Retail Selling or Network Marketing?

Posted in Watkins Business by Eldon on August 1st, 2007

From time to time, I have prospects contact me and indicate they have an interest in “selling Watkins”. While I truly appreciate everyone who signs up with me and sells Watkins products, I try to help them understand that we also have a very powerful network marketing compensation plan. I point out the difference between short-term income (retail selling) and long-term residual income (building a group and earning from the efforts of many). New Watkins associates who are seeking a long-term stable income are encouraged to do a small amount of retailing, but to focus on sponsoring.

Following are the key differences between a Watkins retail-only business and a Watkins network marketing business. Note that the same principles apply to any network marketing opportunity offering consumable products that can be sold at a retail price for a profit.

Retail-Only Business: Watkins is special among direct selling companies in that it offers a wide variety of ways to sell products. Some folks like to do flea markets or fairs. Others enjoy doing home parties and demonstrations. Still others stick to catalog sharing among friends and acquaintances. Watkins supports all of these efforts. The problem is, if you depend on retail income to make all or part of your living, what happens if you get sick for an extended period? What if you want to take a two-week vacation? In pure retailing, your income slows down or stops if you are not actively out there soliciting the sales. This is hard.

Network Marketing Business: You build a group of dedicated Watkins associates, and teach each of them how to do the same. The result is (over time, if you put in the effort) a significant residual income that will continue to come in each month, even if you slow down for a while or decide to take some time off. This is the beauty of network marketing and residual income - your efforts today (sponsoring, training, helping others) will pay off now and far into the future. Isn’t this what most of us really want? I think so.

I firmly believe that every Watkins associate (or any network marketer) should build a small retail business. This is just good common sense, and is a service to those who love the product but are not interested in a home based business. My point is, if you want the long-term income that gives you options and helps you be financially free, you need to focus most of your efforts on sponsoring and helping others achieve their dreams.

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