I already wrote about why network marketing is better than a regular job here. Now I’m going to talk about why network marketing is better than a lot of other businesses you could get into.
What Are You Going to Sell?
A business exists to make money. Sure, you may have higher goals for your business, but if there isn’t any money flowing into the business, it will eventually fail. To make money, you have to have either a product, a service, or both.
If you have a service business then you have either created a new job for yourself (see the post mentioned above for why that sucks) or you have put yourself into the position of having to manage other people who provide the service for you. Managing other people has a lot of headaches and your customers hold you responsible for your employees actions and performance. No thank you.
A product business is easier in some ways than a service business because once you have your product developed, it’s done. Just sell it. But what is your product? A widget needs to be designed, prototyped, tested, redesigned, and finally manufactured. That’s a lot of work that you have to do before you can ever begin to think about making money. It can also take a lot of money invested up front.
An info product is easier. That could be a book, ebook, online training course, or something along those lines. Like widgets, info products still need to be developed, and that takes time. I think everyone has something to say or that they can teach, but I don’t want to take the time.
With a network marketing business all those product development headaches are already handled. The company does the work of creating the products and keeping them up to date. You can join a network marketing company and skip all of that and go straight to selling and making money.
Inventory and Order Fulfillment
In a regular business, once you have your product developed and ready to sell, you have to have quantities on hand somewhere to ship to your customers. Large companies hire teams of people who’s entire job is to figure out how much product to have on hand at any given time and make sure that there is more coming from the manufacturer to replenish it before it sells out.
Once you have an order, and it is in stock, you have to package it and get it shipped. For a small business, you may box it yourself and schedule a pickup from a shipper. Larger companies arrange contracts with shippers like UPS and FedEx to get more favorable shipping prices. That’s right, more headaches.
With network marketing, at least the company I am with, I don’t have to keep an inventory. Actually, they strongly discourage us from keeping an inventory. They handle all of the inventory challenges and ship the orders.
Payment processing is not something that I want to have to deal with. Taking payments in cash is easy enough, but you know that most of your customers are going to pay with checks or credit cards.
If all goes well with a check, it clears and you have your payment complete in a few days. If it doesn’t go well, you have additional fees from your bank for a bounced check. I hope you haven’t shipped the order yet.
Credit cards are even more fun. You have to have a merchant account to process the credit card payment. That costs you a monthly fee. There are a lot of rules that you have to be compliant with when you take credit cards. That means more fees.
Like with a check, if all goes well with the credit card transaction you will have money in your account in a few days. If it doesn’t, you don’t. Unlike with a check, a credit card customer can decide to refuse payment once they get their bill.
When you take payment by credit card, you pay a fee to the processor. If a customer decides to return the product then you have to refund the credit card, another transaction fee, and you end up paying those fees out of your own pocket.
My network marketing company handles all of that. The only money I have to deal with is my check from the company on the 15th of every month. Actually, I don’t even have to deal with that because it is a direct deposit. They money is just there.
Is Network Marketing Better?
In my opinion network marketing is much better. I don’t have to deal with product development headaches. They take care of maintaining inventory and shipping the products. They handle all of the payment processing. All I am responsible for is getting the order, entering it into the system, and collecting my cut on the 15th of every month.
Actually, there is a little bit more that I do. I handle customer service because they are my customers. If something goes wrong though, like those extremely rare instances where something isn’t quite right with the product, the network marketing company will deal with that for me. So, I get to have all of the pleasant customer service interaction, and pass off any negative stuff.
I also recruit new people onto my team to help increase our reach and our income. They work for themselves, so new people don’t bring management issues. My responsibility there is to coach the people who want to be coached.
Network marketing makes it so easy.
PS. Find out more about building a network marketing business online with me here.