What is Network Marketing?
Network Marketing (NWM) or Multi-Level Marketing (MLM) is a unique marketing and payment system that can be used for ANY product or service.
A Network Marketing Associate is an Independent Marketer who gets PAID by a company who uses a Network Marketing Payment System.
You can start a NWM business for very little outlay and grow an uncapped income.
2 Ways to Make Money
- Acquire customers and earn commissions on YOUR sales.
- Teach others (your team) to acquire customers and YOU earn an override commission on THEIR sales.
- Members of YOUR team can also create their own teams (earning them team commission)
- This can replicate into teams of marketing teams, hence the term 'Network' or 'Multi-Level' Marketing.
Build Teams of Associates (Sales Agents)
A good MLM company provides high quality services to benefit customers and allows associates to build a team of people who want do the same.
Members and distributors share this information by “word of mouth”, the most trusted form of marketing and promotion.
Some do it face to face. Others make phone calls. Most now use social media.
Anyone who is interested can join. There is no obligation to do any promotion, but if you do you can help grow the associate base.
Any help to increase the Associate base and/or to promote the products is considered to be marketing.
The main aspect of Network Marketing (NWM) that ALWAYS needs to be observed is that a NWM product or service must have intrinsic retail value.
It must be something that would sell at retail without a financial reward attached.
Social Networking is Unpaid Network Marketing
Facebook gets you to market their product for them. They make money from YOUR marketing and pay you NOTHING!
Whether you like it or not, with Facebook, YOU are the product!
If YOU build a network of associates, like Facebook, where you create a network of direct or indirect social connections, it is called Network Marketing.
A proportion of the sale price of each product or service is paid as a direct commission to the person who sold it and an indirect commission to the team of people who found and trained the person who made the sale.
How much of that commission goes to each associate is computed by a mathematical formula called a Compensation Plan.
Network Marketing does not need to pay any rent or advertising or wages which is usually a lost expense in the retail space. This usually just jacks up the price but does not add any value.
The more people you influence to purchase, either directly or indirectly using your "network of influence" the more you can earn.
Is This Pyramid Selling?
NO! Network Marketing is Legal. Pyramid selling is Illegal.
The pyramid shape is everywhere when you take a good look around.
It is the structure of government, the army, most business, the animal kingdom etc…
The whole purpose of a pyramid selling system is to make money and not sell products.
A pyramid scheme usually pays early entries from the later entries. Eventually the scheme will run out of people to bring into the program and it collapses. The last people in will lose their 'investment' with little to no possibility of getting your money back.
If you promote a Pyramid Selling Scam you might lose all your friends and even end up in jail for promoting it!
Most pyramid selling systems are scams. They all say they are legal but when held up to scrutiny they fail a few simple tests.
The challenge question is... "Would you buy it at retail? Even if no money was being earned by you?
Products or services sold using Pyramid selling either have no intrinsic retails value or are overpriced when compared to the retail market.
Some pyramid schemes have no product at all. You simply pay for the 'privilege' of being part of the money making system.
Paying for a membership to a club is NOT a viable product according to the regulators. The price could be unrealistic and of no real value other than to make money. Beware!
Choosing a Product or Service
If you do not have a product or service to sell, then find one you like and sell that.
Become a champion. Use the product yourself ("product of the product")
Only promote the value and benefits of your product. You and your prospect do not need to know everything about it.
Network Marketing 101
- Join with the Top Business Starter Pack.
- Do not "scale-up" (buy small and say you will upgrade later).
- People will always ask you which pack you joined with.
- Subscribe to the Minimum Monthly Purchase of product or service to qualify for all income levels.
- Get everyone to join with the same pack as you.
- Monkey see, monkey do!
- Reach out to everyone you know (talk, mail, email, social media)
- Do NOT prejudge anyone. You have no idea what is happening in their life.
- Use proven marketing systems
- Track everything
- Do not nag ANYONE (eliminate early)
- Sift and sort (look only for the ones who are interested)
- Look for business people and you will find customers