In network marketing, you don’t really own a business. All businesses involve themselves in some form of ownership and you make 100% of the decisions. A network marketing distributorship does not offer any real asset since you don’t own anything, and you don’t have any rights.
You don’t own the company
You don’t own the products
You don’t own the compensation plan
You don’t own the marketing materials
you don’t even own your organisation/downlines
Yes, all businesses involve sales and commissions. But don’t be mistaken that doing sales or earning commissions equate to owning a business. You run a business (for someone else), but you don’t necessarily own it.
You’re basically an independent distributor, somebody who gets paid for referring a customer to your parent company. In other words, you’re a glorified sales representative.
Does it matter?
It all boils down to financial security. Anything that you don’t own or control can and will be taken away from you for any reason. It’s basically risky to build your financial security upon something that you do not own and control.
In fact I’ve known people who’ve had their distributorships taken away from them. Years of hard work vanished overnight. Go find your distributor agreement and read through its terms and conditions thoroughly. You’ll realise that your company eventually still has the final say with regards to your account.
I’m not saying this to scare anyone. Don’t go thinking that your company lied to you and that network marketing is a scam. No doubt that network marketing is not a real business. However, it still remains a good money making opportunity.
The key is to immunize yourself against losing all of your income streams in the event that:
- You lose your account because your company finds you in breach of their rules and regulations, intentionally or not.
- your company decides to cease supply of any product which accounts for most of your income
- your downlines get ‘restructured’ out of your organisation
- your company closes down
There are many more examples but I think you get the idea.
You can protect yourself from all of the above by controlling and owning your own distribution channel. For example, the distribution channel for your MLM company is you and the other distributors. Similarly, you need to have your own channel to promote whatever products or information that you wish to.
It is important to make sure that your have as much ownership as possible over this distribution channel, independent of your company or any other entity. This is so that you can be free to use it beyond just your company’s products and opportunity without breaching any of your company’s terms and conditions.
You make 100% of the decisions, because you OWN the distribution channel. Your MLM company simply becomes one of your suppliers of products and services that you market in order to serve your distribution channel.
Also, if something were to happen to your account or company, or if you decide to join another opportunity, your distribution channel can be easily transitioned to promote other products that your audience will also be interested in buying.
Instead of introducing your MLM company’s products and opportunity directly to the audience within your distribution channel, introduce yourself first and get them to like and trust you by offering them value before asking for anything in return.
This distribution channel can be in the form of a mailing list, a facebook page, a subscriber list, etc. Basically a healthy and growing list of contacts with which you have built trust with.
When done correctly, you will have created and grown an asset which belongs only to you and appreciates in value over time. No one can take it away from you and you’re free to market to your list anything under the sun.
This list will be the only thing you will ever need to consider yourself a real business owner.
a) Build a List
b) Build a Relationship With The List
c) Market to The List
If you’d like a step-by-step guide on learning these 3 key components to build a lasting and profitable business, I highly recommend that you sign up for these 7 FREE video tutorials by Magnetic Sponsoring.