The simplest explanation of what is network marketing is, “It is a method of marketing that utilizes independent representatives.”
Due to these independent representatives, network marketing companies have the ability to reach customers that other traditional companies are not able to reach.
Independent representatives are doing this today thru traditional online and offline marketing methods.
Likewise in order to accomplish this, network marketing companies, their associates recruit individuals, i.e. “their sales force!”
They accomplish this just like other companies and franchises have done for decades! For example take for the insurance industry, they recruit individuals as well.
How often have you seen television ads that utilize the term, “Independent Insurance Agent or Associate?”
For that reason, as we watch some of these advertisements we naturally assume they are employees of the company. The truth is they are independent small business owners!
Network Marketers Are Not Employees!
As you drive throughout your neighborhood certainly you noticed many traditional small businesses. They have signs or some other form of advertising to drawing your attention.
In contrast you will rarely see advertising from the approximately 13 million people who are involved with direct selling / network marketing industry.
This number is according to figures provided by the Direct Selling Association (DSA).
Likewise, there is distinct difference between us and them. In most cases they have been assigned an exclusive territory. They cannot market outside of their assigned territory.
While a network marketing representative in most cases, can market anywhere their network marketing company is established!
Why are network marketing companies willing to pay you to market for them…
…Why don’t they just utilize the internet (ecommerce) or other standard traditional marketing methods?
It’s really simple, they want access to your network, your circle of influence! Above all they want access to your network of friends and family!
Today there are hundreds of network marketing companies offering a large variety of products and services. Further more many of these products and services you might recognize by their brand name!
The products and services you can market today cover everything from Communication Services, Internet Access, Nutritional Products, Weight Loss Programs, Water Filtration Systems, Financial Programs, Electrical Power, Solar Power, to name a few.
So why do they need us?
Traditional marketing methods have companies spending millions of dollars each year to market their products and services.
They know that word-of-mouth marketing is a far more powerful and effective method of marketing. Especially, when that message comes from someone you know and trust!
I hope by now you are starting to understand just a little more about what is network marketing…
They Are Willing to Pay You For This Access!
And these companies are more than willing to pay you, to communicate this message to your network of friends and family.
It is extremely important to understand that this method of marketing is NOT about bugging your friends and family members, as many would love for you to believe.
It is about your ability and skill to determine from those individuals within your circle of influence who would be interested in the products or services that your company has to offer…
… That information alone is one of the critical elements that separates those who fail, from those who go on to become very successful!
And occasionally you might uncover a few individuals, who also want to start a business!
I truly believe Robert Kiyosaki summed it up nicely;
It really is the business school for people who like helping people!
You Can Call Your Own Shots In Network Marketing!
First, everyone wants to call their own shots in life. Second, you can if you’re willing to get the necessary education you will need to run a small business.
Third, if you do enjoy working with people, network marketing just might be right kind of business for you.
Forth, on the other hand, if you’re only in it for the money, or you don’t like dealing with people, well then…
… You’ll most likely end up failing!
Personally I’ve found running a network marketing business to be a very rewarding. While it does give you the freedom from punching someone else’s clock.
You’ll now be punching your clock, you will have to hold yourself accountable!
The training you get from starting and running a network marketing business will give you a deeper appreciation of what your employer has to deal with on a daily basis.
Thru this training you will also become a far better communicator. Someone who actually knows how to listen. With skill development you will be better equipped to address the wants and needs of others!
It doesn’t matter what the economy is doing today. Working from home, the beach, makes more sense then acquiring a second job.
Hopefully you know just a little bit more about the subject what is network marketing…
Now let’s jump into another important subject…
How Does Network Marketing Work?
Today there are millions of people around the world building this unseen industry called network marketing. So, if your wondering how does network marketing work, listen to what I’m going to tell you.
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 Pizzeria or Rotary Club 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.
However, my team and have system that allows us to utilize the internet technology to get qualified prospects to join our team.
Now, you may asking yourself…
How Do I Get Started In Network Marketing
To answer this million dollar question, I’m going to give you 6 items to think about that should help you answer that question!
Maybe you are looking at network marketing
…for the first time and you are trying to figure out just how do I get started in network marketing. Or maybe you’ve have been involved in network marketing before, but for what ever reason you stopped.
Now you are trying to figure out how to get going once again! Or maybe you fit in the third category you are in network marketing now and trying to figure out how to get started.
Today, I still believe much like I believed in the past, it was far to easy to get started in a network marketing. It really should be a little more difficult than it is.
Looking back at some of the network marketing company
…I joined, I spent anywhere from 480 and man I was in business! Those monthly auto ships well they added up, and I wasn’t really prepared for it!
When you are struggling to make ends meet, it’s really hard to justify those expenses, especially if you are not making any money!
Like so many other people who have joined a network marketing company CTFO. I did it without fully realizing just what I was getting into! Or what it was really going to take, to become a successful network marketer!
So what is it really going to take for you to get started in network marketing?
I will try to make this as short and painless as possible.
I promised you 6 items should help make a better and more informed decision about how you want to get started in network marketing.
The First ONE Is:
You absolutely must become educated or at least informed on what will be required of you to start and run a network marketing business. Obviously that is what your doing, that’s why you are here now.
In the past I worked with a company, whose training program was second to none. Through that company I went on to become a certified marketing consultant.
I’ve used that training, not just in network marketing, but in every other aspect of my life.
In the past I looked at network marketing companies based on hype, usually it was surrounding their pay plans. All though today I can sit back and laugh about how foolish it was.
I mean C’mon you can have the best, or what you think is the best pay plan in the world. But, the reality of it is if no one is doing anything… Well you kind of catch my drift, no one is making any money either!
With so many products and services out there today, coming from all the various network marketing companies how do you really know which one to pick?
Do you remember the movie with Jack Palance and Billy Crystal, it was called “City Slickers!” It is a very funny comedy.
Yet, in that movie there is one part where Curly says “Do you know what the secret of life is? Mitch who was played by Billy Crystal was looking at Curly.
Curly proceeds to hold’s up one finger and says “This!” Mitch replies “your finger?”
To which Curly replies “One thing, Just one Thing. You stick to that and the rest don’t mean shit!”
Baffled, Mitch replies, but what is that “one thing?” Curly smiled and answered back “That’s what you have to find out!”
To me that was / is probably one of the most thought provoking statements that you can carry into you life today! “That’s what you have to find out!” “One Thing!”
What lesson can we take from that? We have all heard the saying, “do what you love and it will never seem like work!” Starting and running a successful network marketing business is work!
So wouldn’t it make sense to find something that you are passionate about? Something you really like? And then look and see if there is a network marketing company that provides that?
The Second Item On The List to Getting Started Is Finding A Sponsor, Not Just Any Sponsor Bur The Right Sponsor!
Just about every network marketing company CTFO I’ve ever seen or been involved with, you have to have a sponsor. If you’ve taken the time to educate yourself about the network marketing industry.
You’ve found that one thing you are passionate about! You’ve located that company or companies that have that products or services that you are passionate about!
Why would you short change yourself and not give the same due diligence to picking a sponsor!
You might wonder how do you go about finding a sponsor. You might just try calling the company your interested in, maybe they can give you a referral.
Although in this day and age that might be highly unlikely, do to the privacy concerns of most companies.
What they may do is take your contact information and pass it to one of their representatives. Or you might find someone by doing an online search.
In which case you’ll most fill out a form requesting more information or a consultation.
Just know that when you fill out a form, someone is most likely going to be calling you, so be prepared for it. When they do call to discuss their network marketing opportunity, if its not a good time just let them know.
Most people will be courteous and understanding. If they are not, do you really want to do business with that person or have them as a sponsor anyway?
The Third Item to Getting Started In Network Marketing Is…
And, I shouldn’t have to say this but, just be wary of outrageous claims. No doubt I hope you know what I’m talking about.
You’ve seen the claims like make 10,000 or more a month in only 3 months. That was an actual advertisement that people where running awhile back, and yet it is one that is so obvious it’s not even really funny.
Then there are the people promoting systems and websites that will do all of the work for you. My favorite is the products sell themselves, if they sell themselves why do they need you?
As kids we where the ultimate marketers, we would not take no for an answer, just ask your mom. Somewhere along the way most of us have lost that skill!
If you have done your homework, your research, you’ve found that one thing you are passionate about.
All you really have to do is find others, who share that same passion, that same want or that same need! Then you are sharing that information with them, we do it all the time without thinking about it.
No doubt you often tell people about what you watched on Amazon, Netflix, Hulu etc… and you haven’t received a dime for your marketing efforts.
In network marketing you can change that, just be wary of the hype and spin!
The Fourth Item to HELP You Get Started In Network Marketing, Is to STOP Procrastinating!
You have done your homework, you have found the right product or service, that one thing you are passionate about! You’ve located the company or companies that have it.
You have found a sponsor that you like and can connect with, so now what?
Don’t procrastinate, don’t put it off! Sadly most people freeze up at this point! Yeah, we’ve all been there, the I’ll get to it tomorrow or next week!
Procrastination is one of the biggest killers and time wasters of your life.
Your time is such a precious commodity, you really cannot afford to waste it. I still remember one day getting up, looking in the mirror, and seeing my father looking back at me in that mirror.
It was at that moment I stopped and wondered where have all the years gone, and more important, what have I done with them? We all know how compounded interest works with money.
The longer the time frame or the earlier we started saving in life, the faster our money grows today! Yet, if we procrastinated in starting a 401K, later in life they give us a catchup option.
But it will never equal the growth that could or should have happened, if only we had we not procrastinated. When it comes to building your business it works on basically the same principle.
Your network marketing business will start slow, then it will begin to gain momentum as our both your skills and education grow. But, just remember unlike a 401K you don’t have a catchup option! So stop procrastinating at all costs!
The Fifth Item Here Ties Into The Fourth And The Sixth, GET STARTED.
If you’ve been doing your home work, your due diligence, you’ve found that one thing. And, you are comfortable with your prospective sponsor. Give them a call, they’ll assist you through the signup process.
It’s generally quick, simple and sometimes painless. Most network marketing companies offer instant online signup through the internet. Sometimes you will need a few items in order to fill out the required forms.
Because you’re starting a real business you will have to provide them with information like your social security # if you’re a U.S. resident, or Tax I.D if your not.
This maybe different if you live in another country, but your sponsor should know or they can help you get the right answers.
The Sixth Item, Get Moving.
Once you have joined you company, don’t just sit back and procrastinate get moving. Your company will tell you to put together a list of everyone you know.
I know exactly what you are thinking, no way, I’m not bugging my friends and family!
If you have listened to me, read through my website, watched my videos, you are right. You, are not going to bug them. This is what separates the real network marketers from the rest of the pack.
That list you create is to jog your memory about everyone you know. Unfortunately for most of us what it really shows is just how out of touch we are with just about everyone on that list.
The task here will be for you, to begin rebuilding those relationships. For you to begin discovering their wants, their needs. Notice I did not say rediscovering, as most of us never really knew them that well to begin with!
Through this discovery you just might find a few who have a want or need that you can help with. So always focus on your long term success, not the quick short term gains.
To keep it simple, don’t chase away your fiends and family, don’t be the outcast at family events.
My goal here hs been to help you and others see that network marketing is a real and viable business model.
That we can use education and professionalism to make this one of the most respected, invisible businesses in the world and truly make network marketing work for everyone!
I hope this post have given you food for thought so you now know more about the industry of Network Marketing.