As we head into a new year many of you are thinking about what to do next, how to make the extra income that you need to pay the bills, go on vacation, pay for your child’s school trip or football dues. Many of you reading this are already aware of network marketing and have been working hard to be successful at it. Some of you have been in network marketing and quit because it just wasn’t for you (your words not mine). And then there are those of you who have no clue what network marketing is and assume that the nice gentleman who just left you a message is a telemarketer and works for some large corporation that pays him by the hour.
Network Marketing (the Denise Lee definition)
Network marketing is a business model based on the tell-a-friend concept of marketing. A company has a product or service to sell and instead of spending millions on Super Bowl commercials or glossy magazine ads, they enlist people like you and I to spread the word about their product. We are paid a percentage of the sale price for our services. We go out and find customers by calling leads, advertising online and offline, and marketing via Twitter, FaceBook and other “social media” avenues.
The second (and honestly probably the most important) part of network marketing is building your team. The idea here is that instead of you personally going out and selling a million dollars worth of product, you build a team of ten or ten thousand; this makes achieving that million dollars in sales for the company a whole lot easier and then the company rewards you by paying you a percentage of your teams’ sales too.
Well that all sounds pretty darn pedestrian and maybe you still can’t see why anyone would want to do MLM instead of a job. The third and most exciting component of network marketing is residual income. There is usually a monthly fee or minimum auto ship requirement that each person on your team must fulfill to remain active. One part of your residual income is the percentage that you get from this monthly payment. The other part comes from your customers who are also paying a monthly fee for your services or are on auto ship with your products.
Between selling, recruiting and residual income you can see how/why there are people making anywhere from 500 to 50K plus dollars a month just doing network marketing. No wonder network marketers are so damn passionate about what they do. Husbands buy wives their dream homes and wives have been known to bring husbands home for good!
Network Marketing – The Good , The Bad & The Downright Ugly
The truth about network marketing is that (even for people who have spent years being successful in sales) it just ain’t all that easy. Network marketing is a huge paradigm shift because if you act like an Encyclopedia salesman and bully, cajole, or force people into buying your product or joining your business – the next month, poof, they are gone and so is any possibility of earning residual income from them.
This is a true people business and you have to provide value to your team members and customers in so many ways – from having a viable product that does what it says to providing training and support to your team. Network marketing is all about faith and if you don’t believe in yourself, your company, or the product and service you market – then you will FAIL.
I’ll cover more about the bad and the downright in part two (you know I hate posts that go past 500 words LOL) but as the New Year approaches and you start thinking about getting into network marketing (or getting out of network marketing) remember this it may not be EASY, but if you are consistent, persistent and downright tenacious – it is most certainly WORTH IT.