3 Major Benefits Of Network Marketing Over Traditional Business

“Which way shall I go?”

If you are at a stage in your life where the rat race is your daily companion, this question must have crossed your mind at one point or another. And if you don’t have an answer yet, don’t worry.

This page may contain the answer you’ve been looking for. Keep reading.

It never ceases to amaze me just how many people all over the world enjoy the benefits of network marketing. Yet, many are still unaware of the benefits they can enjoy from starting a network marketing business.

Maybe you are one of them...

Maybe you are aware that there's more to life than the rat race, but the way things are going, you don't see yourself ever getting out of it...

Maybe you can't stand your job and you know if you switched jobs it'll be the same thing all over again...

And, maybe you've been told that a network marketing business can help you accomplish your goals and aspirations. But you are doubtful. And because you are doubtful, you postpone and delay starting your own network marketing business.

Here are 3 major benefits of network marketing which I'm confident will help you make an informed decision.

Benefit #1: Ease of entry

One of the major obstacles to starting a business for many people is lack of sufficient capital or start-up costs.

With a traditional business you need money to cover initial costs -- costs such as:-

  • Registering your business with the authorities
  • Rent for buildings or money to build your own premises
  • Inventory
  • Research and development if you are venturing into manufacturing
  • And a host of other expenses that come with starting a new business.

Start-up costs can run from thousands to hundreds of thousands of dollars. You may have to refinance your home, as some people do, just to start your business. And there's no guarantee that your business will succeed.

At this point you may be asking, "So how is a network marketing business different?"

Well, you can start a network marketing business with little or no money.

The only start-up cost you will need is your joining or registration fee, which buys you a starter kit. This can be as little as one hundred dollars.

The starter kit usually contains basic literature about the company, some marketing materials and a few products to start you off.

With a network marketing business...

  • You don't need to register your business.
  • You don't need to pay anyone rent. You can run your business from home.
  • You don't need to do any product research and development because your company takes care of that.
  • You can start your business part-time. Which means you can test the water, so to say, before you plunge in.
  • Entry is open to anyone regardless of race, colour, or educational background.

In fact, there are virtually no barriers to enter the network marketing industry as an independent distributor. The only possible barrier you may come across is age. Many companies set a minimum age at which a distributor may join.

Of the many benefits of network marketing, ease of entry seems to be the one that draws many people into this industry. And it is possibly the one most responsible for the high attrition rate.

Benefit #2: Leverage

You'll hear about this in almost all network marketing literature because leverage is what makes network marketing so attractive.

What is leverage?

One online dictionary defines leverage as the use of a small initial investment to gain a very high return in relation to one's own investment.

This is exactly what happens when you start your own network marketing distributorship because...

  • You need to invest a relatively small amount of money to start off.
  • You need to invest a relatively small amount of time to build your business.
  • You need to put in a relatively small amount of effort to build a successful network marketing business.
  • And the best part is that the potential return on these low investments far exceeds those you can expect from a conventional business.

This saying, attributed to J P Getty sums up the concept of leverage beautifully:

I would rather have 1 percent of 100 people's effort than have 100 percent of my own.

If you asked me to list the benefits of network marketing in order of importance, I'd put leverage at the top.

Benefit #3: Low risk - high potential return

This follows from what we've just discussed under leverage. Your risk of loss is very low while the potential return is extremely high.

Consider the following streams from which you can earn an income:

  • employment
  • self-employment, and
  • business ownership

Let's take a brief look at each of them.


A staggering majority of people choose this option to earn an income.


Possibly because...

  • It requires no start-up costs, which makes it much easier to enter (no financial risk).
  • The employer shoulders all the risks (no risk of loss).
  • The income is guaranteed. Just pitch up for work and the money will be there come month end (certainty of income).

In fact, the only investment required here is time and effort. You get paid for time spent at work.

Problem is, with this option many people soon realize that their life's goals and aspirations are out of reach. They soon realize that they'll never make it the way things are going. That once prized regular guaranteed income soon becomes way too little for their needs.

And once the pain of earning less than what they think they are worth becomes unbearable, many people switch to either...

Self-employment or business ownership

They do this in the hope that self-employment or business ownership will help them accomplish their aspirations.

Perhaps you are in this situation too. You think being self-employed or having your own business will help you earn enough income to enable you to live life on your terms.

After all...

  • You'll be your own boss
  • You'll be able to determine your own working hours
  • You can take time off as and when you want, and
  • You'll enjoy many other benefits that come with being self-employed or owning a business.

Who wouldn't want to have this kind of freedom?

Truth is, for most people, being self-employed or owning a traditional business ultimately feels more like having moved out of a frying pan and divining head-first into the fire. The  financial risk involved is overly higher than many can stomach. Many are forced to borrow just to be able to stay afloat.

But perhaps what is even more disturbing about being self-employed or owning a traditional business is that...

You'll be owned by your business because you'll spend way too many hours at your business to the extent that...

You may become a stranger to your own children who may be asleep when leave home in the morning and when you come home at night.

And there is a host of other king-sized headaches that come with being self-employed or owning a traditional business.

Imagine having employees for which you have to pay social security, health benefits, unemployment benefits, and similar administrative burdens required by government.

Don't get me wrong here. I'm not shooting down at self-employment or traditional business ownership. These are all well and good in their own right. They are way better than being an employee. But the risk involved is way too high if your goal is to earn enough income to free yourself from the rat race.

So if you have the start-up costs required and some measure of business skills, being self-employed or owning a traditional business can earn you a substantial amount of income -- income which can far exceed an employee income.

But there's a problem... The income is linear.

Linear income is income that is linked to your active involvement in the activities that produce it. Wages are a good example. Bar a few exceptions, you have to be at work to earn it.

A major downside of linear income is that it stops when you stop working.

And this is what makes network marketing so attractive.

Network marketing eliminates many of the risks of being self-employed or owning a traditional business because...

With network marketing you have the potential to earn leveraged residual income. Imagine investing $100 or less into a business, and then earning recurring income from this very low investment every month.

Can you think of any business model that can offer this kind of leverage? In my mind only affiliate marketing comes closer.

We've looked at leverage as one of the benefits of network marketing (Benefit #2 above).

In network marketing your income is leveraged on the time and efforts of other people. And this income becomes residual as it will keep flowing in as long as people in your downline are active and you meet minimum company requirements.

Depending on how many active distributors you have in your downline there is great potential to make obscenely high returns
on your investment in network marketing.

To conclude, starting a business is probably the most challenging task you will ever undertake. But you can eliminate many of the challenges of starting a business you currently face by enrolling as a distributor in a network marketing company because...

Network marketing will give you all the benefits of a traditional business without the traditional headaches.

What's more, you'll enjoy all the benefits of network marketing at a fraction of the cost of starting a traditional business.

Do you want to start enjoying the benefits of network marketing? I am able to help you get started. Click here to contact me and state your specific needs.

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