Network Marketing As Passive Income With Business Quadrant Wealthflow Theory

Recent research from the U.S. Direct Selling Association reports unprecedented growth in network marketing, in terms of both retail sales and the number of people involved. Similar reports are noticed in other parts of the world.

This growth shows the vibrancy of the model as an unmatched opportunity for entrepreneurship. Customers gravitate towards the personal touch network marketing provides, technological advancements have helped the channel to continuously evolve. Various reports present some facts and reasons why network marketing has grown in a turbulent global economy and why the business model is poised for continued growth over the next several years.

Network marketing has produced many self-made millionaires in the past decade. The internet has taken the game to a new level. However, it is said that only five percent of people who join network marketing business actually succeed.

Why does majority failed and only a few succeed? Why do some people recruit like machine while others can’t sponsor even one person? Why do some make fortunes selling products while others can’t sell a single product? The answer lies in application of the business quadrants wealthflow theory to network marketing business.

Simply put, majority are doing network marketing for the wrong reason. Others still are in the wrong company. 

In this post, we are going to examine how network marketing applies to the business quadrants wealthflow theory. This post is an excerpt from my upcoming book Business Quadrants Wealthflow Theory. 

The Business Quadrants Wealthflow Theory is illustrated below. You can download the first three chapters that discuss introduction to  Business Quadrants Wealthflow Theory. 

Network Marketing As Active Income Business

Active income as mentioned earlier is a business model that requires that you work before you earn. Most network marketing or MLM companies are setup to support this form of income. Network marketing companies that focus on active income put more emphasis on selling of products than recruiting. Their compensation plan reward members more on quantity of products they or their team sell than number of distributors they recruit.

In the business quadrants wealthflow theory, active income business falls in the left side of the business quadrants.

There are two scenarios where network marketing function as an active income business. The ability to use network marketing as active income for the right purpose can be the different between success and failure. The two scenarios are:

#1 Network Marketing As Active Income Home Business

Many network marketers especially in developing countries are in this quadrant. This is represented by the top left quadrant of the business quadrants, Q1. As discussed in the business quadrants golden rule of wealth, the purpose of an active income should be to build a passive income business. Majority failed in network marketing because they run the business as an active income expecting to build a passive business. There are two situations that describe those who fall in this quadrant.

1. If you setup a small shop or franchise in your house selling the products of your company.

2. If you sell your company products online working from home.

As seen from above, network marketing active income home business can be worked online or offline or both from home.

#2 Network Marketing As Active Income Office Business

This is represented by the bottom left quarter of the business quadrant, Q2. As discussed in chapter two of the book, active income office business is any business that you work outside of your home that produces active income. In the early days of network marketing many people use this approach successfully. There are two scenarios that describe people who fail in this quadrant:

1. If you own an office outside of your home where you sell your company products.

2. If you hustle on the street or market to sell your company products.

The earlier you realize that you cannot create wealth with network marketing as an active income business the better for you.

Purpose of Network Marketing As Active Income Business

Some network marketing companies cannot work for active income business. For a network marketing company to work, the company must put emphasis on product sales. Besides, the retail profit for the products should be relatively high. Such companies design their compensation plan to reward their distributors more for their product sales.

There are three main reasons why a person may engage in network marketing as an active income business. These are:

1. As main source of active income

2. As alternative source of income

3. To raise fund to build passive income business

Network Marketing As Passive Income Business

In chapter two, I discussed the concept of passive income business. As a reminder, it is a business that does not require your material participation before you earn. The 5% people that make it in network marketing built it as passive income business.

Network marketing companies that focus on passive income put more emphasis on recruitment. Their compensation plan reward distributors more for number of people they recruit rather than product sales. 

In the business quadrants, passive income business falls on the right side of the quadrants.

Many people who join network marketing dream of making it to the top five percent who become wealthy. However, only a few of them are willing to make the sacrifice to get there. Your ability to build a network marketing passive income business will determine if you succeed or not in creating wealth.

There are two scenarios where network marketing function as a passive income business.

#1 Network Marketing As Passive Income Home Business

This is represented by the top right quadrant of the business quadrants, Q3. As discussed in chapter three, your ultimate goal in business is to build a passive income business. The same should be the case with network marketing. There are two situations that describe those who fall in this quadrant.

1. If you setup a training center in your home

2. If you run online training platform from home

#2 Network Marketing As Passive Income Office Business

As discussed in chapter two, passive income office business is any business you work outside of your home that produces passive income. This is represented by the fourth quarter of the business quadrant Q4. There are three scenarios that describe people who fall in this quadrant.

1. The first scenario is if you own a training center outside of your home

2. If you use outside venue

3. Start a network marketing company

Final Thoughts

Truth be told, many who enter into network marketing business do so with the wrong motive. They think network marketing is a business for the lazy people. They join, hide under their upline and expect the magic. Think of how to utilize the business quadrants wealthflow theory if you have tried and fail or if you are just considering the opportunity.

If you are currently unemployed, you may have to start with network marketing active income business. When you have raised some money, think of how to use part of the retail profit you are making to build the passive income aspect of your business.

If you currently have an active income job or small business, use part of the income to build a network marketing passive income business. Study carefully how to apply the business quadrant golden rule of wealth to network marketing. If you plan your approach properly, you may start earning enough income to quit your job.

Find the right network marketing company, launch and build your network marketing business. Once you have chosen your opportunity, stick to a plan. Give it time. Don’t think you’re going to be rich in six months, because you won’t. Exercise patience. Focus on your skills. Work hard. Stay consistent. And…don’t take things personally.

Pre-register now for updates on the full version launching on June 26, 2017. You will receive a copy of the Free Edition (First three chapters) and get access to the launch price promo and other incentives. To pre-register visit BQWT Amazon Launch Update.