10 reasons why Network Marketing Leaders are moving to the Insurance Industry
10 Reasons Why Network Marketing Leaders Are Moving To The Insurance Industry!
A lot of people are asking me about Network Marketing MLM (multi-level marketing) so in today’s read, I am going to share with you some of my thoughts about how MLM is influencing the business community and why network marketing leaders are moving to the insurance industry.
It is without a doubt that network marketing is a perfect business model as compared with a traditional one where individuals have to borrow huge amounts of money to open their businesses and even then they have to face heavy competition, high overhead costs, and crime.
I would like to start this debate with some quite interesting facts and figures from MLMattroney.com you would be amazed to know that about 55,000 people in the United States sign up as Network Marketers each week and that’s 150,000 per week worldwide. Over 13 million people in the United States alone are becoming distributors for network marketing companies so, in other words, one out of ten households has a direct seller in the United States. It is quite interesting to know that the sale of worth over 30 billion dollars with network marketing is shared among 75% women and 25% men.
80 percent of network marketers are part-time and 20 percent are full-time who put 30 more hours a week to the business. If we talk about revenue 3 percent of network marketers make 35,000 a year, 2% makes 50,000 dollars while half a percent make a hundred grand points, one percent will make more than $150k a year.
Financial Compensation Plan –
I’ve started the debate with this heading because it’s the most important factor that is going to make you a overnight success or a complete failure at the end. Most distributors and participants are encouraged through financial compensations by holding onto the belief that they can achieve large returns.
Regardless of the nature of the business, the MLM Company is involved in, it’s just the compensation plan that’s going to make you a success story. If we evaluate the comp-plan of various services like travel, health & wellness, and even financial services; there is a lot of disparity in there.
Flagship Products Vs Deal Of The Month –
If we talk about the insurance industry and its working in the MLM system of business, the good thing here is that you’ve to focus on a lot of other companies on learning the product of the month and becoming a product knowledge expert instead of focusing on building a network of people.
Financial Products Vs Consumer Products –
Another reason for MLM leaders to move to the insurance industry is to get those financial products instead of consumer products. With consumer products, you got so many choices and although people become emotionally attached to physical products at the end of the day it all depends on financial stability and preferences. As most of the time, the buyer would be in trouble deciding whether to get that $80 skin cream in such and such financial conditions. The insurance industry provides you with products that are a little bit more tangible than a protein drink.
Helping People Make Money And Not Get Distracted By Other Things –
The trick to getting success in network marking in any industry is to focus on building a team instead of getting distracted by other things. Here’s a problem with the company that manufactures products instead of buying advertising they build a distribution team and so you get distracted chasing this one and that one. For example, if you’re going to sell a cream you’re distracted by things like this cream is better than this one; it has got a prettier label and new ingredients. So constantly you’re getting distracted from the important thing which is to provide financial freedom.
Low Success Rate –
In the conventional trading business, you can easily switch to another brand or source of products if that particular doesn’t move for any reason. So for such a model, the success rate is fairly predictable. But for MLM, with so many traders, it has less flexibility dealing with changes in market preferences and quality/pricing issues. So the trader doesn’t have control over the product price of quality. And even then, unlike conventional businesses where the distribution chain is made of specialized players you actually can see an MLM team would never be going to have a big success rate as they are mostly ill-equipped to deal with a competitive marketplace.
When the people come across your opportunity of you expose them to your business opportunity, whatever the industry is, here is what happens; no matter how much people like the products or trust you or like the services, at the end of the day they are there to provide a financial change for them and in their family. So if they are not seeing money coming in after one, two or three six-twelve months – they’re gone.
So you’ve to make those compensation plans in a way to add more incentives in these bonus pools because if people aren’t making money right they’re gone.
A major reason for the insurance industry shifting their methods of distribution more to independent contractors more to companies like PHPAgency; is that you’re not going to lose your business against Allstate or NewYorkLife instead, you’ll be taking business from them all the time. With a better structure and better products than a large group of companies to offer you can get there to the top.
Higher Revenue Per sale –
With the insurance industry in network marketing, you can make $1,800 for just 1-2 clients which are way more revenue per sale than other industries. In other industries, if your car up a company you got to have hundreds and hundreds of people you know that’s on auto-ship to even try to come close to that you.
Higher Barrier To Entry
Another positive and a reason for low competition in switching to network marketing in the insurance industry is a higher barrier to entry. The insurance industry is professional and has more skin in the game so you do have to get a license and so there’s a screening process.
You need to be a bit more selective on whom you bring in all the way to talk. This regulatory component makes it a bit different than other industries where selection is not that picky. And, this higher barrier to entry is good.
A Career As Well As Business –
One of the litmus factors for the insurance industry is that you can keep lights of your business on even if your team quits. I’ve recruited a team and build teams in the insurance industry and even in cases when your team quits or is recruited by somebody else, you can still pay your bills and keep your business alive.
As I said prior, there’s a screening process in there – and that license; of course, that license will make sure that you never go hungry. Now that I am in the insurance industry for quite a long time now and the people have life things so it is very normal that they quit and things happen. So the beautiful thing here is that even if the whole of your team quits, you’ll still be able to eat and take care of your family.
Another beautiful thing about network marketing in the insurance industry is the ownership – which is real. So it would be going to generate generational wealth for tens of thousands of people. If you look at some of the people over the last 10 15 years that have become multimillionaires and you look at how they made it; they actually owned a piece of company that they were founders of or had equity in there and that company become public or got bought out and now they’ve got that family generational wealth. The ownership is the icing on the cake for you.