To be honest, these folks are onto something, but as always, it is all about their approach and team building concepts that tend to scare people away. More on that later.
We are in a different economy today. Long ago, you can get by and have a great living off one income, including buying a nice house and even a vacation home, a nice car, and then look forward to a great retirement on a golf course in Florida.
Enter today's world, the one-income diligent professional works hard, does more than they're than they're paid for and hope that the boss will notice. Then maybe, just maybe, they'll be given a bonus at the end of the year to acknowledge their work.
Some would say this behavior is admirable and shows industry and initiative. Unfortunately, it is tragic. To work so hard for someone else in the hope of being tossed a bonus feels like a real waster of a person's time and talents.
I say, if a person is willing to work SO hard and performs at such a level that someone else feels they deserve more, why don’t they put that effort where it can do them some real good?
So what are the options?
First, you would want your side gig to be a case of money working for you and not you working for money. So that would mean, that second job and freelancing are out. It is good side money, but you are still trading your time for money. Note the left side of the infographic below.
You can start your own business or get into franchising, but it takes a huge monetary and time investment to get started and you can go years without breaking even and starting to make money. Also remember, we are talking about a side gig here, so you cannot work full-time and own a successful business that you would have to dedicate over 50 hours a week to. You are still trading time for money.
That leaves investing in real estate, investing in general and of course network marketing.
Investing in general whether it is in stocks or real estate is a great side gig, since money is working for you and you are starting to experience residual income (a.k.a make money when you sleep). For example, let's say you bought an apartment building and have a number of units paying you rent every month. After all operating expenses are taken out, you are still building a passive residual income. Not a bad feeling when you wake up and made a few thousand dollars while counting sheep.
The big drawback with investments and real estate is that you would have to have the knowledge and connections to assure that you are going to have a positive flow of income. It takes time to learn the ropes and not everyone makes money on investing and in real estate. Think of the big Florida Real Estate bust in 2008.
Network Marketing is the defacto best side gig you can do today to build a residual income, hands down. There I said it.
The challenge with network marketing is that it has a perception to be a scam. Typical responses are the organization looks like a pyramid or I need to force my family and friends to join my club, or the best one, I don't have time for network marketing since I have HBO shows to watch at night.
The lure of Network Marketing is that you invest very little with the potential to make a lot of money. The goal as always to be financially independent where you dictate what you want to make depending on how hard you work. You can't get that with a job. The environment is positive and team-oriented, you are learning new concepts, and the products and/or services are top notch.
With most network marketing compensation plans, you can build that residual income where you can be doing other things and become financially independent.
There are some amazing network marketing companies out there, so how can you decide which one is right for you. I will leave you with these ten tips for evaluating a network marketing business and you can decide if it is right for you.
1) Make sure the company has been around for at least five years and has had a consistent executive team. This show commitment and reduces the chance of the company going out of business.
2) Check with the Better Business Bureau to review the rating and what complains were filed against the company. Also check if the company have won any awards. The last thing you want is to invest time and money in a company that has more complaints than the IRS.
3) Review the company's financials and Annual Report. You would want a company that is consistently growing quarter to quarter even through recessions. A company that has gained every quarter is even better!
4) Select a company with more that one product or service or better yet provides more than at least three divisions/ product lines. Not only you would have more to offer your customers, but it will also make it easier to build your organization. Not everyone wants to sell makeup, where that wrap around their waist or drink that passion juice that takes off five pounds.
5) Review the compensation plan closely more than once. If bonuses and/or monetary rewards are given for recruiting people, run away as fast as you can. The network marketing company should build its compensation on retail sales volume and be customer focused. This is a big one. Some times there are hidden rules that you need to maintain a lot of products and the sales cycle is very short and you lose hard earned volume monthly.
6) If a company's promotions focus on that you can work from a beach, drive a Ferrari and tell your boss to take a hike, they are playing with your emotions to join their "business". Stay away from gimmicks and start a business simply on emotion. A lot of companies post on social media how their product changed their life, and you would be crazy not to join them. If you need hard sales techniques and to convince, then maybe your company is not ideal. Start a business to learn, grow and be financially independent first and leave the gimmicks aside.
7) If you think that you don't have time to start a network marketing business, think about how you spend your time. There are 168 hours in a week, you work 45 hours on average, sleep for 50 hours, drive/eat/do chores for up to 40 hours a week. That still leaves around 30 hours a week for that side gig. Turn off that TV and leverage your time to learn and build a great business.
8) Be open minded if someone approaches you about a network marketing business, and don't be afraid to ask questions. It allows you to evaluate your potential future business partner and the company you are building your business with. Simply listen and don't be closed minded.
9) Try out the product or service of the company first and evaluate and build a passion. Once you find yourself referring the product/service to others, why not make money doing the same. No brainer!
10) Finally, review how you spend your money today on day-to-day items, will the network marketing company provide a way to build a residual income on what you are already spending money on? The whole idea is to have money work for you and not you work for money!
I hope this blog helps and if you need any help evaluating a business, please contact me!