Why start a Network Marketing business?

Last weekend I spent 10 inspiring hours on a virtual global event with many others from the Network Marketing industry.

The presenters were from many different countries and every one of them had built substantial businesses.  As a result they enjoy what Jordan Adler describes as ‘beach money’ (see his book of the same title) or passive income.

Listening to these leaders reminded me of what an elegant business model Network Marketing (or Direct Sales or Relationship Marketing etc) is.

It differs from traditional businesses or franchises in a number of fundamental areas. To begin with the cost of entry is usually very modest thus reducing financial risk and it is also totally saleable. The majority of new entrants begin on a part time basis which helps them to establish their businesses without the additional stress of a lost income. There is little or no inventory needed and no premises or staff.

So, it is open to everybody regardless of education, age, religion and ethnic  background, in fact everyone from binmen to barristers or students to surgeons. All that is required is a dream, a willingness to be taught the skills involved and the mindset to do the work. Whilst most people join the industry for immediate income there are two major benefits that are unique to Network Marketing, time leverage and passive income generation.

The initial effort is to introduce people to the benefits of the products or services and for them to become customers. Some of them will see the benefits of recommending this to their friends and families and want to embark on the journey as well and join the business. This is the team building aspect of the industry.

Simply put it works like this:

  • Joe introduces Sandra and teaches them to introduce the business to someone else. 
  • Joe consistently spends 5 hours per week on their business, but when Sandra joins she does the same for the people she introduces to the business.
  • Joe now has the benefit of 10 hours being spent on this business each week.
  • As Sandra brings in Di to join the business, that’s now 15 hours a week being invested in developing the business.
  • Joe is still spending 5 hours a week personally and, as well as Sandra, he has also brought in Tom and David as his team members.

Any people they introduce to the business also spend 5 hours a week on the business and this soon means that while Joe is only doing 5 hours work, the impact of his direct team and their team members multiplies the effect dramatically.  This is how time leverage works.

Most companies pay a customer acquisition bonus and/or % share of the sale value as a commission and an ongoing share of future sales. Do something right once and be paid time and time again! Joe will also receive a small % of the value of sales to the customers of Sandra, Tom and David – and Di and all the other people that are introduced to the business, through them. This is how passive income is generated – Beach Money!

These businesses are not get rich quick schemes, but a brilliant route to wealth generation over time. Most Network Marketing companies have effective training and mentoring programmes to encourage and build success – like the event I attended last weekend.

What are the steps to success in this Industry?

  1. Having a powerful dream or goal to be more and have more.
  2. To be willing to learn the skills required
  3. Having a detailed plan on how to achieve your goal
  4. Be willing to do the work.
  5. Embark on personal development to become the leader you need to be.

As Zig Zigler said

“Help enough people to get what they want and you will have everything that you want”

It will be no surprise that I think that the company that I am partnered with offers by far the most rewarding opportunity of this type in the UK today.

Contact me and I will explain why! 


Phil Groom works with Utility Warehouse.

You can contact him on 07957 829872 or at philipgroom@uwclub.net

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