The Dirty Truth about Network Marketing Unveiled

Is it for people without a college degree like stay at home mums or the unemployed youth on the street?

I stumbled across network marketing in 2003 when I was studying in the UK. I had seen an advert online and then followed it.  Later on I received a call from someone in New Zealand, who then referred me to someone in London. The rest is history…

 Network marketing is often associated with scams, but is more often than not a legitimate source of income.

Talk to people like Robert Kiyosaki, Donald Trump or someone who joined a network marketing opportunity, learned the ropes, took action and went on to build a wildly successful business that pays them a solid six-figure, residual income even multiple six-figure annual business and they will tell you that:

“Network marketing is the greatest opportunity in the history of mankind for the average person without a lot of money to invest to become financially free.”

Here are some of the common misconceptions about network marketing or MLM:

1.      Network marketing is a scam

2.      Network marketing is a get rich quick scheme

3.      Network marketing is easy

4.      The newer the company, the better

5.      Network marketing is all about recruiting the highest number of people etc.

So what is the right answer? And if you think about it, neither really answers the question: “What is network marketing?”

What is Network Marketing?

Network marketing is way of doing business in which a sales force earns a commission not only for sales of products and services they personally generate, but also for the sales of others they recruit and bring into the business, which creates a downline of distributors and a hierarchy of multiple leveraged levels of compensation.

By definition, network marketing is a business strategy that compensates distributors not only for the sales they generate but also for the sales of the distributors they have recruited. It sounds like a pyramid scheme—a form of fraud that promises compensation for recruiting other people into the group rather than for selling any real product—but as of press time, it is considered legitimate. In fact, some of the top brands you may be familiar with are employing this marketing strategy. Avon, for example, has a direct selling program that has benefited a reported 5 million people all over the world.

Network Marketing: The Reality Unveiled

Here’s the unfortunately reality about network marketing…

No matter how you slice it, the only way you will ever build a highly profitable network marketing business is to be willing to master the art of sales, marketing and leadership. Because MLM is form of “direct sales” and no one makes a dime until products and services are sold. It’s that way in every business, not just network marketing.

So the critical point is to join a company, track down who is currently enjoying a level of success you aspire for, find out what they are doing… and simply be willing to do the same things. Which, of course, may require you to learn new skills and actually a few things (sales and marketing) you are not comfortable doing in the beginning. So what is network marketing?

• Network marketing is a career choice and a profession.
• Network marketing is a path to fame, fortune and time freedom.
• Network marketing is a leadership development platform.
• Network marking is fun, fast and exciting.
• Network marketing is a proven “million dollar” business model.

The power of duplication in network marketing

Network marketing is a duplication business. It is a simple business where ordinary people can create extraordinary income. To be successful one must be a good “copycat” and be able teach others to do the same. There must be a good duplication process in place so that everyone in the network, new or old, would be able to follow the system and do the same thing in a simple way.

Network Marketing is a global business and it is important that everyone in the network have a simple system to follow regardless of his or her educational background, experience, and geographical location.

For duplication to be effective there is need for the following criteria:

1. There must be a system.
Network marketing, as a system, enables everyone in the organization to follow the pattern of success, which all the leaders have gone through. This is especially useful for new people because they will have a track to run on. The system may be simple or elaborate depending on the leaders of the organization. The system may include the following training, workshops, seminars, and materials. There should also be a compensation plan with some reading materials and audio-visual aids. Finally there should be some awards and recognition for the good achievers.

2. The system must be simple to follow.

The system must be simple because there will be people in the network with different social, educational, financial backgrounds and varying experience. For people to build a huge organization it is crucial that everyone in the network should be able to follow the system.

3. The system must be the same everywhere.

The system must be the same everywhere, regardless of the country or geographical location. This uniformity is essential to ensure the smooth running of the business as well as the identity of the organization.
Can you imagine if the McDonald’s logo and business set up are different in different places? This will surely lead to confusion.

I hope this clears the misconceptions that are out there.

Cheers!