What is Network Marketing?
Mlm is another form of direct marketing. It's primarily more concerned with the organization of a sales network compared to the sale itself.
The networker mostly actually starts to build up its own business before helping then other partners to build their own, such as a franchisor.
In difference to franchising where just one company opens new branches, in Multilevel marketing each independent business proprietor can open new network businesses, but low financial investigations and without risk. was ist network marketing
A networker undertakes the duty to organize the network, to get paid for the sales qualified for bonus within that branch network.
Another feature of Network Marketing is to build up an transnational business by sponsoring international partners. Specifically in Europe, Network Marketing represents among the best examples how to make using a single European industry.
A report from Prof. Dr. Michael Zacharias, University Worms, in 1996 has shown, that the total revenue in Germany made in Network Marketing is still really low (approx. 300 million EUR p.a.), however it will be fast-paced.
In the Ukraine the market has just started (Nov. 2003), and also the market in Russia will become 2004 too. So of these countries we will see incredible and surpassing business increase in the next years. In case you are from the Ukraine or Russia, or perhaps you know people from there, you'll be able to directly benefit from it. You'll be able to offer them an opportunity to build their own business.
It was just an example, there are more exciting success stories business countries as well, e.g. Sweden, Korea etc., as well as the opportunity is identical in most supported countries.
In Europe the Multi level marketing is still in its infancy. Only 0.7% of trading are still made with Network Marketing.
So this distribution channel includes a huge potential for development in future all over the world.
The Three Pillars of Success in Mlm are:
1) Residual Income
2) Leverage (of your energy and Money)
Multi-level marketing, 'MLM', and Multi Level Marketing are terms that make reference to the same type of business model. Although close-minded people outside the industry (while others who've tried it without success), have biased or negative wrong impressions, and even though it is used and abused by many people crooks and con-artists, ecommerce model has exceptional performance potential.
You'll find bad apples in every bunch, which industry has over it's share. Nevertheless it can produce outstanding results once you know how to find the right company. And to maximize your potential, there are some simple concepts whose understanding is crucial to your success.
Unlike franchises or conventional businesses, Mlm, MLM, and Multi-level marketing are the only business appliances take advantage of all three with the important, yet misunderstood principles of:
Passive Walk away income - Leverage - and Geometric Growth.
And the combination of all three of these elements is what gives the Network Marketing business model it's synergy and exceptional performance potential. In fact one outstanding company I'm aware of has actually built designed synergy into their business model.
Whether it's a franchise or conventional business, both require major investments of time and money, and special skills in case you hope to be really successful. Even relatively small percentage who achieve true success usually take years only to break even.
However, with the advent and popularity of the Internet along with the rampant quest to "Get Rich Quick for Doing Nothing", lots of people have gotten all pumped up about affiliate, associate, referral, or co-op programs as they are sometimes called. But not many of the thousands of these being promoted possess real chance of coming to a significant money for your vast majority of people who sign up.
A perfect example is surely an email that was recently received from one of these programs who claim to be 'the best'. They bragged them to be paying "over $400,000 in commissions each month!" and have "now grown to over 650,000 affiliates!"
Those are interesting statistics some might get excited about. Let's see... should they be true... They're paying an 'average' of $.61 per affiliate... That's sixty one cents ! Wow! How would you like to retire on that?!
They claim later within their letter that some are making $10,000 per month. If that's true, then to create an 'average' of sixty one cents each, the vast majority have to be making practically nothing.
There is a much better approach to achieve your dreams!
However you have to:
1) Take time to understand these three critical principles -
PASSIVE Re-occurring income - LEVERAGE - GEOMETRIC GROWTH
2) Figure out how to ASK THREE A quick question! - so you can teach what you know to others.
Should you be even moderately successful in networking, you undoubtedly understand and rely on the three principles above. You will find yet had the success you would like, you may not completely understand these principles, or ways to get them across to others. Highly successful networkers find how to ask the best questions, then help others understand and reap the benefits of these important and powerful concepts.
Unfortunately these principles usually are not well understood through the majority of the population. And that's just one reason why countless fail at multilevel marketing. There are lots of other reasons, and it would take a book to cover them all. But this is amongst the more common ones. Just like you don't understand or trust these principles, you will never help others fully comprehend and appreciate them.
To be honest, our educational system trains (or brainwashes) us to get conformists, to do what others reveal to do, and to plan for a JOB, not an entrepreneurial income opportunity. So those of us who crave our independence and freedom, head because direction in spite of our education, rarely for doing it.
And even though many people claim they'd love to be their own boss or own their unique business, only a small percentage of the population possess the necessary desire to have success to risk stepping from their 'comfort zones' to pursue their dreams.
Everybody is afraid of failure, as well as for them it may be better and much easier to live life inside a rut. Others are satisfied as well as happy with their jobs, incomes, or lifestyles, which is great for them. However, if you're one of millions who yearn for more freedom and control that you experienced, you must understand the following three principles to attain True Success in Network Marketing.
1) RESIDUAL INCOME:
Recurring income is recurring income that is constantly on the come to you long after the work you've done to produce it's got ended. There are lots of ways to produce residual income. But some people don't understand it. Others haven't thought about or been around it. And unfortunately, a number of ways of producing it are over the budget for 'average' people.
Successful authors, actors, musicians, and agents are some of the more familiar avocations that produce residual income. Probably the simplest and greatest example of passive residual income is interest earned on take advantage the bank or other investments. It gets paid or credited to you personally without you having to invest any more time for you to produce it.
Using the "virtual millionaire" concept I will explain below, if you have a million dollars in the bank earning 6% interest, that will produce about $60,000 of annual income (before taxes). So if you have any source of passive recurring income producing $60,000 or even more a year, you are a "virtual millionaire".
Current right business, that may be much easier to accomplish than attempting to overcome all the roadblocks to accumulating millions of dollars in the bank. As an alternative to Uncle Sam fighting everyone the way (taxing all of your income), he actually becomes an engaged partner by giving everybody kinds of tax breaks and incentives to achieve success.
There are only two sources of money:
1) PEOPLE AT WORK, and 2) MONEY In the office...
The simple goal of Retirement & Financial Planning is always to make sure you accumulate enough money (or income producing assets), so that when you decide or are required to retire, it will produce enough PASSIVE Re-occurring income for you to enjoy the lifestyle you select for as long as you live.
The same concept holds true in Multilevel marketing. But Leverage, and Duplication or Geometric Progression, will help you build it much faster inside the RIGHT Network Marketing program.
One of the primary questions I often asks prospects is:
"If you had the choice of doing a job and earning $500 once, or getting paid $100/mo for the rest of your life, which will you choose?"
You would be surprised at how many answer $500! These folks either, 1) usually are not good prospects or, 2) might need some education. That real one quick and simple way to pre-qualify people. Those who hardly understand that principle may never achieve their true potential.
Obviously $100/mo. will surpass a 'one time' $500 relatively quickly. If it lasts for quite a while, or better yet - the rest of your life - it'll really be a blessing. Producing enough passive walk away income can make you a VIRTUAL MILLIONAIRE within a relatively short time, in comparison to working for someone else and scrimping and saving for Thirty to forty years.
A VIRTUAL MILLIONAIRE is someone who has enough money to arrive every month, WHETHER THEY WORK You aren't, to support the lifestyle THEY CHOOSE, provided they live. It's also nice to have something SIGNIFICANT to pass on to your heirs or favorite charity.
But like the rest in life, even recurring income has a downside. The greatest one is, just like compound interest or geometric progression, it normally takes a little time for the magic to get started on working. The POWER and BEAUTY of residual income is on the back-end, not the front!
Lots of people have a hard time understanding this FACT and mistakenly chase false promises of quick or extra cash. That's why there will always be crooks and con artists usually in the world pitching "get rich quick and easy". Successful people ignore them. Naive or greedy people usually get burned.
Walk away income is NOT about "get rich quick", even though with the right opportunity it's possible to produce a small fortune inside a relatively short time.
If you are especially talented or have the time and money to take a position, you may have some success in less than a year. And many people do. But with no major investment of energy or money it will take most 'typical' people 12 months or two of part time work to generate a decent income, and the other year or two to really hit the large time. But success with 2 - 4 numerous years of part-time effort beats the widely accepted 'standard' plan of slaving 20 - 40 years working for someone else to make them wealthy!
A lot of people who fail at multi-level marketing either choose the wrong company or maybe give up too soon and quit simply because they expect INSTANT results. Speculate the real beauty of walk away income is on the back-end, not the front, as soon as you build it you have the financial security and time freedom to perform anything you want the rest of your life!
The proper network marketing opportunity allows anyone, without any prior experience, special skills, or large capital outlay, to construct long term, passive residual income. If you don't know how to choose the best opportunity, I can help.
A critical component to building long term residual income is offering excellent, high demand, value-priced, 'consumable' products or services that individuals use and re-order every month.
Because of this simple fact, the most notable industry in Network Marketing by any measurable standard is Natural supplements and Personal Care products. Many people refuse to consider this industry as they do not take supplements themselves or hardly understand the 'Big Picture' and successful enterprize model of this industry.
You think Burger King and McDonald franchise owners invest tens of thousands of dollars given that they like to eat take out burgers? Not hardly! They are aware of human nature and trends in society. We're convenient oriented society, and a large part of the population would prefer to eat low cost convenience food, even if we know it's not best for us.
But there's and a booming trend toward giving you better health, improving your life, and developing personal and time freedom. Many 'opportunity seekers' completely miss or ignore these trends in society. If your business is in front of multiple long lasting trends, you dramatically enhance your chances for success.
That's not me saying it's not vital that you believe in and use your personal products, because it is! Nevertheless for true success you need to recognize major trends in society, as well as your products or opportunity must meet Every one of the highlighted criteria above - excellent, high demand, value-priced, and 'consumable'. (As well as in this case, 'consumable' does not necessarily mean just 'edible'. This means used and/or re-ordered on a regular basis.)
And with the right business the rewards could be much more than just financial. It's tough to put a price tag for the goose bumps you feel or tears that come to your eyes sometimes when someone thanks you profusely for introducing them to a product that has had a serious impact on their health, their life, or their financial circumstances.
Unfortunately some people never grasp the importance of this additional benefit. Most good people wish to feel they are doing something worthwhile using life. And it's not just about making money, even though many narrow-minded or greedy people will try to convince you it is. It's also about helping others. And doing both, can make the right business doubly rewarding.
However your business also has to have profit potential. Some 'price-based' services or products have lots of competition and limited profit potential. If you choose a business like that you have to do a lot more volume and it is hard to build loyalty, that's an important element in producing long term passive residual income.
Every successful person or business (in or from Network Marketing) takes advantage of leverage. There's only 24 hours in a day! And no matter how talented you happen to be or how much you will get paid per hour, if you do not take advantage of leverage you're tied to the number of hours in a day. By learning to leverage your time and energy, you can also benefit from a portion of other people's efforts, and dramatically increase your income and freedom.
In case you are reading this article on the Internet (on my website or somebody else's), or in a magazine, that's a particular example of leverage. I don't have to be physically show teach you something. I could be sleeping, or vacationing conversely of the world while you are learning or sharing these details.
Unfortunately in most traditional businesses, the sole ones who benefit from leverage are the owners or stockholders. The loyal, hard-working employees do almost all of the work. The unique and wonderful thing about the Home business model, is that all people have the same opportunity to become the 'owner' of their own business - which has a fraction of the investment of energy and money of a traditional business or franchise.
And rather than worrying about training people to become your competitors, in multilevel marketing the people at the top have a very vested interest in helping others on their own team succeed.
Again, the issue I ask prospects the following is:
"If you had the choice to receive 100% of a single person's efforts, or 5% of 100 peoples', which would you choose?"
And again, when they answer 100%, either: 1) they aren't a good prospect or, 2) they need a remedial math class or additional education.
Many talented people choose to just depend on themselves, and still have difficulty grasping the significance of this concept.
Obviously 100% of one is always only one. But 5% of 100 is five. Which is a 500% increase and is significant! Sufficient reason for synergy, sometimes it may be even more!
Not only will the whole result with leverage usually be a lot more, however, your income is not influenced by only one person. If it's, and that person gets sick or injured, disabled, dies, quits working, or decides to take a long vacation, your earnings could stop!
If a income is produced by the actions of many, it is considerably more dependable. Even if something unexpected or negative occurs one or more of those people, there are just a minor effect on the total production. That's what enables people who understand and utilize this to live the lifestyle they choose or get paid while on extended vacations.
It is good to get paid during your vacation or doing other items you love! That's among the numerous advantages of leveraging your time and efforts, and is just one of a lot of reasons so many high income professionals from all walks of life are flocking to obtain involved in Network Marketing.
Many professionals who make great incomes, get frustrated at the 'bottom line' after putting in long hours just to cover overhead and miscellaneous expenses. Regardless how much you earn each hour, if you don't learn to leverage your time and effort, your earnings will always be limited by the number of hours you'll be able to work in a day. And no-one wants to work A day! But even with a small network marketing organization, it is possible to produce equivalent brings about working 24 hours a day, having a fraction of the individual effort.
Finding out how to leverage your time (and your money) is an important step toward gaining Financial Independence and Time freedom.
The best illustration I've seen of duplication will be the penny-a-day example. It's also regularly employed to illustrate the benefits of tax free compound interest.
In the event you start with one penny, and double it every single day 30 days, how much are you going to have at the end of Thirty days?
If you haven't heard this before or don't remember, make a guess. Day two you'd have 2 cents; the third day you'd have 4 cents, then 8, 16, and the like. How much at the end of 30 days?
I've never had anybody that hadn't heard this before come close. So don't feel sick if you don't, and I promise to not laugh. Ready? Would you pick a number?
Can you believe over FIVE MILLION DOLLARS?! ($5,368,708 to be exact!) That's right! Most people don't believe it until they punch against each other on a calculator. And in many cases then it's sometimes tough to fathom. But it's true. Isn't that amazing?
That's a simple demonstration of how networking can function. If I can teach you, I've doubled myself. Whenever we each teach somebody else, we've doubled again. So when this goes on and on it might produce amazing generates a relatively short period of time, just like the penny example.
The easier your program is always to do and the lower the fee to get involved, the more people you can attract and the more potential for geometric progression to be effective. Programs that are too complicated or harmful for 'average' people to do will usually hinder your growth.
Great salespeople can succeed at just about everything they apply themselves to. But not many people have the talents, skills, or need to be great salespeople. It is not DUPLICATABLE!
The Network Marking business model is about a lot of average people doing a little, not a few talented people conducting a lot.
While more affordable of entry is an advantage, many programs which can be 'free', don't offer any real potential for significant income, and sometimes attract people who aren't ready to work to build their business. So REALISTIC INCOME PRODUCING POWER is an important area to consider.
Joining a 'downline club' or other program that promises any variation of - "we'll do everything for you" - won't produce significant Long-term passive residual income, because the majority of people who join are trying to find a free ride or are so lazy to build anything significant. None of the programs have ever worked long lasting and none ever will. It's a simple fact of life successful networkers accept ahead of time.
The penny every day example is a great model for illustration, but in 'real life' it never works just like that. Some people never recruit anyone, yet others find 10 - 20 - 30 or more. It helps to understand , and an IMPORTANT, but disconcerting reality called REVERSE GEOMETRIC GROWTH.
Although it rarely works in fact like it's illustrated in writing, the principle of duplication remains to be one of the THREE PILLARS TO SUCCESS with the appropriate Network Marketing Business Opportunity. With the proper business and these POWERFUL PRINCIPLES, even average those people who are willing to work also to learn can achieve their dreams. And above average people may exceed their greatest expectations.
When you can UNDERSTAND and Trust those three principles, and find the RIGHT company, you'll succeed in Network Marketing. If you're willing to TEACH these THREE principles to a few others, the final results might just amaze you!
The good thing about Network Marketing is that you can start very little investment of your time or money, no major changes in your existing lifestyle. Eventually, passive residual income can give you the FREEDOM to reside in the lifestyle YOU CHOOSE, and pursue and get your dreams - anything they are!
I read somewhere that, "according to IRS statistics, twenty six years ago 20% of NEW millionaires originated in Network Marketing. By 1994 it was 50%. It's predicted that by 2004, 70 - 80% of the latest millionaires will come from the booming Network Marketing industry." I do not really believe those statistics. But it doesn't matter what the percentages are, certainly many new millionaires are set up every year in the Multilevel marketing industry.
Many positive CHANGES have been made in the industry, and several simultaneous MEGA-TRENDS help make this local plumber ever to get involved! Enough time to start is NOW! But it is important to pick the RIGHT company and industry!
Should you UNDERSTAND:
1) The value of 'CONSUMABLE PRODUCTS' ... 2) The REASONS for your popularity of the Supplement Industry... 3) The significance of high quality, high demand, value-priced, products...
You are much MORE LIKELY TO HAVE ABOVE AVERAGE SUCCESS!
Successful Multi-level marketing offers many benefits: Passive Walk away income - No Boss - No Commute - No Dress Code - Tax Reduction - More hours for kids, family, hobbies, or whatever is important to you - Above Average Income - plus more.
If I had to sum it up in one word it would be FREEDOM! - Freedom to be effective as much or as few as you want, to come and go while you please, and to spend more time doing whatever is essential to you. Once you experience this FREEDOM, you'll wonder how we ever lived every other way!
There's no free lunch though. It's like washing dishes. If I asked, "Would you rather ride a bike uphill or downhill?" most normal people would say, "down." But in order to coast on the hill, you first have to ride your bike up. Once you start, you may find yourself experiencing and enjoying the exercise and additional advantages of improving your strength, endurance, and health. Does in this business. You will need to 'climb the hill' (learn the business) one which just 'coast'. Many people learn to take advantage of the process of becoming better people, helping others, and improving even more than just the financial part of their lives.
There are several routes to the top from the hill. Some people choose to enjoy a gradual incline and might take a little longer to have there. Others choose the direct route, and pick to pedal directly up the steepest side. The beauty is, accomplish their goals. We can show you the routes, so you decide what's best in your case. We'll be there to stimulate and guide you every inch of the way.
Best wishes for True Success plus a HAPPY, HEALTHY, PRODUCTIVE LIFE!