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 working population -
MILLIONS of people - would be interested in starting their own business,
the marketplace in the USA 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
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.
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it to a friend.
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Kevin Quigley is the Publisher/Editor of 'The Internet Affiliates
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