Network Marketing vs Traditional Business | ExpertsArticles.com

The world is full of opportunities when one opens their eyes to see them. Despite today?s economic climate, more opportunities will present themselves than ever before. So start considering your options, and start analyzing the difference between traditional business and network marketing, so you can go into the current business climate with the upper hand.

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?

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Source: http://www.expertsarticles.com/network-marketing-vs-traditional-business/

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