What is Network Marketing?
It depends on who you talk to.
Talk to someone who joined a network marketing opportunity, learned the ropes, took action and went on to build a wildly successful business that pays them a solid six-figure, even multiple six-figure annual business and they will tell you:
“Network marketing is the greatest opportunity in the history of mankind for the average person without a lot of money to invest to become financially free.”
Talk to someone who has joined a few different opportunities over the years but who never really got in and “did the work” required to build a business and they might say something like this:
“Network marketing doesn’t work. The only people who make big money are the people who get in early.”
So who is right? And if you think about it, neither really answers the question: “What is network marketing?”
According to Wikipedia, network marketing is way of doing business in which a sales force earns a commission not only for sales of products and services they personally generate, but also for the sales of others they recruit and bring into the business, which creates a down-line of distributors and a hierarchy of multiple leveraged levels of compensation.
You realize you will never get rich working for someone else. You also know there are huge lifestyle benefits associated with building a success business:
You can pick the people you work with.
You can work from home part-time in your spare time.
You can pick the hours you work and how much you work.
You can give yourself an IMMEDIATE raise through tax savings.
You have the chance to literally set yourself financially free.
Why network marketing is the perfect business.
Low risk. 500 Baht investment with lifetime membership.
Low overhead. Network marketing companies provide you with all the tools to track your business.
No employees. A huge benefit, the company provides all the infrastructure, million dollar website.
Tax advantages. You can convert your distributor registration to a company for more tax deductions.
No income ceiling. The harder you work, the more money you make.
Work from anywhere. Wi-Fi and Computer allows you to work anywhere.
No shop and no inventory. You don’t have to keep any stock.
No special degrees required to start this business.
Ability to leverage your time with the greatest effect. No wasted time working to benefit other people and commuting to and from work.
Interesting facts on network marketing:
In 2012, network marketing was a 167 Billion USD business.
Worldwide movie sales = 34 Billion USD
Worldwide music business = 68 Billion USD
82% of women who earn 6 figures or more, do it with network marketing.
You get to choose your business partners………if you don’t like them, don’t sign them up. Never before has there been the combination of an unlimited pay-plan with the power of your social network. You don’t need to bug your family and friends because of your large social network.
You need unwavering faith that this is the business that will help you succeed. You must be blind and deaf to all those that say you cannot succeed.
How is network marketing able to pay so much?
Let’s say you earn a $100 commission for selling a particular product and it takes you two hours of “work” to make a sale. Break that down and your time is worth $50 per hour. Put in a full 40 hour work week and you pocket a nice $2,000.
Let’s also say you have spent some time “recruiting” a few people to join your team who also want the chance to earn $100 per sale and you earn a nice $10 check for every sale THEY make.
Over time you have built a team of 100 people. They each make 20 sales per week – independent of your time and effort.
YOU = 40 hours, 20 sales, $2,000
TEAM = 4000 hours, 2,000 sales @ $10 each = you get $20,000
See the magic? You get paid on the time and effort of other people. This is leveraged income versus linear income.