Many people who begin looking into network marketing are often turned off when they realize that there are ongoing fees involved with running the business. These "fees" are primarily purchasing a specific amount of product per month which are often for personal use. The upfront costs of joining a network marketing company typically involves the initial investment which can range from $40 to upwards of $200 plus. After setting everything up, you spend so much per month to stay an active member of the business.
Typical Business Cost Comparison
Brick and Mortar - Starting a business from scratch can cost in the thousands of dollars if not more. If you are starting a brick and mortar - meaning having to rent out space, purchase equipment, and more, your costs will be very high. Most of the time, starting this way may require obtaining a business loan or seeking investors. The risks are very high as most statistics say new businesses often fail within the first 5 years.
Franchises - This business model is a good comparison as like network marketing you make an initial investment, however, investing in a franchise can range from $1,000 to $200,000 or more depending on the company. You also continue to pay fees which are royalties to the franchise which comes out of the revenue that you make. Franchises also require much more when starting up. You have to be able to put some money down and have assets. Overall, the costs are very high for the average person.
The Big Difference
As you can see, most businesses require money to get started. The appeal to network marketing is that the start-up costs are very low. Almost anyone can start their own business for $40 or more. The ongoing costs are staying active by purchasing products. If you choose a company that you truly like, purchasing and using the products shouldn't be an issue for you.
One thing to be aware of is that there are shady companies out there that are based on pyramid schemes. A company you decide to join should not require that you recruit people under you in order to make money. These types of businesses make money off of sign-ups and deliver a low-quality product if any product at all.