What Exactly is Network Marketing?

To begin with, the concept behind network marketing is simple.Sharing - through product or business philosophy - is the basisof network marketing.

Network marketing is a multi-billion dollar industry involvingmillions of independent business people around the globe. Largecompanies like Gillette, Colgate-Palmolive, Kleeneze Europe,AT&T and others, have all turned to network marketing because ofthe very real edge it gives them in both domestic andinternational marketing.

Network marketing is a 'BIG' small business, which offerseveryone, with or without business experience, the opportunityto start and run a home-based business that works. It is thelast 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 amanufacturer through a network of middlemen. NationalWholesalers, 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 theprice for each and every middleman in the network.

In network marketing there are no middlemen. Instead of payingthem, a network marketing company will pay you for whateveramount of product you cause to be 'moved'.

As a sole individual operating alone, the amount of product orservice provision you could 'move' from your own efforts, wouldbe relatively small. In network marketing however, the amountyou 'caused' to be moved indirectly could be huge.

Here then is the essence of a network marketing compensationplan. For not only will you be compensated for the product orservice provision you personally cause to be moved from your owndirect efforts, you will also receive indirect compensation forthe 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' thebenefits of both the products/service provision and the businessopportunity with others. In network marketing this is referredto as your 'downline'.

The 'serious' money to be had in network marketing is to be hadfrom 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 itis the responsibility of your introducing 'sponsor' to help youbuild your 'downline'.)

All you need to do initially to build a 'downline' is to 'share'with others the information about the products or serviceprovision and the business opportunity on offer.

Theoretically, if after 'sharing' the information with othersand you subsequently attracted just five SERIOUS individuals whodecided to join you in your network marketing business - forillustration purposes only - your 'downline' could equate to thefollowing 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 SERIOUSpeople.

Your level 3/ 125

These 125 duplicate your efforts and each sponsor 5 SERIOUSpeople.

A little arithmetic will tell you that's theoretically a totalof 3,905 people on your fifth level.

AN UNLIMITED INCOME POTENTIAL

Imagine the power of a business-building plan that would pay youan agreed 'over-ride' commission on each product or serviceprovision 'moved' by each and every one of those 3,905 potentialdistributors in your downline. Network marketing then is about aLOT of people 'moving' a little product. The more people youintroduce, the greater your income potential. Notice that I saidSERIOUS people. You may find that you have to introduce 20, 30or even 50 new distributors before you find a person who GetsSERIOUS about the business.

If you want to toss aside the potential earnings on offer asbeing ridiculous or impossible - DON'T. I personally have metpeople who are earning $5,000 to $50,000 per month (yes permonth) from network marketing for part-time effort. Though themajority of networkers earn hundreds rather than many thousandsper month, (most working part-time) it must be understood thenthat if you are to make serious income, you must put in seriouseffort. No free lunches here! The professionals in NetworkMarketing (those that earn HUGE incomes) recognise that tobecome successful you must "go through the numbers". That is,sort through lots and lots of people until you find those peoplewho 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 largeorganization of people who do NOTHING other than sponsoringothers, earns NOTHING!

Second is, BALANCE and CONSISTENCY. Spend some time buildingyour organization yes, but also spend time PROMOTING yourproducts/services to others and use the products/servicesyourself!

SO HOW DO YOU CONVINCE PEOPLE TO JOIN YOUR BUSINESS?

The simple answer is you don't. You want those who convincethemselves. If they are truly looking for a way to becomesuccessful, then they'll come to you to go after it. The key toachieving success in network marketing is not to be had byconvincing people, but by helping those (SERIOUS) people whowant 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 instarting their own business, the marketplace in the UK alone istruly enormous. With a recent MORI poll indicating that 50% of16 - 25 year olds were interested in starting their ownbusiness, the marketplace is actually growing.

One of the most important things to recognise is that the mostprecious resource available to you is in the new blood - themillions of business opportunity seekers who are not presentlyinvolved in networking. For it is there that you will find thesuccess stories of tomorrow for your downline organisation.

The impact of the Internet on network marketing will beabsolutely HUGE.

CHOOSE THE RIGHT COMPANY

In any successful business it is the quality of the product orservice that is being offered that is the single most importantaspect for its success.

The most lucrative compensation plan in the world will NOTprovide you with an on-going residual income if the product orservice doesn't provide tangible value and benefits for yourselfand your customers.

Provide a product or service that people need, want, coupledwith a business opportunity they are willing to tell theirfriends about and you can build yourself a business empire innetwork marketing!

TIPS FOR THE TOP?

Tip# 1/ If you're already involved in a network marketingprograme and you're being 'sold' primarily on the benefits ofthe compensation plan with the product or service being offeredas a secondary consideration, then read the above paragraphagain and MOVE to a company whose products or services 'move'.

Tip# 2/ Ask yourself this important question: Is the networkmarketing programme I'm considering joining one that I'm willingto share with my friends and family? The comment "I don't wantmy friends and family to know what I'm doing, l want to becomesuccessful first - then I'll introduce them!!" is almostlegendary in network marketing. (A comment oftimes made byfailed networkers who had no real belief in the company or theproducts they were promoting in the first place!) If youimmediately feel comfortable with the prospect of letting yourneighbours, your friends and your family know about the networkprogramme you're considering joining, have belief in the companyand its products/service provision, have confidence in yourintroducing sponsor, then you have probably chosen the rightcompany to work with.

Tip# 3/ Don't be impatient by expecting things to happenovernight! Building a moderately productive downline in anynetwork marketing programme takes TIME - many months not manyweeks.

Tip# 4/ Read tip 3 again and avoid like the plague any companywhich suggests otherwise or does not require you to invest inthe development of a distributor base. If your prospectivesponsor in the network marketing programme you're being invitedto join doesn't stipulate that it takes TIME to build asignificantly productive downline then it's not a business yourbeing 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 productsor services wanted by the masses!

If you have tried Network Marketing before and failed, youprobably chose the wrong company, the wrong sponsor, or thewrong product.

IS NETWORK MARKETING FOR YOU?

A message from the Prime Minister the Rt. Hon. Tony Blair MP tothe Direct Selling Association.

" I'm delighted to offer my support to the Direct SellingAssociation and point out to you how big a part direct sellingis of our domestic market in the sale of goods and services.We've got something like 13% of the entire home shopping marketdone by direct selling, almost half a million people areinvolved in direct selling and 40,000 of those are doing it fulltime...It also shows how, in a changing economy and changinglabour market, there are great new opportunities out there.

I want to say to you that this is a good thing to be involved inand that we, as a Government recognise the tremendouscontribution that people who are taking up direct sellingopportunities can make to the overall prosperity of the economy.So it is well worth doing, well worth being involved in and Iwish those of you who are engaged in it, the very best for thefuture."

The above is the text of a video message given to members of theDirect Selling Association on the occasion of the DSA's AnnualConference held at Hinckley Leicestershire on 5-6 May 1999.

TO SUM UP

Network marketing isn't for everybody. While some people swearby network marketing, others simply swear! (Read tip No. 3 againto find out why). To succeed in network marketing you will needdetermination, commitment, enthusiasm and most importantly - aburning desire for success. If you believe you have thosequalities get back to the person who provided you with thisinformation TODAY.

About the author:

Jason Oickle enjoys teaching people how to be successful onlineProfessional InternetMarketing Course

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