Network marketing companies pay their distributors for work done by other distributors. So by systematically increasing the number of active distributors in your downline, you can simultaneously increase your income.
2. Passive Residual Income
Network marketing affords participants the opportunity to build an ever increasing passive residual income. Building a passive residual income is the most obvious of the advantages of network marketing. Almost everyone joining has ‘building a passive residual income’ as one of their main objectives.
3. Low Start Up Costs
You can start a network marketing business with little or no money.Regardless of how much you are required to pay in as start-up capital, your earning potential is still high compared to other types of businesses.
4. International Business
A network marketing business can be operated globally. This is made possible by the internet.Many network marketing companies allow their distributors to sponsor people in other countries around the world.
A major disadvantage of traditional business and the traditional 9 to 5 job is that of lack of freedom -- time freedom. The traditional business model is no different. While you may enjoy the benefits of being your own boss, you are likely to end up working much longer than you would had you been an employee. Network marketing on the other hand removes these barriers.
There is a saying in network marketing circles which says “you are in business for yourself, but not by yourself.” As soon as join you become part of a team - your upline. Serious upline members become committed to your success because without it they will not succeed. As you start building your own business, you start a team of your own -your downline. This team will benefit from your personal support and those of your upline.
7. Personal development
Perhaps also at the top of the list of advantages of network marketing is personal development. Network marketers are prolific readers of personal development material. In network marketing you can learn such skills as public speaking, mentoring, coaching, how to relate with others etc.
In network marketing you don’t need prior selling experience. You don’t need any form of business background.While selling experience and business background may come in handy if you have them, everyone who joins is entitled to some form of training. The training may come from the mlm company or from your upline.