Business – Traditional vs Network Marketing

February 9th, 2009 | No Comments |

I had a conversation today that inspired me to write this post. The conversation was not a very successful conversation as the person on the other end of the line seemed to think that Network Marketing was a ridiculous business to be involved in. I asked him if he was a business owner and he said that he was. The conversation was very short, and to the point. He seemed to thing that my business in Network Marketing, was not a very reputable business.

So, I would like to do a comparison of the Traditional style business versus a Network Marketing business in Direct Sales. So here we go!

Let’s start with a traditional business, or a brick and mortar type of setup that has a boss, employees, health plan and all that jazz. First off, I would like to get something straight, this type of business is set up just like an ant colony. All the worker ants support the queen by bringing her food, building her home and providing protection. The boss/owner of an enterprise is the one that obviously makes the most money. Who makes that money for him, his workers. These types of businesses obviously offer a valuable product or service for it’s customers but only the owner makes a real profit. Now I could go into this a lot deeper but we know that the employees aren’t the ones making the most money. Employees struggle to make ends meet. They definitely don’t flourish and what does this do? It makes them more dependent and they are paid the minimum wage possible for their work. The minimum! So we can safely say that the boss, is the profitable one.

The product or service offered obviously varies and can make others money depending on what it is, but usually, the customer does not profit monetarily from your product. They just give their money in exchange for the item or service of value and that’s it.

Now, Network Marketing. Most people in this world will automatically think of MLM when they hear “Network Marketing.” I am speaking of Direct Sales, which is much more lucrative and on more of a level playing field for all involved. In this type of business, which most people call a Home Based Business, the owners of the company still profit the most, which is standard with most businesses, but Network Marketing companies are designed to profit others monetarily instead of just themselves. They provide a product or service of value to the customer attached to a lucrative business opportunity. Network Marketing can be classified as a group of Entrepreneurs working together to market a specific product or service as independent contractors. So instead of being paid employees, they are independent business owners usually paid through commission when a product is sold.

Now this is where the huge difference is between this business model and the traditional one, the independent business owner makes nearly 60% of the total sale as commission! As far as my experience goes, no other traditional style company offers employees that type of a payout. They are usually paid a wage and a small percentage of their sales volume.

Network Marketing is a leadership factory. It teaches, trains and often times is a stepping stone for Entrepreneurs moving on to bigger things, but the basis for their success was learned while in Network Marketing. Donald Trump said that if he had to start from scratch all over again, he would start in Network Marketing. There is so much potential in this type of business model, which obviously most people don’t realize. Every new associate or independent business owner has the same income potential, regardless of the experience, education, or employers point of view. Their level of income is dependent on their own ability to create it. There is a product in place, a system to show you how to do the business and others who have gone before you to mentor you. I don’t know an easier way!

I absolutely love Network Marketing. It allows people complete freedom….time freedom, Financial Freedom and the lifestyle of their choosing. It empowers people to realize their own greatness instead of making them work for the minimum at great sacrifice to their home life. It is a curse and a plague for those who misunderstand it and fail at it but a jewel for those who dicover it and succeed at it. It is definitely not meant for everyone but everyone is welcome. The possibilities are endless and in my opinion, Network Marketing is the business model of the future.

David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.

Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!

Be sure to connect with David Allred on Google+, Facebook and everywhere else!

Facebook Twitter LinkedIn Google+ YouTube