What Is Network Marketing?
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| If you've been looking for a home-based business, you have
undoubtedly come upon business opportunities that are referred to as Network
Marketing programs. Also known as Multi-Level Marketing or MLM, Network
Marketing is just a way for businesses to distribute their products. |
| Rather than using the customary distribution process that moves
from manufacturer to warehouse to wholesaler to retailer to end customer,
Network Marketing companies use a network of independent marketers to move the
products directly from the manufacturer to the end customer. |
| The independent marketers earn a percentage
of the profit on all sales they make. While it's possible and highly
recommended to earn an income by selling to customers directly, the real power
of Network Marketing is that you are allowed to build a down line of other
independent marketers below you, and earn a percentage of their combined sales. |
| Think
about it! |
| You may be a great salesman and have a few dozen good customers.
You make your percentage from all their purchases.
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| Great!
|
| But wouldn't it be better if you had a down line of 10, 100, 1000,
or even 10,000 other people also making sales and you earning a percentage of
all those sales? Of course it would. |
There is limited amount of time any one person can spend working.
By having a down line working with you, you can multiply that time.
Imagine having a down line of 1000 people each putting in only an hour a day
five days a week. In one month 20,000 hours of work would be done.
It would take one person 10 years to produce the same amount of work. |
| Now you can see how it's possible that successful Network
Marketers can make huge monthly incomes. |
| If you're ready to get started building your own Network Marketing
business Just contact us and let us know you are interested in such business
opportunities. |
| So
what is it? People Business? |
| It’s a business about helping people, making it the fairest form
of business today network marketing! |
| Really there are two different opportunities that call themselves
Network Marketing. There are the Network Marketing / Multi-Level Companies and
direct sales companies.
|
These companies are best described as a non-traditional form of
business, so what’s the difference.
In a traditional business you have lots of overhead, employees, health
insurance for your employees, office rent the list goes on and on.
Non-traditional businesses are usually worked from home. |
| This eliminates the high overhead of the traditional business. You
also get to set your work schedule. |
| Let's compare the two. |
| Network
marketing / Multi-level marketing (MLM) |
| They usually offer reasonably priced products
and services that people consume in a short time. Generally the commission
structure is less up-front then the direct sales companies, but it has a
benefit that most direct sales companies do not have and that is residual
income. |
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It costs less to get involved with this form of business, a few hundred
dollars.
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Allowing more people to become involved.
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Residual Income.
|
| Network marketing is about sales and distribution, but a different
kind of sales. It’s more of a soft sale or recommendation then the hard closing
type that you’re accustomed to with the typical salesman or saleswoman in the
direct sales. |
| Direct
Sales Companies |
| These companies are known as seller-based, they market higher
priced, usually one time sales items. The benefits of these programs are you
make higher commissions but they have very little if any residual income.
Essentially if you stop working so does your income. |
| You are paid directly on what you personally sell, so you have to
sell lots and lots of merchandise. This also limits you to the type of people
you can bring into your business as the “salesperson” type. Direct sales cost
more to get involved with usually in the thousands of dollar range, again
limiting you on the number of people! |
| How do
Network Marketing Work
|
Network marketing is a business model whose time has come. It is
literally the finest example of the free enterprise system. One in which common
people can invest a small sum of money and through sheer tenacity in
determination rise to staggering levels of financial reward and personal
freedom.
Just like your employer leverages your time, through network marketing you can
leverage the time of others.
|
| What
does this mean?
|
| Each of you is doing a small amount gathering customers and
starting new people into your business. You are looking at a business model
that will take 3 to 5 years to produce the kind of results you’re looking for. |
| So don’t give up your day job just yet. It will require 5 to 20
hours of work a week become successfully in Network Marketing. This is not a
get rich quick overnight program, never has and never will be. |
| Network marketing is based on word of mouth advertising which is
the best form of advertising. Think about it when you go out and watch a great
movie you go out and tell people about it. When discount programme shop moved
to your area, you joined their buying programme and started telling everyone
how much you saved. |
| Major advertising agencies and companies count on this. This is
one of the things that we do as network marketers. The major difference is that
we get paid for our word of mouth advertising. |
| One of
the most often asked questions is will I have to sell products and services? |
| The answer is of course yes. Think about it no one likes to have a
salesman or woman come to the door and sell them products right. We all hate to
go to the car dealers, where you are swarmed with 5 different sales people all
trying to get you to buy from them right!
|
| So how
are we different? |
| We just recommend products and services that we like and
personally use. If we know it’s good and personally use it, recommending it to
our friends and family is very easy. |
| Products
and Services |
| The most successful people in network marketing love their
products. It is much easier to soft sell a product when you really do use and
enjoy the product. So you have to have well to great things to say about your
products and services. |
| You must be a product of your product. Think about this if you own
X brand of gas station would you drive across the street to by at Y brand? Of
course not! |
| Does
it have a Duplicative Business System? |
| This is vitally important but is missing in a lot of network
marketing companies. Do they leave it up to you? Look for a company and a team
that has a system in place that you can use day one in your network marketing
business. |
| Management |
| Good management is a must in this business, what is their
experience. They train and train the people, think about this for a minute how
many times in the past year have you heard of a new start up opportunity?
|
| We get them every other day it seems like! Most if not all of
these companies are started with management that has little to no experience in
network marketing.
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| These companies contribute to the high
failure rate in this business. |
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"If
I had to do it all over again, rather than build an old style type of business,
I would have started building a network marketing business."
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| Quote
by Robert T. Kiyosaki “ Rich Dad Poor Dad”
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|
Robert Kiyosaki explains that building a network marketing
business....
... is a revolutionary way to achieve wealth.
... makes it possible for anyone to acquire great wealth.
... is open to anyone who has the drive, determination and
perseverance.
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