What Is Network Marketing?
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What Is Network Marketing?
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Why is "network marketing" considered the preferred approach to building a business? Because it's the smart way to build a business. It's what we call "working smarter rather than working harder".
J. Paul Getty, the oil magnet, once said, "I would rather have 1% of the efforts of 100 people than 100% of one person." Getty is saying he prefers to teach one person and let that person teach one person and so on . . . something we call "DUPLICATION" resulting in exponential business growth, which creates exponential growth and income potential.
You see, there are two equalizers for all of us . . . death and time. Each of us has only 24 hours in a day . . . no matter who or what we are . . . therefore the business-minded entrepreneur knows how to leverage time!
Instead of business-building results being based on one person's efforts over a period of 24 hours, it becomes possible to have numerous people working for you during that same 24 hour period. What's exciting is these people are working for themselves as well.
Multi-Level Marketing, through a networking process, gives us the hope of building a huge business empire through a process of duplication, resulting in considerable incomes for the participants. That is the MLM part of The Great American Dream . . . A Business For Everyone.
How do I feel about Multi-Level/Network Marketing? I love it! I love the concept! I love what it can do! MLM can give a person hope! It can motivate a person to do things they thought they could never do! MLM can cause many sleepless nights because of one's own excitement. MLM creates a special bonding among other networkers! MLM allows us the hope of The Great American Dream . . . Owning your own business!
| Why Network Marketing? |
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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, 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 have 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 within a 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.
| What is MLM? |
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MLM is an efficient method of distributing a product or service to the end consumer. It is not a business itself. It is a WAY of doing business. It is a marketing method, and each person who markets the products or services is a representative (distributor) of that company, NOT an employee. In other words, it is his or her own business. A distributor does not work FOR the company, but works WITH the company!
MLM is the most powerful and effective marketing system in the world!!
It is done via word-of-mouth recommendations. A distributor will
recommend a product or service to another
individual, then that person buys the product or service and recommends it to others, and so
on. This marketing method allows a distributor to
recruit other distributors, and then they do the same,
and so on. This allows you to acquire an organization of distributors.
They are now in your "downline". You could end up with a
large "downline" organization all buying and marketing products for the
company you choose. You will
receive a commission check from the sales of those distributors,
and they, in turn, will also receive a commission check
from the sales within their own "downline" organization. It is a perfect way
for people to own their own home-based business, as the industry is
growing very rapidly! It presents you with a tremendous opportunity
that is very exciting!!
| Benefits of a Traditional Business Without the Headaches |
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Traditionally, 80% of the cost of getting a product or service to the end consumer is marketing and distribution. The traditional way went through many sources -- manufacturer to distributor to wholesaler to sales to retail and then to the end consumer. MLM companies eliminate wholesalers, high cost of advertising, having employees, AND they deliver product or service to the end consumer. This greatly reduces the expense of getting the product or service sold. Increased profits are shared with the distributors.
With MLM you can now have the
benefits of a traditional business, but without the headaches. It is
easy to get started and does not require a major investment. Receive a
second paycheck without ever quitting your job. Some training is
required, but it is less than running a fast-food chain. There are no
special skills required and most MLM businesses are very duplicatable.
You now have an income opportunity with very low risk AND can have a
very high potential return.
Why is an MLM form of distribution so attractive as a business?
In MLM you have the opportunity to earn a residual income. That's what attracts a lot of people to this business. Your income doesn't depend on you working a certain amount of hours. It depends on you helping and teaching others to duplicate what you're doing. It's really just that simple!
If you're motivated and willing to put in the time, effort and persistence needed to achieve your financial goals, MLM provides the opportunity and the vehicle to achieve those goals. Your growth and your rewards in this industry are limited only by your dreams, desires and commitment . . . it's up to you!! Your success depends upon how much support and help you provide for other people. The more you help people achieve everything they want -- the better the rewards! I always say, "if you help others achieve their goals and dreams, you automatically will achieve yours."
A representative of an MLM company, with a little consistent effort and by following a few basic principles, over the course of a year or two can earn a decent second income on a part-time basis. Perhaps you want extra spending money, a new car, pay your mortgage off quicker . . . or you can go all out and achieve complete financial independence. Our "free enterprise" system allows you to be the best you can ever be . . . and lets you help others be the best they'd like to be. It's really truly amazing! Can you imagine the feeling you'll receive knowing you've helped so many people achieve what they've wanted. Incredible!!
What Can MLM Offer You?
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MLM provides a fantastic opportunity for you! The beauty of MLM is given to all of us equally. What we do with that opportunity makes the difference! We can earn a little, or we can work hard for the first year or two and earn a very decent income. The choice is yours!! You choose whom you want to work with and what the hours or days should be. You choose whether you work from home, an office or while traveling. You choose if you want to work person-to-person, use mailers, use the phone or work with small or large groups of people, and now you can choose to build your business with the help of the Internet. This is your business and every aspect of your business is up to you -- it's your choice!
Some key ingredients in this industry are to be enthusiastic, positive and involved!
Once you understand the unlimited potential of MLM, you'll begin to discover your dreams and desires. Perhaps you haven't allowed yourself to consider these dreams. No matter how small or large your dream is, if you really believe in it and are willing to put forth consistent effort, you can and will succeed! And if you have a passion for your chosen business, it will happen faster than what you might imagine! As said by Walt Disney, "All our dreams can come true IF we have the courage to pursue them."
| The Concept of Duplication |
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MLM is based on the concept of duplication. Once you join an MLM company you personally use or distribute the MLM company's products. You also recruit other distributors. They are then placed in your downline sales organization. In turn they use or distribute products, plus they recruit other Distributors. In other words, they duplicate you. You can recruit and sponsor as many people as you like.
An MLM company will pay you a commission check on the sales made by anyone you refer or recruit, and it can be many levels deep. You are paid commissions on the sales volume of your downline organization, and depending on how hard you work, you could have a lot of people in your downline. Remember, even though you are getting paid commissions based on the sale of product in your organization, you are really getting paid for TRAINING your downline . . . and it is these two points that separate MLM from a pyramid scheme or money game. You receive a commission check that is based on a compensation plan. This plan should motivate a representative to use and retail the product or service, recruit other individuals into the business and should also make them want to train and help their downline organizations grow.
MLMers do not work FOR the company; they 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.
That's 1110 people who 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 were responsible for referring? Here again, in traditional business, this will never happen. Yet that is exactly what takes place in an MLM!
| YOUR Downline |
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In MLM, the first 10 people you told about the movie would be your first level. The 100 people (10 who told 10) would be your second level. The 1,000 people (100 who told 10) would be your third level. If that movie theater were an MLM, you would be receiving residual income from those movie tickets right now!
In network marketing, the independent marketer is usually called a distributor. The people they refer to the company (the ones they personally sign up or sponsor) are called their downline. By referring people to the company, distributors are entitled to receive commissions on SALES THEIR ORGANIZATION OF DISTRIBUTORS make.
In the examples shown above, those customers leaving the store would be sponsored as distributors by you and would be placed in your downline. You would be earning commissions on all the sales they make, in the store and anywhere else they sell.
Likewise, all those people going to the movie would be sponsored by you, or by someone you sponsored, and be placed in your downline. You would be earning commissions on those movie tickets purchased by those you personally told about the movie, and residual income in the form of commissions from those ticket sales from referrals of your sales organization. WOW!! This is FUN!
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The power in network marketing is in the duplication process -- 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 of distributors in their Downline.
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 distributor -- 1 in your sales organization
Month 2:
You and your 1 each sponsor 1 new distributor --
2 new distributors + 1 already sponsored = 3 distributors in your organization
Month 3:
You and your 3 each sponsor 1 new distributor --
4 new distributors + 3 already sponsored = 7 in your organization
Month 4:
You and your 7 each sponsor 1 new distributor --
8 new distributors + 7 already sponsored = 15 in your organization
Month 5:
You and your 15 each sponsor 1 new distributor --
16 new distributors + 15 already sponsored = 31 in your organization
Month 6:
You and your 31 each sponsor 1 new distributor --
32 new distributors + 31 already sponsored = 63 in your organization
64 isn't very impressive is it? Now, watch what happens:
Month 7:
You and your 63 each sponsor 1 new distributor --
64 new distributors + 63 already sponsored = 127 in your organization
Month 8:
You and your 127 each sponsor 1 new distributor --
128 new distributors + 127 already sponsored = 255 in your organization
Month 9:
You and your 255 each sponsor 1 new distributor --
256 new distributors + 255 already sponsored = 511 in your organization
Month 10:
You and your 511 each sponsor 1 new distributor --
512 new distributors + 511 already sponsored = 1,023 in your organization
Month 11:
You and your 1023 each sponsor 1 new distributor --
1,024 new distributors + 1,023 already sponsored = 2,047 in your organization
Month 12:
You and your 2047 each sponsor 1 new distributor --
2,048 new distributors + 2,047 already sponsored = 4,095 people!
And how many of those 4,095 people did you personally sponsor? Just 12! That's Geometric Progression, and that is how network marketing is designed to work!
| I'M NOT A SALESMAN! |
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In the past, network marketing tended to work best for aggressive, sales oriented entrepreneurs. Today's technology offers the 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.
No longer does the distributor need to carry extensive inventory and knock on doors to sell a lot of product each month to qualify for commissions. Instead, the best MLM companies are automating the process and handling the actual inventory and individual orders inhouse, and they drop ship to YOUR CUSTOMERS. The best companies provide a toll-free number for customers and distributors, who order direct from the home office. The Company takes the order, collects the payment, ships the products, and credits the distributor for the sale. The home office then sends a commission check to the distributor.
This new technology makes marketing online so easy. We don't have to worry about getting that product to a new distributor who lives clear across the country. And we don't need to worry about getting that new distributor to training or the prospect to a business opportunity meeting.
Training is often through nationwide conference calls. These same nationwide calls are a popular way to introduce new people to the business opportunity. Three-way a prospect onto one of the calls where leaders in the company are able to give a presentation for you. No one has to get dressed up and leave their home to travel to a meeting -- just pick up the phone and tie into the company's system. How DUPLICATABLE!
Someone who doesn't have strong communication skills, strong selling skills, or strong management skills, can still do very well with a home MLM business. Just use the marketing tools your company has put together to help you succeed.
| Strength in Numbers and Residual Income |
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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.
Success in network marketing does not require exceptional sales skill or extensive personal contacts. You can earn income 24 hours a day by leveraging your time. You do this by duplicating a simple success formula that your company and upline have developed.
There is a lot of power in the MLM business, and leverage is only one aspect. In any other profession you're paid only for your own efforts. The trick is to do what J. Paul Getty talked about when he said he would rather make one percent of 100 people's efforts than 100% of his own. Building an MLM organization enables each of us to do just that. You can create a business which will continue to generate residual income for the rest of your life.
Once you have built a successful MLM home business, 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.
Network Marketing gives you more free time, 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 earn income from the time spent by others you sponsor and train.
If you personally don't have a lot of time, leverage YOUR time by training and supporting others who DO have that extra time and are part of your sales organization. As they build their sales organization with YOUR HELP, they are also building YOUR ORGANIZATION!
Zig Ziglar said, "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.
The saying goes, "It's lonely at the top". That's only true when you have to step on other people to get there. If you reach the top by helping others, it won't be lonely since you'll have so many of your associates with you.
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Want Success in MLM? Here it is! |
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The rest will fall into place because you did those three things.
If you have any questions or comments about this site:
Email - Kristi Rushing