The Top Business Model in Today's Virtual World
We live in a virtual world and consumers are purchasing more and more products from the comfort of their homes. This trend of online purchasing will only become increasingly popular in the future, since people’s lives are busy and gas prices keep going up. Why travel to several physical locations searching for something when you can find exactly what you want on the World Wide Web in much less time and at a fraction of the cost? Brick and mortar retailers realize they have to do more than just rely on foot traffic for profits. Big box stores, like Walmart and many others, are jumping on the online bandwagon to capture lucrative sales. While physically rooted franchises are struggling to stay alive in malls and other locations, sales from online retailers are flourishing. For those involved in marketing goods and services, this is a paradigm shift definitely worth watching!
From brick to click
Today's savvy entrepreneurs want more out of life than to work 24/7, slaving away building a brick-and-mortar franchise that drains them of their capital and energy, only to have it revert back someday to the parent company. Life goes by much too quickly to trade temporary monetary gain for irreplaceable time spent with friends and family—precious moments that can never be recaptured.
These modern business people engage in a far superior business model that allows them flexibility to create more time freedom and balance in their lives. It achieves this goal by leveraging the efforts of many, versus just one person. Picture yourself at work. You are one person, sitting at one desk, earning one salary. Now imagine yourself duplicated many times over, earning multiple incomes. It’s a business model similar to a franchise but without the headaches. You actually help others start virtual mini-franchises and you are paid bonuses directly from the company for all sales that run through each of them.
They choose a plan that requires a comparatively modest upfront investment cost, while giving them the potential to earn unlimited income en perpetuity (forever). Instead of paying a middleman to move goods and services and high-priced agencies to advertise them, this plan eliminates typical overhead and puts the money, instead, into the pockets of those who market these goods by referring them to others. At times shrouded by misinformation, this business model is known as direct sales or network marketing.
The J. Paul Getty success formula
Jimmy Smith, a former butcher who started in network marketing in his fifth decade of life after he was laid off because of a back injury, subsequently became a multi-millionaire in the field. He saw the potential after he did the math. To illustrate his understanding, Jimmy tells the following story. “J. Paul Getty said that if you want to be financially independent, you have to do three things.
- You have to be in business for yourself.
- You have to have a product people need and want.
- You have to be able to duplicate.
“He saw Henry Ford making cars in mass production. He saw they needed gas and oil, so he opened up a gas station. Ten thousand gas stations later, taking 3 percent of 15 cents a gallon, he became the richest man in the world.
“Ray Kroc did the same thing with McDonalds. Ten thousand McDonalds later, he was a billionaire. And he started at age 52.”
Comparing network marketing to a traditional franchise
As stated previously, a franchise is basically a model for moving goods and services. The franchisee (operator) pays the franchisor (supplier) thousands of dollars to use the supplier's trademark and distribute the supplier's goods. Network marketing is like a franchise without all the downsides. You even get to personally choose your business partners! You also get to leverage the efforts of multiple business partners to multiply your income, many times over.
Many people shy away from network marketing because they think it’s all about sales. Leading financial experts, like Robert Kiyosaki, endorse the network marketing business model. In his book “The Business of the 2st Century” Robert explains that “the key to success in sales is what you can do. The key to success in network marketing is what you can duplicate…If you are an amazing, uniquely skilled, superstar salesperson, then you can do great in sales—and chances are good, you will do lousy in network marketing. Why? Because while you might sell a lot of products, most people in your network won’t be able to duplicate what you do. Consequently, your network cannot grow, and it dies an early death…The ability to duplicate is the magic key here, not the ability to be a top salesperson.”
In a legitimate network marketing business, the supplier offers incentives, bonuses, commissions --and sometimes even profit-sharing pools—as rewards for marketing the company’s goods and/or services to consumers. In network marketing, distributors are compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a network of distributors and multiple levels of compensation. Hence, the term network or multi-level marketing.
Earn money around the clock
The flexibility of this business model allows you to work hours around your private life. There is no age (or any other type of) discrimination to hold you back. Anyone from the age of 18 on up can work a network marketing business. In fact, Jimmy Smith (mentioned earlier) started with a particular network marketing company at the age of 76 and he and his family reaped more than $36 million dollars in income over the course of 11 years! Now he is 90 years old and still going strong.
Through hard work and diligent effort, you can build a solid business with the potential to yield unlimited residual income. Also called “passive income,” residual income is that which pays you whether you work or not. Building a network marketing organization is not a “get rich quick” scheme but a solid business opportunity that stands the test of time. Stay tuned for my next blog that will help you decide if you and network marketing would make a good match!