Is Network Marketing ALL Bad?

For some reason many people in the UK believe that being in a network marketing business is a bad thing! I have often wondered why we believe this especially as the whole pyramid selling thing was made illegal in 1973! Yes 34 years ago! Yet the stigma still hangs on.

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!
  

These are just a few of the reasons. Our little person was right last time, it just didn't work!

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!
  

Well once again, that little voice who claims to be our friend, puts the kibosh on an opportunity before you even found out all the facts!

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.

We understand this structure and we are quite happy with it! Most of us probably work in a business which utilises this system of distribution.

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.

Correct!

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.

This is leverage. The employer employs 5,000 making widgets at the rate of 10 per hour, for 8 hours per day. Each one completed is another £1 in profit. (5,000 x 10 x 8 = £400,000 per day)

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

So is that faster than your income would grow with your job?

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

Networking, Networking, Networking!

"That's what I do .... networking, networking, networking. Each and every day I'm out there looking for new people to talk to, people who I can sell my products to, but it's just hard work and it does not work!", said a friend of mine.

Well that is quite likely and we have all heard a similiar story at some time or another. But why does it work for some people and not for others?

Well there is a secret that those who make networking work know and the rest don't.

I wonder what it is?

Look HERE for networking in the South of England or HERE for online networking

Going on 40 … or 50 …. Or even 60?

When I was 49 I suddenly found myself unemployed and broke after a business failure! Once I had sorted out the issues that caused it, I moved from my lovely home in the country to a small end of terrace house, courtesy of a local housing association. It was very compact but my family and I were very grateful to have a roof over our heads.

I then started the task of finding myself a job of work, to enable me to start building what I had just lost. I was an experienced manager and had been a director of a number of companies, some successful and other not quite so.

I had a good knowledge of IT and software development, and real skills in working with people and developing new business concepts. I saw myself as very innovative and bright with a great future ahead.My first task was to create a new CV, one that showed me off in the best light. I had never needed a CV before because I had never needed to apply for a job. Jobs had always come to me! I co-opted the help of a friend who was well experienced in the recruitment industry and with the help of a book all about CV writing, we put together what we thought, was a great CV. We then made a number of versions of it for the various areas that we thought I could gain employment. This was the easy bit!

Next we drafted a letter to be sent to each of the local recruitment agencies that would each have dozens of jobs that might be of interest to me. This was relatively simple and in due course the letters, all fifty four were dispatched along with a photo and a copy of my CV.

This was quite easy as well!

Then I began the task off scanning the local and national newspapers, job and agency websites, looking for potential jobs that I could apply for. This seemed easy enough, and I selected those jobs that I though I could do well and paid enough money. Requests for applications forms were despatched and after a few days the letters came pouring in. That all seemed reasonably easy as well!

Then came the task of reading each of the job and person specifications and completing the application forms. "Minimum five years experience required", "a degree in Bionics", "5 A levels" etc. Now this was starting to get harder. So far I had only found two jobs that I could even apply for. Why didn't they say in the job ad that they needed 5 years experience? It didn't matter that the job was for a trainee? Office Manager? Why do they need a degree in Bionics? I thought it was the office and the people that they needed managing, or did they employ robots?Anyway I persevered and sent off application after application. I kept a copy of every job I applied for and as the answers came back I would file them away.

About 1 in 7 responded in anyway to my application, always saying that they were sorry but there were other candidates more qualified than me, but they would keep my name on file just in case another job became available that I might be more suited to.

Why do they bother, I never heard from a single one of them again. I even had one company who sent me a very rude letter saying that I had applied for a job with them, when their advertisement has clearly stated that previous applicants need not apply. What even for a totally different job? Even when it was 7 months later?

Over the next few months, I continued undeterred, to apply for jobs, complete application forms, talk to recruitment agencies and generally do what had to be done. Even the local job centre was unable to help past making me give up two hours every other week, spend money on petrol to drive the 30 miles round trip to sign on to get my £50, which didn't even cover the expenses I incurred looking for a new job. During all those months they never did anything to increase my chances of getting employment! Typical government agency! Don't get me wrong, the staff were very sympathetic to my plight, but the system was not designed to help us find work, but to make sure that the correct benefit were doled out, and unemployment statistics were massaged correctly!

Sorry if I'm a cynic, but you're starting to understand why!As the time went by I began applying for lesser positions with a lot less money. At least, I reasoned, I would stand a better chance of getting a junior position as I would not have an issue with experience or qualifications! How wrong I was! Now I was being told that I was too experienced in business and would quickly get fed up or bored with the job they were offering!! One company even suggested that I would find working with young female clerks uncomfortable! Yes I might have, but sometimes in life you have to do things out of necessity rather than because you just like doing them.

Anyway, surely they were employing me to do a job, rather than worry about me working with an office full of young people. I'd probably enjoyed it anyway! Then about six months into my search, now 50 years old, I suddenly get invited to an interview at a local warehouse for the position of Office Manager. Hooray!! So when the day arrived, I donned my best suit and brushed my hair (what little I have) and gave myself a good talking too. Off I went to my interview and after being kept waiting for 30 minutes past my time, I was ushered into a very untidy office of the manager.

He was very kind, and told me all about what they did and at the end of his dissertation he asked me if I thought I could do the job. I don't think he asked me one single question other than that. YES! I responded, knowing I could do this standing on my head. My dog could have done the job as well as me! "OK" he said, "you are the best candidate we have had so far, and I can tell you that, you will probably get offered the position, but I do have one more candidate to interview. He is waiting outside at this moment. I'll call you with my decision one way or another tomorrow."

I was dismissed and as I left the office I saw a young spotty, long haired youth sat where I had been sat, in his un-ironed shirt, a black tie (probably his only tie, the one he had for a family funeral) and jeans. "Ah" I thought "this looks very promising!" Indeed it did, here was a job that was literally just 5 minutes walk from my home, a job I could do easily, and although the pay was poor, maybe I would be able to get a substantial increase (as I had often done before) once they saw how effective I was as a manager.

The next day, I waited for his phone call, but as the day neared its end my heart began to drop as I realised that he was not going to call. "Not to worry" I thought, he is probably very busy and just didn't get around to it. The days past and I did not get that call, not even a letter saying sorry.

About three weeks later I was walking my dog past the warehouse when I bumped into the lady who had looked after me when I went for my interview. I asked her who got the job. "You did" she said, "but you never turned up!" she continued. You can image how amazed I was that I had been given a job but no one had thought of telling me. Anyway to cut a long story short, it turned out that the company had decided to close that warehouse down, and therefore did not offer me the job, and as they did not want to tell the staff at that stage, they even lied to them!

On hindsight is was a blessing is disguise.Eventually after I had applied for 743 different jobs I was offered another interview, and again off I went only to be told that I was over qualified for the position. I did however get offered a position as the manager of the person whose job I had applied for, and started there after 17 months of unemployment now aged 51. I stayed there for three years, working my way up until sadly I had to resign because of ill health.

So why have I told you this story?

Well it is to highlight the plight of those of us who are in our fifties or later (or earlier in many cases) who, through little fault of our own were unable to go to University, have few qualifications from school, perhaps worked in vocational jobs until they disappeared, served in the armed forces as I did, or graduated from a menial task into junior management, then progressed onto senior management perhaps with one company for a long period of time. Then later in life, after various politicians had forced in legislation and change to the workplace we become a burden on our employer and got no further. Once we leave, that is about it!

Whether you are 30, 40, 50, 60 or even older you have lots of value to give. Today employers are short sighted, following the crowd, employing graduates because they have a bit of paper, ignoring experienced people who have skills that the young just cannot have until they are 'time served'!So my question is …. At what time in life do we move into that group of older people who have little value in today's modern workplace? In my case it was 49, but could it be 45 or even 40? Has this happened to you?

Sadly, with fewer children being born, in future years there will be a shortage of people to fill the jobs (that is if they still exist, but that's another story completely) and then I suppose someone will suddenly realise that we do have value. I just wish that the politicians and decision makers of today would consider the longer term effects of the decisions that they make, and then perhaps this world would be a better place to live in.

Just because we are getting older, it does not mean that we are not valuable members of society with a wealth of knowledge and experience to give and share. Later this year will see the arrival of The Chronos Club, (www.the-chronos-club.com) a new concept in helping those who are 'neo-retired' get a voice, start contributing again, and allowing them to raise their heads and show the rest of the world, that just because we are getting older, does not mean that we do not have lots to give!I

f you are interested in this subject then please let me know by emailing me at jim@the-chronos-club.com

Jim Tuffin

http://www.businessmatchmakers.co.uk/

Does Politics really have the answer?

It occurred to me the other day that the problem with most politicians is that they are actually afraid to do anything very much. Take a normal Member of Parliament in the UK. Does he or she feel absolutely free to make what comments or suggestions they feel are correct? Of course not, they have to tow the party line or take the consequences.

If a political party has a strong leader, that person will not tolerate anyone stepping out of line. Oh they will of course, but they will be penalised when it comes to appointments and positions that are up for grabs! Tow the line, and you will be considered for a position, or at least you will believe that you might have a chance!

What would happen if the 'people' voted individuals into each of the cabinet positions? Would we find suddenly a lot of out spoken people who having said their bit to get elected, now are able to carry through by voicing their opinions in parliament? Or I we going to always have this existing system that is actually not a lot more than a committee with it's hands bound together?

Oh I know that many will say that unless you keep the existing system you will have anarchy, and you can't have people just doing their own thing! Can you?

Jim Tuffin
http://www.businessmatchmakers.co.uk