What Is Network Marketing?

 

 

     You are ALREADY doing Network Marketing - you just don't get paid for it. 

     When you recommend  a movie, a good restaurant, a website or a product or service of any kind to a friend, and sales result from your recommendations, that is Word Of Mouth. When your friend then recommends it to HIS friends, more sales are made, more word of mouth advertising.  Network Marketing is word of mouth advertising, and you have been doing it since you were 5 years old, when you told your buddy how much you liked The Muppets.  You will probably continue doing it the rest of your life.   You are now doing it more efficiently thanks to Online Social Networking, where you can recommend products to hundreds of people with one click of the mouse.  You just don't get paid for it.

Wouldn't you like to change that?

 

     Network Marketing, also called MLM, was created over 80 years ago as a new way of marketing and distributing goods and services to the end user, or consumer.

     With traditional  distribution, goods and services go through a whole chain of  "Middle Men".  IE: Manufacturer to Jobber to Distributor to Wholesaler to Retailer and finally You, the Consumer.  And along the way, each middle man takes his cut, or Markup, which gets passed down to the consumer.  Plus the Tax Man also takes a cut at very step.  Then there's the cost of Advertising by the manufacturers and retailers. That cost gets passed on to [you guessed it] The consumer.

     In Network Marketing the idea is to  eliminate all or most of the middle men, as well as the advertising expenses. The goods or services go straight from the MLM company to the consumer, who is referred to as a Distributor or Rep.  The distributor promotes the company's products and business opportunity. The money saved on advertising and distribution is paid to the distributor in the form of "Residual" Commissions. To earn these commissions all the Rep has to do is refer (or sponsor) other people into the company.   This is called "Word Of Mouth Advertising". Distributors also earn money by selling the company's products.

     The people that you as a rep bring into the company form the first level of your team (called a downline). The people that they in turn bring in form your second level, and so forth. You get paid a percentage of all the purchases and retail sales made by everyone in your downline down several levels deep.

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JOB (Just Over Broke) - VS - YOB (Your Own Business)

  • JOB - Do a job once (your work), and get paid for it one time (Salary). Stop going to work, and your salary stops.
  • MLM - Do a job once (sponsor someone), and get paid over and over (Residual Income).  Get paid every time people in your downline make  purchases or sell products- month after month.
  • JOB - No control over how much money you earn.  The Boss controls that.
  • MLM - No limits to how much you can earn.  Want to earn more? Refer more people, or help your team refer more people.
  • JOB - Work 40 to 60 hours per week. No free time.
  • MLM - Make your own schedule. More free time.
  • JOB - Keeps you away from Home and Family.
  • MLM - Work from home.

 

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So why does it seem like Network Marketing is not catching on?

   There ARE thousands of MLM companies out there.  The problem is most are set up just to make money for the owners, and their products are usually Overpriced, or Overhyped Junk that nobody needs.  Another problem is that there are allot of scams trying to pass themselves off as legitimate MLM companies, and many people have been burned by them.  Learn to differentiate between MLM and "Get Rich Quick" schemes. (By the way, Your Job is a Pyramid. See Video below)

 

Choosing The Right Network Marketing Company:    

The Network Marketing companies that provide the best opportunity are those that market products or services people Want to use, and at a competitive price.  There are very few MLM companies that offer good value on their products.  There are even fewer companies that offer a compensation plan that is fair and easy to succeed with. 

     When researching a Network Marketing opportunity make sure the product or service offers Real Value, otherwise it can be considered a pyramid scheme, and shut down by the FTC. 

     Another thing to consider is how easy (Or Hard) it is to qualify for commissions. For example, if you need to personally refer at least 3 people to qualify for commissions, that may seem like an easy qualification requirement.  But statistics tell us that, On Average, people who become involved in MLM sponsor less than 2 distributors. The great majority of them only ever refer ONE person. So even if you are capable of referring the 3 people needed to qualify, your new team members may not be able to match your production.  They would soon quit out of frustration, and you would need to keep finding new people in order to remain "Qualified".

 

      So if you are interested in researching Network Marketing as a viable source of extra income, or even replacing your JOB, you need to know what to avoid.  The list of what to avoid is a mile long, but here are the top 3 features an MLM program MUST HAVE:

1

     The product or service must provide real value. It should be something you would purchase at that price even if there were no income opportunity involved. (This is actually a legal requirement)

2

     You should qualify to earn at least SOME commissions with just  ONE personally referred  member. It is OK to have tougher qualifications to earn the larger commissions and bonuses, but I would avoid programs where you sponsor a person and don't qualify to earn any money from his/her purchases, just because you haven't sponsored enough people.  A fair compensation plan will begin paying you as soon as you sponsor your very first person.

3

     There should be no outrageous claims that you can earn huge amounts of money in a very short time or with little or no effort.  Network Marketing takes time and effort, as does anything truly worthwhile, and anyone who tells you differently is lying, or at least misguided.   An honest income disclosure states that your income is strictly dependent on Your Effort and Your Team's Effort.

 

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Roberto Santana  

www.ezbiz.co

[email protected]