Through my journey to financial freedom, I was called to the task of comparing the mortgage / real estate industry with a network of marketing. First, I clearly appreciate the property. It provided my family, and I remembered memories, the ability to help others, exotic vacations, a beautiful custom-made house, luxury cars and a lifestyle for which we are grateful. However, network marketing is really a matter of my dreams. It contains all the above things and more.
I compare the current state of our economy and the mortgage crisis with real estate with the rise and fall of Motor City. In the midst of the auto industry has cultivated more than twenty million jobs. Michigan was a Mecca. The 1950 census peaked in Detroit at 1,849,000 people, and Detroit had the highest average income and home ownership in any major US city. But since 2007, Detroit has brought our nation to ransom, and the population is less than half its former size. The reason ... The Big Three, also known as Chrysler, Ford and General Motors, no longer earn money in the American car market, forcing car factories to close through Michigan. In Flint, Michigan, there are only 6,000 general mechanics, up from 100,000 at the peak.
Cities and workers in Michigan are suffering. Politically, Michigan will lose a seat in the US House of Representatives every time a census is taken; and this is largely due to the fact that people leave Michigan in search of better opportunities. As the steep auto industry struggles, it leads to related industries such as steel mills, auto component manufacturers, road and infrastructure contractors, car makers and retailers. Autoproviders declare bankruptcy or transfer to other states. Unfortunately, jobs are no longer created in the automotive and manufacturing sectors; just a cut.
Drive along a typical street in the suburbs of Detroit, and you will most likely see an abundance of vacant houses and “Sale” signs. Here are the facts that I discovered when they were asked to compare the mortgage and real estate sectors with a network of marketing. I call it my champion and network marketing - the clear winner!
Round 1: Initial Investment
Network marketing - low initial cost. My husband, Dion and I were able to start our network marketing business for $ 200, which included 34 consumable products. You will need to create a marketing budget to divert your business. There are marketing strategies to help you attract new customers and business partners through the Internet, press releases, newsgroups, and writing articles.
Mortgage / real estate. As the owner of a brokerage company, this figure can range from 50,000 to 150,000 US dollars. We spent approximately $ 63,000 to initially open Accurate Mortgage Corporation.
Round 2: Industry Trend
Network marketing - constant growth, the industry of protection against recession. It provides services and unique consumables that each house uses every month, like soap, lotion, toothpaste and shampoo. In fact, an economist predicts that network marketing will create 10 million new millionaires by 2016. How do you ask? A partnership with a network marketing company that sells health and wellness products. Baby boomers reach retirement age and make up 65% of all expenses in the economy. There are 1 billion baby boomers worldwide. Thus, with all this purchasing power, no matter what the baby boomers want the baby boomers to receive - and they need health and wellness products.
Mortgage / Real Estate - Cyclical, with ebbs and flows. We are currently in the midst of the worst financial crisis since the Great Depression.
Round 3: Monthly Overhead
Network marketing - very little overhead; no employees and no rent. Home business. The only costs are your monthly marketing / advertising needs. Most of the work is done using the Internet, telephone and fax. I spend about 50 dollars a month. Mortgage / Real Estate - $ 3,300 approx. This includes renting, telephone, utilities and stationery, since we cut it a couple of years ago.
Round 4: License, Insurance and Administrative Issues
Network marketing is not. You are an employment representative for the established company, which deals with all product choices, research and development, delivery and storage, licensing, insurance and legal issues.
Mortgage / real estate. As an owner of a mortgage broker, I need to / do the following: be licensed as a broker through the Department of Financial and Professional Rules; licensed and registered as a loan officer; ensure that all employed loan officers and processors are licensed and registered; support the guarantee; conduct an annual IDFPR exam / audit; submit an annual license renewal that includes a financial settlement for the CPA; complete classes of continuing education; maintain the net value authorized by the state; be aware of lending laws and disclosure requirements; support each application and file for 36 months after filing the application; adhere to the rules of advertising and marketing; enter and maintain all applications made in Cook County in database SB167; maintain agreement on approval and mediation with creditors; and keep the loan issuing software, by the way.
Round 5: Expensive Training and Continuing Education
Network marketing is not. In fact, usually your downline will train you to start a successful home business for FREE!
Mortgage / Real Estate. Over the years, we have sent thousands of dollars for training and continuing studies for loan officers and processors.
Round 6: Weekly Hours
Network marketing - Approximately, 15-20 hours.
Mortgage / Real Estate - Approximately 40-55 hours.
Round 7: Type and frequency of compensation
Network marketing. Each month, networkers earn bonuses and current residual income. Residual income is the income that continues to be formed after the expiration of the initial efforts. Singers, writers and actors earn a residual income. One of the great advantages of residual income is that once things are activated, you continue to make money from your initial efforts, getting time to devote yourself to other things, such as creating more residual income streams. Note: the business with which I decided to cooperate even allows us to conduct our business to our children when we go through.
Mortgage / Real Estate - As soon as you close the deal, you get paid. This is considered a linear income. If you close the deal that you are paid, if you do not close the deal, you are not paid. Work an hour, receive a salary per hour. This is a one-shot compensation in the form of wages, salaries, commissions or salaries. If you are given a choice, which would you prefer: (1) Strengthen work and pay only once through linear income or (2) Work once and get a permanent payment for the rest of your life due to residual income?
Round 8: hours spent closing 1 client
Network Marketing - Approximately 1 hour.
Mortgage / Real Estate - Approximately, 15-30 hours.
Round 9: Monthly Residual Income Potential
Network Marketing - Unlimited Residual Income Potential.
Mortgage / Real Estate - No residual income.
Round 10: factors that affect the ability to close
Network marketing. Must have a payment method, such as a credit card or a checking account.
Mortgage / Real Estate. There are many factors that affect our ability to close a loan. These items include quality checking at home; acceptable score; credit confirmation; qualified income; sufficient money in reserves; sustained stocks and funds to close; experienced title holder; without reservation; type of property; approval of the appraiser; changing underwriting guidelines; availability of the program; fluctuating interest rates; legislation and a variety of other factors.
Round 11: number of documents per client
Network marketing. Most companies allow online registration - for free. If you have a preference, usually 2 pages.
Mortgage / Real Estate - Approximately 30-80 pages.
Round 12: Different Pros and Cons
Network marketing:
(1) As a home business owner, you can deduct a significant amount of your expenses, but please seek advice from your tax advisor.
(2) Does not work for work as it is a home based business. Therefore, you will save money on gas.
(3) You do not need to worry about becoming a victim of a mysterious round of layoffs or layoffs. You yourself are busy.
Mortgage / Real Estate:
(1) As a self-employed mortgage / real estate professional, you can also deduct a lot of your expenses, but please consult your tax advisor.
(2) Moving to the office is necessary.
(3) More than 1 million unemployed professionals. The country's second largest independent creditor suddenly closed its doors without warning, Fannie Mae and Freddie Mac were seized by the government, and since the end of 2006 over 300 lenders have been closed! There is no security.
And the winner is ... surprise, surprise ... NETWORK MARKETING! Pound for pound in the network marketing industry has many advantages over mortgage and real estate. If you love the mortgage business and real estate, and he provided you with as many opportunities as he gave to my family, and I, by all means, start, sell and keep your licenses active. But please remember Motor City and start working on your plan B.
