The traditional way of marketing products is to move them from a
manufacturer through a network of middlemen. National Wholesalers,
regional wholesalers, Cash & Carry warehouses, retailers, - the
'middlemen' - all add their 'valueless' percentage to the price
of the product.
By the time the product or service reaches you, the end user, you're
not only paying for the product, but a percentage of the price for
each and every middleman in the network. In network marketing there
are no middlemen. Instead of paying them, a network marketing company
will pay you for whatever amount of product you cause to be 'moved'.
As a sole individual operating alone, the amount of product or service
provision you could 'move' from your own efforts, would be relatively
small. In network marketing however, the amount you 'caused' to be moved
indirectly could be HUGE.
Here then is the essence of a network marketing compensation plan. For not
only will you be compensated for the product or service provision you
personally cause to be moved from your own direct efforts, you will also
receive indirect compensation for the product or service provision that
your 'organisation' 'causes' to be moved.
Tuesday, January 19, 2010
YOUR 'ORGANISATION'
To be successful in network marketing you will need to build an 'organisation'.
That is to say you will need to 'share' the benefits of both the products/service
provision and the business opportunity with others. In network marketing this
is referred to as your 'downline'.
The 'serious' money to be had in network marketing is to be had from what is
termed as 'over-ride' commissions from the 'movement' of product or service
provision from the 'downline' your 'sponsor' will help you to build.
(In network marketing it is the responsibility of your introducing 'sponsor'
to help you build your 'downline'.)
All you need to do initially to build a 'downline' is to 'share' with others
the information about the products or service provision and the business
opportunity on offer.
Theoretically, if after 'sharing' the information with others and you
subsequently attracted just five SERIOUS individuals who decided to
join you in your network marketing business - for illustration purposes
only - your 'downline' could equate to the following after five levels
of geometric growth:
That is to say you will need to 'share' the benefits of both the products/service
provision and the business opportunity with others. In network marketing this
is referred to as your 'downline'.
The 'serious' money to be had in network marketing is to be had from what is
termed as 'over-ride' commissions from the 'movement' of product or service
provision from the 'downline' your 'sponsor' will help you to build.
(In network marketing it is the responsibility of your introducing 'sponsor'
to help you build your 'downline'.)
All you need to do initially to build a 'downline' is to 'share' with others
the information about the products or service provision and the business
opportunity on offer.
Theoretically, if after 'sharing' the information with others and you
subsequently attracted just five SERIOUS individuals who decided to
join you in your network marketing business - for illustration purposes
only - your 'downline' could equate to the following after five levels
of geometric growth:
Networking in a Nutshell
Networking is a powerful tool and an integral part of business and professional development. Some people are natural networkers, although many of us find ourselves avoiding events because we don't know how to take advantage of them.
It's not all hard work. With the right method it can be an enjoyable and rewarding experience. Here are some ideas which you can use to help you get the most out of your network.
What is networking?
As described in the Collins dictionary, a network is an interconnected group or system. Therefore networking is the process of using a network or interconnected group to your advantage.
It's not all hard work. With the right method it can be an enjoyable and rewarding experience. Here are some ideas which you can use to help you get the most out of your network.
What is networking?
As described in the Collins dictionary, a network is an interconnected group or system. Therefore networking is the process of using a network or interconnected group to your advantage.
Why network?
Networking gives you the opportunity to gain insights into other businesses and contacts, and increase your exposure. At a networking occasion you are presented with the opportunity to tap into a wealth of information and experience in one room. A great asset of networking is that you never know what treasure is around the corner.
If time allows for it become involved with a networking organisation. This will open up even more opportunities. Budget and time permitting, organise to be a guest speaker or a sponsor as this will greatly increase exposure for you and your business.
If time allows for it become involved with a networking organisation. This will open up even more opportunities. Budget and time permitting, organise to be a guest speaker or a sponsor as this will greatly increase exposure for you and your business.
How to network
This is perhaps the most daunting part of the process. Follow these tips to make it easier:
1. Make sure you have enough business cards to hand out and make sure you swap cards; this one of the most important items you can take from the event.
2. Look professional and dress accordingly.
3. Set out objectives for the evening. Are you looking to build your contacts or are you after a certain type of contact? Try and hit your objectives early, then you can generally mingle and increase your exposure.
If you do not find it easy to start a conversation pick a couple of current news topics you can use.
5. Take a colleague or business associate if turning up to an event on your own seems tough. Alternatively it could be a good opportunity to take a new business contact.
6. Take a look around the room – if it's not a seated event look for opportunities to enter conversations.
7. Manage your time and don't get stuck in one conversation. The room is full of ideas, so use the time wisely. Have a general rule of 15 minutes per contact.
8. Remember that everyone is there to network, so the person you are speaking to is also after knowledge and contacts. Think about what you can provide them. Even though you might not get an immediate return you might see potential in the future for a returned favour.
9. Don't dismiss any opportunities – you never know where conversations might lead.
10. Set up future meetings at the event – it's much harder for people to reject you face-to-face.
What to do with the contacts
So, what happens to all those business cards? Firstly you need to categorise them. You can then enter them into an appropriate database which can be set up in Excel or Access. Your database should include information such as contact details, where you met the contact and any special interests or insights you might have gained during your conversation.
Make sure that all ideas are written down in your database and that actions are documented straight away. Networking is mentally and physically draining so notes will ensure the benefits are not lost.
1. Make sure you have enough business cards to hand out and make sure you swap cards; this one of the most important items you can take from the event.
2. Look professional and dress accordingly.
3. Set out objectives for the evening. Are you looking to build your contacts or are you after a certain type of contact? Try and hit your objectives early, then you can generally mingle and increase your exposure.
If you do not find it easy to start a conversation pick a couple of current news topics you can use.
5. Take a colleague or business associate if turning up to an event on your own seems tough. Alternatively it could be a good opportunity to take a new business contact.
6. Take a look around the room – if it's not a seated event look for opportunities to enter conversations.
7. Manage your time and don't get stuck in one conversation. The room is full of ideas, so use the time wisely. Have a general rule of 15 minutes per contact.
8. Remember that everyone is there to network, so the person you are speaking to is also after knowledge and contacts. Think about what you can provide them. Even though you might not get an immediate return you might see potential in the future for a returned favour.
9. Don't dismiss any opportunities – you never know where conversations might lead.
10. Set up future meetings at the event – it's much harder for people to reject you face-to-face.
What to do with the contacts
So, what happens to all those business cards? Firstly you need to categorise them. You can then enter them into an appropriate database which can be set up in Excel or Access. Your database should include information such as contact details, where you met the contact and any special interests or insights you might have gained during your conversation.
Make sure that all ideas are written down in your database and that actions are documented straight away. Networking is mentally and physically draining so notes will ensure the benefits are not lost.
WHY PEOPLE FAIL IN NETWORK MARKETING
The biggest Reason why people FAIL in Network Marketing is NOT because they don't
want residual income, it's because they're NOT prepared to put in the necessary
effort to "go through the numbers". No one is going to say "No. I don't want extra
$5000 per month in residual income." They say NO to what they have to do to get it!
want residual income, it's because they're NOT prepared to put in the necessary
effort to "go through the numbers". No one is going to say "No. I don't want extra
$5000 per month in residual income." They say NO to what they have to do to get it!
WHERE DO I FIND PEOPLE TO JOIN ME IN MY BUSINESS
Who do you know who would welcome an extra stream of income? Friends, family,
people you come into contact with every day would be a good starting point.
(If the opportunity you're offering is so darn good why WOULDN'T you want to
share it with your friends and family hmmm??)
As it has been estimated that 20% of the working population - MILLIONS of people -
would be interested in starting their own business, the marketplace in the USA
alone is truly enormous. When you take into account that many network marketing
companies operate on a GLOBAL basis the potential for growth is quite staggering.
With a recent MORI poll indicating that 50% of 16 - 25 year olds were interested
in starting their own business, the marketplace is actually growing!
One of the most important things to recognise is that the most precious resource
available to you is in the new blood - the millions of business opportunity seekers
who are not presently involved in networking. For it is there that you will find the
success stories of tomorrow for your downline organisation. Take a look at my resource
box below for some ideas.
people you come into contact with every day would be a good starting point.
(If the opportunity you're offering is so darn good why WOULDN'T you want to
share it with your friends and family hmmm??)
As it has been estimated that 20% of the working population - MILLIONS of people -
would be interested in starting their own business, the marketplace in the USA
alone is truly enormous. When you take into account that many network marketing
companies operate on a GLOBAL basis the potential for growth is quite staggering.
With a recent MORI poll indicating that 50% of 16 - 25 year olds were interested
in starting their own business, the marketplace is actually growing!
One of the most important things to recognise is that the most precious resource
available to you is in the new blood - the millions of business opportunity seekers
who are not presently involved in networking. For it is there that you will find the
success stories of tomorrow for your downline organisation. Take a look at my resource
box below for some ideas.
CHOOSE THE RIGHT COMPANY
In any successful business it is the quality of the product or service that is
being offered that is the single most important aspect for its success.
The most lucrative compensation plan in the world will NOT provide you with an
on-going residual income if the product or service doesn't provide tangible
value and benefits for yourself and your customers.
Provide a product or service that people need, want, coupled with a business
opportunity they are willing to tell their friends about, and you can build
yourself a business empire in network marketing!
being offered that is the single most important aspect for its success.
The most lucrative compensation plan in the world will NOT provide you with an
on-going residual income if the product or service doesn't provide tangible
value and benefits for yourself and your customers.
Provide a product or service that people need, want, coupled with a business
opportunity they are willing to tell their friends about, and you can build
yourself a business empire in network marketing!
TIPS FOR THE TOP?
Tip# 1/ If you're already involved in a network marketing program and you're
being 'sold' primarily on the benefits of the compensation plan with the
product or service being offered as a secondary consideration, then read
the above paragraph again and MOVE to a company whose products or services
'move'.
Tip# 2/ Ask yourself this important question: Is the network marketing programme
I'm considering joining one that I'm willing to share with my friends and family?
The comment "I don't want my friends and family to know what I'm doing, l want to
become successful FIRST - then I'll introduce them!!" is almost legendary in
network marketing. (A comment oftimes made by failed networkers who had no real
belief in the company or the products they were promoting in the first place!)
If you immediately feel comfortable with the prospect of letting your neighbors,
your friends and your family know about the network programm you're considering
joining, have belief in the company and its products/service provision, have
confidence in your introducing sponsor, then you have probably chosen the right
company to work with.
Tip# 3/ Don't be impatient by expecting things to happen overnight! Building a
moderately productive downline in any network marketing programm takes TIME -
many months not many weeks.
Tip# 4/ Read tip 3 again and avoid like the plague any company which suggests
otherwise or does not require you to invest in the development of a distributor
base. If your prospective sponsor in the network marketing program you're being
invited to join doesn't stipulate that it takes TIME to build a significantly
productive downline then it's not a business your being invited to join but a
game - and one you're bound to lose!
Tip# 5/ If you want to dine with the classes - deal in products or services
wanted by the masses!
being 'sold' primarily on the benefits of the compensation plan with the
product or service being offered as a secondary consideration, then read
the above paragraph again and MOVE to a company whose products or services
'move'.
Tip# 2/ Ask yourself this important question: Is the network marketing programme
I'm considering joining one that I'm willing to share with my friends and family?
The comment "I don't want my friends and family to know what I'm doing, l want to
become successful FIRST - then I'll introduce them!!" is almost legendary in
network marketing. (A comment oftimes made by failed networkers who had no real
belief in the company or the products they were promoting in the first place!)
If you immediately feel comfortable with the prospect of letting your neighbors,
your friends and your family know about the network programm you're considering
joining, have belief in the company and its products/service provision, have
confidence in your introducing sponsor, then you have probably chosen the right
company to work with.
Tip# 3/ Don't be impatient by expecting things to happen overnight! Building a
moderately productive downline in any network marketing programm takes TIME -
many months not many weeks.
Tip# 4/ Read tip 3 again and avoid like the plague any company which suggests
otherwise or does not require you to invest in the development of a distributor
base. If your prospective sponsor in the network marketing program you're being
invited to join doesn't stipulate that it takes TIME to build a significantly
productive downline then it's not a business your being invited to join but a
game - and one you're bound to lose!
Tip# 5/ If you want to dine with the classes - deal in products or services
wanted by the masses!
The Danger Of Negative Thinking
As you have shown an interest in starting a business of
your own it would be safe to assume that you want to change
your life. You want more money - more control over your
life - more respect. But just as we each have a dream, we
also have a reality.
Unfortunately for most people, the reality bears no
similarity whatsoever to the dream. In many cases, the
dream exists as an escape from the reality.
Think now of YOUR reality - the life you lead every day.
What do you do? How do you feel as you awake? Do you have
any enthusiasm for your way of life? Do you enjoy your
work, or are you on welfare? Then ask yourself this
important question: Do you resent having to live this way?
If you answer 'yes' to that question, then you are in danger
of succumbing to the most destructive human emotion - Hate.
If you hate the life you live, the people you deal with, the
actions you are forced to take, then you will find yourself
rapidly rushing toward disaster. When you hate, you may as
well be drunk! You no longer function in a creative manner.
Your mind is geared toward destruction. Instead of aiming
to create a new life for yourself and those you love, you
will become obsessed with the act of revenge.
The more that you hate the people and situations around you,
the more your mind becomes poisoned with the purpose of
getting even. Logical thought becomes impossible and hate
then becomes a substitute for action. You must learn NOW,
to resist the urge to hate. It achieves nothing constructive
and it will destroy both you and your dreams of
success. As Ghandi said..."An eye for an eye just makes the
whole world go blind."
Take a good look at your way of life. Do you always have to
make do with what you have got, because you can't afford a
replacement? Are you always having to put off paying bills
until next week? Have you never enough money to enjoy
yourself? Are you unhappy with the area in which you live?
You may find that you are regularly having to write a check
on Monday and hope that you will be able to cover it by
Thursday. Or you may just be sick of the daily grind of
early mornings, or the regular nightshift. If most of these
apply to you, the you probably hate living this way. So now
make a POSITIVE effort to achieve success. Only through
positive endevour and thought will you achieve your goal.
Although your current way of life may be hard, think not how to
get rid of it, but how to REPLACE it with a better way of
life. Think SUCCESS - not revenge. Assess what you resent
about your life now.
You may even resent the things that you would normally
enjoy, were your circumstances different. Occassions like
Christmas, birthdays, and Easter can can be trying times
when you have no money to spend. Children don't understand
the restrictions of a tight budget, and it can cause great
distress to a parent who is unable to give his child the
gift, or day out, that they would like. Now imagine the
difference in these circumstances when you have achieved
success and you are wealthy.
There is no harm in imagining the difference your wealth
will make to your lifestyle - but approach it
lightheartedly.
Say to yourself: I will work to be a success so that I can
tell my boss where to stick his job! And so I can see the
look on the Bank managers face when I tell him not to bother
offering me overdraft facilities anymore! This attitude is
positive, but don't hate the way things are, or the people
it involves. That would only make things worse. You will
have plenty of time to reflect on your past when you are
wealthy!
These things that make you miserable and depressed will be
all behind you when you put the secrets of success to work.
Imagine life without all these trying times. You will be
able to enjoy Christmas, and give your kids what they want.
That squillion function, water-resistant, solar-powered
gizmo (that they ALWAYS wanted) will be a drop in the ocean
to you!
Many of the people who buy books on starting a business
actually don't bother starting up. They can't imagine
themselves ever running their own business and earning
Unlimited amounts of money. They never see things how
they CAN be - only how they are. Don't make this mistake!
KNOW what you want, KNOW how to get it, SEE how it WILL
be, and then go for it!!
your own it would be safe to assume that you want to change
your life. You want more money - more control over your
life - more respect. But just as we each have a dream, we
also have a reality.
Unfortunately for most people, the reality bears no
similarity whatsoever to the dream. In many cases, the
dream exists as an escape from the reality.
Think now of YOUR reality - the life you lead every day.
What do you do? How do you feel as you awake? Do you have
any enthusiasm for your way of life? Do you enjoy your
work, or are you on welfare? Then ask yourself this
important question: Do you resent having to live this way?
If you answer 'yes' to that question, then you are in danger
of succumbing to the most destructive human emotion - Hate.
If you hate the life you live, the people you deal with, the
actions you are forced to take, then you will find yourself
rapidly rushing toward disaster. When you hate, you may as
well be drunk! You no longer function in a creative manner.
Your mind is geared toward destruction. Instead of aiming
to create a new life for yourself and those you love, you
will become obsessed with the act of revenge.
The more that you hate the people and situations around you,
the more your mind becomes poisoned with the purpose of
getting even. Logical thought becomes impossible and hate
then becomes a substitute for action. You must learn NOW,
to resist the urge to hate. It achieves nothing constructive
and it will destroy both you and your dreams of
success. As Ghandi said..."An eye for an eye just makes the
whole world go blind."
Take a good look at your way of life. Do you always have to
make do with what you have got, because you can't afford a
replacement? Are you always having to put off paying bills
until next week? Have you never enough money to enjoy
yourself? Are you unhappy with the area in which you live?
You may find that you are regularly having to write a check
on Monday and hope that you will be able to cover it by
Thursday. Or you may just be sick of the daily grind of
early mornings, or the regular nightshift. If most of these
apply to you, the you probably hate living this way. So now
make a POSITIVE effort to achieve success. Only through
positive endevour and thought will you achieve your goal.
Although your current way of life may be hard, think not how to
get rid of it, but how to REPLACE it with a better way of
life. Think SUCCESS - not revenge. Assess what you resent
about your life now.
You may even resent the things that you would normally
enjoy, were your circumstances different. Occassions like
Christmas, birthdays, and Easter can can be trying times
when you have no money to spend. Children don't understand
the restrictions of a tight budget, and it can cause great
distress to a parent who is unable to give his child the
gift, or day out, that they would like. Now imagine the
difference in these circumstances when you have achieved
success and you are wealthy.
There is no harm in imagining the difference your wealth
will make to your lifestyle - but approach it
lightheartedly.
Say to yourself: I will work to be a success so that I can
tell my boss where to stick his job! And so I can see the
look on the Bank managers face when I tell him not to bother
offering me overdraft facilities anymore! This attitude is
positive, but don't hate the way things are, or the people
it involves. That would only make things worse. You will
have plenty of time to reflect on your past when you are
wealthy!
These things that make you miserable and depressed will be
all behind you when you put the secrets of success to work.
Imagine life without all these trying times. You will be
able to enjoy Christmas, and give your kids what they want.
That squillion function, water-resistant, solar-powered
gizmo (that they ALWAYS wanted) will be a drop in the ocean
to you!
Many of the people who buy books on starting a business
actually don't bother starting up. They can't imagine
themselves ever running their own business and earning
Unlimited amounts of money. They never see things how
they CAN be - only how they are. Don't make this mistake!
KNOW what you want, KNOW how to get it, SEE how it WILL
be, and then go for it!!
