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Network Markting Today – Part 4

If you have been following my Network Marketing Today series you will know I have covered the following:

In this part of the series we look at why in today’s economy more than ever Network Marketing is such a powerful model for wealth creation.

Paul Zane Pilzer said in his book The Next Millionaires, “Direct selling provides an opportunity – open to absolutely anyone at all, regardless of background, specialized skills or accrued capital worth – to create a significant residual income.”

I ask you to think about where else you can find such an opportunity – to become wealthy from any background without accrued capital.

Let’s consider property…
Prior to the GFC (Global Financial Crisis) I witnessed many people make considerable  money in property. I was the CEO of the company that brought Robert Kiyosaki, John Burley, Dolf de Roos and other great teachers to Australia and New Zealand in the early to mid 2000s. During that time I saw people become millionaires by flipping properties, wrapping, doing deals with no money down and borrowing up to 100%. Anyone with the right education and courage could get into the game. I know it was the same in the US and I am sure in other parts of the globe.

The sub-prime housing crisis in the US followed by the GFC changed the rules maybe forever. Now even the most solid investor has to jump through hoops to obtain a mortgage. (I know – my husband is a Mortgage Broker and I work some of my time with him).

I have no doubt there are good property deals still out there but for someone with no capital they cannot get started.

Maybe shares?
Again I am sure there are excellent opportunities available to anyone who is very educated and knows what they are doing. You do need capital to start and in the current climate there is indeed risk.  The days of borrowing for all and sundry to do margin lending are no longer with us.

Traditional Business perhaps….?
Certainly you can make money in traditional business however you do need some capital to start and should consider:

  • How much capital do you need to start
  • Will you put your house at risk by borrowing against it
  • If you are growing a business you will have salaries to pay
  • Superannuation in Australia (retirement fund)
  • Insurances
  • Premises – how much rent will you pay?
  • You may be carrying stock
  • Debtors etc etc etc

I also have observed over many years that many people who go into a business do not have all the skills necessary to grow the business.

If you listened to my journey in Network Marketing Today – part 3 you will remember my story. Let me share a little more with you.

[youtube]http://www.youtube.com/watch?v=Fqd41zj3sMk[/youtube]

Please leave me your comments below. I love hearing what you have to say. And please share this post with your Twitter and FB friends by clicking on the share buttons. I appreciate you telling others.

12 thoughts on “Network Markting Today – Part 4

  1. belinda cunningham

    Sue
    Love this series and where it is going. The post today gives a little insight into a variety of other ways to make passive income to compare, great idea. I am making my passive income at the moment from property and hope it will grow in capital in the years to come. It took a great deal more money to accumulate this passive income source than it does to get into a network marketing business, and no doubt it costs me a lot more each week than a network marketing business would. If a person has the right skills and mindset sounds like Network marketing is the way to go.
    Belinda
    belinda cunningham recently posted..7 – Decision – The mastery of procrastinationMy Profile

    1. Sue Post author

      Thanks for the feedback Belinda. For anyone who has been in property for a while I think it is still a good investment (in many places at least). I have seen many people become wealthy through property however with our credit crisis right now times are so different. I think NWM is a great opportunity in today’s economic times. As you say though a person needs to have the right mindset.
      Take care
      Sue

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  3. Oliver Tausend

    Hi Sue,

    I don’t know if network marketing is the only option, but it is absolutely an option, even more than that. I’m optimistic for cashflow-producing real estate property – my plan is to invest the excess of cash from my mlm business into property that generates positive cashflow for me. So I’m covering the B/I-quadrant.

    The trouble is that most people are addicted to instant gratification, so they lack the staying power and patience that is required to build residual income streams in the B/I-quadrant.

    Thanks again for this wonderful series.

    Take care

    Oliver
    Oliver Tausend recently posted..Oliver Tausend’s Blog- Thanks To Top Commentators In OctoberMy Profile

  4. Sue Post author

    Hi Oliver
    I was meaning NWM is the only option I can think of in our present economy where you can start with virtually no money. I too think property will always offer opportunities, just that you cannot get in with no money right now. In Australia up until the GFC almost anyone could get into the market.
    I think you are totally on track building a business and then investing. That is what Robert Kiyosaki recommends as you know.
    Have a great day Oliver.
    Sue

  5. Louise Steiner

    Once again a great post in your series Sue. I have to agree with you that there are few options for getting started in business today, that do not require large capital investments. Sometimes I think the low entry price is a double edged sword though, because many go into network marketing unprepared, without a business plan, marketing knowledge or the mindset that is going to be required to succeed. As a result, the failure rate is even higher than for traditional businesses, which does untold damage to the overall reputation of the network marketing business. But for the person who is prepared to learn the business and do the work it represents an amazing opportunity in this day and age of tight lending markets.
    Louise
    Louise
    Louise Steiner recently posted..How To Develop A Social Media Marketing StrategyMy Profile

    1. Sue Post author

      Louise I agree with you on the low entry price being a double edged sword. Far too many people do not take the business seriously and treat it like a hobby at best. I know I held a belief for many years that only the people at the top of an organization made money and I made that assumption because of the high failure rate.
      I personally think the business needs to be promoted on the basis that it does require training and learning.
      Have a great week.
      Sue

    1. Sue Post author

      Hi Carlton
      Thanks for dropping by to my blog and for commenting. I was young in the game a very short time ago too. It is such a great community of people in the blog world you will enjoy it.
      Take care
      Sue

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    1. Sue Post author

      Thanks Andrew. Network Marketing has an interesting history and is so misunderstood.

      Sue