What Is Network Marketing?

Written by Kevin Quigley


What Is Network Marketing?

By Kevin Quigley.

To begin with,repparttar concept behind network marketing is simple. Sharing - through product or business philosophy - isrepparttar 141974 basis of network marketing.

Network marketing is a multi-billion pound industry involving millions of independent business people aroundrepparttar 141975 globe. Large companies like Gillette, Colgate-Palmolive, Kleeneze Europe, AT&T and others, have all turned to network marketing because ofrepparttar 141976 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,repparttar 141977 opportunity to start and run a home-based business that works. It isrepparttar 141978 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, -repparttar 141979 'middlemen' - all add their 'valueless' percentage torepparttar 141980 price ofrepparttar 141981 product.

Byrepparttar 141982 timerepparttar 141983 product or service reaches you,repparttar 141984 end user, you're not only paying forrepparttar 141985 product, but a percentage of repparttar 141986 price for each and every middleman inrepparttar 141987 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,repparttar 141988 amount of product or service provision you could 'move' from your own efforts, would be relatively small. In network marketing however, repparttar 141989 amount you 'caused' to be moved indirectly could be huge.

Here then isrepparttar 141990 essence of a network marketing compensation plan. For not only will you be compensated forrepparttar 141991 product or service provision you personally cause to be moved from your own direct efforts, you will also receive indirect compensation forrepparttar 141992 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' repparttar 141993 benefits of bothrepparttar 141994 products/service provision andrepparttar 141995 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 fromrepparttar 141996 'movement' of product or service provision fromrepparttar 141997 'downline' your 'sponsor' will help you to build.(In network marketing it isrepparttar 141998 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 othersrepparttar 141999 information aboutrepparttar 142000 products or service provision andrepparttar 142001 business opportunity on offer.

Theoretically, if after 'sharing'repparttar 142002 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 torepparttar 142003 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

Imaginerepparttar 142004 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,repparttar 142005 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 aboutrepparttar 142006 business.

If you want to toss asiderepparttar 142007 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. Thoughrepparttar 142008 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 throughrepparttar 142009 numbers". That is, sort through lots of people until you find those people who get SERIOUS aboutrepparttar 142010 business.

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 (SERIOUS) people who want to become successful themselves.

MLM Recruiting Success- 10 Commandments of MLM Recruiting in Network Marketing

Written by Doug Firebaugh


The Ten Commandments of MLM Recruiting by Doug Firebaugh

1) Thou Shalt Recruit through Your prospects eyes.

So many times when we are trying to recruit, online or offline, we do not takerepparttar 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...andrepparttar 141911 recruiters who takerepparttar 141912 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 thatrepparttar 141913 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- thenrepparttar 141914 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 ofrepparttar 141915 process, you will find your results will skyrocket. Relationships are magnetic...Magnetize your Distributorship with Relationship Recruitng!

3)Thou Shalt Garner Leads Everyday.

Leads arerepparttar 141916 lifeblood to any distributorship. And most folks playrepparttar 141917 " 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 quitrepparttar 141918 "baking game"..which in reality isrepparttar 141919 "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 inrepparttar 141920 Multiples....andrepparttar 141921 Lotto is inrepparttar 141922 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, andrepparttar 141923 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 inrepparttar 141924 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 educatingrepparttar 141925 prospect also is giving themrepparttar 141926 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.."

6) Thou Shalt Communicate Hope, Possibilities, and Belief.

Cont'd on page 2 ==>
 
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