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What Exactly is Network Marketing?
Network marketing is a multi-billion dollar industry involving
millions of independent business people around the globe. Large
companies like Gillette, Colgate-Palmolive, Kleeneze Europe,
AT&T and others, have all turned to network marketing because of
the very real edge it gives them in both domestic and
international marketing.
Network marketing is a 'BIG' small business, which offers
everyone, with or without business experience, the opportunity
to start and run a home-based business that works. It is the
last frontier where 'the little guy', (people like you and me)
can make it BIG.
NETWORK MARKETING Vs. TRADITIONAL MARKETING
The traditional way of marketing products is to move them from a
manufacturer through a network of middlemen. National
Wholesalers, regional wholesalers, Cash & Carry warehouses,
retailers, - the 'middlemen' - all add their 'valueless'
percentage to the price of the product.
By the time the product or service reaches you, the end user,
you're not only paying for the product, but a percentage of the
price for each and every middleman in the network.
In network marketing there are no middlemen. Instead of paying
them, a network marketing company will pay you for whatever
amount of product you cause to be 'moved'.
As a sole individual operating alone, the amount of product or
service provision you could 'move' from your own efforts, would
be relatively small. In network marketing however, the amount
you 'caused' to be moved indirectly could be huge.
Here then is the essence of a network marketing compensation
plan. For not only will you be compensated for the product or
service provision you personally cause to be moved from your own
direct efforts, you will also receive indirect compensation for
the product or service provision that your 'organisation'
'causes' to be moved.
YOUR 'ORGANISATION'
To be successful in network marketing you will need to build an
'organisation'. That is to say you will need to 'share' the
benefits of both the products/service provision and the business
opportunity with others. In network marketing this is referred
to as your 'downline'.
The 'serious' money to be had in network marketing is to be had
from what is termed as 'over-ride' commissions from the
'movement' of product or service provision from the 'downline'
your 'sponsor' will help you to build.(In network marketing it
is the responsibility of your introducing 'sponsor' to help you
build your 'downline'.)
All you need to do initially to build a 'downline' is to 'share'
with others the information about the products or service
provision and the business opportunity on offer.
Theoretically, if after 'sharing' the information with others
and you subsequently attracted just five SERIOUS individuals who
decided to join you in your network marketing business - for
illustration purposes only - your 'downline' could equate to the
following after five levels of geometric growth:
You
You sponsor just 5 SERIOUS people into your business.
Your level 1/ 5
They duplicate your efforts and each sponsor 5 SERIOUS people.
Your level 2/ 25
These 16 duplicate your efforts and each sponsor 5 SERIOUS
people.
Your level 3/ 125
These 125 duplicate your efforts and each sponsor 5 SERIOUS
people.
A little arithmetic will tell you that's theoretically a total
of 3,905 people on your fifth level.
AN UNLIMITED INCOME POTENTIAL
Imagine the power of a business-building plan that would pay you
an agreed 'over-ride' commission on each product or service
provision 'moved' by each and every one of those 3,905 potential
distributors in your downline. Network marketing then is about a
LOT of people 'moving' a little product. The more people you
introduce, the greater your income potential. Notice that I said
SERIOUS people. You may find that you have to introduce 20, 30
or even 50 new distributors before you find a person who Gets
SERIOUS about the business.
If you want to toss aside the potential earnings on offer as
being ridiculous or impossible - DON'T. I personally have met
people who are earning $5,000 to $50,000 per month (yes per
month) from network marketing for part-time effort. Though the
majority of networkers earn hundreds rather than many thousands
per month, (most working part-time) it must be understood then
that if you are to make serious income, you must put in serious
effort. No free lunches here! The professionals in Network
Marketing (those that earn HUGE incomes) recognise that to
become successful you must "go through the numbers". That is,
sort through lots and lots of people until you find those people
who get SERIOUS about the business.
There are two prongs to earning in Network marketing. First, is,
of course, building a down line. But remember, a large
organization of people who do NOTHING other than sponsoring
others, earns NOTHING!
Second is, BALANCE and CONSISTENCY. Spend some time building
your organization yes, but also spend time PROMOTING your
products/services to others and use the products/services
yourself!
SO HOW DO YOU CONVINCE PEOPLE TO JOIN YOUR BUSINESS?
The simple answer is you don't. You want those who convince
themselves. If they are truly looking for a way to become
successful, then they'll come to you to go after it. The key to
achieving success in network marketing is not to be had by
convincing people, but by helping those (SERIOUS) people who
want to become successful themselves.
WHERE DO I FIND PEOPLE TO JOIN ME IN MY BUSINESS
As it has been estimated that 20% of the UK working population -
that's approximately 6 million people - would be interested in
starting their own business, the marketplace in the UK alone is
truly enormous. With a recent MORI poll indicating that 50% of
16 - 25 year olds were interested in starting their own
business, the marketplace is actually growing.
One of the most important things to recognise is that the most
precious resource available to you is in the new blood - the
millions of business opportunity seekers who are not presently
involved in networking. For it is there that you will find the
success stories of tomorrow for your downline organisation.
The impact of the Internet on network marketing will be
absolutely HUGE.
CHOOSE THE RIGHT COMPANY
In any successful business it is the quality of the product or
service that is being offered that is the single most important
aspect for its success.
The most lucrative compensation plan in the world will NOT
provide you with an on-going residual income if the product or
service doesn't provide tangible value and benefits for yourself
and your customers.
Provide a product or service that people need, want, coupled
with a business opportunity they are willing to tell their
friends about and you can build yourself a business empire in
network marketing!
TIPS FOR THE TOP?
Tip# 1/ If you're already involved in a network marketing
programe and you're being 'sold' primarily on the benefits of
the compensation plan with the product or service being offered
as a secondary consideration, then read the above paragraph
again and MOVE to a company whose products or services 'move'.
Tip# 2/ Ask yourself this important question: Is the network
marketing programme I'm considering joining one that I'm willing
to share with my friends and family? The comment "I don't want
my friends and family to know what I'm doing, l want to become
successful first - then I'll introduce them!!" is almost
legendary in network marketing. (A comment oftimes made by
failed networkers who had no real belief in the company or the
products they were promoting in the first place!) If you
immediately feel comfortable with the prospect of letting your
neighbours, your friends and your family know about the network
programme you're considering joining, have belief in the company
and its products/service provision, have confidence in your
introducing sponsor, then you have probably chosen the right
company to work with.
Tip# 3/ Don't be impatient by expecting things to happen
overnight! Building a moderately productive downline in any
network marketing programme takes TIME - many months not many
weeks.
Tip# 4/ Read tip 3 again and avoid like the plague any company
which suggests otherwise or does not require you to invest in
the development of a distributor base. If your prospective
sponsor in the network marketing programme you're being invited
to join doesn't stipulate that it takes TIME to build a
significantly productive downline then it's not a business your
being invited to join but a game - and one you're bound to lose!
Tip# 5/ If you want to dine with the classes - deal in products
or services wanted by the masses!
If you have tried Network Marketing before and failed, you
probably chose the wrong company, the wrong sponsor, or the
wrong product.
IS NETWORK MARKETING FOR YOU?
A message from the Prime Minister the Rt. Hon. Tony Blair MP to
the Direct Selling Association.
" I'm delighted to offer my support to the Direct Selling
Association and point out to you how big a part direct selling
is of our domestic market in the sale of goods and services.
We've got something like 13% of the entire home shopping market
done by direct selling, almost half a million people are
involved in direct selling and 40,000 of those are doing it full
time...It also shows how, in a changing economy and changing
labour market, there are great new opportunities out there.
I want to say to you that this is a good thing to be involved in
and that we, as a Government recognise the tremendous
contribution that people who are taking up direct selling
opportunities can make to the overall prosperity of the economy.
So it is well worth doing, well worth being involved in and I
wish those of you who are engaged in it, the very best for the
future."
The above is the text of a video message given to members of the
Direct Selling Association on the occasion of the DSA's Annual
Conference held at Hinckley Leicestershire on 5-6 May 1999.
TO SUM UP
Network marketing isn't for everybody. While some people swear
by network marketing, others simply swear! (Read tip No. 3 again
to find out why). To succeed in network marketing you will need
determination, commitment, enthusiasm and most importantly - a
burning desire for success. If you believe you have those
qualities get back to the person who provided you with this
information TODAY.
About the author:
Jason Oickle enjoys teaching people how to be successful online
Professional Internet
Marketing Course