Network Marketing is a good alternative income source, and alternative to Employment, and an alternative to Traditional Business.
Network Marketing is a type of selling where the distributors are independent contractor and not employees of the company, act as both the company’s customer base as well as the marketing arm of the company’s product of service and business opportunity. Distributors are compensated in both selling the product and the business opportunity.
It comes with many aliases: MLM or Multilevel marketing, Word-of-Mouth Marketing, Multiplication-of-Effort Marketing, The People Franchise, among others.
2 Characteristics of Network Marketing
- Independent distributors replace traditional middlemen.
- Word-of-Mouth marketing replaces mass media advertising.
3 Principles making Network Marketing Unique
- Leveraging - Distributors are paid not only their personal sales but also from the sales from their downlines. This enables ordinary people to start on equal footing with everyone else at the beginning of their network marketing business.
- Geometric growth - To maximize compensation plan, a distributors must commit to stay and do the “width”(personal sales/referrals) and “depth”(helping direct referrals sponsors personal referrals) required in the business.
- Residual Income - Distributors have the opportunity to earn residual income from the repeat sales of their new customers as well as their downlines.
Benefits of a Network Marketer
Financial Independence and Personal Freedom-these are two of the most common aspirations of everyone – Money and Time. Financial independence is the result of how you make a living. Personal freedom is how you live your life. You’ve got to know how to earn today.
To the average employees and busy executives, be very objective for this exercise and ask yourself 2 basics questions.
1. How many years will take you to be promoted to the top position in your company since the time you joined the company?
2. How many years will it take you to earn enough to buy your dream house, live your dream lifestyle and retire with substantial inheritance for your next generation?
Network Marketing, an alternative for employment and traditional business?
Let’s start by comparing why network marketers are better off than corporate executives or employees.
- Corporate jobs are not abundantly available because of continuous downsizing and rightsizing.
- Corporate jobs are not necessarily what you want because there may be no opening yet for the job like you.
- Application to a corporate is not automatically accepted because of the required interview and screening process.
- Corporate jobs are not based on what you can do because it is largely based on who you are.
- Corporate jobs do not commence immediately because of pre-employment requirements and testing (and further testing.
- Corporate jobs are not based on your time because they have fixed office hours.
- Speed of your corporate job is not at your own pace and your priorities because of regular performance expectation and appraisal system.
- Corporate jobs never pay you what you are really worth but what your job is worth because of the concept of job qualification and pricing. The chief executive officers of the firm always get the highest pay while the newcomer rank and file employee will never get paid higher than the company’s C.E.O.
- Corporate rank-and –file does not get to leverage their time and effort through other people. The president of the company has the most leverage, followed by the president, managers, and supervisors. Those in the lowest rank do not get to leverage anything from anybody.
Maybe the above made you ill, but don't you worry, we will show you a bit difference with network marketing
- Network marketing distributors love the simplicity of the principles behind the business.
- They want to control their own destiny.
- Whether they come earlier or later in the network hierarchy, they get an equal chance to leverage their time and efforts through others.
- Network marketing distributors get paid what are really worth based on the result they give. Most network marketers work from their homes, have no boss, no sales quota, no fixed work time, no work pressures except the ones they impose on themselves.
- They have a lot of discretionary time which are good for mother wanting to see their children grow, good for retirees who want to work at their own pace, and equally good for those doing part-time to meet their own needs.
- Anyone who signs up as distributors can start immediately; there is no testing or interview.
- Educational background does not matter. This as an equal opportunity business.
- For people with organization or leadership abilities, they need not wait for a long time to put their potential to use; they simply promote themselves to a leadership role unlike a more formal management structure that take a longer time to climb.
- Network marketing is an easier and low-risk entrepreneurial option.
- The network marketing company offers an established or duplicable system of doing business with no territory restriction.
- While network marketing is on their own, they have “sponsors” or uplines (yes, in plural form!) Who will and have an interest to look after them to insure their success.
- Network marketing distributors have relatively lesser financial investment because their expenses are mostly variable and not fixed as they pay no office rental, no fixed retail location, no payroll, practically no inventory, no huge printing cost associated with traditional start-up businesses, no franchise fees, and they buy direct from the company to enjoy savings from discounted products.
- Network marketers have unlimited potential as they get to enjoy their personal and professional growth with the company.
- Network marketing companies who are leaders in their field train their sales leaders continuously as they are promoted up.
- And if the network marketer gets sick or decides to take a trip, they still get residual income by just complying with the minimal company requirements to continue enjoy networking income from the sales of downlines – a big plus as compared to those in hard core knock-on-the-door no sales, no income companies.
- Most of all, they have a lot of psychic rewards because as they grow, they are able to help other people to grow too.
- They are responsible in healing wounds of a broken family, reuniting family members separated because of work and help others attain self-worth.
- This is perhaps the most important compensation a network marketing company and its distributors will get- they not only attain personal freedom and financial independence for themselves, they also help others attain the same.