In the past, people were taught to find a company and stick with it for life. But today, with the advent of social media and other technology-driven trends, that’s no longer necessary.
In fact, staying in one place too long can make you less marketable when you finally do decide to move on. So what’s the best way to earn an income in 2022? It depends on your goals and priorities. For example:
– If you want stability and a higher income from your sales but not necessarily flexibility, then real estate might be a good fit for you because real estate agents sell a high-value commodity and make money off of commissions.
– If you want a lot of control over your work hours earning a residual income stream but don’t necessarily mind the risk of working a long period of time without getting paid, then network marketing might be a good choice.
Whether if you are a realtor, a network marketer, or just someone who is looking to start on a new path to own a business, we will help you detail the pros and cons of each of these 2 very popular business models, explain the skillsets needed to succeed in each, the constant that determines your success in both fields, and how you can take advantage of both business models and their benefits at the same time!
If you are interested to learn more about how you can take advantage of a network marketing compensation plan in real estate, click below to see how you can partner with the fastest growing organization in real estate today!
Network Marketing vs Real Estate Agent
Which is the better way to make money in 2022: network marketing or real estate?
This is a question that many people are asking themselves, and there is no one easy answer. Both business paths have their pros and cons, and as you will see below, deciding which is right for you depends on your personal preference and financial situation.
As you explore the two career paths further, you will see that there are also a lot of similarities between the 2, but that’s also what makes it so difficult to choose between them.
Do you want to run a business where you are making less money but have more time? Or would you prefer to make lots of money but be busy all the time, with no time to spend for yourself or your family?
What is Network Marketing
Network marketing, also known as multi-level marketing, is a business model in which a company’s salespeople recruit other distributors to sell its products or services directly to the public.
These distributors then recruit others to sell the products and services and so on, allowing every distributor to have the same opportunity to build their own sales team from day 1.
The distributors are paid based on their sales and the sales of their recruits.
Network marketing is often confused with pyramid schemes, which are illegal scams in which participants make money primarily by recruiting others rather than by selling products.
Although network marketing can be lucrative, it’s not without risk. Many people have lost money investing in the wrong network marketing schemes that sell bad products, have bad compensation plans, or have very little growth horizon.
Many people enjoy the network marketing model, because it has little start-up expense being a home-based business, and pays a residual income to you whenever a distributor in your organization or “downline” sells a product or service.
Pros and Cons of Network Marketing
Just like any other business model or career, network marketing has its pros and cons, its benefits, and its pitfalls.
Make sure to consider each carefully, especially the cons, because those will be the aspects of the business that you will be dealing with more in order to get to the benefits described.
See if the trade-off is worth it to you.
The Pros of Network Marketing
In any economy, there are always two ways to make money: by selling a product or by providing a service.
Network marketing is the business model where you are doing both.
It is a business model which allows you to make money by selling other people’s products, and also by providing your own services to either recruit other salespeople or sign on new clients if you are selling a subscription-based service.
If you are currently employed in another way, whether it be at a job or in owning your own small business, then network marketing can help you supplement that income so that one day you may work less, have more time off, or even quit your job if you work hard enough.
The major benefit of having this supplementary income is not just the extra savings but the freedom of being able to go on vacation or take Mondays off.
Your training would be your own time spent learning the business model with the distributor that brought you into the company and learning how to best approach potential customers, and recruits in a non-invasive way that adds value to their lives.
The second point is that network marketing allows you to make more money through commissions on your downline’s sales than if they were doing it themselves; allowing you to have leveraged income from other people’s efforts, not just your own.
Because network marketing has a duplication component, you are able to earn money from leveraging the time of the salespeople on your team. Instead of trading your time for money directly, you are able to trade your time to build a team, and leverage their time to build a source of income.
In other words, network marketing has the potential to produce an unlimited income for you.
Cons of Network Marketing
This is also not without its downsides.
First, network marketing requires you to invest in your own training and also requires you to go out into the field and talk face-to-face with people about their products or services.
It will require that you put yourself out there, which can be difficult for some people who are shy or introverted by nature.
The catch that not many network marketers talk about is that network marketing requires a very large time commitment in order to build true success and at least some initial investment, which must be recouped through the sales that you make after joining.
This means making money in network marketing isn’t as simple as handing over a business card and telling people about your products or services and letting them do all the hard work for you; it will take some legwork on your end, including some advertising expense.
Risks of Network Marketing
There are few risks involved but there are things that should be considered before entering into such an endeavor: you will need to be comfortable with the fact that people might say “no” to you or your product, and that can be difficult for some people.
It’s also important to understand that network marketing isn’t a magical get-rich scheme.
Even if you do everything right, like attending all of your meetings and seminars and using all of your contacts and emailing everyone about the opportunity until they either join or tell you to leave them alone; not everyone who joins your team will follow through with their end of the bargain and build a team for you.
You may still need to put in as much effort as those who didn’t sign up but got roped into it through your constant persistence.
This is what separates those that use network marketing as a supplement to their other income sources and those who sign up because it seems like an easy way to get rich, fast.
While it may be easy money in the beginning when you’re getting started with enough people under you to produce a decent amount of income, you need to understand that this is just another service or product that people will only buy if they feel that it’s worth the cost.
This means your job isn’t just to focus on signing up new members but also retaining the ones you already have so that they continue to use and pay for your services each month.
Also, it’s important to consider the fact that network marketing companies do not usually sell high-ticket products or services. This means that you will not make as much on one sale as you will from other sales positions that pay commissions.
Earning Potential: Is Network Marketing Worth It?
The earning potential for network marketing lies in your team-building skills; if you can build a large enough organization of productive salespeople, then you will an increase in your income.
Since network marketing companies usually sell lower ticket products, commissions from the sales of products and services are not going to be substantial. Network marketing is a volume game.
Most successful network marketers build an income around $500-$2,000 per month within three years of working in network marketing, then the potential is there for earning more without having to put in too much effort after the initial set up.
It’s just a matter of figuring out how to join the right company and executing on a clear plan of action.
If you’re satisfied with $1000+/mo in passive income from your efforts, then this might be worth considering as a business option (considering all the pros and cons).
If you are interested to learn more about how you can take advantage of a network marketing compensation plan in real estate, click below to see how you can partner with the fastest growing organization in real estate today!
What is a Real Estate Agent
A real estate agent is a professional who helps people buy, sell, or rent properties.
Real estate agents are licensed by the state in which they work and are typically members of the National Association of Realtors. To become a real estate agent, you must complete the required coursework, pass an exam, and be sponsored by a real estate broker.
Real estate agents are typically paid a commission for the work that they do.
The commission is a percentage of the sale price of the property and is paid by the seller.
Real estate agents may also be paid a salary, but this is less common.
As a real estate agent, you can work with a buyer to help them find a home, or the seller to help them sell their home.
To find out what qualifications are needed for specific states or cities, visit our webpage on How to Become a Real Estate Agent.
Pros and Cons of being a Real Estate Agent
Pros of being a Real Estate Agent:
People who become real estate agents typically do so because they want to help others.
Real estate agents get to work with people solve a major problem in their lives – finding a dream home or selling a property. They also get to help people make money by helping real estate investors and flippers.
Also, real estate agents can make more money from each sale because they sell real estate, an expensive asset.
In most cases, real estate agents make a commission of around 3% on the total sale price. For a $200,000 property, the agent would earn $6,000.
Real estate agents can also make money from other sources. For example, they can earn referrals for referring a client to another agent, which is usually 25% of an agent’s total commission.
By being creative and maximizing their income potential, real estate agents can make significantly more money from each sale.
Real estate is also an evergreen industry that is unlikely to disappear. As long as there are humans on this earth, people will need a place to live and houses will be bought and sold.
Cons of being a Real Estate Agent:
There are some downsides to being a real estate agent, however.
It can be a tough job because agents often have to deal with difficult clients and situations.
You also have to be able to work independently, because agents typically do not have a lot of support from their companies.
Also, one of the main disadvantages of being a real estate agent is that they do not have residual income.
This means that they have to trade their time for money, which can be difficult to do if they are not able or willing to work a lot of hours. Because you only get paid from closing sales, if you are unable to work due to sickness or injury, you are left with no income.
It can be difficult for real estate agents to break into the industry. Not only do they have to compete against other agents, but they also have to compete against iBuyer companies that are backed by large marketing budgets.
In order to be successful, real estate agents need to be able to generate leads and close sales. They also need to be able to market themselves and their services.
If you are unable or unwilling to work a lot of hours, it can be difficult for you to make a significant income as a real estate agent.
How can you benefit from both models in 2022
Both network marketing and real estate can be great ways to earn an income in 2022.
With network marketing, you can build a team of people who sell products or services for you, and you earn a commission on their sales. This can be a great way to make money if you have the skills to recruit and motivate people.
Real estate agents can also make a good income in 2022, by helping clients buy or sell homes. They typically earn a commission on each sale, and can also earn money by referring clients to other agents.
But how can you take advantage of both business models?
1) Start a Network Marketing Business and Become an Agent:
Many readers of the article are either network marketers or real estate agents, probably comparing the earning potentials of both models and trying to decide whether or not they should change industries.
But what if you didn’t have to change industries to start a new career?
Since both real estate agents and network marketers are independent business owners, they are not tied down to one career. Because you get to choose your own hours, you can experiment with both.
If you can not decide which path is best for you, consider doing both. Become a real estate agent and join a network marketing company at the same time.
This way you can make active income from selling real estate and residual income from your network marketing team.
2) Join a Company That Offers Both Benefits
Because real estate agents are essentially salespeople who work on commissions, real estate companies have recently begun to incorporate network marketing models into their agent compensation plans.
This means that real estate agents who work at certain brokerages can actually build a team similar to a network marketing team by recruiting other real estate agents to join their brokerage and earning an override on their commissions from every sale.
Brokerages that offer these models provide a massive opportunity to real estate agents and network marketers. Not only can you earn residual income from leveraging a team of salespeople, but you are also able to earn more overrides on each sale closed because real estate agents sell more expensive products than traditional network marketing companies and therefore generate more revenue.
If you are interested to learn more about how you can take advantage of a network marketing compensation plan in real estate, click below to see how you can partner with the fastest growing organization in real estate today!
The future of network marketing vs real estate agents as careers in 2022
Network marketing and real estate agent careers are both valid options for people who want to earn a bigger income in 2022 to build a better lifestyle.
The network marketing vs real estate agent debate is a matter of personal preference: do you prefer the stability that comes with being in an evergreen industry or the freedom of having a business that gives you residual income?
If you’re still not sure which direction to go, consider what your priorities are and how much time you would like to put into earning money.
Also, remember that you can leverage both models by becoming a real estate agent and joining a brokerage that offers a network marketing compensation structure for its agents to build their own organizations.
No matter which way you go, just remember that you are the only person that can determine your success. As long as you decide to succeed at a certain profession and persist through temporary failure, you will reap the rewards and live the dream life that you have always wanted and deserved!
If you are interested to learn more about how you can take advantage of a network marketing compensation plan in real estate, click below to see how you can partner with the fastest growing organization in real estate today!