More and more people are becoming interested in Network Marketing or NWM for short. Even though network marketing has existed since the beginning of time, most people are still unsure of what it actually is and how it works. There have also been many rotten apples that have tainted network marketing existence with a negative outlook and gave network marketing a bad name. As people tend to remember negative experiences over positive ones, those who are just getting started. You may have gone to the same restaurant 100 times, but if the food or service was awful once… what did you do? Probably remember “that” particular instance over the hundred good times that you’ve been there. With schools all over the world from Harvard to Oxford teaching entrepreneurship and also network marketing, it’s a no-brainer that network marketing is one of lucrative ways to build passive income.
Studies indicate that:
- Network marketing accounts for worldwide annual sales of more than $208 Billion worldwide.
- The US contributes nearly $69 Billion.
- 47 million Americans derive independent contractor income from network marketing. One in every 8 households has someone involved in network marketing.
- Over 160 million people are involved in network marketing worldwide, and these numbers are increasing remarkably.
How does Network Marketing / NWM work?
Network marketing works because people prefer to use services and/or products listed by a friend or an acquaintance. It works because the services/products offered are good and cost fair value. It works because people feel satisfied with the service/product and indicate to acquaintances who are satisfied with the service/product, and so forth on a scale of exponential growth.
Anyone can be a network marketer, but usually dedicated individuals and entrepreneurs that know they can make money with an alternative income (also known as passive/residual income) tend to be involved. We normally sign up for a network marketing company that consists of working to promote the services/products and the opportunity offered. With the main advantage of being able to start without an initial investment that a normal business would accommodate. Taking into an account of high cost needed to start any company.
Who should avoid Network Marketing / NWM?
Disbelievers in nwm/network marketing. Anyone thinking about earning money easily without having to work.
What are advantages of Network Marketing / NWM?
Possibility of unlimited gains. Without an expensive initial investment. Ability to work on your own time, and setting your own standard.
What are the disadvantages of Network Marketing / NWM?
Moderate level of rejection by those who do not know. Not only by them
The evolution of Network Marketing / NWM
Marketing in general context is the junction of relationship marketing. It focuses on the quality of affiliate marketing, customer relations, direct marketing, and attraction marketing which happens to be the direct relationship between vendor and customer. Therefore, nwm/network marketing allows the direct relationship of the distributor (seller) with the client to maintain a quality of a relationship between them since this system only devotes itself to the permanence of a direct relationship in the long run. NWM/Network marketing is a distribution system or a form of marketing that’s moving legitimate services and goods with high market value, from the manufacturer to the consumer through a network of independent contractors. It’s a way to organize and pay for resellers involved in sales. It has a compensation plan for sales in which resellers can receive earnings with the following common two ways. First, marketers may receive compensation for their personal sale of services/products and services to consumers. Second, marketers may be paid for their purchases or resales of people recruited and sponsored. Individuals may also be paid from the resale of the group or network that signed/recruited/sponsored them previously. A network marketing distribution company means any person, firm, corporation, or other business entity that sells or distributes goods or services through independent marketers, reps, agents, contractors, distributors, and varied participants may sign/recruit/sponsor other participants. Commissions, bonuses, refunds, discounts, dividends, and other considerations of the program are or should be paid as a result of the sale of a service, product, recruitment, performance shares, or additional participants.
How can you succeed?
Short answer: Work diligently, work consistently, and don’t give up.
Long answer: All companies are different, and what works for one company might not work in another. You should learn from your mentor/trainer/me. Draw on them for help. They’ve found out from experience what works and what doesn’t, and they’re interested in your success. The fundamental ideas, though, are the same in any company. Do what a distributor/associate/or whatever is supposed to do in your company — sell services, retail products, consume products, or whatever… and find others to do the same. Teach them to do what you do. Duplication is the key to success. You’re not supposed to go out and enroll the world, or sell something to everybody on the planet. You’re supposed to find a few people who want to build a business and help them do it. More importantly, teach them to do what a distributor does and go out and find a few people to work with and teach those new people. Until you have “taught your people to teach their people to teach,” you have not really duplicated yourself. Keep plugging away. Unless you’re incredibly good at this, it will take time to build a group. It takes time to find good people and teach them what they need to know. Sometimes your best people will give up and drop out. Sometimes it can be very discouraging. Sometimes you may be tempted to give up. If your company isn’t working very well, maybe you should. But if the company is working well, and others are succeeding, you need to take a look at what you’re doing that isn’t working. It may be that you wouldn’t do any better in another company, even if the grass looks greener because you’re doing the wrong things.
It is a sad fact that
The sad fact is, very few people succeed big in any endeavor. Most people simply will not do what it takes to succeed. Network marketing is no different in this regard. However, many people get into a network marketing business with the idea that it’s some kind of “easy road to riches”. It’s not. It takes work. It takes time and dedication. But most people don’t see that, either because their sponsor misled them with rosy predictions of instant wealth, or because they chose to hear the easy story. People like this enroll and don’t do anything, or give it a try but give up after a few months. This is where the vast majority of “network marketing failures” come from.
The biggest problem with network marketing is that it’s “too easy” to get into (usually no more than a few hundred dollars), so it’s “too easy” to get out. With only a few hundred bucks committed, it’s easy for someone to say “Ah, heck, I talked to 5 people and none of them were interested. This doesn’t work! Guess I wasted $200.” You should approach your business as if it was a “real” business, one that you had invested your life savings into. If you had sunk $200,000 into your network marketing business, would you let 5 “no”s stop you? Undoubtedly not! You’d get back out there and keep working until you made it work because you had too damn much money in it to give up! Well, guess what? That’s what makes network marketing work too — that dedication to keep working until you make it work. If you work consistently and effectively, and build your group faster than the faint-hearted people drop out, your group will slowly but steadily build. And if you’ve taught your people the correct ideas of “work consistently, work effectively, and teach your people how to duplicate your efforts”, you should see a consistent rate of growth. It will probably take longer than you’d like (hey, that’s the way life works), but as long as you keep working at it, your income will eventually build to the level you want.
The problem is, most people don’t do this. Most people who get into network marketing give it a half-hearted try, then give up the first time they get a “no” and complain that “It doesn’t work.” Only the people who determine to put in the effort, and actually DO what it takes to succeed, will stick it out and end up at the top.
Some questions to ask yourself before entering a Network Marketing / NWM opportunity
Is there a legitimate service/product involved?
What do you get in return for your startup investment, other than the potential to earn good money? If you’re not getting a service or a product or if the training tools appear to be overpriced you could have discovered a scam.
Do you get commissions based on service/product distribution or on recruitment?
If they are paying commissions based purely on recruitment, walk away now.
Consider the following factors that might influence long-term success. Does the company have a proven track record?
If the company has been around for a few years then there is a fair chance that governing bodies that police pyramid schemes have already pulled the business model apart and given them the OK.
Is this a get rich quick scheme?
Although there is a lot of potential to earn very good money in network marketing very few have made it quick, most make their millions through consistent effort.
If you are looking into the industry for the first time don’t be scared to look at other business models, services, and/or products; particularly if you don’t know which company to join.
What training do they provide?
A good company has a solid training system such as resources found on VitalyTennant.com.
Say hello to Network Marketing / NWM
Thoughts become things. With
Listen to the following podcast episodes:
Read the following blog posts:
- An idea of a SCAM could be related to something more practical
- Network Marketing Pyramid
- Laying the Foundation to Destiny; Growth Mindset, Penny a Day Analogy
- Influencers Industry Disruptors and Movement
- 80/20 Principle and/or Rule
- 90/10 Principle and/or Rule
- NFL – No Friends / Family Left club in Network Marketing
- Parkinson’s Law ‘IM’POSSIBLE
- 95/5 Network Marketing Principle/NWM Rule