Network Marketing
Definition: A business model in which a distributor network
is needed to build the business. Usually such businesses
are also multilevel marketing in nature in that payouts occur
at more than one level.
is needed to build the business. Usually such businesses
are also multilevel marketing in nature in that payouts occur
at more than one level.
Why MLM Is “The Perfect Business”
by John Petruse (http://johnpetruse.net/robert-kiyosaki-explains-why-mlm-is-the-perfect-business)
Entrepreneur Robert Kiyosaki is the author of the best selling business books of all time, the “Rich Dad, Poor Dad” series.
His message in all of his books is the same: “Take responsibility for your finances – or get used to taking orders for the rest of your life. You’re either a master of money or a slave to it. Your choice.”
In his most recent book “The Business Of The 21st Century” Robert Kiyosaki describes one business model he believes holds the greatest promise for building genuine wealth for the most number of people. That business is called network marketing.
In 1971 President Richard Nixon took America off the gold standard. The US government was now free to print as much money as it wanted without any constraints whatsoever. The result was the greatest sustained economic boom in history. By 2007 the bubble had burst and the house of cards began to collapse. Reality sandwiches time had arrived.
As they used to say, “As GM goes, so goes the nation.” In 2009 GM went bankrupt. The crash is continuing to unfold and there is no end in sight.
And yet the economy is not the issue, says Robert Kiyosaki. The real issue is about YOU.
“If you want to create security for your future YOU need to create it. You need your own business.”
There is a silver lining. And it is that a recession is the best time to start a business. Times of economic uncertainty have always been times of great creativity.
The problem for most people is that starting your own business is one of the riskiest of all ways to wealth. The failure rate is extremely high, 90% or more in the first 5 years. And if you fail guess who gets stuck with the bill? Even more, entrepreneurs starting up their business typically pay everyone else except themselves. The typical successful entrepreneur often goes 5-10 years without a paycheck.
Another option is to buy a franchise. Having a franchise removes much of the early risk as the groundwork is already done but still, startup costs are significant. And even then, a third of all franchises go broke.
Robert Kiyosaki and fellow investor Donald Trump have chosen network marketing as the one business model that stands out from all the rest because:
1. Only a small cash investment is required to start it.
2. Overhead costs are low. It can be operated on a flexible part time basis until enough cash flow is generated to allow the entrepreneur to transition out of his/her full time job.
The beauty of the model is that unlike a traditional business where large sums of money are spent on advertising and marketing, the parent company pays the people who love the products the most to tell others about them and as we all know, the single most potent form of advertising is word of mouth.
Today network marketing is recognized by many experts and accomplished business people as one of the fastest growing business models in the world. Network marketing companies are currently doing $110 billion/year in sales globally.
Top 5 Things To Look For In A Network
by ANNETE
Marketing Company
by ANNETE
1.Company Profile
Although it’s true that you create your own success, it makes perfect sense to work with a company that will still be around after you’ve built a huge group and invested multiple heads, right?
See if the company you’re joining is (a) financially stable and has been around for some time, I’d say at least 5 years so your group-building efforts will not go to waste.
Too many network marketing companies in the Philippines have come and gone over the years. Aren’t you wondering why? One reason may be due to legal problems (because they’re illegal!?) and another reason may be the owners just couldn’t keep the business running, just like traditional businesses.
A high percentage of network marketing companies fold up within the first 5 years. You don’t want to be in those distributors’ positions when that happens.
I would also look into the (b) experience of the owners and management team
Who are they? What’s their mission? Are they people with INTEGRITY? What’s their track record, past experience?
Look into the heart of the company if it’s really interested in educating YOU to be a business leader and not just another recruiter. It will take more than listening to a 2-hour sales pitch and looking at brochures. You have to get off your couch and attend training functions and events to get to know the leaders.
Check also if the company has (c) international or global presence. Even though you have no plans of going international today, you cannot control the growth of your network in the future.
Filipinos are sometimes called universal citizens, because we’re everywhere! If your downline pursues a career abroad, for example, he/she can still continue the business IF your network marketing company has an office in that other country.
2.Compensation Plan
Compensation plans vary from one network marketing company to another. Review the compensation plan and make sure that you are comfortable with how company pays out their commissions. Commissions must be paid on the sale of products, not on membership fees.
A good question to ask yourself would be, “Can I still make money if my network just consumes the products and does not recruit anybody?” Answer should be “YES;” otherwise, run away as fast as you can!
3.Products
Products must be of value but not overpriced and preferably with a money-back guarantee.
Are the products consumable? Since the business is about long-lasting residual income, the products have to be consumable and of high quality. This leads to repeat purchases by customers, month after month and year after year. It’s not just about making a big one-time sale or commission.
Check also if the products are patented and exclusive to the company. Admit it, Filipinos are very good imitators. You don’t want to see your products displayed at department stores or at tiyangges at any point, do you?
Consumers MUST also have a compelling reason to buy from your network marketing company, not just to participate in the money-making plan. For example, ask yourself, “Do people need to buy phone cards from me without joining the compensation plan?” Answer would be “No,” because people can buy the same phone cards in stores.
If product being sold has no real world VALUE and/or is overpriced, the company is more likely a pyramiding scheme, wolves in sheep’s clothing so to speak. Beware!
Needless to say, you have to use the products. These should be products that you are comfortable sharing with close friends and family.
4.Business Education
This is my favorite part in network marketing – free education!
Robert Kiyosaki wrote on his book The Business School that the number one hidden value of network marketing is the life-changing business education.
Unlike in formal business schools where instructors do not necessarily have businesses of their own, network marketing is the best free business school where trainers actually talk of their real-life experience.
Network marketing leaders teach success attitudes, leadership, people skills, overcoming fears, goal-setting, communication skills, money skills, and the like.
See if your prospective company provides network marketing training for members or you might be left out in the cold.
5.Marketing System
Last but not least, you are going to want to check into the marketing system of the company or group that you are joining. This is VERY important.
You may be surprised to know that one of the fastest ways to fail at network marketing is to try to recruit your friends and family. Why? Didn’t you notice that most network marketers quit after talking to their best friends and family?
Despite the attrition due to this, recruiting friends and family is still the main marketing tactic taught by most network marketers in the Philippines.
There is a much better and more FUN way to attract people who are already looking for what you have to offer. Thanks to the Internet, network marketing is much easier than it used to be.
If your company is nationwide or worldwide, then your market is really big. You can reach this very wide audience ONLY if you’re using the Internet. Check to see if your company is adjusting with different marketing trends in the network marketing business.
Use ALL 5 key areas objectively to evaluate a network marketing company or opportunity you’re about to join (or are already involved with). These will greatly enhance your chances for long-term success. If you ignore any one of them, you may just be asking for trouble.
Source: http://thepinoybusiness.com/top-network-marketing-company/
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