Network Marketing vs Conventional Business and why Network Marketing is better?
Business is business – when you sell a product or service to a consumer or to the general public that is called business. If we speak about “conventional business” in terms of network marketing, it is a way of getting paid the usual and traditional way. Network marketing is the new and most popular way of getting paid nowadays.
As the rise of MLM companies continue, comparison of it to Conventional businesses cannot be avoided. And below we will recognize some of the differences between both by identifying what characteristics each business holds and which of the two is a good place to invest.
What is a Conventional Business?
In becoming an entrepreneur, the basic thing you have to know is what a conventional business is and its perks. First of all, starting a conventional business keeps you in control of everything. You get to choose what products to sell, your company name, your type of services and the profit margin. You’ll be able to choose people whom you want to hire – your best buds, your neighbor even your mother.
Although this may seem quite a happy fit, this type of business however has its downside. Managing the business itself is the hardest because as soon as you hire people, you have to be able to serve them efficiently so you can keep them. Being in control also calls for you being responsible of the people under you. Employee turn-over is the major problems companies deal with. You spend your time and effort in enriching and training some new interns and a few months after they leave.
Also, being the owner of the company also means you have to meet with clients, deal with shortages, have a day full with meetings, encouraging non-interested investors, and manage the whole physical store.
What is a Network Marketing Business?
Network Marketing has their way of employee turn-over which is called “distributor attrition”. This is basically the rate at which people join your organization and then leave. Fortunately, it doesn’t cost you anything since the company will use their own finances when you or your agent decides to join or to leave.
Also, network marketing companies handle your product distribution and the proper administration of your network. Basically, they manage your business for you. The company makes sure that each one under you gets the right amount of payment based on their performance. It is also up to them to make higher quality products through research and development. No need for you to meet with clients and encourage obvious non-interested investors. Simply, your job in network marketing would be to find potential costumers and train your own agents to maximize time.
In the long run you’ll realize that network marketing is just a conventional business but without the hassle and investment. In this business, all you have to invest is your time, effort and dedication to the company of your own. Also, with a little time and hard work, you might just earn more than you could in a conventional business.