Network marketing holds a great deal of promise for many people. Most start part time, paying a small fee for materials and training, with the hope that they will be able to break free of their regular job.
The right network marketing business can eventually create a stream of passive, or at least semi-passive income. Robert Kiyosaki, Donald Trump, and others have all come out in favor of network marketing businesses.
So why don’t more people succeed? I think it’s because most people select their business for the wrong reasons.
What are the right reasons?
1. The most important factor is to select something you are passionate about. If you don’t care about what you’re selling, you simply won’t have the motivation to put the work in. I experimented with two network marketing businesses last year only to realize that my heart wasn’t in them.
If you are doing it simply for the money, you will likely fail.
2. Beyond finding a network marketing business you enjoy, also be sure to check how long the company has been around. This works in both directions: It’s terrific to get in early because you have greater earning potential, but new companies do fail. Make sure the company is solid, established, but still new enough that there’s room for you to succeed.
3. Think through and evaluate what you will have to do to make your network marketing business succeed. The traditional way is to use in-person networking and phone calls. The newer way is to establish an online system of creating leads.
Which way are you going to attract a steady stream of new leads? This is not something you can do just once and then stop. Creating a pipeline is an important part to success. You will sign people up who will quit in three months, and then you’ll need to replace those people in your business.
Yes, it would be great if people joined, stayed on your team, and continued to produce for you while you go to Maui. It rarely works that way.
4. Think through the delivery of the product. Is there a physical product that you’ll have to deliver? Does the company ship directly? Will you have to run around town making sales calls? Will you have to stock inventory at your house? Pay for inventory in advance?
At the very least you’ll want to factor in your time and transportation (gas) costs.
Beyond the costs, though, consider whether you’ll enjoy the day-to-day requirements of your business. I made the mistake of not considering that, and I quickly realized spending my day driving around town wasn’t the right choice for me.
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5. What will your life look like if you join a particular network marketing business and you are successful? Are you working toward a life that will make you happy and feel fulfilled? Is the day-to-day routine of the business a process that you’ll enjoy?
Most people get into a network marketing business because they envision long vacations and working from the beach on their laptop. That might all be part of it once you’re successful, but do you want to be miserable reaching that point?
And even after you’re successful, you’ll need to continue with the same actions to keep your business going. Are you prepared to take those actions?
Are you in a network marketing business? Do you enjoy it? Is it profitable?