Comfort zone shift. The fine line between being a leader and a company owner

When a networker, sooner or later, reaches a certain height in someone else's company and becomes its leader, the next step in his professional development is to create his own project. In the article, we will explain why and when you should start your own network company.

What is network marketing

Network marketing (multi-level marketing or MLM) — is a concept of promoting a brand and selling products.\service through a network of independent partners. In addition to product sales, network company distributors recruit and train similar sales agents.

The main essence of this business model is that a partnership organization pays its partners for promoting the brand and products, instead of advertising through intermediaries. When a businessman pays for product advertising — he only hopes to sell it and make a profit, but when an MLM company pays the same amount in commissions — the product is already sold and the profit is received.

Important! In traditional business, advertising is paid before the sale, while commission rewards in network companies are paid after the sale. This nuance significantly reduces the risks of financial losses in MLM projects.

Unfortunately, in the CIS countries, the potential of multi-level marketing is not sufficiently disclosed (source). However, considering that this business model is completely legal, aimed at increasing the profitability of companies and optimizing their promotion strategy — network marketing is here to stay and will only thrive.

Perspectives of Professional Development in Network Business

Key figures in network companies are founders and co-founders, structure sponsors, and regular sellers (in the article Leader vc distributor we discussed the difference between them).

Essentially, the goal of a properly motivated distributor is to become a leader. There is a lot of information on the internet on "how to become a leader," but "what to do when you have already become a leader" remains undisclosed. Ultimately, every successful sponsor chooses one of the following paths: 

- leaves the company and changes the field of activity;

- ceases to show activity in the business and relies on passive income from the work of the subordinate structure;

- changes priorities, becomes a coach for their team or an infopreneur;

- moves to a new project with better conditions, immediately becoming its ambassador;

- creates their own MLM company, applying the accumulated experience and knowledge.

Both for the individual and for the MLM industry as a whole —the latter option is the most interesting and promising. By creating your own company, you:

1. Reach a different level of expertise and mentorship. Essentially, the business founder is the person that every partner literally listens to

2. Generate your own rules of the game. Having gained experience and knowledge about the industry, you will be able to replicate successful solutions, eliminate predecessors' mistakes, define a marketing plan, corporate culture, product range, and training program for newcomers, adapt your team to suit your needs. In traditional business, its creators are forced to be pragmatic and relatively more dependent on the market.

3. Step up to a different level of profit. The person at the head of the distributor structure has unlimited earning potential. Essentially, as crude as it may sound, every distributor works for the benefit of the founder and the company. The relationship between the company's promotion and its profitability works something like this:

The most impressive results are achieved by entrepreneurs who manage to set up automatic stable growth of the structure in accordance with the development strategy. This is only possible with a well-developed marketing plan.

Then, employees receive a decent and stable income from their work, are motivated to sell more products and attract more newcomers. In turn, in this scenario, top leaders get the opportunity to generate passive income, change priorities in work, and focus on training newcomers.

For the development of a marketing plan, contact a company that has launched MLM projects from scratch before. By hiring an experienced developer, you optimize the company's profitability and protect yourself from most financial risks.

To get advice on which compensation plan will be best for you — contact our manager in the website chat flawlessmlm.com.

When a leader should create their own company

An entrepreneur is ready to create their own project when:

1. Has gathered a team of dedicated distributors around them. In this situation, the person is already well-known in their circles, has built a certain reputation, and gathered like-minded individuals. These like-minded individuals are the first potential partners of your personal MLM startup, people who will be at the forefront of the structure, potential TOP leaders.

2. Has gained experience and understands the MLM industry inside out. Achieving success in network marketing is very difficult when you do not understand the smallest nuances of how it operates. We recommend starting a startup in the affiliate marketing niche only for those who have "taken their lumps," honed their communication and organizational skills, understood finances, sales, marketing, and thoroughly studied the essence of network marketing "from the inside."

Another good option would be to involve other MLM leaders and IT professionals in launching the company who have a good understanding of the intricacies of network business. This way, you will have support from qualified advisors, reducing the likelihood of errors in making strategic decisions.

Our team has already launched network companies in various niches and is ready to share its experience. To get a consultation, contact our manager in the website chat flawlessmlm.com.

3. Is a thought leader and develops a personal expert brand. The perfect scenario — is when the creator of a new business has gathered an audience around them, earned a reputation as an experienced networker who has led many people to success in their team. Subscribers on social networks — are the very audience that can support your new business and join its ranks as distributors.

How to Start Your MLM Company

Be prepared to start from scratch - building a small network startup and then scaling it. This is the path taken by the founders of all successful MLM corporations. In our blog, you can learn the guide on creating a new MLM project.

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