What is Network Marketing?

Network Marketing Definition

I’ve been looking for a way to explain what is network marketing for a while and have decided to get the help from Mr Rob Fore and his Network Marketing Blog.

Below is an article from his blog. I hope you enjoy.

What is network marketing, exactly?

It depends on who you talk to.

I’m serious!

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?”

What is Network Marketing?

According to the Network Marketing Association and Wikipedia, network marketing is way of doing business in which a sales force earns a commmission 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 downline of distributors and a hierarchy of multiple leveraged levels of compensation.

Whew. What a mouthful. Let’s break that down into something that makes more sense, shall we?

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.

So you decide to investigate joining a network marketing company because of the low cost of entry and all the training and support you get. But what are you really getting yourself into? What is network marketing, exactly? Here’s the deal…

When you join a network marketing company you are “signing up” to represent that company’s product and services and business opportunity.

You “sign up” by making a small investment (usually $500 to $1,500) and by completing an Independent Distributor agreement. You are not being hired by the company as an employee but, rather, you are volunteering to represent the company as an independent contractor, business owner, dealer, representative or consultant. You are awarded a commission based upon the volume of product sold through your own sales efforts as well as that of their downline organization.

In other words, to make money you need to personally sell stuff AND teach your team to sell stuff because you earn commissions on the AMOUNT of product that moves through your new business.

What is Network Marketing? Think Franchise!

Consider a franchise operation like McDonald’s.

McDonald’s is one of the largest fastfood organizations in the world. They have more than 33,000 restaurants that serves more than 64 million people in 118 countries each day.

More than 80% of MacD’s restaurants are owned and operated by independent business owners or contractors.

Now if YOU owned the mother-ship corporation, you not only earn money by selling burgers, fries and shakes from the 20% of the restaurants YOU personally own and operate… you also earn a tiny percentage on all the sales made by the entire organization including the other 80% you do not own or operation. Meaning you are now earning a LEVERAGED income generated by the time, talent and energy expended by the other business owners on your team.

Here’s another way to look at it…

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.

So perhaps a good way to answer the question: “What is network marketing?” would be quote J. Paul Getty, one of the richest men in his time:

I’d rather have one percent of the efforts of 100 people than 100 percent of my own efforts.

What is Network Marketing? The Reality…

Here’s the unfortunately reality, however.

No matter how you slice it, the only way you will ever build a highly profitable network marketing business is to be willing to MASTER the art and science of sales, marketing and leadership. Because MLM is form of “direct sales” and no one makes a dime until products and services are sold. It’s that way in every business, not just network marketing.

So the KEY is to join a company, track down who is currently enjoying a level of success you aspire for, find out what they are doing… and simply be willing to DO the same things. Which, of course, may require you learn new skills and actually a few things (sales and marketing) you are not comfortable doing in the beginning. So what is network marketing?

  • Network marketing is a career choice and a profession.

  • Network marketing is a path to fame, fortune and time freedom.

  • Network marketing is a leadership development platform.

  • Network marking is fun, fast and exciting.

  • Network marketing is a proven “million dollar” business model.

 

What Is Multi Level Marketing

Multi Level Marketing

Multi Level Marketing Explained

People ask me this question all the time. This is what the good people at Wikipedia have to say about it. Check out the full article here —->  Multi Level Marketing

Multi level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.Other terms for MLM include pyramid selling,network marketing, MLM Scams, and referral marketing.

Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people use direct selling as a synonym for multi level marketing, although multi level marketing is only one type of direct selling, which started centuries ago with peddling.

Multi level marketing companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company’s products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members’ enthusiasm and devotion.

In contrast to multi level marketing is single-level marketing, where the salesperson is rewarded for selling the product directly to the consumer.

Direct selling, Network Marketing, and Multi Level Marketing

Network marketing and Multi-level marketing companies have been described by author Dominique Xardel as being synonymous, and as methods of direct selling. According to Xardel, direct selling and network marketing refer to the distribution system, while the term “multi level marketing” describes the compensation plan. Other terms that are sometimes used to describe multi level marketing include “word-of-mouth marketing”, “interactive distribution”, and “relationship marketing”. Critics have argued that the use of different terms and “buzzwords” is an effort to distinguish multi level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams. Some sources classify multi level marketing as a form of direct selling rather than being direct selling.

The Direct Selling Association, a lobbying group for the multi level marketing industry and Network Marketing Companies, reported that in 1990 twenty-five percent of members used multi level marketing, growing to 77.3 percent in 1999. Companies such as Avon, Electrolux, Tupperware, and Kirby all originally used single level marketing to sell their goods and later introduced multi level compensation plans. By 2009, 94.2% of members were using multi level marketing, accounting for 99.6% of sellers, and 97.1% of sales. The DSA has approximately 200 members  while it is estimated there are over 1,000 Top MLM Companies using multi level marketing in the United States alone.

Multi Level Marketing Article

Please check out the rest of the article at http://en.wikipedia.org/wiki/Multi-level_marketing – Multi Level Marketing Article

To find out more about multi level maketing and network marketing, Check out this Network Marketing Video

What Is The Biggest Fraud in MLM?

Todd Falcone has posted this post and I had to show you. I love his no BS approach in network marketing.

This is absolutely the worst thing perpetuated upon network marketers in our profession. It hurts more people than you can possibly imagine.

httpv://youtu.be/drgYXUvL5lY
In this video, He EXPOSES what he believes to be the biggest fraud perpetuated upon individuals in the network marketing arena.  It isn’t who you are expecting.

Watch this video and pay very close attention to the message, because IF you get it, and you decide to ACT on it, there is a very good chance that you will end up having a very dramatic and positive impact on this profession and all those who enter it.

Don’t be stingy!   Use on of these buttons right next to this post and SHARE IT!  People in our profession need to hear this one.

I’m a huge fan of Todd’s work and I love his trainings and videos. Check out his YouTube Channel Here.

8 Simple Ways To Succeed In The Cold Market

network marketing tipsSucceed In The Cold Market With These Simple Network Marketing Tips

Networking Marketing recruits are told to start recruiting their friends and family, also known as their “Warm” market. However what do they do when their warm market is very small and exhausted very quickly? They move onto what we call the “Cold” market.

This market is all the people in the world you don’t know.

I’m always being asked, “Who do I speak to in the Cold market?”

My answer is always the same. EVERYONE!

You’ll find so many methods that you can use to find new potential business partners. Discover how to open your eyes to the world of possibilities that exist and your world will open up to a tremendous amount of money.

You cannot hit a target you can’t see. So train your eyes to look for and recognize an opportunity, and you will soon realize the magnitude of what is available to you in the marketplace.

Opportunity to grow your business is literally everywhere.

Top producers understand HOW to capitalize on those opportunities and they ACT on them accordingly.

The Cold Market is a phenomenal market to build your business in, but you are going to be faced with things you don’t experience in the Warm Market. I hope to give you some good advice you can take away with you with these simple Network Marketing Tips.

Below are 8 Network Marketing tips to help you with your cold market.

1.It’s All About Sorting.

You must always remember that this business is not for everyone. Your job is to sort out the ones that are interested, the ones that are not interested and the ones that need helping off the fence with more information.

2. It’s Nothing Personal But.

Always remember it’s nothing personal, it’s only business. Some folk will get it and some folk will laugh at you. It really is as simple as that. If a prospect is negative and gets funny with you, that is up to them. Move forward and move on.

3. Stalking Isn’t Pretty.

Don’t Become a Stalker and go chasing people or get too involved, unless you are going to put a ring on their finger. There are always other people to sponsor just around the corner.

4. Work It Every Day.

To become successful in your business you have to work it baby. Prospecting is the only income activity that needs to be done every day. Success only happens when you do the right activities on a regular basis.

5. Every Day’s a School Day.

Learn something new every day and keep track of how you are doing. Make sure you are doing the right things, pay attention to what you are doing and learn from every opportunity, even the bad ones. If you do this every day, you will grow from these experiences. People that are successful in your up-line know this. They pay attention to detail and are always looking at ways to improve.

6. Act The Leader.

Remember that these people don’t know you from Adam. You could have no-one in your down-line or have sponsored 1000 people. Fake it until you make it is a popular expression in Network Marketing. Act positive, successful and productive, even if you don’t always feel it. I’m not saying you must lie about things, just fake it till you make it. As my old dad used to say to me, “You act like a kid and I’ll treat you like a kid. If you want me to start treating you like a man, act like one.”

7. It’s a Numbers Game.

As I said in tip 1 this is a sorting business, it doesn’t matter how good you think you are, you still need a lot of people to sort through. The more people that see your opportunity, the more people you recruit. The best sponsors in the world still need a large number of eyes on their service or products. That’s how this business works.

8. Don’t Give Up.

There is only one thing I can say here. Once you have sipped from the network marketing chalice, why would you give up and go back to your hum drum life? Did Marty say “No thanks Doc, I don’t really want to go back to the future again” NO. Never, ever, ever EVER GIVE UP. Capisce?

Network Marketing Tips Conclusion

With good network marketing tips and a great blueprint your cold market can be very useful to your business.

Speaking with your cold market and growing your market can be fun and very rewarding, but only if you know what you are doing.

Learn how to grow your network marketing business and become a great sponsor TODAY with more network marketing tips by visiting http://sponsoringsecrets.co.uk

Article Source: http://EzineArticles.com/?expert=Rob_Anthony_Summers

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Network Marketing Tips – 8 Simple Tips To Grow Your Network Marketing Business

Network Marketing TipsTip 1: The main activity in Network Marketing that creates an income is prospecting. You need to focus most of your time on income producing activities. Getting out there and speaking to as many people possible and showing them the opportunity is the main activity you want to be doing.

Sorting your contacts, changing the presentation to suit you and designing pretty calling cards will not earn you an income. If you really want to become a top earner in your network marketing company, you must do the things that earn you an income.

Tip 2: Become a good sponsor instead of just a recruiter. Being good at recruiting people into your business is great but you will be wasting their time if you don’t learn how to sponsor them as well.

Recruiting someone and leaving them to get on with it is like plastering a wall by throwing the plaster from 3 meters away, some of the plaster may stick but the rest will just be wasted. You have to take personal responsibility for your business, so it’s your responsibility to help your new prospect succeed by becoming their sponsor not just a recruiter.

The reason for sponsoring people into your business is to grow your network and you can only do that if you help them and build a good working relationship. Remember this and you will grow a strong group of distributors.

Tip 3: Have faith it will work. The bible says “Faith the size of a mustard seed can move a mountain”. You don’t need to have a LOT of faith; you simply need to believe in what you are doing.

For example, you don’t need to see the top step before you start to climb the stairs, you have faith that the stairs are finished and you will be able to get to the next level.

As you are starting out, you may not have experienced success, however the network marketing profession has a long track record of successful people. So believe in this profession and have faith in what you do.

This business is great because it doesn’t discriminate. It doesn’t matter what race, religion or sex you are. We don’t worry about your education or work background. The truth is, this business doesn’t discriminate at all and neither should you. Have faith in what you do works.

Stop doubting it and like Nike says “Just do it” and believe that what you do in this profession really does work, but ONLY if you go out and work it.

Tip 4: Look in the mirror and check your attitude. Zig Ziglar once said: “Your attitude, not your aptitude, will determine your altitude.”

You must maintain a positive, happy attitude if you want to become successful in your business. Remember your down-line will duplicate everything you do, so be positive.

No doubt you will experience challenges, but it’s how you react and what you do to overcome those challenges that will make the difference within your business.

As Jim Rohn says, “The same wind blows on us all. The difference is the set of the sail”

Tip 5: Become passionate about your business. You can do this business full-time or part-time but you can’t do it sometimes and when you do start doing it, you have to be passionate about it. Always remember that a prospect will be joining YOU. The business is just a bonus.

Yoda said “Try not. Do, or do not. There is no try.” You can’t try in this business. Get passionate or Get Out. Don’t waste your time or anyone else’s time by giving it a go.

So now you know it doesn’t matter how many hours you do or how many people you speak with, if you are lacking passion or enthusiasm you won’t make it. Indifference doesn’t cut it in Network Marketing.

Tip 6: It is business not personal. Never let yourself get emotionally attached to a prospect. Once you join a company you will see how easily one can become fixated on one particular person joining you.

You can become a MLM stalker very quickly without really knowing you are doing it, by holding on to that one person because they may join you. “They said they needed an extra income so what’s stopping them. If I just ring them just one more time they will join me.”

This is a collecting business. Collect their decision and move onto the next person. Yes, No or get a referral, that’s it… If you are not talking to enough people about your opportunity you may have the tendency to pester people and stalk them.

That is a really good way to lose friends. The more people to speak with, the more people will join you and the less you will become emotionally attached.

Tip 7: Get your head in the game. Getting your head in the game can mean a number of things to different people. As long as you are focused on the job in hand, jobs and challenges can be done and over come easily and without much effort.

You will find yourself working at higher levels of confidence and much more enthusiasm. You will feel great and energetic. Focussing will come easy to you. You are ready to use your memorized scripts and you have clear goals. You have a plan you can stick to.

Each conversation happens without much conscious thought. This is when your unconscious mind takes over and only happens when you have your head in the game working at your very best, with total devotion.

Tip 8: Plug into the system. Spend 10 to 30 minutes every day reading a book, watching a DVD or listening to an audio that educates and inspires you to become better. Do things that take you out of your comfort zone.

This is the only way you will grow and become the leader you want to be. The only way to achieve greatness is by doing great things. Learn more about your idols and do the things they do and follow the path to greatness.

Follow these tips and your business can grow. Take time to give yourself a check-up every month to see if you are still on track with your goals and vision. Look in the mirror and ask yourself, “Am I being the best I can be and giving all I can to this business and my team?” Be accountable for everything you do and say.

You have taken control of your future and your financial freedom. Be a student to Network Marketing but a leader to your team.

These are just a few tips I give to my down-line. For more Network Marketing Tips, ways to build your business and sponsoring secrets visit http://sponsoringsecrets.co.uk

Article Source: http://EzineArticles.com/?expert=Rob_Anthony_Summers
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