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Why Network Marketing

Why Network Marketing Works

How long do you think it would take to become wealthy by working for others, earning an excellent salary, saving diligently and investing wisely?

Can self-employment as a conventional business owner or a franchise owner create financial freedom for you?

How much would it cost to start a business that could support you nicely several years after your starting date and could provide the lifestyle of your dreams a few years later?

Do you know of any business that provides greater success for people when they help others to be successful?

Working for Others

When you work for a traditional business, your efforts may provide you with a nice salary, paid vacations, health insurance and even bonuses to acknowledge your extra efforts. However, the owner and stockholders of the business gain the most from your hard work. Working for others usually means working according to their schedules, complying with a dress code, asking for permission when you take time off, working with people you may not like and having a limit to your earning potential.

You can live within your means, save money on a regular basis and make shrewd investments to gradually increase your wealth as you work for others. However, some investments can be risky, and financial institutions guarantee interest rates for only limited terms. Nevertheless, wise planning may help you to acquire enough money for a nice retirement after many years of working for someone else.

Owning a conventional business or franchise

You need to make a significant investment of money and time as well as possess or develop certain skills to be successful as the owner of a conventional business or franchise. In addition, it normally takes years before the business begins showing a profit because of your large initial investment.

Cost of a successful home based business

When you work from home, your expenses related to work can be less than the costs associated with a normal job. You will have no need to buy expensive clothes to maintain your appearance of success. You will not have the cost of commuting to a job or of childcare while you are away from home. You can eat at home more often because you can put dinner in the oven and let it cook as you work. A home based business offers many tax advantages as well. If you work from home and devote a portion of your home to your business, you may be able to deduct part of your utility, maintenance and mortgage expenses from your taxes. When you combine your work with vacations, part of your travel expenses may be deductible as well.

When you choose a multilevel-marketing (MLM) distributorship as your home based business, the startup cost is normally very modest. Most MLM companies do not ask you to keep an inventory of products, but you may wish to purchase a few samples. Some MLM companies require you to buy a starter kit of supplies that will help you begin your home based business, but your total cost to start the business is normally minimal.

Helping others succeed

Network marketing is one of only a few businesses that offer the most prosperity to those who help others achieve prosperity. MLM distributors share their business opportunity with others and develop teams called downlines. The distributors teach everyone in their downlines the skills needed to be successful with the business opportunity. Each team member purchases products to use, sells products to others and duplicates the process of building and training teams. The MLM company pays bonuses to distributors based on their sales along with the sales of those in their downlines, and their downlines can continue through multiple levels, with each level growing wider. When distributors train their team members effectively, they profit from the success of each one in their downlines, and the process keeps repeating with each member of their teams. Networkers become wealthy when they teach others how to be wealthy.

Author Robert Kiyosaki explains that most people do not make very much money in a network marketing business unless they help enable other people to leave the realm of the employed or self-employed and succeed as business owners or investors. Those who focus on assisting others to become successful will achieve success as well.

Robert Kiyosaki also states that traditional business owners focus on creating assets by hiring employees or self-employed people to work for them. However, multilevel marketing business owners create assets by training other business owners to work under them, those people train other business owners to work under them, and the process goes on down many levels.

Robert Kiyosaki is a businessman, investor and self-help author best known for writing a series of Rich Dad, Poor Dad motivational books.

Network Marketing REALLY Does Work!

Multilevel marketing works for a number of reasons, and the three main ingredients for success with this business model are residual income, duplication and leveraging of time and money. A multilevel business opportunity makes the most of all three of those important principles.

Residual income

Network marketing provides a business opportunity that allows people with no special skills or previous experience to create lasting streams of residual income without making large initial investments.

Duplication

The networking business opportunity involves many ordinary people that do a little rather than a few experts doing a lot. The work is simple, easy to teach and easy to learn.

Time and money leveraging

Networking allows people to leverage time and money thereby gaining more of both, because networkers benefit from the efforts of other people as well as from their own efforts. In addition, everyone in the organization has the same opportunity to earn as much as the other members can earn.

Network marketing will always work

According to Robert Kiyosaki, the economy of the world has moved ahead, and multilevel marketing is a major business for the 21st century.

  • There will always be people who want or need extra money.

    Some people find that supplementing their incomes is necessary to make ends meet. Others want the ability to have some of the nice things they see advertised on a daily basis. People can work from home doing a networking business part time to earn extra money, and if they put more effort into the business, they may make more than they earn from their full-time jobs.

  • There will always be people who do not enjoy their current jobs.

    Most people do not work for others because they like their jobs but because they need the money they earn from those jobs. Many jobs require employees to work at hours that are inconvenient and create stress for them and their families, and commuting long distances to work is a problem for numerous workers. Those people may enjoy the benefits they receive when they work from home at times that are convenient for them.

  • There will always be people who want to have control of their time.

    Networkers can start a home based business and work from home part time while maintaining their current lifestyles. After they build a team of other distributors, the networkers can earn enough to quit their full-time jobs, and when they no longer work for bosses, they will be free to set their own schedules. The networkers will have no limits to the amount of money they can earn, especially with the residual income they make.

    MLM vs JOB

     
    "You cannot finish your job, but your job can finish you."

    "We make things happen."

    "The goal is to get out of the rat race!"

    "Stay focused. The minute you lose focus you will also be losing your momentum."

    "You're failure is temporary because you are created a champion!"

    Motivated enough? These are the facebook statuses of the MLM junkies. That positive vibe, hype and energy! Oh can you feel it?! Job, rat race, focus, failure, champion. Do you see the relevance of these root words here? In a nutshell, they were  trying to imply that your job is just temporary. That later on you will lose your job, you will never get out of the rat race and you will be a failure... if you will not do MLM! That is the clear message. How to be a champion? Join MLM, stay focused, never quit and diss your JOB. The job that brings food to your table, pay for your child's education, gave you medical insurance, prepares you for your retirement and your source of savings for your contingent needs. How can you exchange your JOB for MLM then? What does MLM can give you? Fixed earnings? Passive income? Insurance? Time freedom?

    Well, let me enumerate the "benefits" that MLM was trying to offer:

    1) Fixed earnings - On your JOB, you will have your monthly income credited to your bank account. No questions asked as long as you completed your working days. You will have this income for as long as you work with your company as you are sharing a mutual benefit. Your services in exchange of wages. In MLM, you have to recruit people, use and sell the products to get commission - which is not FIXED even if you work to the best of your effort and most of your time. Because if you weren't able to convince people to join, that's the end of it. No questions asked.

    2) Passive income - On your, JOB you can save your extra earnings on the bank, open a time deposit, or invest in stocks, which can give you a passive income through interest. Or if you are having a bit more savings, you can invest on properties and buy land because its value appreciates over time. In MLM, you have to recruit people, use and sell the product to get commission  - which is not passive income because you still have to work for that. - PAINSTAKINGLY

    3) Insurance - On your JOB, most likely the company provides for your medical insurance, offers you a retirement benefit, bonuses based on your performance and other employee benefits. In MLM, you are not insured! They may say you have a personal accident insurance for this so and so company but how can you vouch on that? You are not their staff and they have no obligations to you. You are just a mere "commissioned salesman". Can you claim on that in the future? Another thing, the amount of the insurance is not significant enough to secure you in the near future taking into consideration the time value of money and inflation as this a fixed amount.

    4) Time Freedom - On your JOB, you work an 8 am to 5 pm shift. An average of let's say 10 hours a day inclusive of break time. Most are free in the evening after work. You can catch up with your friends over a cup of coffee, have dinner with your family, or even a movie date with your significant other. Plus in the weekend, you have a choice to either just stay at home and rest, or if you want to have more fun you can have weekend getaway on nearby places or just simply stroll somewhere. In MLM, you are on call 24/7. Meetings and rallies here and there. You are up all night, you have a lot of appointments to sell your pitch and you have to go to a lot of places - using your own hard earned money from where else? Your JOB! You have to pass up birthdays, anniversaries, graduations and other important celebrations of your life! It's because you have to put on your priorities these MLM activities because of your commitment. Where is the time freedom here??

    Network Marketing, also known as Multi-Level Marketing (MLM) is a relatively new therefore most misunderstood method of moving products or services from the manufacturer to the consumer.

    Accordingly it allows independent distributors not only sell the product/service, but also recruit other independent distributors and draw a commission from the sells of those recruiters.

    The other business methods of moving a product are:

    Retailing or Traditional Marketing where the consumer is purchasing from the retail stores: department stores, drug stores etc. Retail marketing is using traditional channel of paid advertising such as TV, newspapers, and radio.

    Direct Marketing is a sales method by which advertisers approach consumer direct with the product or services.  Direct marketing is use by smaller companies with yet unrecognized brand names and limited budget.

    Direct Marketing  Advertising reaches the potential customers using the simple advertising techniques such as fliers, catalogs, and letters.

    Most common forms of Direct Marketing are: Direct Selling, Direct Mailing, Telemarketing, Email Marketing, Broadcast Faxing, Couponing, and Direct Response Television Marketing (DRTV).

    Elements of Direct Marketing are also found in a Network Marketing.

    The only difference is that Network marketing is a Direct Selling with multi-level structure.

    Product distribution ways: Traditional Marketing vs. Network Marketing and Direct Selling

     

    In Traditional marketing, when a consumer buys a product or service from a retailer the money are divided among 4 sectors of the supply chain:

    Manufacturer ->Distributor ->Wholesaler ->Retailer ->Consumer

     

     

    In Network Marketing and Direct Selling Independent Distributors market the product directly to the consumer and earn the profit that used to go to the middlemen.

    Consequentially the profit chain is shorter:
    manufacturer -> distributor -> consumer

    Advertising in Network Marketing vs. Traditional Marketing

    Today’s consumers are very skeptical and experience an information overload.

    The result: they ignore the expensive television advertising and print ads that marketing team creates.

    Instead, they ask for recommendation from people around: family, friends, relatives, co-workers, neighbors or others who had any experience with the product they need.

    It creates “invisible marketing”.

    Companies have always recognized the power of the word-of-mouth recommendation that in fact more effective than an advertisement created by the product’s seller.

    This type of recommendation is also called word-of-mouth advertising or viral marketing and recently is gets a new more indicative term – BUZZ.

    Where exactly the BUZZ starts and what it does?

    When you need to buy a product or service you ether perform independent research on the product or just ask for the recommendations.

    It’s very easy to acquire the information because people like to talk about themselves and their experiences in life. They like to share and recommend.

    People recommend everything – product and services they use and satisfy with. It can be car they drive, car services they use, phone and phone services.

    They recommend which movie to see and where to take vacation. This list can go on and on. And it is actually the most powerful marketing strategy.

    Although it is broadly used in Traditional marketing in Network Marketing companies the product moved by only word-of-mouth marketing.

    - See more at: http://www.networkmarketingera.com/articles/what-is-network-marketing-vs-traditional-marketing/#sthash.S5Zgtmvl.dpuf

    Network Marketing, also known as Multi-Level Marketing (MLM) is a relatively new therefore most misunderstood method of moving products or services from the manufacturer to the consumer.

    Accordingly it allows independent distributors not only sell the product/service, but also recruit other independent distributors and draw a commission from the sells of those recruiters.

    The other business methods of moving a product are:

    Retailing or Traditional Marketing where the consumer is purchasing from the retail stores: department stores, drug stores etc. Retail marketing is using traditional channel of paid advertising such as TV, newspapers, and radio.

    Direct Marketing is a sales method by which advertisers approach consumer direct with the product or services.  Direct marketing is use by smaller companies with yet unrecognized brand names and limited budget.

    Direct Marketing  Advertising reaches the potential customers using the simple advertising techniques such as fliers, catalogs, and letters.

    Most common forms of Direct Marketing are: Direct Selling, Direct Mailing, Telemarketing, Email Marketing, Broadcast Faxing, Couponing, and Direct Response Television Marketing (DRTV).

    Elements of Direct Marketing are also found in a Network Marketing.

    The only difference is that Network marketing is a Direct Selling with multi-level structure.

    Product distribution ways: Traditional Marketing vs. Network Marketing and Direct Selling

     

    In Traditional marketing, when a consumer buys a product or service from a retailer the money are divided among 4 sectors of the supply chain:

    Manufacturer ->Distributor ->Wholesaler ->Retailer ->Consumer

     

     

    In Network Marketing and Direct Selling Independent Distributors market the product directly to the consumer and earn the profit that used to go to the middlemen.

    Consequentially the profit chain is shorter:
    manufacturer -> distributor -> consumer

    Advertising in Network Marketing vs. Traditional Marketing

    Today’s consumers are very skeptical and experience an information overload.

    The result: they ignore the expensive television advertising and print ads that marketing team creates.

    Instead, they ask for recommendation from people around: family, friends, relatives, co-workers, neighbors or others who had any experience with the product they need.

    It creates “invisible marketing”.

    Companies have always recognized the power of the word-of-mouth recommendation that in fact more effective than an advertisement created by the product’s seller.

    This type of recommendation is also called word-of-mouth advertising or viral marketing and recently is gets a new more indicative term – BUZZ.

    Where exactly the BUZZ starts and what it does?

    When you need to buy a product or service you ether perform independent research on the product or just ask for the recommendations.

    It’s very easy to acquire the information because people like to talk about themselves and their experiences in life. They like to share and recommend.

    People recommend everything – product and services they use and satisfy with. It can be car they drive, car services they use, phone and phone services.

    They recommend which movie to see and where to take vacation. This list can go on and on. And it is actually the most powerful marketing strategy.

    Although it is broadly used in Traditional marketing in Network Marketing companies the product moved by only word-of-mouth marketing.

    - See more at: http://www.networkmarketingera.com/articles/what-is-network-marketing-vs-traditional-marketing/#sthash.S5Zgtmvl.dpuf