Why Investing In Internet Network Marketing Is Better Than Stock Investing

By Mike Klingler

Should you be investing in internet network marketing? Many distributors ask the top leaders and top income earners where they are investing the money they make from their network marketing business.

This is actually not a good question for someone who understands how investing and business works. There are significant differences between the investment options available to a top income earner and the investment options available to the average network marketing distributor.

Investment Options for Top Network Marketing Income Earners

The top income earners are in a situation where they HAVE to take the money that they make from their network marketing business and re-invest it.

Besides the tax challenges that must be faced at their level, they also have an asset diversification challenge.

Most of their assets are the result of the income being generated by their network marketing business. If they don’t diversify those assets and something happens to their primary network marketing opportunity, they can be devastated.

Yet even with a need to diversify, the top income earners understand that one of the best returns that they can get on their income is to nvest in internet network marketing and their own marketing efforts.

Advantages of Reinvesting In Your Network Marketing Business

For the average distributor, who doesn’t have to deal with the unique challenges of being a top network marketing income earner, investing in your internet network marketing can produce returns that dwarf the stock market or any other form of investing.

Let’s suppose you are really good at investing in the stock market. Over the course of a 5 year period you were able to produce a 20% annual return.

This means by the end of a 5 year period, you would have doubled your money. A $1,000 investment in the stock market with these types of returns would turn into $2000 at the end of 5 years.

Now let’s say that instead of investing in the stock market, you took that money and re-invested it into internet network marketing system.

By taking that money and investing it into your marketing system you can literally produce returns that would make your stock market return look like a joke.

How?

Possible Returns on Your Investment

Let’s say you took $1,000 and invested in your internet network marketing campaign.

Maybe you took the money and purchased Google Adwords or Yahoo Sponsored search ads. Perhaps you took the $1,000 and bought ezine ads. Or maybe you used the money to hire freelance writers to created articles for you. In any case, the point is you took the money and you invested in you internet network marketing system.

Let’s say on average it costs $5 a lead to generate your own leads. With a $1000 investment you can generate 200 leads for your business.

Let’s say you earn $100 in commission from a new distributor you personally recruit into your network marketing organization. Your stats show you are able to personally recruit 2% of the leads you generate. This means that on a $1000 investment you would earn $400 in commissions.

Keep in mind $400 is the minimum you would earn in commissions.

If these distributors become productive and go out and recruit new distributors as well, you will be able to earn passive income resulting from the efforts of these new distributors.

In addition to the commissions you earn from new distributors, let’s also say you are using a funded proposal in which you are offering a $50 information product. You average selling your product to 6% of the leads you generate. This equals $600 in commission from your funded proposal.

Finally, let’s say you also offered an affiliate program like Magnetic Sponsoring or The Renegade Network Marketer. If you were able to convert 2% of the leads you generate to purchase one or more of the products in these affiliate programs with the average purchases resulting in $70 commissions. This equals $280 in affiliate commissions.

From a $1000 investment in this scenario, you would make your $1000 back plus earn an additional $280 profit.

This is a minimum return on investment of 28%.

Keep in mind this return assumes none of your new distributors does anything. If one of your new distributors makes sales and starts building an organization, your return increases dramatically. This can literally be done on a monthly basis. Stretch that out over a year’s timeframe and by investing in internet network marketing you have an annual return of 336% , greater than the 5 year return on the stock market investment!