HOW NETWORK MARKETING WORKS

How Does Network Marketing Work?

LolToday there are millions of people around the world building this unseen industry called network marketing. So, if your wondering how does network marketing work, you’ve come to the right place.

The DSA reports that there are over 13 million people in the U.S involved in direct selling.
You do not see them but they are everywhere, some probably right in your own neighborhood. It is a business in which common people can invest a small sum of money and rise to staggering levels of financial reward and personal freedom.

Each day millions of people report to work,

…where your employer leverages your time to build his or her business and financial future.
In Network Marketing we help and assist others in building their business. We are also leveraging their time, with each of us is gathering customers along the way.
Hence the name Network. We get paid for this because we are assisting, coaching and helping them to establish their business.
Helping them to reach their goals for their financial future. So Its only right that we also get paid for our time?
Just like your employer leverages your time, through network marketing you can leverage the time of others. What does this mean?

Lets take a look at a typical employer in a service industry with 100 or more employees.

Lets say they have a labor rate of 60 dollars per hour. The goal of our employer is to keep each employee active and busy for each hour paid.
Out of this once all the costs of doing business are factored in such as wages paid, health insurance, unemployment insurance, federal taxes, state taxes, fica taxes, permits, maintenance, housekeeping, the list just goes on and on.
The employer may get to keep 5 to 10 dollars per hour of that labor rate.
In Network Marketing, we have our initial start up costs anywhere from just a few dollars to several hundred dollars.
Where most network marketers fail is they feel that they don’t need a marketing budget for advertising, they don’t seek out the education required to succeed.
One of the important things to remember is, you are in a real business, you no longer have a boss holding you accountable. Your network marketing success or failure is dependent upon you and your actions.

Your primary task will be to gathering customers for your products or services.

And to help and assist others get started in their own business partnered with you.
You are looking at a business model that will take 3 to 5 years to produce the kind of results you’re looking for.
So don’t give up your day job just yet. It will require 5 to 20 hours of consistent time and effort each week to build a successful Network Marketing Business.
It will require a marketing budget, most people simply do not understand how does network marketing work. Nor do not even consider this aspect of their business.
This is a real business this is your business, not a get rich quick overnight program, although it has been hyped by a great many naive marketers and web sites.

Network marketing is based on word of mouth advertising

…which is the most effective form of advertising. Think about it when you go out, watch a great movie, you will go out and tell people about it.
When Sam’s club or Costco moved to your area, you joined their buying club and started telling everyone how much you saved.
This is the power of word of mouth advertising. Major advertising agencies and companies count on this.
This is one of the things that we do as network marketers. The major difference is that we get paid for our word of mouth advertising.
One of the most often asked questions is, will I have to sell products and services? That answer is of course yes.
Think about it, no one likes to have a salesman or woman come to the door and sell them products.
We hate to go to the automobile dealerships.  When you arrive, you’re swarmed with 5 different salesman all trying to get you to sign the dotted line!
So how are we as a network marketer different? We recommend products or services that we like and personally use.
If we know it’s good and personally use it. Then recommending it to our friends and family is very easy.


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Next: How Do I Get Started In Network Marketing  

Does Network Marketing Work?

Network marketing, also known as multi-level marketing or mlm, has become a common pitch in the 21^st century. Online and offline, Network marketing success has become the single most researched thing for people involved in these direct sales companies. You might have noticed that this sphere comes with a lot of hype and high income claims. Nothing wrong with that because in most cases these are backed with testimonials and success stories of people already successful in this field. But the question still remains, does network marketing work anymore?



First,

What is network marketing?

There are a tons of definitions of this. But in simple terms – Network Marketing is selling by way of direct distribution of goods and or services through individuals who register as companies’ agents. These agents, can also recruit other people to become agents. In turn Recruiters or sponsors are rewarded percentage sale commissions from purchases or sales that these down lines make.
You can also think of it this way
Traditionally, a normal supply chain of products or services involves a manufacturer or vendor, then a distributor, then a whole seller to a retailer before these goods reach the targeted buyer/customer. At every stage the price cap increases, for these too are businesses looking to make a profit. All in all, it’s the final customer who bares the entire burden
But
In direct selling, the process is shortened. A distributor is granted the rights to sell directly to the customers straight from the company. This reduces the customers’ burden and also grants high profit margins to affiliates/ distributors.
However, as seen in most cases especially on the internet/online. Distributors are also 100% customers. Hence the income earned is purely dependent on customers/distributors sponsored into the business.
If you have been wondering, how does network marketing work? Well, that’s a gist of it.

Why Network Marketing?

There is a common phrase out there that, network marketing is the business of the 21^st century. However, as this remains to be true, why should you even bother to be involved in it at all?
However skeptical the masses might be about this business model, we can’t ignore the amount of success that this new way of marketing has brought to people. As Robert Laura contributed in one of Forbes articles, there is an increasing number of people shifting their focus now to multi-level marketing as an alternative to their 9 to 5 jobs and also as a way to save more and create supplemental income.
Does network marketing work? You could ask yourself, “Why are more and more people opting to work from home?” Apparently, Home Based Business is a Billion Dollar Industry ($427 BILLION per year in the USA alone). There are around 38 million Home Based Businesses in the USA and a new one is created every 12 seconds. I don’t think we’d be having such big stats if this industry was such a failure.
You can also begin to create your generational wealth now
Lets look at the,

Pros and Cons Of Network Marketing

Pros

It’s the Fast route to Wealth.

When I say fast, I don’t mean it’s get rich quick kind of thing. You won’t sleep and wake up in a new Bugatti – lol, don’t mis-quote me. As to every success, you must make sacrifices and put in some hard work. Network marketing requires focus, determination and consistency.
Network marketing Success is based and very dependent to Team work. That’s one of the core pillars and secret to wealth in multi-level marketing. Build a large network of distributors/referrals and your work is pretty much done. This is why all the big names in mlm like Rob Fore, David Wood, Frank Colabro and the rest are big recruiters.
It’s the fastest route to success because every member in your team contributes a percentage to your income. Imagine if at your workplace, everyone contributed a portion of their salary into your count. It’s kind of the same concept. Income keeps growing with every member that joins your tree.

 Residual Income.

Here is where the true magic of team building lives. When you have worked hard enough to build a team of knowledgeable focused people, income starts to pour in month after month. Sometimes you don’t even need to work at all. And that’s the true measure of network marketing success. The only way this income flow can stop is if everyone on your down-line stopped working and quit.

It can be done part time.

You don’t have to commit full time in building your Network marketing business to see results. You can still hang on to your day job and develop your business at the same time. In fact, this is how most people start out in this industry.
Because in mlm income flows in fast when enough commitment is engaged, people end up quitting their day jobs eventually.

Cons

Its very easy to quit

Most people rush into Network marketing thinking they offer free bread in there. Reality is, there’s nothing like free lunch. No pain no gain. So when the expected over – night success doesn’t happen, people tend to be discouraged and quit. In fact its the same people who go out screaming that network marketing doesn’t work

Lots of Scam companies

At the rate of a new company being formed every twelve seconds, you cant expect each one of these to be genuine. And so, people end up loosing their investments instead of making money.

Often Confused With pyramid Schemes

This is another leading reason why most people fear to involve themselves in this business. The word multi-level marketing has brought confusion. For those who don’t understand the concept of mlm call it a pyramid.
Just recently , i came across a video on YouTube that briefly explain these pros and cons:

Why Network Marketing – Top 4 reasons to do network marketing (and Top 4 reasons NOT to)

So,
Still, the question remains. Does Network Marketing Work Anymore?
Answer:
Yes it woks. It has always worked and will always work. You just need to know what to do and what not to.

Network marketing success:How to succeed in network marketing

A lot has been said about succeeding with network marketing. But i won’t hesitate to press on more, for sure enough there’s a need for it.
This is what i think you need to do to be successful in this industry:
Pick the right opportunity.
Not every company is worth your time. Also don’t forget there are a lot of scams out there. High scrutiny is required especially at this point because this is where the journey begins. Set off on the wrong foot and you are dead meat.
What to observe

1. Product/Service. Does what is being offered add value to people? This should always be the first thing you ask yourself. Why? Because it will determine if you’ll be making any sales at all or if anyone will join your down-line. No one will accept to be sold or join a company that sells horse shit.
2. Compensation Plan. You are in to make money right? you need to leverage your time with a good pay. It will boost your growth by its attractiveness to those you share the opportunity with. For example,between a company that offers 4% commissions and one that offer 70%, which one would you join? I’m sure you got the answer. Here is an example of a good compensation plan.
3. Payment System. How do you get paid? How easy is it to access your earnings? Do you get paid instantly, daily, weekly or monthly? Those are the things to look at. There’s no point of earning thousands of dollars if you can’t access them.
4. Coverage. It won’t be wise joining a company that only covers your local district, region or country. You need something global. Its much easier that way.

Etc. There are much more things to watch out for, but those four are the most important ones.

Join the right team
You need to position yourself under serious and focused people. People who know what they need to do to be successful. With this, you can be assured of proper guidance and tools for successful. For example, i joined under Frank Colabro’s  Team Global Impact with 4 corners alliance group business that i am currently  doing(Best team ever). Those who joined Vick Strizheus’s Big Idea Mastermind team  in Empower network, flourished. Xtreme Lifestyles Network, etc.You get the point.

Have a Strong Why 
Why are you doing what you are doing. What do you wish to accomplish? Is it a better life for yourself and family? or Do you just need to get out of debt and win financial freedom for yourself?
A strong why will motivate you and give you strength. Strength to stay up late writing that blog post, strength to make sacrifices and invest more into your network marketing business. Strength not to quit.
When you have your why, write it down. Make it your goal and start acting.

Have a plan of action

“If you fail to plan, you are planning to fail” – Benjamin Franklin

I’m sure we have all heard of that. Success in any field requires planning. How are you going to approach your business. What’s your daily schedule for the business? How do you plan to promote your network marketing business?
The easiest way to exhaust a plan of action is copying one from the successful team members. Don’t try to reinvent the wheels, no need to. With a good team, most of the time a plan is always there for you. All that is need of you is to follow and act on the plan.

Take Action
What good is a good plan if you cant act on it. Nothing will manifest out of nothing. You need to get over that procrastination wall and act. What can be done today, shouldn’t wait for tomorrow.
They say ATTRACTION is 70% ACTION. So if little or no action is taken, you’ll be equally wasting your time.
Take care of your down-lines
You need to develop strong leadership. Remember Network marketing is built on the foundation of a strong team. If you don’t guide your downlines, they will run away or worse quit. And when they do, your income drops and soon you are making no money.
Its important to build a good relationship with your downlines because as they succeed, you also succeed. Otherwise there’d be no need for training, events, webinars and seminars.

Don’t Force People to join your business
Forcing people to join your downline is equivalent to loading your boat with dead weight. Your ship will surely sink. Its better to have two people who will burst their ass off and work for success than have twenty who wont lift a finger.
You only need to present the opportunity to someone, follow up on them but don’t force them. When you force, they might end up joining just to satisfy you, but they wont do anything after that.

Motivate Yourself
Read and Watch things that will inspire you to work hard. Read self help books (Your Were Born Rich, Law of attraction, Success principles etc)
Watch inspirational videos like The Secret, The OPus etc. You can also read and watch testimonials of people already successful in your business.
Motivation is a daily thing to do.

“People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.” – Zig Ziglar

Learn/educate yourself
Learning is a never ending process. Even gurus do learn no matter how much they already know. There’s a strong need to attend training and seminars. Thanks to the internet, we have webinars these days. And also Events.
These are so ways to recharge your batteries and gather new strength. I always feel energized when i attend these.

And lastly,

Never ever Quit.
The urge to quit is always strong when you are about to break through because that’s when its at its toughest.

“Winners never quit and quitters never win.” – Vince Lombardi

Those are my Top 10 tips on how to Succeed in Network Marketing.

Conclusion,

Robert Kiyosaki network marketing

I can not conclude this article without featuring Robert Kiyosaki. He is considered one of the biggest contributors in this industry. Author of the famous Rich dad poor dad.
Here is

Robert Kiyosaki on Oprah – Why People Should Join A Network Marketing Company

What do you think? Does network marketing work? Please feel free to drop a comment below.

On how to start a Network Marketing business

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