Network Marketing - A Brief History


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Network Marketing Explained

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  • Network Marketing - A Brief History

    1. 1. WHAT IS NETWORK MARKETING (NWM) <ul><li>The definition of network means: INTRICATE SYSTEM </li></ul><ul><li>There are various definitions, but the method we are using is: FORMING BUSINESS CONNECTONS AND CONTACTS THROUGH INFORMED SOCIAL MEETINGS. </li></ul>
    2. 2. WHAT IS NETWORK MARKETING (NWM) (contd) <ul><li> This is what Allan Pease has to say: </li></ul><ul><li>“ The network marketing business has evolved virtually overnight without fanfare or advertising and could eventually become the largest business system of them all. Its success relies on the referral – based distribution system and is driven almost entirely by the enthusiasm of its members. It is one of the most dynamic opportunities ever created by the mind of man.” </li></ul>
    3. 3. VARIOUS TYPES OF NETWORK MARKETING <ul><li>MULTI LEVEL MARKETING (MLM): MLM means Multi Level Marketing. What is MLM? </li></ul><ul><li>Marketing means moving a product or service from the manufacturer or provider to the consumer. Multi Level refers to the system of compensation provided. </li></ul><ul><li>MLM has different levels examples are: 3%, 6%, 9%, 12%, 15%, 18%, 21% </li></ul><ul><li>In network marketing you are in business for yourself BUT NOT BY YOURSELF. </li></ul>
    4. 4. VARIOUS TYPES OF NETWORK MARKETING (contd) <ul><li>RETAILING: Is going to the supermarket, grocery store, drug store or the department store. </li></ul><ul><li>DIRECT SALES: Would usually but not always include insurance, cookware, Encyclopedias, the Avon lady, Tupperware, these are examples of direct sales. </li></ul><ul><li>UNI LEVEL MARKETING : You have UNLIMITED WIDTH and limited depth </li></ul><ul><li>MAIL ORDER: You purchase from a catalog or nowadays online, eg. </li></ul><ul><li>Note RETAILING , DIRECT SALES, UNI LEVEL and MAIL ORDER should not be confused with NETWORK MARKETING </li></ul>
    5. 5. VARIOUS TYPES OF NETWORK MARKETING (contd) <ul><li>BINARY : Means two fold ( comes from the latin text bini = two by two ) </li></ul><ul><li>In BINARY you have limited width and UNLIMITED DEPTH </li></ul><ul><li>This is the best and most used system today. </li></ul>
    6. 6. A BRIEF HISTORY <ul><li>The 1980s saw a major shift as companies began managing the stocking and distribution of products as well as commission payments to their members. </li></ul><ul><li>This allowed members to focus solely on marketing. </li></ul><ul><li>Today, most NWM companies act as logistics companies that take orders, ship products and calculate and pay commissions. </li></ul>
    7. 7. A BRIEF HISTORY (contd) <ul><li>Amway in particular is a frequent target for critics for generating considerable revenues from selling instructional and motivational materials to its participants. </li></ul><ul><li>The Federal Trade Commission (FTC) filed a lawsuit against Amway in 1976. Amway's victory paved the way for companies to adopt a multi-level distribution system. </li></ul>
    8. 8. A BRIEF HISTORY (contd) <ul><li>With the arrival of the Internet , NWM companies have started to go online. </li></ul><ul><li>Many established NWM companies began to use the Internet to promote their products. </li></ul><ul><li>At the same time, many other new NWM companies started their businesses on the Internet which we call online NWM </li></ul>
    9. 9. TRENDS <ul><li>Back in the 50’s to 60’s direct sales was the trend. Then they needed people like ZIG ZIGLER, FRANK BETTGER and the like. Why? They could do by themselves, all what we can do put together. </li></ul><ul><li>By the 70’s MLM got going and people began to know what MLM was all about. </li></ul><ul><li>In the next decade the 80’s. NETWORK MARKETING spread world wide and many people came to know about Amway, Mary Kay, Herbal Life, Nutralite, Usana, Omega Trend, Trend West and many more. </li></ul><ul><li>Today from the 90’s onwards we have what is called INTERACTIVE REFERRAL MARKETING. The reason for this is they understood that times have changed. </li></ul>
    10. 10. TRENDS (contd) <ul><li>MANUFACTURING DISTRIBUTION </li></ul><ul><li>In the 60s 70s and 80s 80% 20% </li></ul><ul><li>From the 90s till today 20% 80% </li></ul><ul><li>Today they knocked out all the middle men, thereby keeping costs low; which is from MANUFACTURER directly to CUSTOMER. </li></ul>
    11. 11. LIST OF NWM COMPANIES <ul><li>Biggest Chinese MLM Company (Tianjin - China) </li></ul><ul><li>Biggest Chinese MLM Company in Brazil(Goiânia - Brazil) </li></ul><ul><li>Direct Sales Association (US), DSA Member company list. </li></ul><ul><li>Direct Sales Association (DENMARK), DISAFO </li></ul><ul><li>Direct Sales Association (CANADA), DSA Member company list. </li></ul><ul><li>Retrieved from &quot; &quot; </li></ul>
    12. 12. LIST OF NWM COMPANIES (contd) <ul><li>Amway </li></ul><ul><li>Ameriplan </li></ul><ul><li>ACN </li></ul><ul><li>Arbonne International </li></ul><ul><li>Avon Products, Inc. </li></ul><ul><li>Big Planet </li></ul><ul><li>BioPerformance </li></ul><ul><li>Creative Memories </li></ul><ul><li>DXN </li></ul><ul><li>Equinox </li></ul><ul><li>Excel Communications </li></ul><ul><li>Forever Living Products </li></ul><ul><li>Fortune Hi-Tech Marketing </li></ul><ul><li>Fuel Freedom International </li></ul><ul><li>Fund America Inc. </li></ul><ul><li>Herbalife </li></ul><ul><li>Quixtar </li></ul><ul><li>Rexall-Sundown </li></ul><ul><li>Shaklee </li></ul><ul><li>Sibu (company) </li></ul><ul><li>Tahitian Noni International </li></ul><ul><li>The Pampered Chef </li></ul><ul><li>Tupperware Brands Corporation </li></ul><ul><li>Usana Health Sciences </li></ul><ul><li>Vector Marketing </li></ul><ul><li>Vemma </li></ul><ul><li>Waiora </li></ul><ul><li>Weed music distribution service </li></ul><ul><li>World Financial Group </li></ul><ul><li>XanGo </li></ul><ul><li>Kirby Corporation </li></ul><ul><li>Kleeneze </li></ul><ul><li>Liberty League International </li></ul><ul><li>Mary Kay </li></ul><ul><li>Melaleuca </li></ul><ul><li>New Vision </li></ul><ul><li>Neways </li></ul><ul><li>Nu Skin Enterprises </li></ul><ul><li>Omegatrend </li></ul><ul><li>Oriflame </li></ul><ul><li>Pre-Paid Legal Services, Inc. </li></ul><ul><li>Primerica </li></ul><ul><li>Project Good Life International </li></ul>
    13. 13. WHAT IS PYRAMIDING? <ul><li>Why is pyramiding prohibited? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. </li></ul><ul><li>When a plan collapses, most people – except perhaps those at the very top of the pyramid – lose their money. </li></ul><ul><li>Check out </li></ul><ul><li>1. No tangible product. </li></ul><ul><li>2. No refund clause. </li></ul><ul><li>3. The one on the top earns the most. </li></ul><ul><li>4. They recruit customers. </li></ul><ul><li>MANY PYRAMIDS DEAL MOSTLY WITH MONEY, NO PRODUCTS AND THERE IS NO REFUND. YOU LOSE. </li></ul>
    14. 14. WHAT IS PYRAMIDING? (contd) <ul><li>In QUESTNET </li></ul><ul><ul><li>We have many PRODUCTS. </li></ul></ul><ul><ul><li>There is a REFUND clause. </li></ul></ul><ul><ul><li>Anyone in the system could be a high earner, not just the one on the TOP. </li></ul></ul><ul><ul><li>We REFER our contacts into the business. </li></ul></ul><ul><li>And the beauty is you get a product which is worth MORE than your money. </li></ul>
    15. 15. ARE THESE PYRAMIDS??? <ul><li>The beauty of NWM is you stand to earn your FINANCIAL FREEDOM while holding on to your full time jobs. </li></ul><ul><li>How do you do that? By building a large ORGANISATION. Not by just selling the products. </li></ul><ul><li>When you start a NWM BUSINESS where do you start? With the FAMILY or FRIENDS </li></ul>CEO MD MANAGER SUPERVISOR STAFF PERMENANT EMPLOYIES CASUALS GP GM PARENTS BIG BROTHER BIG SISTER SMALL BROTHER SMALL SISTER
    16. 16. UNDERSTAND THIS <ul><li>With network marketing the inventor or manufacturer can put the product on the market without spending a million dollars. There is no need to give it up to someone else, and pay them to market it for the inventor or manufacturer. </li></ul><ul><li>Take for example QUESTNET with two GOLD COINS started this business. </li></ul><ul><li>Now whenever you REFFER their products you get paid handsomely and can earn a fortune </li></ul><ul><li>Do you know of any banks paying this %? </li></ul>
    17. 17. UNDERSTAND THIS (contd) <ul><li>Let us look at say COCO COLA . They do not need you to move their products, they can afford to spend millions of dollars to put it on the shelves in all the supermarkets. They can also afford to spend millions of dollars on ADVERTISING. </li></ul><ul><li>Whereas in QUESTNET you are the ADVERTISER. In other words you help the company to grow and they reward you superbly. </li></ul>
    18. 18. UNDERSTAND THIS (contd) <ul><li>Most millionaires were made through network marketing. </li></ul><ul><li>STATISTICS in America show that 20% of millionaires are made through network marketing. </li></ul><ul><li>“ By the way, the richest people in the world build networks - the rest look for work. What do you think BILL GATES does if it is not having a NETWORK? ” Robert Kiyosaki </li></ul>
    19. 19. TRADITIONAL BUSINESS Vs NETWORK MARKETING <ul><li>SET UP COST $300,000 </li></ul><ul><li>MONTHLY RENT </li></ul><ul><li>OPEN AND CLOSE DAILY </li></ul><ul><li>DAILY PRODUCTS </li></ul><ul><li>12 TO 14 HOURS DAILY </li></ul><ul><li>TRANSPORT </li></ul><ul><li>PAY STAFF </li></ul><ul><li>GAS/WATER/ELECTRICITY </li></ul><ul><li>SUPERANUATION </li></ul><ul><li>LAWYER </li></ul><ul><li>TAXMAN </li></ul><ul><li>ACOUNTANT </li></ul><ul><li>LESS TIME FOR FAMILY </li></ul><ul><li>MARKET FLUXTUATIONS </li></ul><ul><li>CLOSE SHOP –NO INCOME </li></ul><ul><li>PUBLIC HOLIDAYS ( U R closed ) </li></ul><ul><li>HOW MANY SHOPS CAN YOU OPEN? </li></ul><ul><li>SET UP COST LESS THAN $1000 </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>2 TO 3 HOURS DAILY </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>NIL </li></ul><ul><li>MORE TIME FOR FAMILY </li></ul><ul><li>NIL </li></ul><ul><li>PASSIVE INCOME </li></ul><ul><li>NIL </li></ul><ul><li>THOUSANDS </li></ul>
    20. 20. ON REFLECTION <ul><li>Does anyone know of a 4 or 5 year college course where you can graduate and then hope to possibly retire within the next 4 or 5 years at better than $50,000 per year on a PASSIVE INCOME? </li></ul><ul><li>In NWM you learn within 2 years all that you need to know to RETIRE within the next 3 to 5 years (that is only if you are interested and are prepared to put in some effort.) </li></ul><ul><li>IN THIS COLLEGE WE TEACH YOU FOR FREE, NO FEES, NO COMPULSARY ATTENDANCE, NO SCOLDING - ONLY LIFTING YOU ON TO A HIGHER LEVEL. </li></ul>
    21. 21. ON REFLECTION (contd) <ul><li>Parents pay enormous fees for their children’s education only for them to go and work for someone else’s dream, whether they like it or not. </li></ul><ul><li>My friends you can attend all the seminars, training, listen to many motivational speakers, read all the books; but if you do not change the old habits you are going nowhere. </li></ul><ul><li>YOU ARE WASTING YOUR VALUABLE TIME. </li></ul>
    22. 22. YOU CHOOSE <ul><li>You have two choices </li></ul><ul><li>1. DO SOMETHING AND GET SOME WHERE </li></ul><ul><li>OR </li></ul><ul><li>2. DO NOTHING AND GET NO WHERE. </li></ul><ul><li> That is where the 95% ers go anyway. </li></ul>
    23. 23. I LEAVE YOU WITH THIS THOUGHT <ul><li>So what is the one thing that guarantees success? Not knowledge, not education, not training, not experience, not money. It is BELIEF. BELIEF in a project and belief in yourself are vital to SUCCESS. </li></ul><ul><li>Believers are a terrific breed of men and women. Nothing daunts them. They are afraid of nothing. If they have doubts, they rise above them. They become persons of power. These big, rugged souls sweep everything before them. They are doers, achievers, winners. They have the magic word BELIEF. </li></ul><ul><li>The person of belief never goes crawling through life on his hands and knees, whining and whimpering that it’s all too much, that he is being treated unfairly. Instead such a person looks adversity straight on and then affirms, “ as a child of the good Lord, I am greater than anything that can happen to me.” HE WILL TAKE CARE. </li></ul><ul><li>This was taken from ‘WHY SOME POSITIVE THINKERS GET POWERFUL RESULTS’ by DR NORMAN VINCENT PEALE </li></ul>