Network Marketing: Can I Get Rich Quick?
This is something I see promised over and over again when people advertise their network marketing opportunities. And a lot of people join network marketing companies with the firm belief that they will, in fact, get rich “quick”.
Just a couple of months ago, I saw countless numbers of recruiting posts on social media promising income to cover the cost of Christmas presents, some figures ranging into the high hundreds of pounds, with the impression that you will get that in 6 weeks or so (in time for Christmas). So, is it possible? Is network marketing a “get rich quick” scheme?
I do not want you to be under any illusions, or to be misled in any way. But I also want you to see the amazing earning potential there is in network marketing.
Here are 5 things to consider:
1. The outlay
If you were to be starting up your own business, and I am talking about any business here, making ANY profit in the first year of operation is a huge achievement! Let’s be realistic. Most start-ups fail in the first year, because new business owners have skewed and unrealistic expectations that they will “get rich quick”. Realistically, according to Forbes, if you are setting up a new business you should give yourself 18-24 months to be profitable!
The good news is, that with network marketing there are huge advantages. The start up costs are so low (and the returns relatively quick).
To start your network marketing business may cost a couple of hundred pounds. That is so cheap! If you compare it to setting up your own business, having to buy stock, premises (or website), pay staff, invest in product development, branding etc. In network marketing, the products are already there, ready to sell! All you need to do initially is to pay for your joining fee and/or kit and get going. There are potentially other small start up costs – getting business cards, some companies charge for your consultant website, etc, but it really is a very small investment to make. Even the average cost of a franchise is now an estimated £14,600, so network marketing start up costs are really very low indeed.
However, if you were buying a franchise, which costs more and you have to give away some if your profits to the owners, you would be worse off. With network marketing you don’t share your commission with anyone. The company shares its profits with people who are helping to sell products, and so you get to keep your commission, and your upline gets commission on top of that.
2. It takes time
You may just be happy selling to the customers you have or gain, and take your 25%. Getting customers takes time, some people have a very receptive warm market (ie your friends and family), and some people do not. If you are only interested in getting customers, you need to look outside of your warm market to your cold market – people who don’t know you or anyone you know. This can take time. If you are looking for an opportunity that you can do for just 4 hours a week, your growth will actually be very slow. Most people in network marketing expect quick results, don’t get them from their warm market, and then give up! But you need to invest your time into building your business. You also need to realise that this is a network marketing business. So, the money is in the building of your network, which means recruiting people who want their own business into your team. And they need to build up their network. And their recruits need to build up their network. It takes time. So don’t give up. Have realistic expectations, and stay the course – it will pay off! But you have to have patience.
3. It takes money
OK so we know you need to pay your initial joining or kit fee. Many people recruiting on to their teams do not mention the ongoing cost of being in a network marketing business or, even worse, they say there are no ongoing costs! Of course there are! This is a legitimate business after all!
Why are there ongoing costs? Well, because to be successful in network marketing you need to become a product ambassador. You need to become your company’s biggest advocate of the products. But you cannot do that if you do not use the products on a daily basis. If you do not have the passion that comes from being totally sold on the idea of having these products in your life, then how can you expect others to do the same?
Some companies recognise this, and actually have an ongoing requirement that to get paid any commissions, you need to be placing a minimum order each month. Sometimes there is something in place called ‘autoship’ where you can automate this, or have that committed loyalty order each month, even if you want to change the details of that order, your order is always set up so you can access those commissions. Some people see this as a negative, but you must use your products! You must invest in this business, and actually the ongoing costs are very low when you consider what they can give you in return… and you are using the products anyway!
Another area you will need to invest in is personal development. Network marketing is a personal development industry and you will need to read books, attend trainings, attend your annual conferences, etc. These are not free, but will help you to grow so much in your business, they are completely worth it. You will also need to hold training sessions for your team members, and there may be costs associated with this. And incentives to encourage them to grow too.
And to tap into your cold market, you are going to have to get out there. That may involve travelling to different places, and some companies have special promotions where that travel, or a proportion of it, can be sponsored by your upline. Take advantage of those times!
4. It takes hard work
Selling to customers is hard work, because unless they are buying from you every month, you have to always go out and find new ones to earn your money. If you build a team, and then your income from them and their networks becomes residual (ie. not work you have had to do), you have to put in the hard work to find the right people, who are dedicated and committed just like you, and that can be hard. Network marketing is not easy. Well, especially not to begin with. The results you get depend on how much hard work you put in. If you work hard, you will be rewarded. But do not think that you can let up when you have your team in place. That hard work might just shift from seller and recruiter, to mentor and leader, but it is still hard work. And it may or may not be full time, but you still have to put in the effort, whether you are working 8 or 18 hours a week!
5. It can be done
Making money and being successful in network marketing is a definite possibility. It definitely can be done. There are many well-known network marketers who have put in all the time, hard work, invested a fair bit of money, initially and ongoing, and have climbed up the ranks quicker than anyone else in their company before. There are others who have taken 5 or 10 years to get there.
But I say to you this.
This is a business. The thing is that if you are not willing to really treat a business as a business, or are not willing to invest the money or the time needed to build a successful business, then you do not have the right attitude to do this. Can you get rich quick? Well, yes you can. Can you work part time hours for good money? Yes you can. How quick? You could be earning 6 figures in 5 years time. Not many jobs get you there that quick! Can you work part time? Yes, once you have a solid team. But you have to invest in your business. Network marketing is such a low cost route into business with no stock holding, no bulk buying, such a tiny outlay initially and ongoing. Would you pay an initial outlay of £200, and then £100 a month ongoing now, to get back £70,000 a month in 5 years? or 3 years? Or even 1 year with a lot of hard work?
I would! Would you?