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What is network marketing

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What is network marketing

  1. 1. What is NetworkMarketing It isa systemfordistributinggoodsandservice throughnetworksof thousandsof independent salespeople,ordistributors.The distributorsearnmoneybysellinggoodsandservices.Also,of their downline orsales organization.Distributorsearnmonthlycommissionorbonusesonthe salesrevenues generatedbytheirdownline. Network Marketing is andisn't:  Networkmarketing,ormulti-level marketingisn'tillegal,fraudulentorunethical.  Networkmarketingisn'tan opportunitytogetrichquickoff the paymentsof otherswho join the organization....That’s apyramidscheme.  It's not a pyramidscheme,whichisillegal andunethical  It isnot an opportunitytogetrich quick.Period.  It isnot an opportunitytoletsomeone elsetobuildasalesorganizationforyou.  Isn't forpeople whoaren'twillingtoworkhard.  Isn't justforsalespeople Sharinginformation,helpingpeople make betterdecisionandleadingthemtoanimprovedqualifylifeis networkmarketing. History of Network Marketing Carl Rehnborgfatherof networkmarketingearly1915, while workinginChinaas a manufacturer'ssales agent,Rehnburgwasthe studyingthe effectof dietandnutritiononhealth.He continuedhisresearchin UnitedStates, in 1934 RehnborglaunchedCaliforniavitamins,whichsoldmultivitaminandmultimineral food supplements. Rehnborg his neighbor, Dr. Castleberry, and Lee Mytinger a sales manager added a multilevelcompensationplantothe companyin1945 and that wasthe beginningof Networkmarketing. Understanding HowNetwork Marketing Works 1. First, a company relies on independent representatives or distributors, to sell its product and services directly to consumers <----Direct selling 2. Second, the representative is granted the opportunity to build their own independent sales organization and network of marketers<----Building a Downline Why Network Marketing Works  People are looking for freedom from work, jobs they don't enjoy and for money... both things can be found in Network Marketing According to Robert Kiyosaki, the economy of the world has moved ahead, and multilevel marketing is a major business for the 21st century:
  2. 2.  There will always be people who want or need extra money. Some people find that supplementing their incomes is necessary to make ends meet. Others want the ability to have some of the nice things they see advertised on a daily basis. People can work from home doing a networking business part time to earn extra money, and if they put more effort into the business, they may make more than they earn from their full-time jobs.  There will always be people who do not enjoy their current jobs. Most people do not work for others because they like their jobs but because they need the money they earn from those jobs. Many jobs require employees to work at hours that are inconvenient and create stress for them and their families, and commuting long distances to work is a problem for numerous workers. Those people may enjoy the benefits they receive when they work from home at times that are convenient for them.  There will always be people who want to have control of their time. Networkers can start a home based business and work from home part time while maintaining their current lifestyles. After they build a team of other distributors, the networkers can earn enough to quit their full-time jobs, and when they no longer work for bosses, they will be free to set their own schedules. The networkers will have no limits to the amount of money they can earn, especially with the residual income they make. Understanding the Difference Between Pyramids and Network Marketing Network marketing is a way to sell goods or services through distributors. Joining a network marketing company usually entitles the distributors to receive commissions on sales of products or service sols as for recruiting other distributors. Pyramid schemes, on the other hand, have a similar structure but a different focus. Pyramid schemes reward members for recruiting new distributors and overlooks the marketing and selling of the merchandise. Tips to help avoid an illegal pyramid scheme:  Avoid any plan that offers commission for recruiting additional distributors.  Beware of plans that ask new distributors to spend money on high priced inventory.  Do your homework! Check your local better business bureau and state attorney general about the company. An approach to explaining Pyramid Scheme to an individual that assumes that network marketing is one.
  3. 3. People may tell you that network marketing company is a pyramid scheme and will go on explaining that the only the person on the top makes money. We find that argument humorous because it could just as easily be used to explain a traditional corporation. In a traditional company, the compensation packages of the chairman, the president and the vice president are always more impressive than those people under them. True, they're not all doing the same type of work, but the money flows to the top of the corporation. Why should it be any different in network marketing? How often in a traditional corporation can an employee earn more than the boss? Or how often can the employee with the least tenure make the most money or move to the top of the payroll within a short period of time? When was the last time you received a raise/promotion? In corporations, you don't often hear about hear but in network marketing these accomplishments occur frequently

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