What is Network Marketing
It is a business about helping people, often called a people’s franchise. It is the unseen business, it does not have giant signs or large offices but yet millions of people are working in this industry each and every day.
In the 1950’s when the Franchise emerged it was labeled a scam, illegal etc. Fortunately a franchise is not labeled as such anymore or you would not be enjoying your favorite hamburger today.
Network Marketing/Multi-level Marketing (MLM)
They usually offer reasonably priced products and services that people consume in a short time. Generally the commission structure is less up-front then the direct sales companies, but it has a benefit that most direct sales companies do not have and that is residual income.
- It costs less to get involved with this form of business, a few hundred dollars.
- Allows more people to become involved.
- Builds Residual Income
Network Marketing is about sales and distribution, but a different kind of sales. It’s more of a soft sale or recommendation then the hard closing type that you’re accustomed to with the typical salesman and/or saleswoman in the direct sales business.
Each and every day millions of people report to work. Here, their employers leverage their time to build his or her business and financial future on their efforts.
In Network Marketing we help and assist others in building their business. We are also leveraging their time, while 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 it’s 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? Let’s take a look at a typical employer in a service industry with 100 or more employees, that has 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 a few 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 and you no longer have a boss holding you accountable. Your success or failure is dependent upon you and your actions.
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 do not even consider this. Once again this is a real business this is your real business, not a get rich quick overnight program.
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 Sam’s Club or Costco 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? The 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 right. We hate to go to the automobile dealers, where we are swarmed with 5 different sales people all trying to get you to buy from them right!
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, recommending it to our friends and family is very easy.
Our goal and the goal of this letter is that you will see that Network Marketing is a real and viable business. Together we can make this one of the most respected, invisible businesses in the world and truly make Network Marketing work for everyone.
One final note and is very important, is to remember as you get started. The purpose of this business is to build a steady residual income, but most important is to have fun while you’re doing it.
GOOD LUCK & GREAT SUCCESS! …from The Summit Group and…