Thursday, April 17, 2008
Friday, April 11, 2008
An Introduction to network marketing:
How it works by Gery Carson
Simply put, Network Marketing is just another business method of moving products and services from manufactures to consumers - but with a twist. The twist is that it lets people like you and me in on the profits!
First, let's look at why more and more manufactures, including fortune 500 companies, are embracing Network Marketing.
Obviously, manufacturers want to get their products into hands of a many people as possible, and as quickly as possible.
In conventional marketing, however, this may require millions of dollars of on going advertising expenses. It will also probably require going through layers of middlemen (jobbers, wholesalers, retailers,etc) -each who wanttheir cut of thr profits( while adding zero value to the product or services). In addition, the competition can be fierce. and even after spending millions, there's no guarantee of success.
Now consider Network Marketing. In Network Marketing, the manufacturer introduces his product in the form of a busines opportunity, much like a freanchise, to a small nucleus of independent business people. The company will produce and supply the products at wholesale; provide the necessary promotional and sales materials; handle data processing and accounting; and even help in training.
This nucleus of people then introduce the products and business opportunity to others, who, in turn, introduce it to even more people. and so it continues with the base of consumers and independent distributors growing larger and larger every year.
This partnership of the network marketing company and its independent distributors is of course mutually beneficial. The company slashes huge amounts of cash from its distributors is ofcourse mutually beneficial. The company doesnt have to advertise anymore either because its distributors do it for them - often just through "word of mouth".
And where do all the millions of dollars saved go? to the distributors, of course in the form of commissions and overrides. But in contrast to conventional marketing, the company now only pays for results;i.e., commissions and overrides are paid out only when products are sold.
But since each individual can only personally move a small amount of product, network marketing companies also allow you to sponsor other people into the business and earn overrides commisions on their efforts, too.
This is one of the most powerful advantages that network marketing has over other traditional, direct selling methods. you see, success in conventional direct selling usually means you have to be a super salesman and retails huge amounts of product. Network Marketing is just the opposite. Success Network Marketing is about a lot of people each doing a little.
Also, unlike most traditional direct selling. Network Marketing isnt a job. On the contrary, its your own business, to run as you like. and no matter when you join a network marketing organization, you start out as and will always be the head of your own company. you'll build your own network of independent distributors and earn a percentage of their sales. Yet each is a CEO in their own right, as you are, and each with the opportunity to build their own money making networks under them.
Do you know what happens when you double a penny every day for a month? at the 15-day mark, its grown to only $163.84. but by the 30th day, its mushroomed to OVER 5 MILLION dollars!
This duplication effect is the most powerful ingredient of network marketing. its also reason why network marketing opportunity with john in texas. john has an associate in ohio by the name of mark. mark comes abroad and soon shares the opportunity with jean from new york. through jean's efforts, a californian, rita, joins the network.
by just sponsoring one person, you've sent into motion a chain of events that now has people (john, mark, jean and rita) is each adding to your commission check! This is just one very small example of duplication and networking in action.
Do you think you could find one person each month to join your business? just one person a month who might be interested in financial freedom, more leisure time, more security and more happiness?
Do you think you can teach that one person a month to do what you do? if you can, you can become wildly successful in network marketing!
But you know what? even if you're only able to sponsor someone every 3-4 months, fulltime incomes are still possible. and thats after just your first year. consider what you can do in year two, year three, and beyond!
First, let's look at why more and more manufactures, including fortune 500 companies, are embracing Network Marketing.
Obviously, manufacturers want to get their products into hands of a many people as possible, and as quickly as possible.
In conventional marketing, however, this may require millions of dollars of on going advertising expenses. It will also probably require going through layers of middlemen (jobbers, wholesalers, retailers,etc) -each who wanttheir cut of thr profits( while adding zero value to the product or services). In addition, the competition can be fierce. and even after spending millions, there's no guarantee of success.
Now consider Network Marketing. In Network Marketing, the manufacturer introduces his product in the form of a busines opportunity, much like a freanchise, to a small nucleus of independent business people. The company will produce and supply the products at wholesale; provide the necessary promotional and sales materials; handle data processing and accounting; and even help in training.
This nucleus of people then introduce the products and business opportunity to others, who, in turn, introduce it to even more people. and so it continues with the base of consumers and independent distributors growing larger and larger every year.
This partnership of the network marketing company and its independent distributors is of course mutually beneficial. The company slashes huge amounts of cash from its distributors is ofcourse mutually beneficial. The company doesnt have to advertise anymore either because its distributors do it for them - often just through "word of mouth".
And where do all the millions of dollars saved go? to the distributors, of course in the form of commissions and overrides. But in contrast to conventional marketing, the company now only pays for results;i.e., commissions and overrides are paid out only when products are sold.
But since each individual can only personally move a small amount of product, network marketing companies also allow you to sponsor other people into the business and earn overrides commisions on their efforts, too.
This is one of the most powerful advantages that network marketing has over other traditional, direct selling methods. you see, success in conventional direct selling usually means you have to be a super salesman and retails huge amounts of product. Network Marketing is just the opposite. Success Network Marketing is about a lot of people each doing a little.
Also, unlike most traditional direct selling. Network Marketing isnt a job. On the contrary, its your own business, to run as you like. and no matter when you join a network marketing organization, you start out as and will always be the head of your own company. you'll build your own network of independent distributors and earn a percentage of their sales. Yet each is a CEO in their own right, as you are, and each with the opportunity to build their own money making networks under them.
Do you know what happens when you double a penny every day for a month? at the 15-day mark, its grown to only $163.84. but by the 30th day, its mushroomed to OVER 5 MILLION dollars!
This duplication effect is the most powerful ingredient of network marketing. its also reason why network marketing opportunity with john in texas. john has an associate in ohio by the name of mark. mark comes abroad and soon shares the opportunity with jean from new york. through jean's efforts, a californian, rita, joins the network.
by just sponsoring one person, you've sent into motion a chain of events that now has people (john, mark, jean and rita) is each adding to your commission check! This is just one very small example of duplication and networking in action.
Do you think you could find one person each month to join your business? just one person a month who might be interested in financial freedom, more leisure time, more security and more happiness?
Do you think you can teach that one person a month to do what you do? if you can, you can become wildly successful in network marketing!
But you know what? even if you're only able to sponsor someone every 3-4 months, fulltime incomes are still possible. and thats after just your first year. consider what you can do in year two, year three, and beyond!
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