Online Business Opportunity – Network Marketing Or Membership Site?

So, you are looking for an online business to start but you are hesitant to jump in because of all of the online scams that rule the internet airwaves. What is one of the top culprits? MLM or Network Marketing companies! Yes, you know these business ideas, health, nutrition, beauty products, you name it any product or service can be made into an MLM company.

Now, before you dispel an MLM company, lets talk a little bit about just what an MLM company really means. Typically, it means a company that offers a product or service and relations on an army of independent distributors to market and sell said product or service. At face value, this does not sound so bad, where you usually run into a problem is that everyone says only the top guys make the money, the first ones to the show and if the company is more than 2-3 months old, you are too late and oh, by the way, that $ 200- $ 300 set up fee is feeding the pockets of those early into the company and you are left with a less than 10% chance of breaking even. While I do not believe this is entirely true, it does fit the bill for some of the MLM companies on the Internet, unfortunately, they are usually the ones most people hear about. With that being said, let's take a look at some pros and cons about MLM companies:

Pros-

You are running a real business with potential tax benefits, you do have the potential to make money, as with any business, and you may even be able to benefit from the product or service of the company.

Cons-

Startup costs can be $ 500 or more, success rate on average is less than 5%, and you are often asked to pressure friends and family into buying your product or service, not very comfortable!

So, what is the solution? How can you create an online business you would be proud of? Think about creating a membership site, one where you build relationships by offering a product or service that will promote growth and development. The beauty of a membership site is the stronger relationship you build with your members, the better for you. By definition, a membership site is a website that members pay a recurring, monthly fee in return for a perceived value in a product or service. Now, lets compare this to an MLM company real quick … no pressuring family, recurring monthly payments and creating a network of members who will actually trust you and your product, keeping them coming back month after month. I call that a win-win-win !!! But, to be fair, below is a list of pros and cons for membership sites:

Pros-

Low startup cost (hosting, $ 5 a month-content, provided by you), you feel good about your business, creating a community of members who will all prosper as a result of your business. Truly unlimited eaching potential, no passing on tons of money to multiple uplines and the top 10 people in the company.

Cons-

You will have to put in some time and effort to create the site / content. You will also have to manage your members information (profile, logins, etc.) At this point, I would say the risk-reward is on your side!

In closing, I want to give you an example of a membership site and how profitable they really can be … I heard of a guy who had a passion for art and drawing so he decided to create a membership site focused on teaching people how to draw and paint. He charges a minimal monthly fee, around $ 12 a month. Over the course of 1 year, he grew his membership base to over 1,000 members … do the math, $ 12 times 1,000 members equals $ 12,000 a month. Tell me, could you live off that kind of money?!?!

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