network marketing businessHow much does it cost to run a network marketing business vs a traditional business?   In this post, I will address those differences.  The answers will show why if you are considering starting a business, one is definitely easier to start and run for the long term.

Cost to Run a Traditional Business
1.   Rent-You need a building to operate from unless you can operate from home.   Most office rent starts anywhere from $500 up to thousands of dollars a month for rent.

2.  Business Licenses and Documentation-This is a couple hundred dollars a year.  It must be renewed every year.  In larger cities, you could be looking at thousands of dollars a year to renew your business license.

3.  Employees-We can’t operate our business without employees.  With employees come wages, taxes and uniform expenses.

4.  Insurance-Our insurance costs run in the thousands of dollars each year.  We currently have three types of insurance (workers comp, commercial liability and auto insurance).  Even though we run a small business-less than ten employees, we have to have all types of insurance.

5.  Utilities-This is a couple hundred a month.

6. Equipment-We spend at least a thousand dollars a year on tools for the business and computer updates

7. Vehicles-Truck payments and vehicle repairs.  The more our business grows, the more vehicles we need.  This is always adding on to our expenses.

8. Marketing: We spend thousands of dollars each year on marketing so that people find our business.

9. Travel-Attending industry training and trade shows;

Cost to Run a Network Marketing Business
1. Initial joining cost
-$200-$500-one time fee.

2. Yearly renewal fee-less than $50-it depends on the opportunity;

3. Telephone and Internet-$100 a month.  Can be done from home  so you are already paying this expense.

4. Brochures and Product Samples-Less than $1,000 per year

If you compare the cost to run a traditional business versus that of a network marketing business, there is no comparison.  One can be done from home with a phone and a computer and internet access.  Most individuals already have these items.

Also, once you are growing your downline, you can continue to build from anywhere in the world where the company sells their products.  This is not the same with a traditional business.  You can’t  just open up business in another part of the world without first clearing many hurdles.

With a traditional business, unless you are consultant working from home, you need office space and all the expenses that go with it.

If you are considering going into business for yourself because you want to exit the corporate treadmill, then you should consider network marketing.  This is the only business that you can start while continuing to work your current job.  And, you don’t have to go into debt to start the business.

There is no other business that you can spend two-three hours a day and in time start making a decent livable wage.   Once you have replaced your salary, then you can do it full time and watch your income increase.

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