Read My Last Post After you will understand what’s going on…
Okay, if you accept the premise that job security is a myth, what can you do about it?
Plain and simple, you need to go into business for yourself. You are fortunate to live in a country that rewards enterprise, and with the abundance of opportunities available today, there are only two reasons possible for your not being in business already:
• You don’t want to be in business.
• You don’t have the right information.
The business world is full of horror stories touting the rates of failure and bankruptcy in small business start-ups, making a mockery of your dreams to succeed in business. It has also been said that the best way to make a small fortune in business is to start with a large one. You have a weapon that can destroy the statistics however, because multi-level marketing is like owning a franchise, and compared to the failure rate of sole proprietorship start-ups, franchises have a remarkable success rate. Here’s why:
A. Proven Marketing Plan
Franchising as a business model succeeds because it has proven, in the marketplace, to offer a marketing plan that makes a profit for their distributors/franchisees. The marketing plan encompasses how the product is displayed and demonstrated, how the retail outlet is laid out, the store’s atmosphere, and the clerk’s uniform. All of these elements combine to offer a product to the public in a proven framework. The franchise model will also work for you as an independent distributor.
B. Proven product or service
Similar to the marketing plan, the franchiser has a proven product. One tested by the consumer. By the time you join a nation wide network marketing company, the product has been proven reliable by thousands of satisfied customers. Companies that do not offer a quality product, such as Internet email scams, usually collapse long before they have a chance to grow nationwide.
C. Economically feasible pricing structure
Figuring out what the market will bear in terms of price is not a simple matter. Consideration must be given for what economists call “elasticity of demand” for the product, and of course, the availability of comparable products elsewhere in the marketplace. A franchisee generally has the price structure for her product established at a point that maximizes both consumer demand and profit margin. As a network marketer, you’ll enjoy a similar arrangement, as your customers order from a catalog or purchase items from a per-priced form.
D. Economies of scale
Franchisees can save money in sales material and product by taking advantage of economies of scale. That is, because of the parent company’s size, the production and distribution of the product can benefit from “bulk load” discounts, which translate to a higher profit margin for the distributor.
One area in which economies of scale benefit the network marketer is the rental of meeting rooms. Alone, you would have to pay several hundred dollars to rent a nice banquet hall or reception room for a one-night opportunity meeting. As a group, each of you can pay a couple of dollars, and have the privilege of introducing prospects to the opportunity in a professional environment.
Franchises are famous for their training programs. When a franchisee prepares to open a new store, trainers from the company’s headquarters are brought in to train everybody, from the dishwasher to the manager, on how to run the store, serve the customer, and present the product. Network marketing is no different. When you join a multi-level marketing company your up-line has a vested interest in training you to work the business right. Their success is dependent upon your success–and there’s no better arrangement in the business world than that.
F. Like-Minded Associates
The business community is often characterized as a pack of cutthroats, willing to do anything necessary to destroy the competition. In franchising, your fellow distributors support you because they know any negative publicity or failure that shares their name is a strike against them also. Network marketers want the enthusiasm for the opportunity and product to grow, and your personal failure is counter-productive to this end. You may also want to bear in mind a great quote by Winston Churchill: “Success is going from failure to failure without loss of enthusiasm.”
As you can see, franchises are a powerful force in the marketplace, and most network marketing opportunities offer the same great package. Without the legal papers to say so, your independent distributorship is like a micro-franchise, with the added benefits of low start-up costs and ease of entry.
With network marketing you do not have to invest in a new building, you don’t need a boat-load of high tech equipment, and you don’t need a product research and development team on your payroll. Your sponsoring company already has that covered.
Network marketing is a business you can be good at, and best of all; it is something you can decide to do—now. If you’re already involved in network marketing, then it may be time to recommit yourself to truly trying to make it work, which is the subject of the next principle.