Why Network Marketing? (Part I of a 2-Part Series)
In early 2011, The Tennessean carried an article called: "Out of work, some invest time, savings in franchises." This article focused on the problems a significant number of Americans are facing as they find themselves losing their jobs to cut-backs, layoffs, business closures, and outsourcing. The writer described the pros and cons of buying a franchise along with the following advice: “Jumping into business by buying a franchise doesn’t come without risks, though. Costs can run from $20,000 to several hundred thousand dollars to get started. And not all franchise parent companies offer their offspring the same level of marketing, back-office and sales support.” This is why a growing number of Americans are now taking a good, hard look at network marketing opportunities.
Advantages of Network Marketing
Network marketing companies offer entrepreneurs the opportunity to own and operate their own business for a fraction of the costs involved with purchasing a business franchise. People are attracted to network marketing because it offers them the chance to set their own hours, be their own boss, and have no ceiling on earning potential.
Earning potential is tied in closely with how good the product is, how solvent the company is, what kind of incentives and pay plan the company offers, and how hard a person works. There are no salary or hourly wage limits, no layoffs, outsourcing or downsizing.
Problems with Network Marketing
In the past, I have been very skeptical about multi-level marketing. Network marketing developed a bad reputation due to two basic problems.
1. Poor Company Structure
Some network marketing companies have come and gone that had a poor business plan, and/or a poor product. If the company has not been around long enough to develop a track record and to be financially solvent, there is good reason to question whether the products really work; whether or not that company can pay the incentives promised; and even if the company will survive its first few years in business.
2. Unqualified Representatives
The second major problem some multi-level marketing companies have faced is unqualified and unsupervised representatives. Without a sound structure that includes detailed, ongoing training and a degree of accountability, representatives can say pretty much anything and deliver nothing.
However, reputable network marketing companies have learned from observing the failures of other companies and have become, as one writer put it, "a 21st Century Business Model."
Successful Network Marketing Companies
There are reputable and successful network marketing companies out there that offer reputation, stability and some security to the entrepreneur interested in starting their own business without the start-up cots and overhead of buying a franchise. What makes a network marketing company successfull? We will take a look at the important things to look for in a reputable network marketing company in Part II: What to Look for in a Successful Network Marketing Company.
Rodan + Fields Dermatologists
Rodan + Fields Dermatologists is a company that has been around since the 1990s. Rodan + Fields has tapped into the lucrative skin care market which was valued at over $15 Billion in 2008, and the U.S. sales of antiaging products had hit $80 billion in 2011. Sales just of medicated skin care products are estimated to reach $5.6 Billion by 2015 and $114 billion by 2015 for all anti-aging products according to Global Industry Analysts. While they are known as the makers of Proactiv Solution, the most successful acne treatment in the world (marketed heavily through infomercials), in 2002 Rodan + Fields launched a brand-new network marketing company designed to treat the problems of older skin via the lucrative anti-aging skincare market.
For more information on Rodan + Fields or network marketing, visit my Rodan + Fields website or leave me a comment below.
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