WHAT NETWORK MARKETING ACTUALLY IS
Understand that currently there is a world wide trend
concerning home based business. Every 11 seconds of every day, a new home based business
is started by someone, somewhere in the world. That is a very impressive statistic indeed.
The vast majority of these new business start-ups involve the
Network Marketing industry. Why? Well, there is a clear cut reason. Network Marketing is
about the only way for the average person, who likely has little or no prior business
experience or technical training, to establish a potentially world-wide marketing
organization which can be highly profitable and long term and can be run directly out of
their present home. Because of this, about 30,000 people per week join a Network Marketing
company in the U.S.A. alone.
How is that possible? Because Network Marketing is a very
efficient Marketing Model, it gives you a way to get products from the manufacturer
directly into the hands of the customer by bypassing the traditional marketing levels
middle men, each of whom receive compensation for their handling of the goods. These
compensations raise the end cost of the product to the final purchaser because these
additional costs are passed on at each level and end up in the final price. And Who
is that final purchaser? YOU, ME, and Everyone!
In Network Marketing, by placing only one level between the
manufacture and the consumer, all of the costs of the middle men are now placed into the
compensation plan. This gives the single distributor (you) a much higher percentage
than would otherwise be possible and, at the same time, lowers the final price to the end
customer for a like quality product. A win, win for everyone.
Additionally, the traditionally huge advertising costs that
most products require are not needed in the Network Marketing model. The distribution
network ( that means You and others like You ) do the advertising and those savings
are also paid out in the form of a more substantial commission structure.
Let us take someone familiar to everyone, Henry Ford. When
Henry Ford started to make automobiles, his desire was to make them available to everyone
in America. There was a problem, however, as he knew he was limited in how many cars he
could actually sell by himself. He solved his dilemma by creating dealerships (i.e.
distributors) throughout the nation whom he taught how to present his automobiles to
interested people. What resulted was the establishment of hundreds of dealerships all
selling his product. Henry Ford "duplicated" himself many times over and vastly
increased his ability to "retail" his product - the automobile.
Here with Network Marketing we have the same concept. You
establish a massive distribution network thus creating a structure where your products are
able to flow throughout the organization you have created to be distributed and consumed.
This generates a cash flow and all parties benefit. The company, the consumer, and YOU!
The greater the size of the organization that you create, the more products that flow
through it, the more money YOU will make.
This system depends NOT on just your "available
hours" but on the "available hours" of many, many people all with the same
goal - to deliver the product to those who want it and continue to do that every day.
Additionally, each day both you and others in your organization are bringing in new
distributors which create even larger avenues of product flow and income.
This system frees the Company you are affiliated with to
concentrate on what they do best. Creating new products to market to consumers, operate
the day to day necessities of the business, and support the marketing arm (You and your
organization and others like you).
Also, You and others like you find and train the new
distributors, going far beyond the ability of any company's human resources department to
hire the same like number of new distribution people. The company rewards you for your
efforts with greater earnings and everyone wins.
In the best case, the products the company has are
"consumable" because consumable means repeat business, not just a one time sale.
A happy and stable customer base is the gold medal in business and the foundation on which
any company succeeds.
This type of system gives you the ability to create a lifetime
of "residual income" with the
resulting financial freedom that it brings in only a few years (usually from as little as
1 to the average of 3) of actively building your business. An income where you can walk
away and STILL have that income come to you each and every day.
Sounds good right, in theory at least. So how well does this
really work? Ask some of the most successful businesses in the United States. These
companies have a distribution network that includes a Network Marketing Arm - Microsoft -
Gillette - Colgate - IBM - Xerox - General Motors - Toyota - General Electric - Sun
Microsystems - Netscape - Coca Cola and many more.
We can say then, that Network Marketing is a
"legitimate" business. It is based as any business is on providing their
customers with actual, legitimate products that the customers need and want and at a fair
price for their goods.
Network Marketing is also a serious
business, not a hobby, and it is for serious people. Should you choose to treat
your Network Business like a hobby, working at it only when you feel like it, you can be
assured of receiving a like amount of compensation. Network Marketing works very well, but
only if you work at it!
Network Marketing has a proven business model where all the
requirements of a traditional company are not born by You but have already been taken care
of by the company. A skilled and professional corporate team of people have
designed, created and financed the company and developed a road map to show you how you
can become successful with them. Just follow their proven, simple and duplicable system,
be dedicated and trainable, and you have the best chance of succeeding possible in today's
business climate.
We hope you understand now - the largest difference in Network
Marketing against other types of revenue producing activities is that you are able to
'multiply' your efforts, talents, and skills by helping others become successful. So an
hour of your time can become literally ten's, hundred's or even thousand's of hours of
duplicated time! All of those duplicated hours are revenue producing and that goes
directly to your bottom line and into your paycheck.
To say it in one word - Network Marketing is all about " Leverage " You are leveraging your time with the efforts of
others to increase your income producing hours in a day. There simply is no better or
easier business model known.
J. Paul Getty, who created one of the world's greatest
fortunes, said:
"I would rather make 1 percent on
the efforts of 100 people that 100 percent on my own efforts".
This concept is the foundational cornerstone of Network
Marketing and why it works!
With Network Marketing, you also have no large capital
requirements, no geographical limitations, no minimum quotas as a normal sales job would
have, no exceptional education or skills needed to start as opposed to many other
professions such as a Doctor or Lawyer or Engineer.
Network Marketing is a low-overhead, usually homebased business
which can and does offer tremendous tax advantages compared to the standard
"job" most people have.
It is a people-to-people business that can enable you to travel
and have fun and enjoy the lifestyle that you have seen but likely never thought you would
be able to realistically achieve.
