What is NetworkMarketing
It isa systemfordistributinggoodsandservice throughnetworksof thousandsof independent
salespeople,ordistributors.The distributorsearnmoneybysellinggoodsandservices.Also,of their
downline orsales organization.Distributorsearnmonthlycommissionorbonusesonthe salesrevenues
Network Marketing is andisn't:
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.
Sharinginformation,helpingpeople make betterdecisionandleadingthemtoanimprovedqualifylifeis
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:
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.
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