Network Marketing is another form of direct marketing. It is primarily more concerned with the organization of a sales network than with the sale itself.
networker mostly starts to build up its own business before helping
then other business partners to build their own, similar to a
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
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.
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
In 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
In Europe the Network Marketing business is
still in its infancy. Only 0.7% of trading are currently made with
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)
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.
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.
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
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!