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What Is Network Marketing?
By Kevin Quigley
To begin with, the concept behind network marketing is simple.
Sharing - through product or business philosophy - is the basis
of network marketing.
Network marketing is a multi-billion pound industry involving
millions of independent business people around the globe.
Large companies like Gillette, Colgate-Palmolive, 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 working population - MILLIONS of people -
would be interested in starting their own business, the marketplace in the USA
alone is truly enormous. When you take into account that many network Marketing
companies operateon a GLOBAL basis the potential for growth is quite staggering.
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.
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 neighbors,
your friends and your family know about the network programm 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 programm 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 programm 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.
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 the details of their network marketing opportunity TODAY.
Yours in success,
Kevin Quigley
P.S.
If you've enjoyed this article, please be sure to forward
it to a friend.
About the Author
Kevin Quigley is the Publisher/Editor
of 'The Internet Affiliates Resources Directory'
where subscribers have the opportunity to have
their Affiliate programs promoted absolutely FREE
and on a permanent basis. Get the details simply
by sending a Blank email now to:
bizzyman@freeautobot.com
Article Source: http://www.simplysearch4it.com/article/29413.html
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