The Advantages of Network Marketing vs Traditional Business

There are several advantages in network marketing that traditional business can’t provide, but I will focus on what I deem to be the top 5.

#1 – Network Marketing Requires Little Capital In A Tight Financial Environment

In a network marketing business, you will often require much less capital to get started. Quite often you will receive products, marketing materials, and a website for anywhere between $150 to $1500 dollars. This allows you to begin business and access the leveraging component that can make network marketing, and any business or investment for that matter, extremely explosive.

Anyone who is serious about starting a business realizes that to be able to start up for this kind of investment is very appetizing, especially when you truly realize the benefits that network marketing can provide in terms of income, along with a host of other factors.

In a traditional business, you will have a better chance at finding a three-legged ballerina than getting that low of a start up. A traditional business will typically cost you 5 to 6 figures to begin, which most people don’t have sitting around waiting to be invested. Besides that, who wants to invest that kind of money in the more risky environment we live in today?

For those who don’t have that kind of money available in your bank account, you will have to go to a bank and apply for a small business loan. Unfortunately, banks are not as loose with their lending policies as they were even 3 years ago, so your access to their cash has become tighter than an ant’s ass stretched over a rain barrel.

Network marketing helps overcome that hurdle, with an investment that often does not require a loan from the bank.

#2 – Network Marketing Allows More Scalability

In a network marketing business, your ability to scale is priceless. You can “test” a network marketing product or service for a low 3 figures (and sometimes less), and scale it up with very little additional capital until you reach your desired income. If you can’t make the network marketing business work, the worst case scenario is you often have a small amount of product that you can consume, so you still didn’t really lose anything in the whole venture.

In a traditional bricks and mortar business, you certainly do not have the luxury of “testing” and scaling up without a serious financial commitment. To even get started you need to buy space or buildings, products, and possible even hire employees. Then if you decide to scale it up, you need to look at more of the same, which will cost significant sums of capital and emotional investment as well.

In network marketing, your ability to scale safely, profitably, and with low stress far outweighs a traditional business.

#3 – Network Marketing is “Plug and Play”

In a network marketing business, you can go from seeing a great idea to incorporating it for profit in very little time. That’s because the idea, manufacturing, infrastructure, marketing materials, and all the little details are wrapped up in a nice little package. All you need to do is recognize a strong marketable product you can promote effectively, invest a small amount of capital, and learn the basics of the network marketing model and you are ready to launch your business.

In a traditional business, you need to come up with the idea, a larger amount of capital, and begin the process of manufacturing and/or setting up the infrastructure and all the little headaches that come with location, staff, inventory management, and the like. There is absolutely no “plug and play” option in traditional business, and when you need an income stream quickly with little investment, traditional business simply won’t do.

#4 – Network Marketing Offers Home Based Business Tax Incentives

When you run a network marketing business, it’s often done out of the home. Running a business out of the home has several advantages, including ones that take less from your bottom line. Quite often, a home based business will allow you to claim expenses such as a portion of your mortgage, phone, power, and energy. Since you already have incurred these expenses already, doesn’t it make sense to be able to write some of them off?

In a traditional business, you certainly have tax incentives, but none of the above apply. Again, since you need to pay the expenses in your home anyways, it just makes sense to leverage those expenses and write a portion of them off so you can add more income to your bottom line.

#5 – Network Marketing Builds Community

Network marketing often doesn’t get much credit for all the different things it does for society. Operating a network marketing business is about building a business in collaboration with the efforts of others, which encourages team work and relationships. It also allows you to directly support your neighbor and not the big box stores, so that money gets into the hands of people who truly need it.

Traditional business can certainly help engage a community and support worthy causes, however, it can’t replace the camaraderie and “coming together” that network marketing fosters due to it’s model of relationships, networking, and team work.

Other Important Factors To Consider

Just because you have found a network marketing opportunity doesn’t mean it is automatically better than any traditional business. There are other factors to consider like the marketability of the product (especially in tough economic times) and the vision of the company and it’s ability to grow.

However, when you find a company with a strong vision and marketable product that is recession resistant, you’ve given yourself a much better opportunity to grow with the company on a longer term basis, in good times and in bad.

In addition to that, when you can leverage the internet and the millions of eyeballs on it everyday searching for products and services, you can find that you can operate with little worry of a recession as you can market directly to more people that are already searching for your product.

Don’t you feel better about your options already?

To learn more about network marketing opportunities, please visit http://ganocoffeebenefits.com/.

Home Based Business Has Low Start Up

A huge risk right now is starting up a business in this economic environment that requires a large start up.

Not only does that commit your hard earned money and your precious time, but it often requires a business loan. As many entrepreneurs know, getting a loan right now for any significant amount is extremely unlikely and if you are starting one for the first time you have a better chance of getting a personal bailout over Fannie Mae than getting a loan.

Your ability to get into a home based business with a lower start up, many in 3 figures, ensures you are keeping the investment risk low and provides you with an opportunity to start out on your own accord and not based on the leniency of your local bank.

This is extremely important as it overcomes two major stumbling blocks facing budding entrepreneurs.

Home Based Business Has Low Overhead

Once you do get started in business, then you need to assess your month-to-month expenditures that are required to keep it open.

Starting a traditional bricks and mortar business not only requires higher capital to start, but it typically requires rental payments, and higher inventory to keep the space stocked.

In a home based business, the cost of your “store” is already worked into your personal budget, and inventory is not as burdensome due to the logistics of the business.

Not only that, but the very rent (or mortgage) you pay can be used for its tax advantages as well. So not only have you eliminated that additional expense, but now you may be able to claim it as well!

Home Based Business Has No Heavy Assets

Quite often, when you start up a traditional business you become tied down to assets like the building you own or rent. This can create a “ball and chain” effect and tends to chew up your personal freedom and ability to maneuver with restricted cash flow due to much of it tied up in the building cost and recurring expenses.

In a home based business, you don’t have that to worry about. You can come and go from your office as you please, and not worry about any additional expenses outside of those you already have in the family budget.

A Home Based Business Is Quick and Nimble

A small home based business can move quickly and adapt on a dime if necessary. A one to two person team can make decisions quickly, and change the direction of the business in a heartbeat.

This is not so easy for traditional business, where physical buildings, employees, inventory, and a number of other administrative implications can make changing direction a slow grind.

This is one of the primary reasons the small home based business leads a weathered economy out of the storm.

Network Marketing – A Reliable Home Based Business Option

For reasons already defined, a network marketing business can be one of the safest bets you can make in today’s economy.

You can take out the high investment risk and often the need for a loan and you can operate it out of your existing home or apartment and capitalize on tax advantages. Also, you can liquidate your network business quickly if you find its not becoming profitable.

Not only that, but you also can choose your “business in a box” and get started immediately without time, money, and effort being put into the research and development process, as well as all the administrative headaches you would normally incur.

The only risk you really incur is in the stability of the company itself, but that’s a small risk given the very low amount of resources and money you need to put into it. The majority of the risk has been put on the owner of that network marketing company.

The fact is, network marketing thrives in times like these for reasons including, but not limited to, those above. Where else can you operate a successful home based business and spend more time with your family knowing that the risk is minimal, and that the upside is unlimited if you really want to go after it.

I’ve made the choice to work with a network marketing home based business that uses coffee and the health and wellness industry as the foundation of is product line. Combining the recession resistant business of coffee, with a low risk business opportunity like network marketing allows me to sleep at night knowing I’m earning a professional income (with no imposed ceiling) with no more risk than trying to keep my boss happy at my job so he/she will keep me around.

That alone makes it worth checking out a home based business, and expressing your inner entrepreneur.

Always be your best,

Derek

To learn more about your options for a home based business, please visit http://ganocoffeebenefits.com/.