What is Network Marketing?
Network Marketing is an efficient method of distributing a product or service to the end consumer. It is a marketing method, and each marketer is an independent distributor, not a company employee. Each has his or her own business!
It is the most effective, powerful marketing system in the world. And it is the perfect vehicle for home based business and the decentralization of business which is rapidly approaching.
Yet, while more and more people are enjoying its benefits, most are still very unfamiliar with it.Traditionally, 80% of the cost of getting a product or service to the consumer is marketing and distribution related.
Network Marketing companies eliminate the wholesalers, eliminate the high cost of centralized advertising, eliminate the high cost of having employees, and deliver the product or service directly to the consumer with the assistance of independent contractors; i.e., distributors.This greatly reduces the expense of getting the product or service sold, and the increased profits are shared with the distributor network.
Benefits of a Traditional Business without the Headaches…
You have no employees for which you have to pay a dime of social security, health care benefits, unemployment — nothing.
If one of the distributors in your downline slips and falls, you don’t get a workers’ comp filing.
- Receive a second paycheck without quitting your job.
- Use sophisticated technology, yet there is no major overhead to pay month after month.
- A new distributor can come in, turn the key, drive right off, and be in business.
- There is training that needs to be done, but it’s a heck of a lot less than to run a McDonald’s.
- You can have a duplicatable business system that Richard can give to Mark, who can give to Doris, and so on.
- Enables individuals just like yourself to create an income opportunity of their own with very low risk and very high potential returns! Network Marketing is not an Employee/Employer Relationship
Network Marketers do not work for the company; you work with the company.
The business relationship is a tangible and dynamic partnership where the company provides: the products and packaging, research and development, capitalization, financial management, legal and regulatory compliance, data processing, administration, order taking, purchasing and production, quality control, product satisfaction guarantees, warehousing, shipping, creation and production of marketing materials, field and leadership training, incentive programs, etc.
How about some examples
Just imagine you’re a salesperson in a large department store, and each of your customers becomes a salesperson for the product you are selling. Plus, you get a percentage of what they sell wherever they go after leaving the store! In a traditional business organization, this would never happen.
In Network Marketing companies, this is exactly what takes place!
Or again, if you are like most people, when you like something, you love to share it with others. How many times have you told people about a movie you really liked? Maybe you told 10 people about it, and those 10 people told 10 people each about it and those 100 people told another 10 people each about it.
That’s 1000 people that went to see that movie because of your referral! Wouldn’t it be nice if the movie theater paid you a percentage for each person you referred? Here again, in traditional business, this will never happen. Yet that is exactly what takes place in a Network Marketing Company!
The first 10 people would be your first level. The second (10 x 10) 100 people would be your second level. The third (100 x 10) 1,000 people would be your third level.
If that movie theatre were a Network Marketing Company, you would be receiving residual income from those movie tickets right now!
In Network Marketing, as you already know, you are usually called a Distributor. The people you refer to the company (sign up or sponsor) are usually called your Downline. By referring people to the company, you will be entitled to receive commissions.
In the above examples, those customers leaving the store would be sponsored as Distributors by you and would be placed in your downline. Likewise, all those people going to the movie would be sponsored by you, or by someone you sponsored, and be placed in your downline.
The power in Network Marketing is in the duplication process. The geometric progression can be really astounding. This incredible multiplying effect can build a group of hundreds or thousands of distributors, each one earning commissions from not only their efforts but also the efforts of hundreds or thousands in his or her Downline.
No matter when you join a Network Marketing Organization, you are always the head of your own company! Unlike conventional corporations with one Chief Executive at the top, in Network Marketing each person is the Chief Exectutive of his or her own independent organization.
If you were to sponsor just 1 new distributor into your organization each month, and taught them to do the same, let’s see how many people you would have in your organization after one year:
- Month 1: You sponsor 1 = 1
- Month 2: You and your 1 each sponsor 1 = 3
- Month 3: You and your 3 each sponsor 1 = 7
- Month 4: You and your 7 each sponsor 1 = 15
- Month 5: You and your 15 each sponsor 1 = 31
- Month 6: You and your 31 each sponsor 1 = 63
Not very impressive is it? Now, watch what happens:
- Month 7: You and your 63 each sponsor 1 = 127
- Month 8: You and your 127 each sponsor 1 = 255
- Month 9: You and your 255 each sponsor 1 = 511
- Month 10: You and your 511 each sponsor 1 = 1,023
- Month 11: You and your 1023 each sponsor 1 = 2,047
- Month 12: You and your 2047 each sponsor 1 = 4,095 people!
And how many of those 4,095 people did you personally sponsor?
Amazingly, Just 12!
That’s Geometric Progression and that is how Network Marketing is designed to work!
BUT I’M NOT A SALESMAN OR SALESWOMAN !
If you can push play on a tape recorder, you can succeed in this business.For long distance sponsoring, the company has already created videos, audio tapes and printed material.
You just need to take a little Post-It note and write a handwritten note to the individual.Previously, network marketing tended to work best for aggressive, sales oriented entrepreneurs.
Today, the technology finally offers the common non-sales type person a realistic promise of financial freedom.
Through new systems and technology, the average man or woman — not just the super salespeople — can enjoy the fruits of entrepreneurship while avoiding many of its hardships.
Let the System do the Work
The new technology takes away the need for extraordinary people.The system simplifies, standardizes, and automates the most difficult aspects of the business.No longer do distributors need to stockpile their own inventory and keep track of all the paperwork.Most companies have you simply direct customers to a toll-free 800 number.The Company fulfills the order, credits the distributor for the sale and generates a computerized commission check and detailed report at the end of the month.
What makes network marketing work is the division of labor between distributor and parent company. A good company takes care of everything except sponsoring.The new type of network marketing has evolved so that the distributor functions mainly as a human contact point through which the company’s communications or information stream is channeled.
Someone who doesn’t have strong communication skills, strong selling skills, or strong management skills can still prosper. The idea is “You do what you do best, and we, the company, will do the rest.”
Three-way meetings and conference calls make life easier for those new to the business.
All you have to do is bring your prospects to meet with your sponsor. The sponsor does all the presenting.
You just watch and learn. You never have to feel you are alone, since your sponsor will do the demonstration for you.
Corporate America is starting to see the advantages of Network Marketing. Such notable companies as MCI, Sprint, Colgate Palmolive, Gillette and Coca-Cola are among those who have launched pilot MLM programs in some product categories.
Wage Slavery versus Geometric Growth
Most people are trapped in a system of wage slavery. They traded their labor for a fixed wage or hourly rate tied directly to the amount of time they spend on the job. This is called “Linear Income.”
Network marketing can been defined as “Any method of marketing that allows independent sales representatives to sponsor other sales representatives and to draw commissions from the sales of those who are sponsored.”
Thus, we are not in direct sales, which limits the income dramatically. Rather we can generate “Leveraged Income”. We draw commissions from several levels or generations of people.
Strength in Numbers and Residual Income
Author W. Clement Stone once wrote that the best sort of money to use in a business endeavor is — Other People’s Money. But Network Marketing goes two steps beyond that.
We use OPT – (Other People’s time, talent and technique) and OPE (Other People’s energy, education and enthusiasm). In short, we use “People Power”. Other people are our greatest resource in network marketing.
Thus, contrary to popular belief, success in network marketing does not require exceptional sales skill or extensive personal contacts.
With the marketing plans outlined here, you can earn income 24 hours a day by leveraging your time. You do this by duplicating a simple success formula that your sponsors have developed. With this business your marketing team is self-replicating, self-motivated and self-financed.
There is so much power in this business. Leverage is one aspect. In any other profession, you’re paid only for your own efforts. But the trick is to do what J. Paul Getty meant when he said he’d rather make one percent of 100 people’s efforts, than 100% of his own.
Building a Network Marketing organization enables each of us to do just that. It’s as if, instead of being a one or two income household, you’re a 500 or 5,000 income household — and that is just incredible.
With many of the programs detailed here you can create and continue to generate residual income for the rest of your life.
Normal businesses give residual headaches. Network Marketing gives you residual income.
Total Freedom — Learn How to Leverage Your Time
The personal freedom is astounding. You can live wherever you want to live. You can work at home and make your own hours. Your residual income keeps flowing in, even if you take a couple of weeks off.
Be in charge of your life! Be in charge of your time!
Don’t be a stranger to your own children who may be asleep when you leave in the morning and in bed at night when you return. Network Marketing gives you more free time ultimately, and certainly gives you time flexibility.
You can put other things first, when you have to, and your business will still function.
The concept of Time-Leveraging is one of the most exciting aspects of this business. It allows you to generate income not only from your own efforts, but also through the efforts of others in your organization.
Even if you can only work a few hours a week to get your business started, you could receive a second paycheck without quitting your job.
Aside from being rewarded for your own efforts, you could also earn income from the time spent by others you sponsor and train to develop their own business.
If you don’t have a lot of time you can still find people who do and still capitalize on this opportunity. Network marketing is the ultimate in freedom — the freest of free enterprise.
How much freedom do you actually have? Is time missing the most? Well, the only way to have more of it is to create your life — and your work — with more time to do what you want.
Zig Ziglar says,
“I believe that you can get anything in life you want if you will just help enough other people get what they want.”
Network Marketing is a fun business. It’s the only business in the world I know of where you can go out and help people get what they want … and also change their lives for the better … and in the process, get all that you’ve ever dreamed of and more.
The saying goes “It’s lonely at the top.” That’s only true when you have to step on other people to get there, but that just isn’t the way to do it. I’m happy to report the best way to success comes from helping others.
Look For a Company Who’s Support System is Superb:
Most companies in the Network Marketing Industry offer a business opportunity complete with another company that will take care of all research and development, payroll, shipping, taxes, legal problems, etc.
This company will provide expert consultants free of charge to train and personally advise you for an unlimited number of hours for the life of the business.
Even though you’re in business for yourself, you’re not all by yourself. That’s one of the special things about Network Marketing.
Check out our recruiting systems.Is this a Pyramid?
There have been many abuses of network marketing in the past, just as there have been with franchising, real estate, stock market and every other form of business.
But network marketing is now 50 years old, and is now being used by Coca-Cola, Gillette, Colgate-Palmolive, MCI, Sprint, AT&T, Rexall, Primerica, IBM, GM, and others.
Please take a look at Network Marketing and see if it will provide you the security and freedom you need to capture and keep your American Dream. You have nothing to lose. And think, for just a moment, about what you might have to gain!
Why Network Marketing All of a Sudden?
There are two major reasons why network marketing has become a much more viable distribution method in recent years — and, therefore, an excellent business opportunity.
First, the consumer market has become too difficult to reach.
People have remote control, and there are hundreds of cable channels now, so many people do not watch commercials anymore.
Traditional mass marketing methods are quickly losing their effectiveness.
However, people do listen to and believe the people they know. The success of books, movies and restaurants are largely determined by this word of mouth advertising.
Network marketing companies rely on this powerful concept to efficiently market quality products to millions of their consumers.
Second, advances in information technology has helped to make network marketing efficient and dependable. Voice mail, fax machines, electronic mail, the world wide web, video tapes, satellite links, and conference calls have also made communication between large distributor forces the company rather simple and effective.
Ironically, some of the same technologies that have allowed traditional business to cut millions of jobs also makes possible an innovative marketing concept that is offering hope and opportunity to people from all walks of life.Network marketing uses this technology to support people, rather than replace them.