I'd like to discuss the option of starting a home based business with a direct selling company.

More specifically, I'd like to discuss network marketing. This term is often used interchangeably with multi-level marketing (MLM).

Now, for those who have an image of someone in a bad suit inviting you to a backyard barbecue and then doing a bad job of trying to talk you into joining his company because of the huge income potential and the ability to make 10K the first week..... PLEASE know that this is not the Network Marketing industry of 2010.

Let me start by saying: We are all in network marketing. Yes, that's true, but most of the time we don't get paid for it. Let's say you lost 15 pounds and a friend asked you how you did it - you told her it was with Weight Watchers. When that person goes to a local Weight Watchers meeting and pays money to join a 10 week program, does Weight Watchers pay you? When I'm out driving my hybrid and someone asks me how I like it - I tell them I love it. Do you think that Honda sends me a check when that person orders a hybrid? No. Those are just two examples of network marketing. Think of recommending a restaurant, new movie, etc. It's the same thing.

Network marketing is simply marketing a product through a network. Let's say that I am an associate of the ABC company. The ABC company produces soap. Their soap is superb, at least I think so. What do I do? I tell people, "hey, I found this great soap...it smells great, lasts long, bubbles great, want to give it a try?" They say "Sure..." When they try it and decide to buy it, I just made a sale; a sale that I will get some kind of compensation for. Is it always that easy? No, of course not...but that's the general idea.

Network marketing is a simple business concept. The manufacturer manufactures a product or a company provides a service. The network marketer finds a consumer for that product or service. The consumer orders through the network marketer directly from the company. There are no advertising costs, no additional distribution costs, no retail space to rent to display products, no additional shipping or warehousing. The company saves millions of dollars by not having a traditional distribution system. The millions saved are used for two main purposes. First it is for extensive research and development. It is for this reason that companies that distribute their products through a network marketing system usually have superior products. Second, it is paid back to the network marketing associate who placed the order and several others in that associate's team in the form of commissions.

A network marketing business can be worked along side your current full time job. It can be built over time and possibly eventually replace a full time income. It is not a get rich scheme. If someone tells you it is, my advice would be to move on to another company. It can be started with minimal start-up costs. This is what separates it from a traditional small business and this is what makes it low risk. There is no space to rent, no employees to pay, no attorney fees to get started, no trademark to pay to use. But, you have all of the advantages of owning your own business, such as tax advantages, building an asset that you own, possibility of financial and time freedom. You can think of this as franchising yourself.

So, that's a high level description of network marketing and some reasons why this industry should be considered when investigating your options for starting a low risk business.

If you are searching for a network marketing company, the best place to start is at the Direct Selling Association. From their website (www.dsa.org): The Direct Selling Association (DSA) is the national trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers. Approximately 200 companies are members of the association, including many well-known brand names.