Why People Join Network Marketing?

Why People Join Network Marketing?

Why People Join Network Marketing?
By Kelvin Wong K C

Network marketing is a business model that involves the movement of products from the manufacturer directly to the consumers through a network of independent business owners. The high costs of having middlemen in the traditional distribution channel are eliminated, and the savings by the manufacturer are being paid out in commissions to the independent business owners.

Most people join a network marketing company for one or more of the following reasons:
� consuming products at wholesale prices
� working towards financial independence
� working towards time freedom
� achieving a desired lifestyle
� working to escape the rat race

Network marketing business does not involve huge capital investments and there is virtually no risk. Since no experience is necessary, people from all walks of life are given the same opportunity to participate in the business.

People working towards achieving financial freedom must understand that there are generally 3 types of income:

Active Income is what most people are earning from their jobs. Employees trade their time for money when they work for people. If they stop work for whatever reasons, they don't get paid anymore.

Leveraged Income is gained when people get paid for other people's efforts. For example, a business owner gets paid when the employees put forth the efforts to bring in revenue for the company.

Residual Income is earned whether when people work once and get paid repeatedly. For example, authors and music artists get paid in royalties if their books or music albums keep selling.

How do you create leveraged and residual income for yourself? You can start a business or buy an ongoing business. However, most people do not have enough capital or experience to start a business. Neither can they afford to buy a franchise nor an existing business, not to mention high risk involved in quitting their full-time jobs to pursue new ventures.

Unfortunately, people don't have enough hours in the day to trade for enough money to allow them to retire young or live a desired lifestyle. So, what can the average person do? Without the high start-up costs, associated business risk and the absence of an entry barrier, this is where network marketing comes in to assist people in starting up businesses. Therefore, most people get involve with network marketing businesses to capitalize on both leveraged and residual income with the objective to achieve financial freedom for themselves.

A network marketing business is simple to set up. However, to be successful in this type of business is definitely not easy! A crucial starting point would be to find an excellent organization to join. Do your due diligence first before embarking in the business. It is important to partner a network marketing company with a professional management team, great products, a good compensation plan and an outstanding growth potential.

With dedication, focus and a never-give-up attitude, network marketing would provide an incredible opportunity for any common person to build significant leveraged and residual income.

Kelvin Wong is a millionaire landlord, investor & author. He held senior management positions in multinational corporations before retiring from corporate employment in 2007 to manage his own businesses and investments. A Dean's List graduate in the top 5% of the university's graduate cohort, Kelvin holds a Bachelor of Business degree in Marketing & Management Science and a Diploma in Business Management. His vast corporate and entrepreneurial experiences put him in a unique position to help others succeed.

Visit http://www.kelvin-wong.com for more information and check out Kelvin's Financial Blog at http://www.kelvin-wong.com/kelvin-wong-finance-blog.html for tips and resources on budgeting, savings, debt management, investing, property investing, wealth building, and financial freedom.

Article Source: http://EzineArticles.com/?expert=Kelvin_Wong_K_C


"The richest people in the world build networks, everybody else looks for work" ~Robert Kiyosaki

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