From The Desk Of:

Justus Meyer,
Port Elizabeth, South Africa

Network Marketing
vs. Conventional Business

"The differences between
Network Marketing
and conventional business-models."

Is There A Difference?

Business, is business - whether you are providing a service or selling a product, you are said to be "in business." When talking in terms of Network Marketing, "Conventional Business" refers to the traditional way of getting paid - after all, that is all that Network Marketing really is: another way to get paid.

However, that is exactly where the advantages are to starting a Network Marketing business over a traditional business. Below we will cover both in a bit more detail.

Why Conventional Business?

Starting a conventional business, you have the advantage of being completely in control. You decide your products, you decide your services and you decide your profit margin. There are people who are very happy to be employees and there are those of us who need to be entrepreneurs - anyone who starts their own business can tell you that, it is because they became tired of somebody else calling the shots.

This, of course, also has disadvantages: being in complete control, also means dealing with suppliers that have no vested interest in your clients, dealing with quotes and dealing with contracts and administrative issues. Having complete control, also means that you have complete responsbility for anything that goes wrong.

Running a conventional business allows you to hire employees and gives you access to basic leverage. The problem is that having employees can sometimes turn your business into an adult day-care center - in order to keep them, you have to keep them happy while making sure they actually do their jobs. Employee turn-over can sometimes be a big problem for business-owners - you can spend money paying their salaries while training them, only for them to find something else, leaving you to find someone new. How many times have you heard someone say: "I am only working there for the experience?"

Why Network Marketing?

Unfortunately, Network Marketing has its own form of employee turn-over - it is called "distributor attrition." This is generally the rate at which people join your organisation and then leave again. Fortunately, it is the lesser of the two evils: the benefit to the Network Marketing business-model is that it costs you nothing - by making the decision to join and leave, they use their own finances.

Apart from providing the only form of fair leverage in existence today, Network Marketing companies also handle the distribution of your products and takes care of the administration of your network for you. They make sure that everyone gets paid according to their performance and do all the market research and product development. Your job on the other hand, is to find clients and to train your agents - something that you would have to do in any case, if you intend to run a successful conventional business.

At the end of the day: by starting a Network Marketing business, you give up a couple of small freedoms for the benefit of gaining more time to focus on building your income. In other words: Network Marketing done right, works exactly the same as a conventional business, but without the hassle.

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