Network Marketing is often called The People's Franchise because it let almost any body to start the business with very low investment and earn reasonable residual income monthly if you follow the business system.
Network Marketing relate very closely to the concept of traditional franchise. Why people buy a franchise because it is branded and has a proven system to run the business and can still enjoy a nice return of investment (R.O.I) when execute correctly.
Let's take McDonald's franchise as an example. It may take half a million dollars or more to purchase a McDonald Franchise. After that a specific training system on how to run the business is given to you. You will follow the detailed manual to set up your restaurant, which ingredient to buy and where to order from, learn where the burger and French-fry makers go, what your employees needs to wear, and what to say.
You will also learn how to greet your customers, up-sell and thank them for coming. Every detailed information is all laid down in the manual for the franchise's owner to follow and run the successfully.
But McDonald's Franchise also does not guarantee success. It also depends on the location you pick to run the business, the employee you train and the management team you have. As a McDonald Franchisee, you also are required to pay royalties to the Master Franchisor.
Network Marketing Business is slightly different. You can position yourself as a franchisee and also the master franchisor. You will still be given the proven system to setup your business. But over here, since you are also a master franchisor, you are able to sell the franchise to other interested franchisee. And this is power! Because of this business model, many people are able to earn exponential income from network marketing if follow the step by step system correctly.
The entry level for network marketing is very easy. Anybody with age of eighteen years old and above can start the business already. The low start up cost and system attracts almost any one to kick start the business. Since it is a low investment, they do not approach as seriously as buying a half million dollars McDonald franchise.
Once they join, they do not follow the system, they experiment unproven methods, they promote to people when it's convenient to do so, and treat their business like a hobby. The worst part is that, they do not duplicate their success and develop leaders. That is why; many people did not succeed in the business.
In order to succeed in network marketing, it is very simple. Just follow the proven system and train others to follow the system. That's it!
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