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Traditional Business vs Network Marketing

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
•    Rent
•    Stock to carry
•    Debtors
•    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.

35 thoughts on “Traditional Business vs Network Marketing

  1. Chris McCargar

    Hi Sue,

    Well said… you certainly make the case for network marketing. It really is a “no brainer “… for all the reasons that you mentioned plus the one that I find most compelling… Time freedom!

    1. Sue Post author

      Hi Chris
      I agree time freedom is very important. I cannot imagine leaving home at 6.30 in the morning to drive across the city to start work at 8.30 like I used to!! The commute to the office up the stairs is much easier 🙂
      I also love that I can do things in my own time.

  2. Louise Steiner

    Excellent post Sue….I went through that exact decision making process a year or so ago and I am so glad I didn’t go down the route of starting a traditional off-line business. When I read your article, it makes me wonder why it took me so long to decide to go down the network marketing route. It’s a no-brainer! Thank you for summing it up so beautifully.

    1. Sue Post author

      Hi Louise
      Even though we can now see it is a no brainer I really did not get it at before. I think for me there was a lot or ego involved wanting to be a creator of a business. When I reflect back though I was always so stressed! It was no quality of life.

  3. Wayne Woodworth

    Great post Sue. I agree with all of your points. I have been active in my network marketing business for 2 years and like you, the commute up the stairs is a whole lot better than the one in heavy traffic to the cage in someone else’s building. One thing that I really like about doing this online is that I can go out with my family for several hours and stay plugged in to my business through just my Blackberry if I want to. Time freedom and mobility. Not much else can offer that kind of freedom.
    Wayne Woodworth recently posted..Sleep: Most Important for LongevityMy Profile

    1. Sue Post author

      Thanks for the comment Wayne. I am only now coming to realize just how important time freedom in to me. I think more and more of us are valuing that now. I guess for all those years that I commuted in traffic I thought that was the only choice. I am so grateful for the Internet and how it has made our lives so much more flexible.

      Sue

    1. Sue Post author

      I agree Linda, it will be fun to watch the evolution. In the economy we are in it seems like such an opportunity for people if they can see it.

    1. Sue Post author

      Hi Belinda
      I think it will be an interesting time given the economy and people’s changing values. I think the day will come where NWM is seen as a credible and wise choice.

  4. Don Enck

    Sue,
    I have one word…BINGO! Like you, I have been a traditional business owner. And maybe if you’re lucky, you can build a traditional business that down the road you can sell and make a profit on. But for me the biggest drawback as you said is if you stop working your income stops. Geez, so much for going on an extended vacation. Residual income is by far the best solution, that and the ability to leverage your time.

    Thanks!
    Don Enck recently posted..Are You Being Of ServiceMy Profile

    1. Sue Post author

      Thanks for the comment Don.
      I think unless you have been a traditional business owner you don’t really understand the pitfalls. Although our kids were put off by the long hours we worked.

      Cheers
      Sue

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    1. Sue Post author

      Thanks for your comment Bob. It is interesting how some of want our own business and some do not. It is all about choice 🙂

      Sue

  6. Andrew

    Business is crucial for people who don’t know about the basics of it. Both Kind of Business are based on same fundamentals the different is that one is following modern methodology and other is on traditional methods.

    1. Sue Post author

      Thanks for your comment Andrew. I agree that the fundamentals are similar although it is difficult to get such leverage with traditional business.

      Sue

  7. Erhol

    I agree with you 100%. That is why I am now starting and earning with network marketing.

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  9. ryan

    Hi Sue, thanks alot!!! me and my wife criselda is in networking business and really…as everyone said in the comment. I hope they will see the bright side of this business. God bless.

    1. Sue Post author

      Thanks for your comment Ryan and I too hope people can see the good side of Network Marketing. Well there are many good things isn’t there?

      All the best to you and your wife in your business.

      Sue

  10. Sweta

    Hi Sue,
    what a great post I must say!!!
    I have started network marketing business few months back and felt changes in me and my life right from the first day and i don’t understand why so many people don’t see it or understand it or hesitate to take an initiative!!!
    I am going to share your post with them and lets see if they learn something out of it.
    Thanks a lot 🙂

    1. Sue Price Post author

      Hi Sweta

      Thanks for your feedback on my post. Great you have started a network marketing business and seeing changes in your life right away. That is excellent.

      Unfortunately many people are negative towards Network Marketing because they do not understand it or have had a bad experience. Please do send my post to anyone you think may benefit from it.

      Have a great day.

      Sue
      Sue Price recently posted..Pure Leverage 100%Commissions and EZ Money Method My Profile

  11. Lee

    Hi sue
    A big case for online marketing here and I agree with what you are saying. You have a lot less to worry about online compared to traditional business models. The big one is though to me is hosting problems. Because put simply if your server crashes you are instantly closed for business.

    Great post thanks lee
    Lee recently posted..Cheap Dog Insurance-UKMy Profile

    1. Sue Price Post author

      Hi Lee

      I agree online businesses have many advantages over traditional businesses. Oh yes you are spot on though if our site is offline we have a problem for sure.

      I think it is the one thing about technology in general and that is that it has made our lives so much easier and but when it is not working we are very cut off.

      Thanks Lee for your comment. I appreciate it.

      Sue
      Sue Price recently posted..Would You Rather Be Right Or Happy?My Profile

    1. Sue Price Post author

      Hi Garry

      Thanks for finding my blog and for your comment.

      I agree with you and isn’t it amazing how when we make the switch mentally we really do wonder why we did not see it before.

      Have a great day.

      Sue

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  13. cristina

    There no word to say about Network Marketing vs Traditional Business, cause sue describe all the tthings, and there no doubt on this.

    appriciate your concern sue

    1. Sue Price Post author

      Hi Cristina

      Ah thanks for your comment. I appreciate your kind words.

      Have a good day.

      Sue

    1. Sue Price Post author

      Hi Donald

      Thanks for your comment. There are pluses and minuses in most things and for me the benefits do out way the negatives.

      Have a nice day.

      Sue