What I"ve Learned About Network Marketing - Start Up Fees
I was horrified to learn that after seven years in the working world, seven years of excellent work reviews and promotions, this network marketing company I wanted to represent, actually wanted me to pay them to "work" for them.
It is because of this initial reaction of mine that I'm able to help other people understand why there are fees in network marketing and what those fees are for.
I'd like to share this information with you.
Selling products and building a business in network marketing is not "working" for the company.
You are in no way an employee.
You are an independent contractor.
You are literally establishing a contract between you and the company, where you'll sell their products and in return they'll offer you a commission and bonuses.
Take a look at the commission and bonuses being offered as they will vary from company to company.
The start-up fee you pay to the company is administrative in nature.
Companies should not be making a profit off of this fee, nor should any sales distributor make a commission on this start up fee.
Many companies have kits with a retail value far beyond the fee a distributor pays to start.
It is the belief of network marketing companies that distributors have a higher rate of success when they have adequate supplies at the beginning.
Companies try very hard to provide these supplies at a minimal cost to the new distributor.
In start-up kits, companies provide catalogs, samples, demo products, full-size products, order forms, sales tips, company information and more.
All of these products and information are yours to keep.
It's actually not uncommon for people to sign up for the sole purpose of having the start-up kit with all the products inside.
Very often, companies will also provide a cookie cutter company website.
In some cases the site is yours to personalize.
In other cases, you'll only be allowed to enter your name and contact information.
However these sites are free of charge for a period of time while the new distributor acquaints him/herself with the company.
Start-up fees also include product and ordering support from customer service representatives working at the company.
Many companies also provide online ordering services for both the distributor and the customers of the distributor, all as part of the beginning package.
As you begin to examine network marketing companies, I hope you'll now have an idea of what the start-up fee is, why it's charged and what you should be getting for the money invested.