be ready for it, take what they say with a grain of salt and move on. Those that aren't supportive are most likely just looking out for you. Don't take it personal, but more importantly, don't take it to heart. People bash what they don't understand. My advice is to stray away from directly hard-selling anyone in your warm market, at first. But to lead into it by asking for referrals, sampling the products for you, hosting an event to help you expand your network, etc. That is an indirect way to market to them without them feeling like you are 'selling' them. 

Lastly, there will ALWAYS be a little voice telling you not to jump, not to follow your heart, to play it safe. My advice is to live with passion and do the thing that calls to you! Regardless of what anyone says- you can DO ANYTHING that you put your heart and soul into. Let passion lead the way, choose a great company, a solid sponsor and give it a shot! At the end of the day - what do you have to lose?! 

Cheers to you and your success. I'd love to hear your thoughts. Drop a comment below and please include any other training topics you'd like to see me teach! 

xo, 
​Stefanie

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Think network marketing is right for you? 

Check out the BUSINESS section of Stefanie's website. After helping hundreds earn supplemental income, Lexus Car Bonuses, 5-star vacations, and find time freedom she can help you move to the next step! 

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