Posts Tagged ‘Traditional Business’

To move forward in life, you’ve probably discovered like the majority of other people that you should to begin some type of business and/or involve yourself in investing to start building up your wealth and assets.

With so many business opportunities available, it can sometimes be very challenging trying to decide the right business to pursue. There are traditional bricks and mortar type businesses, self employed businesses, networking marketing businesses and now internet businesses that a person can choose to get started in.

Of all the possibilities on offer, an internet business should be seriously considered and we’ll now discuss their benefits.

Compared to the other talked about business models, an internet business definitely has the lowest expenses and is the cheapest to run. Whereas in a more typical business you have the high expenses of leasing a building, purchasing equipment, paying employees plus any other operational expenses that may be needed, with an online business the costs are considerably much lower, you just need to order a domain, pay for web hosting and maybe some email services.

The majority of people will make some initial learning errors when they first start a business and an internet business is more forgiving to these errors due to the lower operating costs when compared to a traditional business. As online businesses have low running expenses, some people don’t work it as seriously as the really should compared to other businesses.

You can reach potential clients on a global scale with an online business, not just locally like a typical business.

As long as you have an internet connection, you can manage an online business from anywhere, you’re not stuck to a single area like you would be with a typical business.

It is still suggested to find a business mentor with an online business as with any other business to help lessen the learning curve to growing a thriving and profitable business.

Over the last decade, one of the top online business mentors who has showed thousands of people around the world how to grow a thriving online business is Stephen Pierce.

He revealed his 7 critical steps to success with an internet business in his book he authored titled “How To Make Real Money On The Internet“.

You can receive this book for nothing from Stephen as he is wanting to assist more people  to become successful with an online business.

Check out his website immediately, order his free money book and you can start to understand more about how to launch an internet business.

What is 5Linx?

Read the unedited5Linx Review

5Linx is a MLM company that started in 2001 in the internet telecom industry. 5Linx had a short lived phase where they grew extremely quickly, sponsoring thousands of distributors into their company in more than 20 countries.

All of the services 5Linx offers are built around communications technology, and they specialize in VOIP services with a wholly owned subsidiary that manages their international communications.

Is 5Linx a good opportunity?

Although I have strong ties to the MLM profession, love the industry, am a proponent of every legitimate company (including 5Linx) and have been successful building organizations all over the world – I would not recommend getting involved in 5Linx.

Don’t be infuriated with me just yet – let me show you why I feel that way – I think you’ll understand in a minute.

Why I would never join 5Linx:

Basically, I simply will not ever recommend people get involved with the newest, latest technology based product. Now there are simply too many reasons for this to discuss in a short article, so let’s talk about the top 2 reasons why:

First, technology based products are great for traditional business, but not good for network marketing because of the negative price pressure of the marketplace. In other words, you could offer a service – say you have the latest and greatest new ‘magical phone’ that offers instantaneous communication across the galaxy. Let’s call the new, fabulous phone the ‘iGalaxy’.

When iGalaxy is first launched it receives a phenomenal response – after all you have no competition, huge demand and a new supply – EVERYONE simply wants to own the iGalaxy, which enables you to have a 75% profit margin. Because of the ridiculous profit margins, you start a MLM company and you’ve got distributors from 14 different solar systems earning million a month.

The stories don’t keep coming, though, because 10 months later China decides to step into the intergalactic communications scene with a new product that behaves exactly the same – only they’re willing to get by with a 5% profit margin – making all of your customer swarm to the cheaper, better product.

So in a panic to stay competitive with people who are willing to work twice as hard for a tenth of your pay, you reduce the price of iGalaxy by 75%, causing a 95% reduction in the monthly commissions of your entire downline, and…

…Presto! You’re back from square one building a new MLM from scratch. Which brings us to reason #2:

On a basic, historical level there has never been a technology based MLM that has lasted more than a few short years before they collapsed with competitive pressure. Remember Excel Communications? When it cost 80 cents a minute to make a long distance phone call in the mid 80’s, excell was producing some of the biggest checks in MLM history and NO ONE thought that they would fall apart. Yet the pricing pressure of the marketplace forced them out of business. An example of this is that the average earnings of 5Linx representatives dropped by 50% over ONE YEAR – from 2006-2007 according to 5Linx official income statistics.

On a strictly basic level, when the cost of phone technology goes down from negative market price pressure – all the distributors checks go down along with it. ACN is the closest company in the MLM profession that I’ve ran across that has a chance of long term success, and I don’t think that they’ll last, either.

All of this being said – I want you to realize that success in 5linx has more to do with your own personal marketing ability than it does with the success or growth of the company.

If you want to make a fortune in 5linx or any other MLM for that matter – learn how to attract prospects and distributors into your business through internet marketing principles. That way, it won’t matter if 5Linx goes out of business or all of your distributors start earning tiny checks – anyone who is worth his salt and understands Attraction Marketing knows how to instantly create a loyal organization in any company they choose.

If you want to cut past MLM bull-crap and learn the secrets that allow me to earn ridiculous monthly incomes and sponsor 20-50 people per month leveraging technology – visit David Wood’s MLM Training to learn how I beat the odds in Network Marketing.