I attended a function last night where I got a clear definition of a network marketing company vs a network marketing business.I have always thought they were the same until I heard Hector Barreto, the past adminstrator to the Small Business administration under President George W. Bush , speak.
Mr Baretto told us in the eyes of the SBA and the banking systems, you are not considered a small business if you don’t own your own company with the opportunity of accepting credit cards where the money goes directly inrto your bank account. That seems like a gray area but it really is not. In most network marketing companies you sign a team member up and even though you can take their credit card and enter it on line or submit paperwork to the home office, it goes through the companies merchant account. You then get paid down the road, maybe thirty days or longer, In a network marketing business you personally have the merchant account to run that person’s credit card. The money flows into your bank account just like a brick and mortar business. It is as fast as forty-eight hours.
I have been in networking over forty years and I have never seen a network marketing business. I have been in many network marketing companies though. You can make money in either but you don’t own your customers when you leave the company for what ever reason. The team you leave behind can follow you but if they are making money chances are they stay put. Most network marketing companies will allow you to sell your position to someone if you can find that person who wants instant down line. All of the network marketing companies I have been involved with tell they only want you working one company them. If they find out you are doing another company they could eject you from their company. With a network marketing business you can do what you want it is not restrictive. In a network marketing business you can sell it like a real business and the customers stay with the business not the company.
Network marketing company vs network marketing business. I only know of one network marketing business. They offer e-commerce with merchant services. You can sell websites with a shopping cart and a merchant account with distribution houses, set up for you in about 4 minutes and be selling in 5 minutes. This is a game changer because they are the only ones who can do this. They also offer that you can go to brick and mortar businesses and save the merchant 30 to 50% on the fees they already pay out. The industry is a 57 trillion dollar a year industry and is regulated by Visa and Mastercard. The residual income goes into your account not to a company where they pay out in 30 to 60 days later.
Network marketing company vs network marketing business you choose, I did. I went with the business side and have my own merchant account and anyone signing into being a partner get their own merchant account. We get paid within 48 hours. Daily earned residuals go into my account not a companies account.
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