Friday, September 21, 2012

What is Network Marketing?

Network MarketingNetwork Marketing is another form of direct marketing. It is primarily more concerned with the organization of a sales network than with the sale itself.
The networker mostly starts to build up its own business before helping then other business partners to build their own, similar to a franchisor.
In difference to franchising where only one company opens new branches, in Network Marketing each independent business owner can open new network businesses, but with low financial investigations and without risk.
A networker undertakes the task to organize the network, to get paid for the sales qualified for bonus within that branch network.
Another feature of Network Marketing is to build up an transnational business by sponsoring international partners. Especially in Europe, Network Marketing represents one of the best examples how to make use of a single European market place.
A report from Prof. Dr. Michael Zacharias, University Worms, in 1996 has shown, that the total revenue in Germany made in Network Marketing is still very low (approx. 300 million EUR p.a.), but it will be fast-paced.
Network MarketingIn the Ukraine the market has just started (Nov. 2003), and the market in Russia will start 2004 too. So in these countries we will see incredible and surpassing business growth in the next years. If you are from the Ukraine or Russia, or you know people from there, then you can directly benefit from it. You can offer them an opportunity to build their own business.
This was just an example, there are more exciting success stories from other countries as well, e.g. Sweden, Korea etc., and the opportunity is identical in all supported countries.
In Europe the Network Marketing business is still in its infancy. Only 0.7% of trading are currently made with Network Marketing.
So this distribution channel has a huge potential for growth in future all over the world.
The Three Pillars of Success in Network Marketing are:
1) Residual Income
2) Leverage (of Time and Money)
3) Duplication
Network Marketing, 'MLM', and Multi Level Marketing are all terms that refer to the same type of business model. While many close-minded people outside the industry (and others who've tried it and failed), have biased or negative wrong impressions, and despite the fact that it is used and abused by many crooks and con-artists, this business model has exceptional performance potential.
There are bad apples in every bunch, and this industry has more than it's share. But it can produce outstanding results if you know how to find the right company. And to maximize your potential, there are a few simple concepts whose understanding is critical to your success.
Unlike franchises or conventional businesses, Network Marketing, MLM, and Multilevel Marketing are the only business models that take advantage of all three of the important, yet misunderstood principles of:
Passive Residual Income - Leverage - and Geometric Growth.
And the combination of all three of these elements is what gives the Network Marketing business model it's synergy and exceptional performance potential. In fact one outstanding company I'm aware of has actually built designed synergy into their business model.
Whether it's a franchise or conventional business, both require major investments of time and money, and special skills if you hope to be really successful. Even the relatively small percentage who achieve true success usually take years just to break even.
On the other hand, with the advent and popularity of the Internet and the rampant quest to "Get Rich Quick for Doing Nothing", many people have gotten all excited about affiliate, associate, referral, or co-op programs as they are sometimes called. But very few of the thousands of these being promoted have any real chance of making any significant money for the vast majority of people who get involved.
A perfect example is an email that was recently received from one of these programs who claim to be 'the best'. They bragged that they were paying "over $400,000 in commissions each month!" and have "now grown to over 650,000 affiliates!"
Those are interesting statistics some might get excited about. Let's see... if they're true... They're paying an 'average' of $.61 per affiliate... That's sixty one cents ! Wow! How would you like to retire on that?!
They claim later in their letter that some are making $10,000 a month. If that's true, then to come up with an 'average' of sixty one cents each, the vast majority have to be making absolutely nothing.
There is a much better way to achieve your dreams!

1 comment:

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