MLM The Low Risk Business Model

 

We say that network marketing is the new generation of business. It is because it has no risk, low capital and no territorial limit. It is low risk because you don’t have to start with big investment and it does often require you to buy product to join. It has no territorial limit because you can bring your business anywhere as long as you can present it to your customer. Many people have proved that network marketing change their lives in having good income and most of all by helping others to become successful.

The three types of business model I will share with you are the traditional, the franchise and the network marketing. There are advantages from each business model and I found the network marketing is my choice.

Traditional Business

It requires big capitalizations and good skills to manage the business. It’s a big advantage when you have much more capital or strategy over your competitors. To have example ask yourself which grocery store are you going to buy, the one with nice air conditions system, or with out? You also need a lot of capital to expand your business. It has a territorial limit.
In traditional business you create your own system. You can start with 100k capital and create your system to make it grows. Base on the survey 90% fail in this business.

Franchise

Having your own franchised business means that you are buying a successful system. It is very expensive but your success is much stable. There are so many available businesses for franchise; they will let you use their system, brand and name to make both profit.

The first two requires much capital. But not all business for franchise needs big investment because others offer micro franchise. You can make money here when you can afford to invest.

Network Marketing

Joining their system is another way of having business. It is a combination of Traditional and Franchise Business. Just like a traditional business it has also a big investment. They make sure that the system is set up from management, marketing, products and costumer service. They invest big capital to provide the system for you. You just have to join them.

The best thing about network marketing is you don’t have to invest big capital. You can start joining by buying products. Some offer free registrations and all you have to do is to sell the products and enjoy your profit.

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