These days I can think of many reasons why a Network Marketing Business is a preferable option to traditional business. Like the overheads for one! Having been an owner of traditional businesses with huge rents and wage bills in the past, I personally do not want to go there again. In this post I address the basic structure of Network Marketing, which is often misunderstood and the reasons I think it is the model of distribution of the future.
I should clarify what I mean by “a traditional business model”.
I am not concerned with the various entities we can run a business through – by traditional I simply mean there is a CEO at the top and there are employees. This could mean the corner store or a large corporation. There may also be many levels of management in there – or maybe just one.
Network Marketing is a model often called Multi Level Marketing and various other names. It is based on teams of people helping teams of people. It is word of mouth referral. There have been some misconceptions over time and some of these are still around today (I must confess to having bought into some of them in the past – purely because of my lack of understanding of the model).
One of the questions that still is sometime asked is “is it a pyramid scheme?” Of course the answer to that is no it is not as pyramids are illegal. Actually traditional business is really much more like a pyramid structure. It has a CEO at the top, usually earning the most all the way down to the most junior of employees earning the least. In Network Marketing the new rookie can earn more than someone up the ladder if he/she is prepared to work. It is a very fair system once you really understand it. I truly believe much fairer than traditional business. It can give everyone from any walk of like the opportunity to create real wealth for themselves and their family.
In traditional business you get paid for the level of work you do. Someone lower down the organization ladder seldom earns more than someone above them. This can be reversed in Network Marketing where to truly be successful you have to be a leader, not hold a position that assumes power.
Tom Peters, the author of In Search of Excellence, describes network marketing as “the first truly revolutionary shift in marketing since the advent of ‘modern’ marketing at Procter and Gamble and Harvard Business School over fifty years ago.”
Warren Buffett, Richard Branson and Donald Trump all have or do own network marketing companies.
Let me know what you think of Network Marketing as a model for the future.