In the second of his two-part look at network marketing, Jeffrey Strain looks at some potential pit-falls and misconceptions to remember before taking up the challenge.

Once you have picked out legitimate network marketing companies from the illegal pyramid schemes and you have started building your down-line of sub-salesmen, then - all things going well - you should be able to start reaping the rewards.

The actual commissions received and how deep an independent distributor' down-line goes varies greatly depending on the network marketing company, although between three and seven layers is common. One thing to carefully investigate when considering a network marketing company is if there is a monthly quota which must be maintained to keep your down-line distributors' commissions coming to you. This is important, because one below-par month when you don't meet the quota can destroy years of network building. Quotas can also force an independent distributor to buy unneeded merchandise in order to not lose their down-line distributor commissions.

Don Rowe, a friend who was lured into a water filtration network marketing company a few years ago by the thought of making hundreds of thousands of dollars, now has several thousand dollars worth of water filtration equipment gathering cobwebs in his garage. "I listened to the hype and didn't consider what it would really take to succeed. Everyone made it sound so easy, and I thought all I would have to do was get my family and friends involved to have it made. I soon found out it wasn't nearly as easy as they made it out to be."

Another friend, John Horner, who is a fairly successful independent distributor for several network marketing companies, puts it another way. "The problem with many people is that they hear the claims of potential monetary gain and they think it'll magically drop directly into their bank accounts. They forget, or don't consider, that it takes a lot of hard work, charisma and leadership to be successful in network marketing, as is the case with any sales business."

What both Don and John agree on is that to be successful in network marketing, you need to enjoy sales, since your salary is based solely on the commissions you receive from your sales and recruitment. "You should only consider network marketing if you think you can successfully sell the products without ever asking your family or friends," Don stresses. Those who have little or no sales experience will find it difficult to sell the products, let alone create a network marketing business. Those with sales experience, however, or those who truly love sales may find network marketing the perfect channel for them to fully exploit their selling talents.

A great advantage network marketing offers is that you can begin it part-time while keeping your full-time position. In fact, the vast majority of independent distributors work part-time to bring in a little extra spending money each month. It also gives you the flexibility to work when you are free, letting you decide how much energy and time you want to invest each month. The start-up costs for legitimate network marketing companies are small compared to most other business ventures available. This is especially true in the service industries, where you won't need to show sample products to your potential customers. In fact, one of the largest segments of network marketing in Japan today is the long-distance telephone call back service industry.

If you are considering getting involved in a network marketing venture, you should approach it the same way as you would any other investment you would make. The biggest mistake people make when deciding to become a network marketing independent distributor is that they think it will be easy money. The potential to make a respectable second income or even a full-time income is readily possible, but it won't happen overnight. It will take years of hard work and effort, just as if you were beginning any other business in Japan. If you believe you have the sales drive which independent distributors need, however, the potential profits are better than most other part-time jobs you could ever find in Japan.

Reprinted by permission of Kansai Time Out.