I was recently asked by one of our readers this question and thought it would make for a good subject to write about.

The question is when you are looking at a network marketing opportunity which do I feel it is best to work with? Marketing a product or marketing a service.

This is really a personal opinion type of question. I have seen people have great success marketing both products and services. It also depends on the personal preferences of a particular individual which would be better for them. But I thought it would still be worthy of a subject to write about.

Rather than tell you which is better, because I certainly cannot do that, I decided to just put out some things to consider when deciding which may be better for you.

If you are marketing a product you may need to consider if the product will need to be inventoried by you or will it be drop shipped by the company. You have probably heard the stories of people with garages full of stuff they couldn’t seem to unload. Soaps, lotions and potions as they say, and if you have to inventory the product will you also need to ship it to customers or other distributors?

I remember over twenty years ago being with a company that marketed things like that and in fact we did have to inventory those products in our garage and we had a day each week where everyone in the group would place their order and another day when everyone would go to their sponsor and pick up product.

It worked back in those days and I’m sure it still works today. This is a very legitimate company and markets very good quality products then and they still do today.

Another thing that I would look for when it comes to product based companies like this, is this. Are you required to purchase more products than you could reasonably sell or that you could consume yourself? If so you may just end up in that position of having a garage full of product that you can’t seem to unload.

Something else to consider is customer service. If your customer is unhappy with the product will the company take back the un-used portion of the product and will it issue a refund to you or your customer?

The really big one for me is the product itself. Is this a product that is somewhat of a fad or a product that people normally use and will continue to use? In other words is this a product that is the “latest, greatest breakthrough in nutritional supplements” or the “latest thing in weight loss?” Is it something your customer is going to need to try for awhile to see if they like it or if it “works” for them?

You may have noticed all the juice product companies out there today and new ones popping up all the time. I have even been involved with some of these companies and more times than not I did end up with a garage full of juice that I had a hard time unloading.

These are just some things to consider when looking at a product based company.

Then there are service based companies. These are companies that market services such as telecom or energy or health care benefits for example. While it is just a personal preference, these are the types of programs I prefer these days. With a service based program in most cases the distributor or rep is just a middle man that makes the connection between the service provider and the customer.

With programs like this there is never any inventory or shipping issues to deal with and more important is the customer service. If you are marketing a essential services such as energy or telecom there is a company that actually provides the service and they will also provide the customer service.

Another thing I personally like about this kind of business is that with most of the service type of programs available today, there is longevity in the customer retention. For example when you sign up a new customer for a cell phone service or energy service they tend to pay for these services habitually and it is very rare for a person to drop these kinds of services once they establish them. Therefore you tend to obtain customers that remain customers for a very long period of time. That is a very good thing when you are trying to build an ongoing residual type of income.

I know this is a rather short explanation of the things to consider when deciding between getting involved with a product based company or a service based company I hope that I’ve given you some things to think about that maybe you had not considered before.

The bottom line is that network marketing is a great business to be involved in. Most any of them will work as long as it is a good fit for you. I know that some people have great success marketing a juice product or nutritional product and prefer to market those kinds of products just as I know some people that have success marketing services. Like I said at the beginning it is really a personal opinion type of thing. You really need to consider what would be a good fit for exactly what you are looking for in your own home based business.

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