If it weren’t for the Internet, I would have quit doing network marketing. This may be a bold statement and I am going to expound here why. After reading this article, you will have enough knowledge of the state of this industry and why this has become the next sensational business opportunity next to franchising.

A Mini-Franchise?

Mini franchise

One of my friends inside Wealthy Affiliate, a network of affiliate marketers building niche website, told me that the reason he stopped working in the network marketing niche is, he discovered that most marketers in this niche are not interested in creating own system and building own funnels.

He said, what network marketers look for are ready-made business systems. These include ready-made funnels composed of “done-for-your” lead capture pages and email follow-up series.

You know, this friend of mine is one of the most active coaches inside Wealthy Affiliate. Inside the community, we help people by coaching them on how to get started with an online business—how to create their own websites, etc.

This dawned on me that what most people do in our community can be compared to people building their own “mom and pop stores” out from scratch. Well, that route is good, and most big companies that you see today were once small businesses.

On the other hand, network marketing entrepreneurs can be compared to people who choose to buy a ready-made business system like a franchise…

You know, those businesses that were started and built by talented and creative individuals, that were later opened for duplication by interested entrepreneurs who are looking for a shortcut.

Scalability Spells The Difference

Scalability

Right from the start, you can spot a business that’s destined for massive scaling.

I was looking at the business plan created by a friend who happens to be a manager of a popular fast food restaurant. I noticed the difference in the design compared to businesses started by my relatives who didn’t have educational and business background.

You know, how streamlined the production system is designed, and also the way crew should operate the system. It’s really different than how the solo entrepreneur design his business.

And with the equipments and procedures standardized, there comes scalability.

When you have a system like those of McDonald’s, it’s easy to duplicate the business to new locations. It’s easier to put a new branch or a new franchised business as you will just duplicate the original.

It’s the same with a network marketing business system. But unlike franchising that often cost millions of dollars to start with, for usually less than $100, you can get started immediately.

How Does A Network Marketing System Work?

The company got a revolutionary product and decided to market it using an unconventional marketing channel—network marketing. In this channel, instead of hiring sales people and paying for ads in print or TV, company pays the customers for telling others about the products.

You, as a customer can join the company and register as a distributor. You get the products from the company’s distribution channels at wholesale price and make a profit when you sell them to your own customers.

On top of that, you can register others to become distributors for the product or company you’re working with. For every sale they make, you earn a percentage called “overriding commission”.

Genealogy

What makes network marketing comparable to franchising is, instead of you coming up with your own product to market, the company has already done it for you including having an R&D. (Research & Development)

You, the distributor, can do your business using the company’s product name and trademark, just like in franchises. And in many cases today, distributors are provided with replicated websites and online marketing tools to make the selling job easier.

Also, there are many companies that handle shipping of the products to the customers. You don’t have to do such thing, all you do is promote and wait for your commission check.

Missing Those Good Old Days?

It’s weird to know that there are still network marketers who prefer to do business the old way.

One of my friends in network marketing has communicated with me recently asking if he can visit me in my house. I declined because, at the back of my mind I already knew what he’s up to.

He’s going to invite me to join a new network marketing business opportunity, probably a local one since their system is not that advanced, and will push me to do the same he’s doing…

  • Hosting meetings in friends’ houses to exlain the product and the business opportunity
  • Hauling products from the company’s business centers to customers’ houses
  • Traveling to different territories looking for new prospects and customers

These things are not pallatable to me so immediately I declined his asking if he could visit me because he has something to introduce. In the late 90’s, we were doing these kind of things because there was no Internet marketing back then. But today? No way!

I can now get customers using the Internet, just by using social media and blogging.

Conclusion

Network Marketing Business Online

We have come a long way to having these luxuries in online prospecting. Getting prospects for our products and business opportunities isn’t that hard anymore with the help of the Internet. So, why revert to doing the old style?

I don’t like the styles of the past, and perhaps the majority of you reading this don’t like it too. Like I said, if it weren’t for the Internet, I would have quit doing this business. Offline marketing is too much of a hassle, I don’t want to be stressed again.

Thanks for reading my article, if you have questions with regard to how and what system I am using to build my own network marketing business online, please let me know through the comments below.

Yours in progress,

Gomer Magtibay

Gomer Magtibay

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