Understanding The Basics Of Network Marketing
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
Multilevel Network Marketing is as it says: a simplistic but also a sophisticated form of distribution that uses “word-of-mouth” advertising as a medium and a way to educate the public on the particular benefits of a particular product or service.
Word-of-mouth marketing can be deemed to be a science as well as an art form. Its primary role is to eliminate the need for costly advertising media (magazines, newspapers, radio, TV) which can claim more than half of the product cost.
Many people think that only the people at the top get paid, or ever make it in the business. At first glance, this seems logical, however it is completely false. In fact, many times it is better to not be at the top. If you are near the top of these companies, you have to do all of the work; you have to learn for yourself what works, and what doesn’t.
On the other hand… if you are several levels down, or hundreds of levels down, you have your sponsor above you, and you have their sponsor, and several other leaders that you can go to for help. They are concerned with your success, and they have incentive to help you do well.
Is Network Marketing A Pyramid Scheme?
Those who argue that network marketing is a pyramid scheme should look at the normal or corporate business model.
In this model who makes the very most? The owner, and then each of the higher levels make more down to the low end employee. And guess what, it is the choice of the manager and supervisors to promote those employees. These employees could work as hard as they could, but never progress. They are trading their time for a set amount of pay. If the supervisor doesn’t like your work, they can fire you and hire another expendable employee.
Does that not sound like a pyramid scheme?
Sure does to me. In the multilevel network marketing world, many of those on the bottom actually make more money than those above them. Why? Because they choose to! Network marketing pays you for your time and your efforts, and continues to pay you each month for the previous work you have done. So instead of trading time for money, you are trading work for money and time.
Why Does The Network Marketing Business Model Work?
Network Marketing works because it really has an incentive. Have you ever gone to work day after day, earning your wage, just waiting to get out so you could go spend your money at the theater? Or waiting and waiting for that vacation? Is it a paid vacation? It could be. With a normal job, many people’s incentive to do a good job is to not get fired.
With Network Marketing, the amount you make is up to you. You can be lazy, market the wrong way, or get discouraged, and end up part of the 98% who choose to “fail”. Or you can get off your butt, get to work, and make something for yourself. The incentive comes from the knowledge that what you make really is up to you and that you have the opportunity to move up the ladder, not because some unqualified supervisor likes you a little more than your other coworkers, but because you choose to work for that level of success.
Network Marketing Works With Solid Products
It is important to realize what your business is really about. What is its purpose? Hopefully you know this already. The service or the product you sell is the purpose of your company.
The value of your company is only as good as the product you offer. For the most part, products sold my by multilevel companies are far superior to those sold by stores or major brands. They take the middle men out of the picture and provide great products at lower costs. You can go around and sell everyone on your great business model and plan all you want, but if your consultants don’t have any personal belief or experience with the product, the hype will wear off and they will fall off the map.
In fact, the major difference between network marketing and pyramid schemes is that network marketing multilevel companies offer a real, valuable product. Remember this when you prepare your 30 second presentation. It needs to share the value that your company has to offer.
Leading Your Network Marketing Team
After you do some really hard work, you will have the benefit of having a large downline that you are the leader of. This may take one year, two years, less or more… but if you have worked hard, and done a good job, not been lazy and stayed on top of things, you will eventually get there.
The harder you work, and the more you want it, the faster you will achieve network marketing success.
After a while you get to a point where you have enough leaders in your downline that you can kind of sit back and relax if you want to. If you have reached your goals, and if you are ok with a little bit of slowing down, this is ok. Just make sure you continue to lead.
At this point you can kind of step back from going out trying to find prospects. Instead you lead your team and act as more of a trainer and assistant to those in your downline.
Your downline will grow because you have other leaders in your group that are high enough up that they can motivate the rest of your team for you. If they need help they know they are free to come to you for help, or for a presentation. Make sure that you are available to help and to train your leaders.
Your business is only as good as your leaders. If all of your main guys and girls, drop out, get bored, or slack off, you will lose your organization no matter how many levels deep you are. So continue to plan meetings, training sessions, and go to the big meetings. Call your top guys every week or two, continue to learn and read about the latest trends in the network marketing industry, and make sure you adapt to the ever changing circumstances.
Conclusion
I hope you have learned some things that will help you in your networking ventures. Remember it won’t always be easy, but it will be worth it in the end. This industry has the chance to add value and extra time to your life. While it’s true that most people don’t succeed, most people don’t do what it takes…
…but the more work you put into network marketing, the closer you will get to having some extra income that over time really grows to something great, maybe even something that could take you to the beach!
Network Marketing: To Join Or Not To Join?
Network marketing is an opportunity for you to start your own business for a very small fee… create a residual cash empire, and live a life that most people only dream of. You only have to dare to dream, dare to take action and MAKE network marketing success your reality.