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Network marketing vs stock market: what are the risks


If you have had a friend or family member approach you about wanting to ‘join their team’ to sell things, you have had a run-in with network marketing. If you’ve invested in a business and have shares, then you have had some experience of the stock market. While these are both good ways to generate an income, they are both very different. So how can you identify each and what are the pros and cons? Here is a little more information for you. Then you can decide if either way could be a good way for you to make money.

What is network marketing?

Network marketing and the stock market are both things that people get into to make money. There are no two ways about it. It is the reason people start looking into it. If you are into investing, then you want to see a return on the investment that you have made. So you’ll want to see the value of the stocks you’ve invested in rising.

How does network marketing work?

With network marketing, as the name suggests, the aim is to create a network of people around you. They join the team and will recruit and sell too. This gives you a residual income, as you will get something for everything that they sell. It can be hard work to start with, but once a team is established, you are earning an income with little or low effort. Both of these need an element of risk for both of these markets. Both require hard work, but there isn’t any guarantee on either that you will be successful. Plenty of people have shown that you can, though.

The team

If you were thinking of starting one of them, then the fact that you join a team in network marketing is a bit of a help. The team leader is there to help and answer questions. So as long as they train you well, you will be able to sell and generate a team of your own. You’re out on your own a little more with the stock market.

What to look out for

If you are a beginner, then it can feel really daunting. You could work with a trader or investor if you wanted someone to guide or do it for you. You could also consider something like millionaire blueprint. It is an auto-trading software which you can use to help guide your investments. So if you think you’d need a bit of guidance to start with, it could be a big help.

Both of these two markets are open to scams and fraud. Unfortunately, that is the case with most things these days. The stock market tends to be seen as the more real or legitimate of the two, though. Network marketing often gets confused with pyramid schemes where only the people at the top get any profit. Network marketing can often be unregulated, so it is something to think carefully about.

To conclude, they are both areas that need to be approached with a certain level of caution. They can both be ways to make plenty of money, but they do hold an element of risk. So do your research before investing in either.

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Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best.We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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