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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 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 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 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.
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 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 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 and business opportunity.
Theoretically, if after 'sharing' 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 following after five levels of geometric growth:
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 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, greater your income potential.
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!
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 working population - that's approximately 6 million people - would be interested in starting their own business, marketplace in 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, marketplace is actually growing.
One of most important things to recognise is that most precious resource available to you is in new blood - millions of business opportunity seekers who are not presently involved in networking. For it is there that you will find success stories of tomorrow for your downline organisation.