What is Network
Marketing?
Network Marketing (also known as Multi-Level
Marketing -- MLM) 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.
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Receive a second paycheck without quitting your
job.
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Use sophisticated technology, yet there is no major
overhead to pay month after month.
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A new distributor can come in, turn the key, drive
right off, and be in business.
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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.
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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 theatre 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:
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Month 1: You sponsor 1 = 1
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Month 2: You and your 1 each sponsor 1 = 3
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Month 3: You and your 3 each sponsor 1 = 7
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Month 4: You and your 7 each sponsor 1 = 15
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Month 5: You and your 15 each sponsor 1 = 31
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Month 6: You and your 31 each sponsor 1 = 63
Not very impressive is it? Now, watch what
happens:
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Month 7: You and your 63 each sponsor 1 = 127
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Month 8: You and your 127 each sponsor 1 = 255
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Month 9: You and your 255 each sponsor 1 = 511
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Month 10: You and your 511 each sponsor 1 = 1,023
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Month 11: You and your 1023 each sponsor 1 = 2,047
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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.
Helping People:
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 VCRs with 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.
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