I feel compelled today to write this piece about my favorite business model. Over the past month I have had several people question why I feel so strongly that Network Marketing is a “true” and valuable business model. What I will write below are my own opinions developed over fifty years of having operated my own businesses using more than one business model.
A BRIEF PERSONAL HISTORY
My first business opportunity came as a Junior in HS when my Father offered me the chance to raise calves on his farm in exchange for clearing a piece of land for an additional pasture. I learned in a hurry that the pretty girls liked a guy with money in his pocket! My first real business was a health food distribution company covering three states in the Northwest. We delivered our products by truck to those stores and introduced honey based ice cream with our system. Following that my Father and I built an herbal products distribution company with 4,000 US health food stores and a few in Canada and Australia as our base. In the early eighties I formed a production pharmaceutical laboratory and grew in the herbal products industry.
During this time I had been introduced to Network Marketing (then known as MLM) through AMWAY where I learned a great deal about the US taxation system and the value of owning a home-based business. I grew my AMWAY business, but very frankly, it was very hard, time-consuming work. Through the seventies and eighties, I was exposed to other MLMs but only used a few of their products.
CHANGING MY LIFESTYLE
In 1990 my late wife, Suzanne, was diagnosed with a very serious disease. In 1994 she was introduced to a product that gave her a lifestyle for her last few years that was unexpected. She died in 1997 and I felt strongly that I should share the product that had given her that lifestyle with as many others as possible. Only then did I fully realize that the company she was using as a product supplier was a Network Marketing company.
WHY I BELIEVE IN NETWORK MARKETING
When I opened my first distribution company I deposited $5.000 in a new company bank account. Within forty-five days I put another $5,000 in that same account. In the first year I became responsible for at least $50,000 in inventory and short term bills. Yes, I was paying myself and making an income, but I was constantly having to be concerned about paying my employees and my cash flow.
In 1994 I had become an associate with a small company in Texas so that my wife would have their products. That cost me less than $200. Suzanne and I shared the product she was using with about thirty people and by the time she died in 1997 we actually had an income that equaled the income I had from my production laboratory! I could not believe that had happened. Because we had been responsible for sponsoring a couple of people who went out and built their own income producing businesses we had an income also.
SOME THINGS I HAVE LEARNED
One of the first things I learned about Network Marketing was that everyone should own a home-based business, if only for the amazing tax advantages that makes available. As I write this I am sitting at my desk in my legitimately tax-deductible home office. Many people do not realize that much of our taxation system is designed for small businesses. The first thing I should advise you, right now, is get the advice of a true tax professional to help you understand these potential deductions.
It does not take a lot of money up-front to get started in most Network Marketing businesses. Each business I have ever owned took a substantial amount of money up-front. Not Network Marketing. A word of caution, yes, there are companies operating that are not honest or even legitimate. Be careful and due your own due diligence on any company you join with.
I learned early that the Network Marketing business model is one of the best ways to leverage my time and money of any model out there! I directly sponsored a few people of my own and indirectly brought perhaps another forty into my business. The few that I sponsored brought in thousands by leveraging their own time and eventually took me to a business with a very solid financial base and I was in over a dozen countries.
SOME OF OUR “EXTRA” BENEFITS
My late wife, Suzanne, died in 1997 from the disease she had contracted years before. I had developed many friends across the globe by that time and in 1998 one of those introduced me to the amazing lady who now has been my wife for over twenty-five years! One of the great benefits to us of our Network Marketing business has been the travel it has afforded us. This has been both travel for work itself and the travel incentives we have earned and enjoyed. Our earliest earned incentive was an all expense paid trip to Borneo and surrounding areas. We have had amazing trips for business to Japan, the United Kingdom, Australia and all parts of the USA. One of the most exciting and unanticipated benefits has been that now, as we reach retirement age, our monthly income is continuing with little daily activity to maintain it.
MY CONCLUSIONS
Many have told me that Network Marketing does not work and that you have to take advantage of your friends. My own experience after having owned several successful businesses of my own in other fields is that Network Marketing is like any other business. It takes WORK to make it happen! The success and failure rate is almost exactly equal to other businesses. Through Network Marketing I have developed a world-wide network of friends. My wife and I have seen and explored cities and countries that very few of our Stateside friends have visited. This business has given me a deep sense of personal satisfaction! Are you interested in learning more about this system that I have worked with now for over thirty years? Check out: https://mannatechbusinessbriefing.com/1461
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Please leave any questions or comments.
What an inspiring journey! Your dedication to network marketing shines through your personal and professional experiences. I’m curious, how do you recommend identifying legitimate companies to partner with in this industry? Also, what are some key strategies you’ve found effective in building and maintaining a successful network marketing business? Thanks for sharing your story and insights!
Thanks so much for responding to my post! Great questions. First, I would check to see how many years the company has been in business. Then I would look to see what their balance sheet looks like. Are they profitable? What is their cashflow? Do they carry long term debt? Even if they are a young company, if the other things check out then I might go ahead. As to my strategies, I use more than one. First of all, I look to build a solid relationship. This means regular communication through private emails, group emails, private phone conversations. conference calls, etc. My wife and I make a point of sending birthday cards, Christmas cards and special condolences. This takes time but I would do this in any business! When I had a young, growing business I spent time traveling to meet people and hold meetings.
Hello. There are countless people that are succeeding in network marketing. However it is a business. And any business requires you to prospect present and close if you want to be successful. So anyone that’s not making it with this business model is not doing those three things or at least one of those things. I’m just wondering how do you encourage others to prospect more when they’re getting started with this kind of thing?
I use myself as an example for why you must prospect. I began in 1994 with just a few prospects. Over about six months I talked with a few more. Out of the original group I had two who began to build on their own. That led to over 5,000 in four years. There is a rule that never fails. Sponsor 24 in your frontline. Twelve will never do anything. About 10-12 will buy product and sponsor 1 or 2. One out of the 24 will go out and build a large business on their own. I have never seen this to fail.