Network marketing, better known as multi-level marketing or MLM, is an increasingly popular form of business worldwide. After all, it does bring about attractive promises of financial freedom, flexible working hours, and the potential for earning a handsome passive income. However, sometimes the practicality of network marketing can be far from these expectations. Let us look at what most people expect while entering a network marketing business and what can be the reality in most cases.
Expectation: Quick and Easy Money
Reality: Hard Work and Persistence
Probably one of the greatest appeals of network marketing is the potential it holds for fast, easy money. Most people who get involved in an MLM have expectations to earn substantive money within a quick period. They see the success stories of top earners, as many such people have gained their fortunes through network marketing.
Reality Check: Every network marketing business needs to be nurtured with time, effort, and patience. One has to obviously go through tough times initially when the customer and recruit network is very small. Network marketing requires continuous labor, good communication skills, and the psyche to absorb rejection. Very few people get high financial returns all of a sudden and thus often work hard to achieve their objectives.
Expectation: Flexible Working Hours
Reality: Time Management Challenges
Another reason most people find the business of network marketing quite appealing is due to the promise of flexible working hours. Being your own boss and creating your schedule is quite alluring to people who would like to achieve much better balance between work and personal life.
Reality Check: Therefore, although network marketing affords flexibility in all respects, it does demand effective and committed time usage if one is to be successful. You will have to dedicate time regularly to the development of business activities, meetings with prospects, and the servicing of your downline. Many times, this very flexibility leads quite a number of people to fall into procrastination, which naturally leads them to being undisciplined, therefore hindering progress.
Expectation: Easy Recruitment
Reality: Struggle to Build a Team
One major factor in network marketing is the process of recruitment; your income largely depends on the size and productivity of your downline. People mostly expect it to be easy to recruit new members and that they will build a big team overnight.
Reality Check: One of the most cumbersome facets of network marketing is recruiting. To sell others on joining your network requires a hard sell, confidence, and perseverance. Many people hold negative ideas about MLMs, making the process of recruitment even harder. On top of this, not everyone you recruit will be as interested or hardworking as you imagine or would like.
Expectation: Passive Income that Keeps Coming
Reality: Ongoing active time to maintain
Probably the most prominent advantage of network marketing would have to be continuous passive income. The idea here is that you should be able to build a strong network and then let it just work for you, earning from its sales and not requiring much of your involvement.
Reality Check: While one can generate passive income, a network marketing business will not be run without hard work. You have to help your downline, be updated about the new products and working strategies, and keep recruiting. The level of passive income that one can attain depends on productivity and retention in your team, which requires continuous engagement.
Expectation: Everyone Will Support You
Reality: Skeptics and Critics
However, most people, upon venturing into network marketing, really expect their friends and family to be very supportive and ready to join their network. They literally assume that their immediate circle will be the first customers and recruits.
Reality Check: Very often, network marketing is misunderstood and criticized, more so by those people who have had bad experiences or misperceptions regarding MLMs. Your friends and family might be skeptical or even discouraging. It’s important to be prepared for rejection and to build your business beyond your immediate circle.
Expectation: Minimal investment, maximum returns
Reality: Initial and Ongoing Investments Required
More often than not, network marketing is pitched as a low-cost business opportunity with very little required in the way of financial investment. The expectation is that people will start earning back significant returns for very little money put out.
Reality Check: While there is less up-front cost in network marketing compared to traditional businesses, it would be na ve to think that there are no costs involved. Examples may include purchasing products, advertising materials, training classes, etc. In addition, generating great returns in most cases will require more money, time, and efforts put into the growth of your business.
Conclusion
Network marketing can be a very good way to do business if one clearly understands the reality behind expectations. Network marketing requires many ingredients: much-needed hard work, great persistence, time management, and problem-handling. Realistic views about network marketing, coupled with a strong ethical work orientation, can help in building a successful and sustainable business. Understanding the gap between expectations and reality will better prepare one for the journey and increase the chances of success in network marketing.
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