A-Z Network Marketing - Is This the Future of Network Marketing

Network Marketing, The Business Model

2007-11-27T18:43:00.005-08:00

Network marketing is a multi-billion dollar business. As a business model, it is taught in major universities around the world. The Wall Street Journal stated, "…between 50% and 65% of all goods and services sold in this millennium will be through network marketing." It is a business model that is perfectly suited to the "information age."

What is this "Business Model?" Network marketing is a way of doing business that is different from the "traditional" model used by most consumer packaged goods, food and drug companies. It is one of the most promising income opportunities in American today. It is the idea of many people each doing a little work, as opposed to a few people doing a lot of work. To quote J. Paul Getty, the world's first billionaire, "I'd rather have 1% of the efforts of 100 people than 100% of my own."

Rather than using the customary distribution process of moving products from manufacturer to wholesaler to retailer to consumer, network marketing companies use a network of independent marketers to move products directly from the manufacturer to the consumer. Further, the cost structure of a network marketing organization is different than a traditional packaged goods marketer.

With a traditional company, millions of dollars are spent on advertising to entice consumers to buy that company's products instead of the virtually identical product from another company. With a network company, the advertising expense is channeled into sales commissions for distributors who promote the product through "word-of-mouth" advertising, i.e. by telling other people about the product. In the traditional business model, money is spent BEFORE the sale in the form of advertising; in the network marketing model, the money is paid AFTER the sale in the form of commissions. Which model seems to make the most sense from a business standpoint?
Tip! Duplicate yourself. Network marketing is about leveraging yourself, reaching many more people, and selling many more products than you could possibly do on your own.

With network marketing, you have two sources of income: (1) direct commissions from sales you make yourself, and (2) commissions from sales made by people you introduce to the business, called residual income. You can invest your time and money once and get paid multiple times for the effort. It means getting paid for the work of others. In traditional sales, you may be a great salesperson and have a few dozen good customers and earn your income from all their purchases. However, you probably have to nurture these customers and spend most of your working time making sure they are buying from you and not someone else.

In network marketing, you can build a downline of 100, 1,000, or even 10,000 people, most of whom you will not know nor ever have contact with. This is because the majority of the people in your downline will be people who know somebody, who know somebody, who know somebody, who know you. By having a downline that is working with you, and for you, you can multiply your efforts many times. The earning potential of a downline of 1,000 people, each putting in only one hour a day five days a week, represents 20,000 hours of work in a month. It would take one person 10 years to produce the same amount of work. That's the power of a network.
Tip! After giving a complete network marketing presentation to a prospect, you discover that he/she was never qualified to begin with. He was irrational, illogical, unmotivated and didn't have two dimes to rub together.

Perhaps Robert T. Kiyosaki, author of the Rich Dad, Poor Dad series, said it best. "The richest people in the world look for networks. Everyone else looks for work."

It is estimated that more than 50,000 people start a home-based business every week in the United States. The average person owning a home-based business earns more than $50,000 a year (often working part-time), while the national average annual household income is less than $45,000 (and most of those people are working at least 40 hours per week). Additionally, a home-based business owner can qualify for many legitimate tax breaks, and tax experts suggest that the average person can save between $2,000 and $10,000 on taxes every year just by starting a home-based business.
Tip! Take five. Creating a large and successful network marketing team is so fun and rewarding that we sometimes forget to take breaks – and that can lead to burnout.

How is this possible? Well, consider these two tax structures: a wage earner first earns income, then pays tax on that income, and then pays for expenses with after-tax income. A business owner first earns income, then pays for expenses, and then pays tax on net income after expenses. In other words, a business owner can legitimately reduce the amount of tax he or she has to pay because business expenses are paid with pre-tax income, not after-tax, income.

Network marketing is a $36 Billion industry in the United States. More than 20 per cent of the estimated one million millionaires in America today have earned their fortunes over the previous six years through network marketing. Worldwide, there are over 3.5 million millionaires, and more than 700,000 have made their millions via network marketing. Conservative estimates are that network marketing in America is creating 40 new millionaires every month from average people. This means that a person's greatest chance of financial success is through "networking." Again, Robert Kiyosaki observed, "If I had it to do all over again, I would choose network marketing."
Tip! Create a large customer base. This is another largely ignored, yet very important, piece of your network marketing business.

For people who are interested in starting a home-based business, supplementing their income, and providing greater security for retirement and for their children and grandchildren, network marketing is an obvious choice.

Bruce Bailey, Ph.D.

Dr. Bailey has transformed the incomes of scores of MLMers. His never-miss tactics have been used by thousands to turn their MLM dreams into realities! For FREE access to his e-course, visit http://www.myidealmlm.com

The Ebb and Flow of Network MarketingThe Ebb and Flow of Network Marketing

2007-11-27T18:43:00.004-08:00

"And so I say to you: ‘Ask, and you will receive; SEEK, and you will find; knock, and the door will be opened to you.' "For everyone who asks will receive, and he who SEEKS will find, and the door will be opened to anyone who knocks." - Luke 11: 9-10. [Good News Bible]

No matter how long you've been in this business, you will have experienced what I call the "Ebb and Flow of Network Marketing." It's simply the highs and lows you experience from dealing with people. We have all experienced it, even the top earners in the business.

See if this has happened to you. You've just made a great presentation to a prospect and, in spite of your being able to neutralize every objection they have put forward, they still don't sign up. You feel rejected, frustrated, and disappointed. You begin to wonder why you ever got into this business and what you're doing wrong. You go into a bit of a "funk," and start to feel sorry for yourself.

After a bit of a lull, you decide to try another presentation to another prospect. This time, they're ready to sign up almost before you open your mouth. You're on Cloud 9, you can move mountains, you are master of your domain!

What has happened? You've just experienced the "Ebb and Flow of Network Marketing."

Every MLM distributor goes through it. This emotional ebb and flow is often what stops many network marketers from achieving the financial freedom and security they desire. They let their emotions control how much work they put into the business, and a few "no's" cause their efforts to diminish. Consequently, their business grinds to a halt.

Successful networkers, however, adopt a posture of emotional equilibrium, not getting too "high" with each success or too "low" with each failure. In his CD series, "Key to the Vault" (which I highly recommend to any network marketer), Bob Schmidt tells the story of John Wooden, the legendary coach of the UCLA basketball program, who won 10 national championships in a 12-year span. Wooden wanted his players to achieve a level of emotional maturity, or equilibrium, regarding their performance on the court. He wanted his players to behave in such a way that, after a game, a locker room observer would not be able to tell whether the team had won or lost. Wooden stressed to his players that if they had simply gone out and done their best, the outcome was not the issue. Therefore, being high on victory or low on defeat never entered into the equation. That's what he meant by emotional equilibrium.
Tip! Look for a company that has been around and proven itself. Someone who has been in network marketing and has experience might take a chance on a new company, but a novice should be more careful.

Remember the acronym S.E.E.K. - Seek Emotional Equilibrium Knowingly

Learn to control your emotions; don't let them control you. If a prospect's failure to sign up with you causes you to go into an emotional tailspin, you have lost control of the situation. Because your business depends on you, you are letting your prospect control your business. This is equally true for a prospect that does sign up. If you get too high on that success, and base you next actions on what the prospect has done, you have again let them take control of your business.

Don't let your mood, your emotional state, control your efforts. S.E.E.K., and you will find the path to achieving the success you desire.
Tip! Some companies think that Business Cards are the answer. Most beginners in Network marketing buy expensive cards with their company log on and start distributing them.

Bruce Bailey, Ph.D.

Dr. Bailey has transformed the incomes of scores of MLMers. His never-miss tactics have been used by thousands to turn their MLM dreams into realities!

For FREE access to his e-course, visit http://www.myidealmlm.com

Beware of Network Marketing Scams

2007-11-27T18:43:00.003-08:00

Some companies claim a huge payout percentage. Buyer beware! If a company pays out too much in commissions, chances are great that it'll go belly up or be forced to make major revisions.

Companies advertising high payouts frequently can do so because they know that few distributors reach those deeper levels or sales volumes high enough to earn the special bonuses.

Bonuses are paid on matching volume. This means if you have $2000 in your left leg and $3000 in your right leg, you will be paid on $2000 from each leg. The remaining $1000 from the right leg should carry forward to the next pay period. Stay away from companies that start you from zero each pay period and do not carry forward.In evaluating a compensation plan, it is preferable to choose one that:

* pays a weekly commission

* has reachable sales volume levels

* does not promise '80%' payouts

* has highest payouts on levels 3 and 4 if it is a breakaway or matrix plan

* carries forward any unbalanced volume

Don't try to distribute for more tan one company at a time, even if they are in non-competing industries. You lose credibility with potential prospects. You also halve your time and your effectiveness, which results in half of what you might otherwise have earned. You will need to determine if the company has a compensation plan where anyone has the ability to make money, not just those at the top. Ask yourself these questions: Can I earn a check within a short amount of time? Will I be compensated for unbalanced volume in the future? Is this the best type of compensation plan for immediate income as well as for long-term security?
Tip! High fees. Network marketing training scams typically require a large, one-time fee to be paid in full in advance, which reflects the hit and run mentality.

Conclusion

Persuasion is the missing puzzle piece that will crack the code to dramatically increase your income, improve your relationships, and help you get what you want, when you want, and win friends for life. Ask yourself how much money and income you have lost because of your inability to persuade and influence. Think about it. Sure you've seen some success, but think of the times you couldn't get it done. Has there ever been a time when you did not get your point across? Were you unable to convince someone to do something? Have you reached your full potential? Are you able to motivate yourself and others to achieve more and accomplish their goals? What about your relationships? Imagine being able to overcome objections before they happen, know what your prospect is thinking and feeling, feel more confident in your ability to persuade. Professional success, personal happiness, leadership potential, and income depend on the ability to persuade, influence, and motivate others.
Tip! There are excellent affiliate programs where you can join free of cost or at minimal subscription and take advantage of the network marketing opportunities they offer.

Kurt Mortensen's trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.
Tip! Some distributors don't give ample time or attention to their network marketing group.

If you are ready to claim your success and learn what only the ultra-prosperous know, begin by going to http://www.PreWealth.com and getting my free report "10 Mistakes That Continue Costing You Thousands." After reading my free report, go to http://www.PreWealth.com/IQ and take the free Persuasion IQ analysis to determine where you rank and what area of the sales cycle you need to improve in order to close every sale!

Network Marketing Magic

2007-11-27T18:43:00.002-08:00

Have you ever sat in a network marketing opportunity meeting and felt the magic in the air? Have you watched as the recent leaders and achievers walked across the stage to receive their awards and secretly wished that you were one of them up there doing that?

You get those gurglings of excitement deep inside and you almost want to jump in and cheer with all of those people around you, but you don't. You just kind of sit back in an anxious quiet, partly aching to participate but also partly wondering what causes grown adults to behave so exuberantly.

It's pure excitement. With a definite emphasis on the "pure", meaning "real", "honest", "genuine".Hugging. Embracing. Cheering one another's successes. Call on the phone for both good news and moral support. An unusual exhibition of an outpouring of love and encouragement. Hope lifts, rises, and flies freely upon the wings of success.

"Success" is not measured merely in dollar signs and data input. It is also measured in the balance sheet of one's Heart Account, in the terms of security, self-esteem and satisfaction.

What are we talking about?

Developing and growing a network marketing business of your own.

I have been an observer of people virtually all of my life. I have a bachelor's degree in Psychology and have nearly completed my master's degree in Organization Development.
Tip! Creating a good down line. This is the main concept of network marketing, the faster you can add individuals below you the larger your paycheck will be.

I have watched as "normal" people have acclimated themselves to the typical "corporate" structure of climbing over others as they have clawed their way to the top of the ladder. They become changed people during the climb. Some changes are so severe that you'd hardly recognize them anymore.

I've also watched people working in network marketing businesses. They are generally happier, more vibrant and positive individuals than those who spend their time sharpening their talons in the "corporate" world.

Why is that?

Because in their climb to the top they lift those that surround them with them. The "top" is never lonely because they are never alone. They are accompanied by their friends, family, and new associates. Life is more fulfilling and complete when you have others to share successes with.

That's what network marketing is all about. It's not only the potential for "income". It's the incoming friendships and "purpose" that is grown and nurtured and treasured.
Tip! Look for a company that has been around and proven itself. Someone who has been in network marketing and has experience might take a chance on a new company, but a novice should be more careful.

Network marketing magic? Skeptics may scoff, but there's real substance behind the magical excitement. Substance that seeps into the longing soul searching for renewed hope and faith in themselves and their own futures.

See for yourself. It's what life should be all about.

Bob Curtis has a bachelor's degree in Psychology, and has been writing about the elements of relationships for a number of years. He is the manager of the Essential Sunshine Association, a new website for positive relationship development at http://www.essun.blogspot.com

Network Marketing BasicsNetwork Marketing Basics

2007-11-27T18:43:00.001-08:00

What is network marketing and what can it do for me?

Network marketing is a brilliant and explosive marketing concept. For someone motivated and willing to put in the time, effort, and persistence needed to achieve his or her financial goals, network marketing can provide:

* a second income on a part-time basis

* complete financial independence possible with commitment and perseverance

* work from home

* time freedom

* travel opportunities

* excellent tax advantages

* a great opportunity for personal growth

* a positive, supportive environment in which to work

What network marketing is not
# an illegal pyramid scheme which pays commissions to people to recruit other people

# a "Get Rich Quick" scheme

# a company with a high up-front entrance fee to join

# a company without a retail product or service

In order to succeed, you need to commit to your chosen company for at least one year, and to read about the products and about the industry. Listen to the advice of those who've made it and work closely with your upline. Work consistently and methodically. Persevere through down time. Don't give up. As in al sales work, network marketing is a numbers game. You have to contact many more people than you'll ever sell products to or recruit. But take heart! With experience it gets easier and easier. You are building an organization in which many people work together, and you are earning an income based on the training and personal sales of many people, each contributing a part of the whole. Building that group is up to you. It takes commitment, perseverance through failures, time, and effort. And it means moving out of your "comfort zone." But high achievers earning in excess of $100,000 per year in this industry are recognized and well known.
Tip! Failure among those recruited to one's business team to duplicate successfully the method(s) used to recruit them. Since duplication is the sine qua non of ALL network marketing, this is a huge, and often, fatal problem.

And they came into the business at the bottom, with the same opportunity as you or I have. The only difference is that the Mark Yarnells, Collette Van Reusens, Jan Ruhes, and the Don Faillas of the industry have aimed high and worked long and hard building their downline to get there. But they started as you can, with an investment of maybe a few hundred dollars in products, phone bills and prospecting materials.

Kurt Mortensen's trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.
Tip! Work from the inside out. To succeed in network marketing it is imperative that you devote some time to self development.

If you are ready to claim your success and learn what only the ultra-prosperous know, begin by going to http://www.PreWealth.com and getting my free report "10 Mistakes That Continue Costing You Thousands." After reading my free report, go to http://www.PreWealth.com/IQ and take the free Persuasion IQ analysis to determine where you rank and what area of the sales cycle you need to improve in order to close every sale!