Network marketing

The network marketing industry is often overlooked when home business opportunities are discussed. However, it should be ignored no longer as it is becoming one of the fastest growing business models today because it offers a low-cost, duplicatable home business package.

The network marketing or MLM (multi-level marketing) industry is now well established in the UK. By the end of 2006 there were 419,500 people involved in direct sales generating sales of more than £2 billion.

Many well-known entrepreneurs have seen the opportunity, such as Richard Branson with Virgin Vie and Warren Buffett with The Pampered Chef. Network marketing is even included in the curriculum at the Harvard Business School.

Network marketing offers people the opportunity to start their own business with a minimal investment in time and money, a bit like a franchise but without the price tag. The average cost is £100 to £200. As an independent consultant of the company, you have two distinct sides to your business: retailing products and building up and training your own team of consultants. You are compensated for both of these.

Network marketing is based on the power of leverage. In network marketing you increase the impact of your efforts by building a team. This formula is based on the famous quote by John Paul Getty: “I would rather have 1% effort of 100 people than 100% effort of one person.”

Network marketing companies do not spend money on traditional mass advertising and promotion. Instead, they make these funds available to their consultants in the form of commissions and bonuses to recompense them for their efforts.

The consultant is then responsible for the sales and marketing of their business (both the products and the business opportunity) and this is an area which must be planned professionally and make use of the latest techniques.

Choosing the right company

When you have decided that you have what it takes to work from home (focus and good time management) and that the network marketing model is right for you, start your search.

    • Do the products or services interest you personally? It will be a lot more rewarding if they do
    • Check out the company. If they have been around for years, are they still developing new products and are their training techniques up-to-date? If they are new, are they in a growth market?
    • Look at the training they offer.
    • Do you feel that the person who has introduced you to the company (your sponsor) will be able to coach you, particularly in sales and marketing?
    • Look at the compensation plan. You need to understand how you can earn income and how easy it is to achieve the necessary qualifying criteria.
    • How much paperwork and admin is involved?

If you feel comfortable with the answers to all those questions, then you have found your company!

With the current economic climate, more and more people are looking for a way to generate income, either to supplement their existing one or because they are out of work.

I am passionate about pioneering attraction marketing and harnessing the power of the internet to help network marketers build powerful targeted marketing campaigns.

Our industry is now seeing the start of a huge growth period and I am so excited to be part of that.

By Nikki Mattei

Nikki Mattei is the founder of Best Think Pink, www.bestthinkpink.com, which empowers women through health and through business.