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Benefits of Network Marketing

The 13 Top Benefits of Network Marketing (by Tim Sales)

#1 – Income Can Be Exponential and Residual

This is a factor that I’ve never seen in any other business. What do I mean by that?

Residual income would be, for example, when you subscribed to an internet service, they get a residual income because you’re paying for that service every single month.

Exponential has to do with the compounding effect of something. It is not purely multiplication. It compounds over time. Let me give you an example.  Exponential means that your internet service would get other internet services for them, or your phone would get other phone services. But phones don’t get phones, and real estate rental properties don’t get more real estate rental properties.

Those businesses give you residual income (the phone company collects a payment from you every month for the phone use, or the landlord gets paid every month for the rental property), but those types of businesses cannot create the exponential income you can get from network marketing.

When you combine those two together, this is what you get: I acquired 40 customers and I now I have 36,953 customers. That’s a 92,000% increase from my effort, when united with a team. I recruited 129 new representatives, and that number turned into 41,000 representatives. That is a 32,000 exponential factor. That is a really, really big deal.

#2 – Team Effort

Because I acquired 40 customers, I now know how to get customers, so I become valuable to the person that I bring into the business. That’s how my 40 customers turned into 36,000 customers. That is the team effort.

I make myself unimportant to the generation of my income. That is one of the biggest points of how to create wealth. 

Here’s an example: In real estate, let’s say that you sell a $225,000 house, and you make a $5,000 commission. You’d have to sell ten of them to make $50,000. In the next year, you have to do it again if you want to make $50,000. If you want to make $100,000, you will have to sell 20 of them. It’s all you.

I’m not cutting real estate down in any way. I will never cut down any industry. It is just from my vantage point, after being in a lot of different businesses, that network marketing has the most opportunities for building wealth. I talk about this in another video, Side Hustles That Made Me a Millionaire.  I think team effort is a big part of that.

#3 – Reps, Not Employees

I prefer that the people I work with are not employees. I’ll just leave it at that, because with employees, I have to pay them for whatever they do during working hours, whether they produce anything or not.

#4 – Build from Anywhere

I can build my network marketing business from anywhere in the world. That is really important to me, especially right now in 2020, when it seems like America’s sliding off into the ocean. I like to be able to live where I live. I live up in the mountains, on a farm with a river. I like doing it where I want to.

#5 – Low Financial Entry and Risk

Low financial entry into it is important to me. I can’t believe that at this point in time, I spent $1,500 to start my business, and now I have a $300 million business under me. That is incredible.

#6 – Own Customers

I own my own customers. When you compare network marketing to other businesses, what you’ll find is that in the other businesses you don’t own the customer. If you’re, for example, an Amazon seller, you don’t own the customer. That means that you acquire them for somebody else. Your acquisition of customers takes the most amount of effort – the most amount of money that is ever spent is to acquire a customer. You’re acquiring customers for another business and you don’t get that upside potential of owning that customer.

Benefits of Network Marketing

#7 – 1099 Income

In a W2 (salary) income, somewhere around 30-40% of your income is taken out before you ever see it coming, because it’s taken right out of your check. The advantage with network marketing is that we have 1099 income. If I want to run ads for my business, the IRS allows me to take that deduction for the money I spent to advertise my business. In a way, it doesn’t cost me anything, because I get it back.

#8 – Geographic Diversification

As a real estate agent, I would have to be in a certain location, and be limited to this location. I like the ability I get in network marketing to make money out of Italy even though I don’t know the Italian language. I like being able to make money out of China and not know any Chinese whatsoever.

#9 – Work With People You Want

Working with people that I want was an important one for me when I first started. I remember there were people in the military who were jerks. I don’t know any other word to describe them. I didn’t like to work with them, but if they were also wherever my duty station was, I HAD to work with that person for two years.

I like to choose the people that I want to hang with.

#10 – Money and Time Freedom

Because I’ve been making a six to seven figure income for 31 years, this one is lower on the scale for me. I’ve been able to create wealth, and so have had money and time freedom for years. You can place whatever value you like on this one.

#11 – Easier Transition (Part-Time)

This was a big one for me when I started out. I didn’t know I would be transitioning into a full time effort.  I thought I was just getting money so that I could close on a house. When I first started, I had no idea that it was going to route me into creating wealth.

#12 – Marketing Is Dynamic

This one takes a little bit of an explanation. How do we do network marketing? Some people try to brand us by how we do it.

When I first came into network marketing, somebody said, “Is this one of those things where I have to go door to door?” I said, “No, I’ve never knocked on anybody’s door.” He was trying to put it into that category. Someone else asked, “Is this something where I have to spam my friends?” I said, “No, what are you talking about?”

It doesn’t matter how you want to build, you can build. If I bring somebody into the business and that person owns a postcard business, how am I going to recommend that they generate leads? Postcards. If a doctor comes into the business, how am I going to tell him to build his business? He can send a postcard or an email to his patients and have them come into the office.

It’s dynamic and it’s constantly shifting. I had a lady who specialized in doing expos. Guess how I told her to generate leads? Go to expos. You can never say how we do it because we are always changing and adapting to any opportunity, technology or  situation. When the coronavirus hit, we shifted to Zoom, just like that. How can we do big events? Let’s put them on the internet, do them on Zoom. It’s that aspect of network marketing that I love.

#13 – Availability of Training

This was number one for me when I first started, but not now, because I don’t need to be trained a whole lot anymore. I had to learn when I first came back into the industry, because back when I started, the fax machine was the blazing speed that we operated with.

But today, it’s the internet. I had to learn social media. I had to learn ads, display ads, Facebook ads and YouTube marketing. The concepts were the same, but they were just placed in different places.

You just don’t get that availability of training everywhere. In real estate, I think you do, because you do have to have a broker sponsor you in order to be accepted and hang your certificate up on their wall. I think there is guidance from that sponsor, but I don’t know how much marketing training there is.

And I want to emphasize: I’m not putting it down or doubting it. I’m just saying that I don’t know how much there is.

I do know that based upon my situation in network marketing, training is getting in there elbow to elbow.

I really want this person to succeed. It helps me. Why wouldn’t I?