I guess, that like me, you will have joined or been invited to join one or more network marketing companies over the years.
So how did you do?
Well like me, you probably said no or did not do very well at all. And to be honest with you I understand why. We all love the idea of earning lots of money, but when we are introduced to a network marketing company that little person inside jumps up and screams at us:-
- This is pyramid selling!
- Earning £5,000 or £10,000 (or more) per month is just not possible!
- This is just American hype!
- These things don't last!
- Everyone is doing this - there no space for you!
- You can't speak to your friends about this - they'll never speak to you again!
- You don't want to be associated with MLM do you?
- You know others who have tried it, and it did not work for them!
- You've tried it before and it did not work for you!
- To earn an honest living you know you need to do a hard days work!
- If it's so great why isn't everyone doing it?
- It's too complicated for you to understand!
- This is just not you!
But is it right?
Well, in most cases it is! And the reason it is, is because that is exactly how we feel. Our self talk knows best! Since we were toddlers we have been conditioned to the negative, told not to trust strangers (or speak to them), the only way to be rich is to work hard and nothing in this life is free! Oh how wrong are parents were!
So what happens when you meet someone who is in Network Marketing and who is really successful? How do we feel then? What does that little person whisper in our ear?
- Ah, but they got in early, now is too late!
- They have hundreds of friends, you've only got two!
- You don't have their presentation skills to do that!
- You can't speak in public, you're frightened to pick up the phone!
- You don't have they money like they have!
- You couldn't ring up your friends and tell them about it, they would think you were stupid!
- Don't kid yourself, their successful because they are the successful type!
- They are ruthless, that's how they got where they have, your just a pussy cat!
- They're rich, cus they cheat!
So actually it does seem that it is our interpretation of network marketing that dictates if we should look at it as a real way of earning an income for ourselves.
Perhaps we make judgements without actually looking at the facts and trying to find out about these businesses and if they really work.
As you can guess, I am in network marketing, along with nearly every other business in the world, except they don't choose to let you and me ( the general public) in on a slice of the action like the network marketing companies have. My company is very switched on to the market, its products and most importantly those who represent the company in the market place. I'm one of those lucky people, who's little person has let me down so many times that this time I told him where he could stick his thoughts! Mind you, he nearly won the first time I heard about it!
So what is all this about?
Why network marketing?
How does it differ from normal marketing?
Let's have a look and see if we can answer a few of those questions.
You see in the world we know, we believe that a manufacturer sells his product as follows:-
- He sells to a number of large national distributors for a profit.
- Those large distributor sell or export to smaller distributors, also for a profit.
- Those distributors sell the products to lots of wholesaler also for a profit.
- The wholesalers in turn sells it to the many retailers, again for a profit
- Finally the retailer sells the product to us the consumer for a price which is many times that which the manufacture originally sold the product.
Now some manufacturers recognise that there is a demand for high quality products. The problem they face, is that their products have to compete with the lower quality, low prices products located on the shelves in the retail outlets.
It is sadly a fact that a consumable product that sells for say £10, located next to five other products that sell for £1 will not be that successful.
Why?
Because we as a buying public do not consider the quality of consumable products.
For example - You feel that you need to take extra vitamins! A months supply of vitamins can be purchased in your local supermarket for around £3. If you were faced by six different products, five at £3 and one at £15 would you buy the £15 product?
Probably not!
But in actual fact the £3 product will only contain the very basic vitamin needs (RDA) which when created nearly 70 years ago reflected a level of need much lower than we actually require, indeed the report HERE will enlighten you as to how little value RDA really is.
In truth, you wanted to buy vitamins because you felt you needed them, but you were sucked into buying tablets that are almost ineffective, rather than purchase real products that will do you the good you need, all because they are perceived as expensive!
Choosing the cheaper alternatives actually costs you more, because you are paying for vitamins that do you little good and give you almost no value, so you would be better to save your money and not buy any at all.
So how do these manufacturers market and sell their products against the cheaper look-a-likes?
Well they know that they need to present the products value to the potential customer and once they have done that, the price is no longer so important. They know that their products are much more superior as they have purposely gone out of their way to develop quality products.
The cost of producing them is many times that of the cheap end varieties. Because they know that selling off the shelves is really hard, they take the decision to cut out all the middle men and use the saved money, often around 50% to 60% to market directly using individuals.
This works really well as we have seen with Avon, Kleeneze and Tupperware to name just a few.
This same principle is often used in the franchise world, where quality is very high and buying resistance is felt because of the higher end user price, needed because of higher development and production costs! The strong brands of the franchise overcome the higher prices that need to be charged.
So, when a manufacturer cuts out the distribution costs and develop their own sales team, selling directly to the end user, this is often in the form that we call Direct Selling. The above examples demonstrate this, and to many will be familiar with the person who knocks on our door to sell us something, posts a catalogue to collect a few days later, or calls for a monthly order.
However the manufacturers still face the issue of how they reach their potential audience! The idea of selling directly to the end user is great in itself, but how do you get to them! We all know how popular the door to door sales person was! No doubt you will have also been to a party plan presentation in the home of one of your friends. These methods did work, but as our lifestyles have changed so have our buying habits! This has been increasingly more difficult as our lives appear to be getting ever busier.
Well this is where network marketing really comes into its own.
The manufacturer focuses on developing a superior product, then it identified a number of people who it can promote the product to, and approaches them and tell them that for every tube, tin, packet, box they sell, they will receive a commission. We all understand that and are happy with that concept.
Now it get a bit more difficult!
The manufacturer also asks those people to see if they can find others to do the same and sign them up to sell the product as well!
So what's in it for them if they do that as well?
Hmmm... well what about a little bit of commission on everything they sell as well.
Sounds good to me!
Ah Yes! But you will have to train those people as well so it does involve some work, but you will be rewarded for all your effort.
OK that sounds good, and I like the idea of being paid for my effort very much. But even more for getting paid for the effort of others!
But hang on! If I introduce lots of people for you, won't they be stealing all the sales that I would be making?
That could be true, but they will know people that you don't know! And those people are their friends and trust them!
Hmmmm! O.K. So I help train these people I introduce to do the same as I have been doing?
Correct! Because, growing the number of people who sell the product is very important, the manufacturer also agrees to pay a small percentage of their sales to you as well!.. Can't be bad.
Let me summarize.
- A manufacturer produces a quality product for me to sell.
- I don't need to handle or deliver the product.
- In return for selling it I get paid an ongoing commission.
- I also seek out others who would like to do the same.
- I help them to do so and in return I get paid some commission on what they sell as well!
- As I am effectively building a sales team and motivating and training them I receive a further small commission on the activity of those down-line to me to specified level.
This is how network marketing works.
It is word of mouth selling by people to their friends and work mates, in exchange for a commission. They can earn reasonable amounts depending on how much effort they put in. If theyjust want enough to pay for the products they purchase that is fine. If they want to earn a income rather than go to work, even better. If they want to be 'big' in the business and become a 'star' earning amount they would only perhaps dream of, then they can!
The real benefits come when they take it to the next level and start introducing other people so that they earn an income off of what they do as well. This is called leverage. Now, contrary to what many believe, this is quite acceptable.
It is no different from an employer who has people working for him making widgets.
- Each employee makes a widget that the employer sells for £5.
- The employee gets £1 for making it!
- The materials cost £1.
- The overheads are £1.
- Marketing costs are £1.
- The profit to the employer is £1.
How many people would you employ to make widgets if there was the demand?
Today modern network marketing companies have designed quality products that they know will remain in demand irrespective of the price. If the demand dries up, the business would soon be closing its doors.
Then using modern computer systems, these companies have developed payment plans that are so well balanced that they ensure that the members not only sell product but also recruit new members. They do work very well and reward those who work as well.
Indeed recently they have become so sophisticated that members are encouraged to buy the product for themselves and recruit others to do the same. This means that selling the product is no longer the main focus, but recruiting people is. Those who don't want to recruit can of course just purchase the quality products being offered.
The more people in your down-line, means the more you earn.
In a two leg payment system, it is common to recruit and add people to each of your two legs. You are usually paid on the lesser leg, i.e. the one producing the least volume. Technically if you are lucky enough to recruit two people, one in each leg, that grab the opportunity and recruit lots of other people, you will benefit from their activity.
However, in practise that does not normally happen in the early days, and experience has shown that those who do really well in this business and make huge earnings are those who have inherited or developed a recruitment system that ensures an ongoing recruitment effort.
Top performers have for a long time recognised that success is all about duplication. From years of experience they have developed simple to follow processes that are easy to carry out and easy to duplicate. They work, and often the biggest issues is getting people to follow these well tried and tested methods.
I know of individuals who have recruited just a few people and earn a useful monthly income, which is passive in nature, i.e. needs little or none of their time. On the other hand there are those who just love the whole idea, have thrown every moment of their time into getting it going, and love every second of it. They are rewarded with amazing leveraged incomes that have made them totally independent for the rest of their lives.
Most of these people are just ordinary individuals like you and I, who have worked hard all their lives and suddenly saw the opportunity that was in front of them. They grabbed it, put all their time and effort into it, followed the advice they were given by other successful people up-line to them, and within just a few years are earning incomes that only pop stars and footballers seem to get!
Some of those people I have had the privilege of meeting and seeing first ahnd their amazing energy and their ability to enjoy their lives as if each and every day was an exotic holiday!
Would you like to do that?
Well before dismissing what I've just said, simply ask yourself the following question....
"If this is right, how would I feel if I worked for myself, had no boss, and took home twice what I already earn?".
I don't know how much you earn but I do know that most people would be delighted to double their monthly income. Network Marketing with one of the leading companies in this area, can move you up the income scale quicker then any job ever will. I know of lots of people who have doubled their income every three months, year in year out! What does that mean? Look at this:-
- At Start Monthly Income £ZERO
- After 3 months Income £250
- After 6 months Income £500
- After 9 months Income £1,000
- After 12 months Income £2,000
- After 15 months Income £4,000
- After 18 months Income £8,000
- After 21 months Income £16,000
- After 24 months Income £32,000
OK! I know that many will not do this, but it is NOT because of the network marketing business that they are in, it is because THEY have chosen not to do it!
Being successful in any business is down to what you put into it! Network Marketing is no different. If you work at it, you will be successful, if you don't you won't, simple as that!
Is it a quick way to get rich? Well if you call two or three years quick, then I guess it is!
Good Luck!
Jim Tuffin
jim.tuffin@agel57.co.uk
http://www.agel57.co.uk
