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 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
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 you
personally cause to be moved from your own direct efforts,
you will also receive indirect compensation for product 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 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 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 and
the business opportunity.

Theoretically, if after 'sharing' the information with
others and you subsequently attracted just five like-minded
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 people into your business.

Your level 1/ 5

They duplicate your efforts and each sponsor 5 people.

Your level 2/ 25

These 16 duplicate your efforts and each sponsor 5 people.

Your level 3/ 125

These 125 duplicate your efforts and each sponsor 5 people.

A little arithmetic will tell you that's theoretically a
total of 3,906 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 and every product
'moved' by each and every one of those 3,906 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.

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!

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 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
- that's approximately 6 million people - would be interested
in starting their own business, the marketplace in the UK 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.

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 neighbours, your
friends and your family know about the network programme you're
considering joining, have belief in the company and its products,
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 programme takes time - at least 6 months.

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 customer base. If your
prospective sponsor in the network marketing programme 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.

IS NETWORK MARKETING FOR YOU?

A message from the Prime Minister the
Rt. Hon. Tony Blair MP to the Direct Selling
Association.

" I'm delighted to offer my support to the Direct Selling
Association and point out to you how big a part direct
selling is
of our domestic market in the sale of goods and services.
We've got something like 13% of the entire home shopping
market done by direct selling, almost half a million people
are involved in direct selling and 40,000 of those are doing
it full time...It also shows how, in a changing economy and
changing labour market, there are great new opportunities
out there.

I want to say to you that this is a good thing to be
involved in and that we, as a Government recognise the
tremendous contribution that people who are taking up direct
selling opportunities can make to the overall prosperity of
the economy.
So it is well worth doing, well worth being involved in and
I wish those of you who are engaged in it, the very best for
the future."

The above is the text of a video message given to members of
the Direct Selling Association on the occasion of the DSA's
Annual Conference held at Hinckley Leicestershire on 5-6 May
1999. (www.dsa.org.uk)

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 this
information TODAY.

Yours in success,

Kevin Quigley

P.S. To find out more about the benefits of becoming
involved in the Network Marketing Industry log on to:
www.ludbrook.com

Kevin Quigley is the publisher/Editor of The Internet
Marketing Resources Directory where can have YOUR Internet
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