Have you wondered what constitutes a lifestyle network marketing opportunity? Most people dream of a lifestyle but have no clear understanding or a plan.
This is a very important subject because most people join network marketing business with dreams of a fancy lifestyle but without proper understanding of what it takes to succeed in this business.
They are lured into joining after seeing a slick presentation or being persuaded by friends and family who themselves do not have any clear idea about what they are doing. It is like blind leading the blind. Because they join for all the wrong reasons they get disillusioned and quit when they don’t see any tangible results for their effort.
The most important thing about any lifestyle network marketing opportunity is that it must have huge Cash Flow. It is the cash flow that pays your bills and gives you a lifestyle. If you have cash flow, your business will grow and thrive. If you don’t have cash flow, then your business will collapse.
Traditional network marketing companies that sell Physical Products such as vitamins, juices, cosmetics, soaps and other household items give commissions of 5% to 21% to their affiliates depending on the qualification level. On the other hand, Digital Product companies that sell information and entertainment products generally distribute 50% to 100% of the profits to their affiliates. They can afford to pay such high commissions because, after the initial development cost, there are no further manufacturing, warehousing or distribution costs.
Another advantage of a Digital Product is that it can be Delivered Instantaneously. In today’s world of instantaneous gratification, this is a huge plus point.
Digital products can also be sold to customers around the globe. The whole world is your oyster. In case of physical products, the parent company has to take approvals from the local governments and set up infrastructure such as warehousing and distribution channels before they can launch into a new market.
If a new country opens up for business, you will need to physically travel to that country to launch your business in that country. This will cost you time, effort and money.
Most physical products have Safety Issues. These products need to be demonstrated to new customers and affiliates for proper usage. This needs time consuming Training and Hard Work.
For this reason, most physical product companies will not allow you to start a blog or website to market your business. They fear misrepresentation of their product. You are only allowed to promote the company affiliate website that takes sting out of your e-commerce marketing effort as hundreds of thousands of other affiliates are promoting the same website and you simply cannot stand out.
Digital products have No Safety Issues. Most internet based companies understand e-commerce and help you in your effort to market the product globally. It is possible for you to build websites selling digital products. This forms the basis of a lifestyle business that can make Auto Sales without your intervention once set up correctly.
Another important thing is the Retention of affiliates. There is no point in joining a company that has very poor retention rate. Your hard work will never cease if a very high percentage of the prospects you sponsor into the business drop out.
You cannot have a lifestyle business if the retention rate of affiliates in your business is low.
Historically physical product companies have an average retention rate of around 8%. If you are an outstanding leader with great support and training program then your retention rate can go up to 10% to 15%. To build a network with such high attrition rate will entail extreme persistence and hard work.
If you are to earn a lifestyle income then your Retention Rates have to be close to 100%. Your business should be sticky so that affiliates don’t drop out. This is possible if the affiliates you sponsor start making money within days if not months of joining the business opportunity.
No one will drop out of your organization if they start seeing cash flow and are in profit after having recovered their initial investment.
Profit Share Model
There are several innovative companies on the internet that recognize the fact that many new affiliates are not professional marketers and find it difficult to sponsor new prospects into the business.
To improve the retention rate they offer Profit Share so that new affiliates that join the business start to earn money even if they do not sponsor a single person into the business.
Once a new affiliate makes money it becomes easy for them to sponsor others into the business with confidence because their Belief in the Business goes up. It reflects in their body language when they speak with new prospects.
Another business model that works well is with companies that offer very high Commissions in excess of 50% . By making just one sale an affiliate recovers the initial investment. Can you think of any reason for an affiliate who has reached breakeven point with the first sale to drop out of business?
If you are to create a sustained life style and long term wealth then cash flow by itself is not sufficient. The business you join must unleash steady flow of Residual Income that will last for years. Smart businesses are those that create not only cash flow but also residual income quickly.
A lifestyle network marketing opportunity is only possible if you can apply Leverage that can reduce your time and effort. All large sums of money embrace the generalized principle of leverage. Big doors swing on little hinges.
Without leverage, you will not be able to maximize your income or free up your time to pursue your dreams. You need Technology and Business Systems to provide you the leverage. Every successful business has systems in place and so should you. Without proper systems, you will work like a mule all your life. Systems give you leverage to enjoy a lifestyle business.
The network marketing opportunity you join must embrace the principle of SIMPLICITY. The business itself can be complex but must be very simple to operate on a day to day basis. This is why franchises like McDonalds work very well because of Simplicity. They can be manned by unskilled staff and part time student workers anywhere in the world.
Lastly and most importantly the highest leverage you can apply in your business is by choosing the Right Team to join. A professional team will provide you with the Support, Training and Systems that will guarantee not only your success but also of the prospects that join your organization.
Find a network marketing opportunity and team that has knowledge based system to help you build relationships, provide training to your team and build leadership within your organization. Within the system, you should have the option to join some of the best researched, high cash flow business opportunities that will rapidly build multiple streams of residual income and get you out of the rat race.