In my post titled Network Marketing vs Traditional Business I talked about the advantages of network marketing over traditional business. In this post I look deeper at the issues and reasons I would never have a traditional business again.
From my own experience in business it really is a “no brainer” for me to want a business with residual income – or reoccurring income. I am not interested in building a business that will not give me that.
There are some traditional businesses that give you a residual income such as financial services where you are paid trail commissions but the majority do not – you are always dependent on the next sale or next consulting role. If you stopping working so does the income and you need to know how long you can survive financially if that were to happen.
Having owned several traditional businesses I am only too familiar with that sick feeling in your stomach when you think about your overheads. Things like:
• Salaries to pay (we had over 70 at one time)
• Superannuation, insurances and staff add ons
• Stock to carry
• The money you put in to start the business
• Oh and yes a big mortgage against the house to fund it all!!
All this makes for a good night’s sleep. Even when income is flowing in and things going well you are always conscious of your commitments and overheads and the need to pay your staff.
One of the other features of traditional business I don’t like is that fact the staff you have trained and looked after can up and leave you and maybe even go into competition with you.
Many times in our businesses of the past I felt like I was trapped and working to provide employment, it was not fun for me.
Comparing this with Network Marketing we have a very different scene. The most important factor for me is the residual income, income that will carry on after me and be my legacy.
And then of course there is a lack of
• Salaries – none unless I pay someone occasionally on a consulting basis
• Superannuation, insurances and staff add ons – None!
• Rent – we work from home with my dog at my feet
• Stock to carry – zero
• Debtors – zero – and the company pays every fortnight
• The money you put in to start the business – very minimal
• Oh and yes a big mortgage against the house to fund it all!! – not needed!!
When I stand back and look at the facts now I wonder why for so many years I did not get it. I was like so many others thinking I knew it all – hey I have a business degree! So if you are in Network Marketing share this with someone who just doesn’t get it.
Please leave me a comment below and let me know what you think.