Diversifying your network marketing business is one of the best, yet most overlooked strategies available to the home based business owner. There are two primary reasons for diversifying your business:
1. Creating additional income streams
2. Risk management of business cycle downturns
Creating multiple income streams is not a foreign concept in the business world. To supplement, suppot or enhance their primary product line, a company will look for additional lines of business. A home network marketing business can be diversified in much the same way. Let's use the example of a primary product that is a berry based health juice. Our primary product is touted for its benefits to maintain a healthy heart. We might utilize some of the following ideas to create additional income streams:
* Market a line of blood pressure monitors, heart rate monitors or other similar devices.
* Market a health and wellness supplement that is focused on improving heart health.
* Market a heart healthy diet program
Additional revenue streams could be created by incorporating one or more of these ideas into your overall business. The sales from these supporting businesses can be used to fund the building of your primary business. These additional streams of income can be accomplished through other MLM companies or affiliate marketing relationships.
The next reason for the diversification of your business is risk management. As most of you are aware, business tends to be cyclical. There are some products and services that are highly sought after for a period of time that then experience a later downturn. If a network marketing distributor has placed all of their eggs into one basket, this downturn could prove devastating. These cycles become much more manageable with the addition of other business ventures. When diversifying for risk management, you will generally use unrelated businesses to form the foundation of your business model. For example in my own business, I am building businesses in the household cleaning, health and wellness and automotive care market segments. I use a separate company for each of these sectors. If the business of one of these companies goes bad, it will not negatively affect the other two. By using this combination, I am less likely to see a downturn in my overall business.
Diversification is the key to having an all weather business plan for your network marketing business.