What Is Network Marketing?

By Kevin Quigley.

To begin with, concept behind network marketing is simple. Sharing - through product or business philosophy - is basis of network marketing.

Network marketing is a multi-billion pound industry involving millions of independent business people around globe. Large companies like Gillette, Colgate-Palmolive, Kleeneze Europe, AT&T and others, have all turned to network marketing because of 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, opportunity to start and run a home-based business that works. It is 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, - 'middlemen' - all add their 'valueless' percentage to price of product.

By time product or service reaches you, end user, you're not only paying for product, but a percentage of price for each and every middleman in 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, amount of product or service provision you could 'move' from your own efforts, would be relatively small. In network marketing however, amount you 'caused' to be moved indirectly could be huge.

Here then is essence of a network marketing compensation plan. For not only will you be compensated for product or service provision you personally cause to be moved from your own direct efforts, you will also receive indirect compensation for 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' benefits of both products/service provision and 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 'movement' of product or service provision from 'downline' your 'sponsor' will help you to build.(In network marketing it is 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 information about products or service provision and business opportunity on offer.

Theoretically, if after 'sharing' 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 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 3,906 people on your fifth level.

AN UNLIMITED INCOME POTENTIAL

Imagine 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 3,906 potential distributors in your downline. Network marketing then is about a LOT of people 'moving' a little product. The more people you introduce, greater your income potential. Notice that I said SERIOUS people. You may find that you have to introduce 20 or even 50 new distributors before you find a person who Gets SERIOUS about business.

If you want to toss aside 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 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! The professionals in Network Marketing (those that earn HUGE incomes) recognise that to become successful you must "go through numbers". That is, sort through lots of people until you find those people who get SERIOUS about business.

SO HOW DO YOU CONVINCE PEOPLE TO JOIN YOUR BUSINESS?

1) Thou Shalt Recruit through Your prospects eyes.

So many times when we are trying to recruit, online or offline, we do not take time to see what our prospect is seeing. Your prospect is looking through THEIR eyes, not yours, and has no clue to how you see things...the only thing that matters to them is how THEY see things...and recruiters who take time to learn what their prospect is looking for, what is important to them, and what isn't, will have huge success. Your prospect has a dream for their life, and you must look through that "dream lens" of theirs, and see what they are looking to happen with their life, and show them how you can help them get it.

2) Thou Shalt Focus on Relationships, not just Distributorships.

Power Recruiters in this business understand that Gold in this business is a long term relationship, not a short term distributorship. That is why most people cannot recruit...they are focused on a paycheck, not people...(CLUE!!!!!)Power Recruiters also know that people are more ATTRACTED to someone who cares about THEM FIRST- then business. You must be a friend first, before you will ever get to second base...and what makes more sense?

Recruiting for a Long term retirement producing business, or a short term paycheck? If you focus on your prospect and learn about THEM as a person, not just as part of process, you will find your results will skyrocket. Relationships are magnetic...Magnetize your Distributorship with Relationship Recruitng!

3)Thou Shalt Garner Leads Everyday.

Leads are lifeblood to any distributorship. And most folks play " Baking game" in recruiting. Instead of going out and getting new leads daily, they go out and hold onto their existing leads, and wait for them , like a cake in an oven, to bake and turn into HOT leads and ones that will come into their business. Are you a chef? or a leader? You MUST have a methodical plan and system to create and find leads daily, and to quit "baking game"..which in reality is "faking game"..you are faking at doing this business by holding onto leads that you hope will turn into prospects, even after a negative response, but never do. The Magic is in Multiples....and Lotto is in List. Continue daily to get at least ONE MLM lead a day to create enough numbers to talk to that will create enough of a paycheck to talk about.

4) Thou Shalt Draw Them In.

When you recruit, you must draw your people into your "world"..We have a saying at PassionFire..."Meet them in their world, and then lead them to yours..."..What that means in order to attract and draw your prospect into your presentation or conversation, you must start in theirs ...Find out what is important to them, and what they want out of life...then wrap your presentation around that. Ask lots of questions, and paint a picture with your words with them obtaining their dream....look them in eyes, smile, touch their arm, nod your head, talk their language...don't get too technical...and meet them first where they are in life...and then take them to where you can lead them....that's Power Network Marketing Recruiting.

5)Thou Shalt Educate, not Regurgitate.

You must understand that Recruiting is an education process , not just informing and regurgitating facts. People want to learn...that is their nature when they are looking at doing something...but many folks "Dump" all they know on them, and suffocate them with Information, not education. Recruiting through an Education Focus is a process, step by step, not a Firehose program. And educating prospect also is giving them information they want to learn about, not just what you want to talk about.(CLUE!!!)Education is a whole less intimidating way to recruit too...all you say is..."I don't know if this is for you or not ...worse thing that could happen is you could learn something.."