What is Network Marketing? According to Wikipedia, Network Marketing is a way of doing business in which people earn a commission not only for the volume of interested customers they personally generate, but also for the volume of their team members whom they have helped to build their own businesses. This creates a downline of distributors and a hierarchy of multiple leveraged levels of compensation. Let’s break that down into something that makes more sense, shall we? People who join network marketing realize they will never get rich working for someone else. They also know there are huge lifestyle benefits associated with building a successful business: • They can pick the people they work with. • They can work from home part-time in their spare time. • They can pick the hours they work and how much they work. • They can give themselves an IMMEDIATE raise through tax savings. • They have the chance to literally set themselves financially free. So you decide to investigate joining a network marketing company because of the low cost of entry and all the training and support you get. But what are you really getting yourself into? What is network marketing, exactly? Here’s the deal… When you join a network marketing company you are “signing up” to represent that company’s product and services and business opportunity. You “sign up” by making a small investment (usually $500 to $1,500) and by completing an Independent Distributor agreement. You are not being hired by the company as an employee, but rather, you are volunteering to represent the company as an independent contractor, business owner, dealer, representative or consultant. You are awarded a commission based upon the volume of products you have provided to interested customers as well as that of your downline organization. What is Network Marketing? Think Franchise! Consider a franchise operation like McDonald’s. McDonald’s is one of the largest fastfood organizations in the world. They have more than 33,000 restaurants that serves more than 64 million people in 118 countries each day. More than 80% of MacD’s restaurants are owned and operated by independent business owners or contractors. Now if YOU owned the mother-ship corporation, you not only earn money by selling burgers, fries and shakes from the 20% of the restaurants YOU personally own and operate… you also earn a tiny percentage on all the sales made by the entire organization including the other 80% you do not own or operation. Meaning you are now earning a LEVERAGED income generated by the time, talent and energy expended by the other business owners on your team. Here’s another way to look at it… Let’s say you earn $50 each time someone decides to try your products. It takes you two hours of “work” to help them to understand the value of the products. Break that down and your time is worth $25 per hour. Put in a full 40 hour work week and you pocket a nice $1,000. Let’s also say you have spent some time helping others to take advantage of the opportunity to be financially independent and the people who join your team also love to share information and earn $50 each time someone tries the products. You earn a nice $10 check for every time THEY earn income. Over time you have built a team of 100 people. They each have 5 new preferred customers per week – independent of your time and effort. • YOU = 40 hours, 5 new customers, $250 • TEAM = 4000 hours, 500 new customers @ $10 each = you get $5,000 See the magic? You get paid on the time and effort of other people. This is leveraged income versus linear income. In what other business can you make money when you don’t work? Your network marketing business generates what is known as residual income. Residual income is the money you earn when you are NOT sharing with new people. Instead, you earn a percentage of the dollar volume generated by your business when your preferred customers continue to enjoy your products! So perhaps a good way to answer the question: “What is network marketing?” would be quote J. Paul Getty, one of the richest men in his time: “I’d rather have one percent of the efforts of 100 people than 100 percent of my own efforts.” What is Network Marketing? The Reality… Here’s the unfortunately reality, however. No matter how you slice it, the only way you will ever build a highly profitable network marketing business is to be willing to MASTER the art and science of sales, marketing and leadership. Because MLM is form of “direct sales” and no one makes a dime until products and services are sold. It’s that way in every business, not just network marketing. So the KEY is to join a company, track down who is currently enjoying a level of success you aspire for, find out what they are doing… and simply be willing to DO the same things. Which, of course, may require you learn new skills and actually a few things (sales and marketing) you are not comfortable doing in the beginning. So what is network marketing? • Network marketing is a career choice and a profession. • Network marketing is a path to fame, fortune and time freedom. • Network marketing is a leadership development platform. • Network marking is fun, fast and exciting. • Network marketing is a proven “million dollar” business model. Investigate my Nerium business, its a ground floor opportunity, you need to know about if your future wealth is a concern. Dawn Dalyce ask me.
Posted on: Sun, 26 Jan 2014 06:59:43 +0000