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What Is Network Marketing?
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, 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. (http://www.dsa.org.uk)
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.
Yours in success,
Kevin Quigley
P.S. To find out more about the benefits of becoming
involved in the Network Marketing Industry log on to:
http://www.ludbrook.com
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. Details & Free sample subscription:
Blank email to: bizzyman@auto-responder.co.uk
Unsubscribe with one click. You have my full permission to
'Steal' the above article which may be freely distributed in
your E-zine, on your web site or in your e-book provided
this entire resource box is kept intact. If featured a sample
copy of your E-Zine would be appreciated. Thank you.
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