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What is Network Marketing?

The secret of successful business today is distribution

All businesses are trying to get closer to the customer.

The customer is "king" and the secret to success is to know what the customer wants and how best to service those needs. Leading this new customer revolution are the direct selling companies set up as Network Marketing operations. Network Marketing is a major force in the Direct Shopping world as it uses the power of a Marketing Network of  independent people to move goods and services into the market place.

 

There are basically two types of Network Marketing organisations you could join.

 

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Multi-Level-Marketing MLM which is Direct Sales form of Network Marketing whereby the self-employed Networkers (called distributor or consultants) purchase product at wholesale from the company and sell the products on directly to customers for a retail profit.

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Referral Marketing which is the newer form of Direct marketing where the self employed Networkers (often called representatives, associates, executives or business partners) build a network but do not buy or sell products. They simply build a customer base for the company which in turn sells the services or products directly to the customer. The Networkers earn a commission on the customers monthly purchase of the services or products. This system suits many people who want to start a network marketing business because it removes the need for the independent distributor to purchase a monthly qualifying order of products.

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Party Plan or Home Presentations is often used in conjunction with Network Marketing to boost customer sales. This is an excellent way for a Network Marketing company representative to build up an initial customer base to provide instant income. Read more about the Party Plan approach.

 

Whilst earning money from customers is profitable, the driving force behind Network Marketing is the enormous opportunity to develop a Marketing Network of like minded Representatives or Distributors, all of them selling to or referring customers, from whom you will earn commission on the total sales within your own network organisation. To the Networkers, commissions are the major profit centres changing a Network Marketing opportunity with a limited basic income from retailing, to an explosive career opportunity with virtually unlimited income potential.

 

For networkers - commissions or bonuses are the major profit centre

 

Why Should I Join a Network Marketing Business Back to Top

 

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MONEY: Money has it uses and most of us would like some more of it! Network Marketing offers a very rewarding way in more ways than one of earning extra income.

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DISPOSABLE INCOME: Most people who who become networkers are part-timers looking at a way of improving their lifestyle. Network Marketing empowers people by increasing the average person's lifestyle money or disposable income

 

Income

Less  Insurance, mortgage, car payments, pension etc
Less Day to day vital living expenses, schooling etc
Leaves Disposable or Lifestyle Income

Most people would admit that over 90% of their income is spent on vital expenses which gives a small amount left over each month if we were to assume an average household income of $4000 per month in the USA. This means the average household would have approximately $400 of disposable or lifestyle income.

The power of networking lies in the ability of the average person to easily double their disposable income in less than six months. (Many do it within their first month by gathering customers initially) This effectively means that Network marketing can double the spending power of the average family's disposable income.

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BIG MONEY: Whilst it is very true that Network Marketing can easily double the lifestyle income the average family has spare at the end of the month it is also equally true that networking can provide huge entrepreneurial incomes to business minded people. Reputedly the largest Network marketing income is around $28m per annum. What is truly amazing is the fact that a residual income even of this magnitude can continue to grow exponentially year after year without any further input by the recipient.

This is the real power of Network Marketing for direct selling companies because the opportunity attracts the entrepreneurial type of person who sets out to succeed in a big way therefore also increasing dramatically the company turnover and of course the bottom line PROFIT! Back to Top

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INCENTIVES: Other very good reasons why you should consider a career in Network Marketing are the "fringe benefits" or incentives that all Network Marketing Companies offer. These can range from a free car, to paid holidays and the use of a Porsche car as one well known, Telecoms network does in the UK, once certain levels of attainment are reached. Back to Top

All these incentives whether just on a temporary basis or are permanent will contribute markedly to your lifestyle income.

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SOCIAL ASPECT: Granted that perhaps you are reading this page because the money side of it is what initially attracted you to Network Marketing. However everyone always desires more in life than just money. Money helps for sure but many people find once they start Network Marketing the fun and the social aspect, the positive working environment and the sheer freedom and satisfaction of working for themselves is just as important and rewarding as the increased income is.

Network Marketing provides so much more than simply increasing the lifestyle income. Most distributors become stronger and more confident in themselves and are far happier than just working for a boss. The unique culture of the Network Marketing  industry ensures that people are involved and interactive with other positive and happy participants. Invariably it is the non-financial benefits that keep most people active in Network marketing. Back to Top

Whatever you want out of life the right Network Marketing opportunity can certainly deliver it for you. The ultimate measure of your success will be a stream of residual income for the rest of your life which can even be left to a beneficiary in your will!

Are you a Smart Worker or Hard Worker.

What category do you fall into?

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Hard Workers: For years I have worked hard at a J O B (Just Over Broke) believing as most people do that working hard and trying to save for the future by paying into a pension fund was the best way to provide for your retirement. Well I along with countless thousands of others in the UK have had a rude shock. Working hard is no longer any surety that you will have a half decent pension to fall back onto. With billions missing from pension funds most UK workers are facing a very bleak future in retirement.

Swapping time for money creates a linear income. If you stop working the income stops. Ask yourself this question; if I was made redundant tomorrow would my income continue to roll in? The answer of course for 99% of us is a resounding NO. YOUR earnings are directly dependent on your efforts. No work no income. Back to Top

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Smart Workers: A small percentage of the population works smart to build a residual income which does not stop when they decide to stop work. A good example is the income which can accrue when you build a property portfolio and a stream of income builds up from the rental returns. However for most of us this is not an option as getting onto the property ladder can be very expensive here in the UK.

 

Types of Residual Income

Rental: From property investment and the rents
Dividend: Business assets or stocks and shares.
Royalty: Songwriters and Authors patent holders etc.
Bonus Commissions: Paid by Network Marketing companies to the people who build downlines and Marketing Networks

Unfortunately most people seriously underestimate the amount of money they need to put aside to provide adequately for their future. It is only the foolish that would not be seriously considering a stream of residual income for the future. A residual income is totally different from linear income because your efforts are quite independent of your income.

By far the best form of residual income is the type derived from Network Marketing where your income is tied into ever increasing assets (your Marketing Network) which ensures it continues to grow exponentially over time. Income streams from royalty income such as writers and patent holders seldom grow over time. Business assets and rental income certainly can but the simplest and best residual income is derived from Network Marketing because your asset (the Marketing Network) should continue to grow and grow. Back to Top

The best opportunity we have to create an independent stream of income is through Network Marketing

Occasionally in your life you have the chance to be at the right place at the right time

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NOW is the right time!

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Network Marketing is growing faster than any other form of distribution

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The Direct Selling Association reports that over 15 million people have joined Network marketing organisations in the last two years. Back to Top

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