Tuesday, July 06, 2004

Sorry Guy´s that I have been off for some days - but I had to put my hubby in hospital - he got an infection in the heart !?
Never heard of it before !!
But he is home and better now - just hope he will learn from it :-)

Anyway, here is a great article for you;


Network Marketing - What Is It?
by Sharon Bray-McPherson

I don't want to join a network marketing company!

A lot of people feel that way - unfortunately it's because most don't know any better. There's a suspicious, sneering, turn-up your nose attitude toward network marketing that came about as the result of some pretty rotten network marketing companies.

And of course there's the mistaken belief that MLM is some kind of pyramid scheme.

Network Marketing is a system which makes it possible for everyday people - like YOU and ME - to obtain unbelievable levels of financial freedom and personal rewards through persistence, concentrated effort, determination, and yes I'll say it - work.

It gives you the opportunity to build your own successful business without all the entanglements of traditional business: employee problems, payroll, overhead, etc. etc.

Over the past 50+ years multi-level-marketing has grown into a legitimate and most effecient way for a company to distribute their products or services. Many network marketing companies are now being traded publicly on NASDAQ and the New York Stock Exchange. To do so they must be open to the security and control of the SEC (Securities and Exchange Commission). They must establish AND maintain high standards of business practices.

PYRAMID SCHEME

Let's talk for a moment about pyramids. Do you know that the pyramid is the strongest structure known to man? Are you also aware that almost every company you do business with is built on the geometric shape of a pyramid? Your bank, grocery store, gas station - they're all pyramids.

You can also include Coca Cola, McDonalds, Proctor & Gamble, Nabisco and hundreds of other companies that you purchase products from everyday to those that are built in the shape of a pyramid.

HOW

Well, you have the CEO at the top. On the next level you might have one, two or three Vice Presidents. Then comes the Management Team, of which there could be dozens, and finally but certainly not least, is the Everyday Work Force.

However in a MLM company, instead of having a CEO at the top of the pyramid there's YOU. All those who join the business through your efforts are placed under you, that is, they become members of your downline. Those who join the business under your downline are also placed under you, but your direct downline member (the person you personally sponsored), now moves to the top of their own pyramid.

PAY STRUCTURE

Another difference between traditional business and network marketing is the pay structure. In traditional business will the assembly line worker earn as much income as the managers? NO. And the management team will not earn as much as the vice president(s). The vice president will not earn as much as the CEO. Each person's level of income is based on their posistion in the company's structure - the pyramid.

In network marketing each person has the opportunity to earn more income than the person above them. For instance - depending on the strength of YOUR efforts in working your business you could end up earning a higher income than the person who sponsored you. Someone that you sponsor could possibly surpass you in earnings based on their efforts.

No other industry that I know of gives you the opportunity to earn income based on your own efforts and those that you train - instead of your posistion or title in a company.

PRODUCTS & SERVICES

But what makes all of the above named companies, and network marketing different from an illegal pyramid scheme?

Products and Services!

An honest and legitimate MLM company has a product(s) or service(s) that they offer to the public through their distributors, and will place the most importance on selling the products. If you are approached by someone who tells you that you can make money just from the number of people that you sign up...Run for the Hills!

Earning income strictly from the number of others you can recruit into a program is illegal! That's not to say that a legitimate network marketing company won't give you the opportunity to receive a bonus or incentive on those that you sponsor but the main focus is still on the SALES OF PRODUCTS OR SERVICES.

DISTRIBUTION METHOD

Essentially what makes network marketing different from Coca Cola or Nabisco is the Method of Distributing Products or Services.

That twelve pack of soda or package of cookies you bought the other day went from the manufacturer to the wholesaler to the retailer to you.

In network marketing we cut out the middle men. The product goes from the Manufacturer to the Customer. Instead of spending millions of dollars on advertising, the network marketing company depends on the efforts of their individual distributors to spread the word about their product.

YOU DO IT ALL THE TIME

Our industry is based on the simple word-of-mouth recommendation of products or services.

You and your friends do network marketing all the time - you're just not aware of it.

Have you ever tried a new product and liked it so much that you told someone about it? The person you told then bought the product, tried it and liked it also. They then told someone else about it - who bought it, liked it and told someone else about it, and so on and so on.

Now ask yourself, who made money from YOUR recommendation of that product?

The retailer, the wholesaler and the manufacturer. Not You!

Now let's use the same scenario with your own network-marketing business. When you told your friend about that great new product that you found and she bought it - YOU would have earned income. Then when she told her friend about the product and they bought it, YOU and YOUR FRIEND would have earned income - and so on and so on.

In a Nutshell - That's Network Marketing! It is driven by PRODUCTS and SERVICES, not by Chain-letters or by recruiting people to pay for absolutely nothing else but the chance to recruit more people to pay for absolutely nothing ...