What Is Network Marketing?
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