Network Marketing Business Tips – The 3 Biggest Myths About a Network Marketing Business

It is amazing that for a business model that has been around for 50 years, how many people still have misconceptions about a network marketing business. In fact, this article will reveal the 3 biggest misconceptions that people have that prevent them from getting involved with this potentially lucrative business.

Myth 1) Every Person Is A Prospect

WRONG!!

Unfortunately, this myth has come as a result of the “old school” MLM prospecting technique referred to as the “3 foot” rule. This rule basically stated that a distributor should prospect any person that came within 3 feet of them ALL day long!

YIKES!

No wonder some people are terrified of even mentioning the word “network marketing” to friends or family members. Chances are, friends and family members have been hounded by an individual employing the “3 foot” rule.

Look, if somebody is not interested in a network marketing business, they should NOT be approached. Spend your time learning how to attract people that are open to network marketing to you and your business. This is an essential skill, especially with Internet network marketing.

Myth 2) You Must Be A “People” Person To Succeed With A Network Marketing Business

Now do not get me wrong, enjoying the social aspect of MLM is GREAT! But the concept of the back-slapping, rally attending, cheering in unison, marketing “type” is no longer accurate.

I am not sure it ever was.

True, such stereotypical behavior still exists. The Internet has now made it possible for people to pro-actively “socialize” in the virtual world. The amazing growth of the social networks allows people involved with network marketing to comfortably form relationships with potential prospects. Distributors no longer need to attend rallies when they have access to webinars and teleseminars.

The growth of online video makes it easy for the network marketing community to get to “know” each other. Twitter makes it easy to “follow” each other. The truth is, a distributor can be about as social as they feel comfortable with, and still have a successful marketing business.

Myth 3) Multi-Level Marketing And Pyramid Schemes Are The Same Thing

The FTC has done extensive investigating of the network marketing industry over the last several years. They have clearly identified the difference between a pyramid scheme and the MLM

The Difference boils down to the emphasis placed on the company products/services. If an individual would purchase the company products/services with no business opportunity “attached” to them, the business model is legitimate. In a classic pyramid scheme, the products and services are just an excuse to “pass money around”.

The point of this article is that in order to be successful in “modern” marketing, a person needs to learn Internet marketing. It is the most cost effective method of growing a successful marketing business.

An Online Marketing Business Opportunity For the Promotional Expert in You

You may be looking for ideas that will allow you to make extra money at home. Your excitement is understandable. After all, more and more people are seeking ways to make money online, using an Online Marketing Business Opportunity, in order to augment their household income. For the lucky few who are able to find their niche and truly make a lot of money from their efforts, they have the chance to abandon their regular day jobs altogether and work at home for the long haul. This can allow them to spend more time with their families and still enjoy a job that offers them an income comparable to, even greater than, what they would receive in the corporate arena.

The beauty of having a business at home is that you can do a lot of transactions and business deals over the Internet, and you can save a lot of time in terms of communication and talking through the latest advances in technology. Indeed, thanks to the digital revolution, there are many home based businesses online: some people choose to write web content for websites that have all the design but no content; others can make a website come to life and design it so that the already prepared content can have an online home; and still others can serve as liaisons between or among clients around the world by being virtual secretaries.

However, if you do not like sitting down to write articles, if you are not willing to learn web design in order to make it big in the digital design superhighway, and if being a virtual assistant is not your thing, then you can still earn your bread by being an online marketer. This online home business opportunity will allow you to make money in many different ways. For one, you can maintain a website and sign up with an affiliate marketing program. In this case, you will need to post advertisements online at your site; every time your visitors click on these advertisements, you get commissions.

You can also serve as consultant to people who want to market their wares and services online. Online marketing is like offline marketing in many ways. For one, you need to know what people like, what language your target market speaks, and where your target market is hanging out. On the other hand, these can be a little trickier online: for one, the Internet offers anonymity, and it can be difficult to tell whether you are truly talking to a member of your target market. The Internet also gives you the blanket of anonymity, and it may be difficult for you to talk to people and do marketing without them getting suspicious about what you are doing.

However, with good marketing tactics, as well as a good attitude, you will be able to succeed. Online marketing is all about talking to people, so before you plunge headlong into your marketing efforts, think about this: you are talking to people, not email addresses or forum posts. You need to know how to talk to people so that they know that you care: remember that people will not listen to what you want to say unless they know that you care about their welfare.

A common mistake that a lot of people make is to spam: that is, they email loads and loads of people, hoping to make a shot in the dark and get a customer out of the thousand or so that they email. This can be a suicidal affair for your business: it will give you a bad reputation online, and you can find it very difficult to get more clients if you’ve built an aura of being a spammer. You need to use a language unique to each person or group of people, and you need to avoid exploiting the Internet too much for its conveniences.

These are only a few pieces of advice for taking advantage of any online marketing business opportunity You also need to keep your online connection intact and your computer well-equipped in order to get your marketing work in order. The best Internet home businesses are those that operate with the discipline of brick and mortar businesses, and those that use the advantages of the Internet prudently. So: gather your marketing buddies together, have a web designer and content provider, and start racking your brains for this business.

Choosing the Right Structure For Your Home Based Internet Marketing Business

Your home based Internet marketing business will stand to profit more if it’s backed by the ideal legal structure. Contrary to popular belief, not all home based businesses are operated through sole proprietorship. Some are established by a partnership or even a corporation. Ultimately, choosing a legal structure should be based on the nature of your home based business as well as your goals.

What You Need to Consider

If all you have right now are home based business ideas and nothing more concrete than that, you can narrow your list further by taking into consideration factors that could be greatly affected by the type of legal structure you’d use for your business.

Goals and Visions

Even the best home based Internet marketing businesses start out small, but that doesn’t mean they have to stay like that. Some of them proceed to becoming corporate giants in their respective industries. Progress, however, can be hampered by the wrong legal structure so you need to be clear about what your goals and visions are for your home based business before making a decision.

Control

Simply put, sole proprietorship hands all the reins of the business to you and you alone but you’ll have to share your power and authority with others if you choose any other legal structure.

Money

Sole proprietorship is the easiest legal structure to set up, not to mention the most affordable as well. It does, however, leave your personal assets vulnerable when your home based Internet marketing business fails – something you wouldn’t have to suffer, or at least not at the same extent, with another legal structure. Profit and losses can also increase or decrease, depending on the type of structure you choose for your home based Internet marketing business.

Three Types of Legal Structures for Your Home Based Internet Marketing Business

As mentioned earlier on, most home based Internet marketing businesses, or home businesses in general, use sole proprietorship as they’re mostly run by their owners themselves. There are however, other home based businesses that choose a different structure because they feel that their needs wouldn’t be adequately met by sole proprietorship.

Sole Proprietorship

Besides the various benefits mentioned earlier on for sole proprietorship, this structure also ensures that all profit generated by your home based Internet marketing business go directly to your pockets. If you want to close it down for any reason, you can also do so easily and without any major fuss.

Sole proprietorship, however, isn’t perfect. Besides placing unlimited liability on the business owner, businesses using sole proprietorship find it rarely easy to get funding from investors.

Partnerships

A simple legal definition for a partnership is an arrangement wherein at least two persons share ownership, and possibly management as well, of a single business. Home based Internet marketing businesses owned by a partnership will still not be able to protect its owners from lawsuits. If a business is sued for any reason, the owners are sued as well.

A partnership agreement is required by law as it will state all the terms and conditions that partners agree to, with regard to capital requirements, profit sharing, management of the business, dissolution of the partnership, and any other aspect affecting the business or the partnership.

Because there is more than one owner, more funds can be generated for a home based Internet marketing business. Having more than one owner also means more skills can be used for and lesser liabilities when growing the business. Then again, having more than one boss also means greater chances of having management disagreements and smaller profits. Lastly, a partnership immediately dissolves when a partner dies or withdraws and if this happens in an inopportune time, it can mean financial suicide for the rest of the partnership.

If you are consider using a partnership for your home based Internet marketing business, you’ll have to decide what type of partnership you wish to use: general partnership, limited partnership, or joint venture.

Corporations

Quite a small number of home based businesses use a corporate set-up for various reasons. If they believe that their business has far to go and there is more than one investor involved, a corporate structure would provide them maximum protection from the get go. A corporation is, after all, a separate tax entity, one that can sue and be sued without making its investors or stockholders liable. Corporations, however, are expensive to set-up, not to mention time-consuming. They also have a limited lifespan and are charged with higher tax rates.

Now that you’re aware of the various structures you can use for your home based Internet marketing business, which would you choose?