Be a Winner in Network Marketing (Free Chapter)

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Network Marketing, also known as Multi-level marketing (MLM) or Direct Selling, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling. Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, brand partner etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).

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Be a Winner in Network Marketing (Free Chapter)

  1. 1. Be a Winner in Network Marketing By Nithin Peroor “Keep your eyes on BIG pictures” ® © Copyright 2012, All Rights Reserved ISBN: 978-1-105-83406-6
  2. 2. DedicationI dedicate this book to those people who struggling way too hard to make it innetwork marketing. To Support and guide them to Think Right, Decide Right,Grow Right and thus reach unlimited height in success.AcknowledgementMany People have helped me in completing this Book. I want to thank my parents Shri K. Neelakanda Pillai and Mrs. Geetha.N Pillai fortheir help and encouragement.I want to thank all well wishers for their extensive help.I also wish to thank all friends in Network marketing industry for their curiosityand questions that helped improve this Book.
  3. 3. Be a winner In Network Marketing Table Of ContentsWhat Network Marketing is or isn’t? .............................................................................. 5History of Network Marketing ..........................................................................................10Frequently Asked Questions about Network Marketing................................................ 13How Network Marketing Works? .................................................................................... 21Present Trends in Network Marketing ............................................................................ 30Differences Between Network Marketing& Conventional Marketing............................ 36How True Network Marketing Millionaires are Created..................................................40How to become a good Leader............................................................................................. 45Develop Interpersonal Relationship................................................................................... 50Be an effective communicator.............................................................................................. 58Team Building........................................................................................................................ 64Be a Motivator........................................................................................................................ 70Manage the Conflicts ……………………………………………....................................... 73Manage Stresses...................................................................................................................... 7924 Tips for MLM Business Plan Success.............................................................................. 87Top 6 Lies about Network Marketing................................................................................... 90Top 10 Things you must understand when you start Network Marketing Business….... 93Why people fail in Network Marketing................................................................................. 95A Lifetime Career with Network Marketing....................................................................... 104© Copyright 2012
  4. 4. IntroductionPersonal WelcomeDear Friend,Thank you for your wise purchase of this Book. This Book has been in the worksfor a long time and I believe that for many people it will be a defining moment intheir business career.In fact, I’m going to go as far as to say I believe that many people will beginexperiencing life-changing results in their business as soon as tomorrow as a resultof reading these informations.I wrote this book because there are no more good books about Direct Selling orNetwork Marketing. This book contains my studies about this Magical business.Through this book I have one and only one goal: How to help you use more ofyour knowledge for your success.I recommend you purchase this e-book now and begin reading it immediately, ifthat’s at all possible. You might end up rearranging the rest of today (or tonight’splans) once you get into it, because you will make some changes to your businessand what you do each day once you finish reading this.I want to know how you are greatly benefiting from this book. Please be sure to visitmy blog and let me know what you think. And if it’s as good as I say it is, feel freeto send this report to anyone you know or show them where they can pick up acopy of their own.Enjoy!Feel free to send your feedback to My e-mail address:Nithinperoor@yahoo.in Nithin Peroor
  5. 5. Be a winner In Network Marketing 5 Present Trends in Network Marketing:There are always fads and fashions in any industry or profession where there’s intensecompetition. Network Marketing is no exception – it’s just that that competition in MLM is lessabout products and customers and more about attracting and keeping distributors.Fads come and go constantly. Trends, on the other hand, develop over a period of time and arelinked to underlying causes that reflect the changing needs of human society as a whole.There have been three major trends developing over recent years in MLM, each of which has hada profound impact on the way we do business – and the results we get. Sometimes, those resultscan turn out to be less than desirable.Trend 1 – Technology:Technological progress in two specific areas has transformed MLM over the past decade, andwill continue to do so in the foreseeable future.  Computer technology  Telecommunications technologyThe impacts of computers – hardware, software and networking – have revolutionized the natureand operation of network marketing. Automated record keeping, reward calculation andprocessing (including electronic funds transfer), desktop publishing, database creation andmaintenance, mailing and more have made the four essential components of successfulnetworking more accessible, affordable and more effective. Those four components are…  Communicating with your distributors  Training your distributors  Recognizing your distributors  Supporting and encouraging your distributors.Traditionally, there have been three serious obstacles to these…  Time  Distance  Cost© Copyright 2012
  6. 6. Computer and telecommunications technology have all but eliminated these three obstacles.Nowhere has this been more evident than the Internet.All the developments in telecommunications – voice mail, fax, fax on demand, conference calls,e-mail, auto responders, etc – have changed the nature and speed of evolution of networkmarketing, and the rate of change is accelerating.Technology is neither good nor bad. It depends on what we do with it, and why and how we doit. Just as there have been major benefits for us all from these technological changes, there aremajor risks as well.The main one, from the standpoint of network marketing, is that we risk losing the personaltouch so vital to creating and maintaining personal relationships. Automation is fine forimproving efficiency. But efficiency is not the same thing as effectiveness. We need to be awareof this risk, and avoid the tendency that often develops in connection with technology…impersonal “processing” rather than personal interaction. Like most tools, technology is abrilliant servant, but a disastrous master. Trend 2 – Appeasement:This trend has been at the heart of most developments in reward plans over nearly two decades.What it boils down to is this… companies (that is, the people who own and run MLMcompanies) have figured that if they make rewards easier to obtain, they’ll attract moredistributors. There’s certain logic to this argument, but it overlooks some important realities ofhuman behavior.If you make it easier for people to do nothing, that’s precisely what they’ll tend to do.If your main appeal is to greed, laziness, fear of loss or gullibility, that’s the kind of peopleyou’ll tend to attract. The results of this trend are easy to recognize.Larger networks producing lower leverage results, Most people dislike the idea of “selling”. Sopart of the trend has been to appease this dislike by telling people they don’t have to sell – justbuy. The result is huge networks of consumers – single customers who buy only for themselvesat wholesale prices.This has led to confusion in the marketplace. Some companies claim they have bigger, faster-growing networks than their competitors, yet those competitors who encourage retailing mayhave a true customer base many times that of the consumption-based, wholesale buyer networks.They just don’t have all their customers registered as distributors.The illusion of progress through controlled group structure, Most network marketers find itharder to get new distributors than new customers. So, having “solved” that problem by simplyrecruiting customers, some companies add to the “smoke and mirrors” strategy by artificiallycreating an illusion of achievement and progress through the use of contrived network structures.
  7. 7. Be a winner In Network MarketingThe auto matrix (or forced matrix) is such a device. By structuring the reward plan so that only alimited number of people can fit onto each level, you create the illusion that rapid networkgrowth – and, therefore, income growth – is being achieved through features such as “spillover”.This is what occurs when, say, the matrix limits you to only 3 people on your first level, 9 onyour second level, 27 on your third, 81 on your fourth and so on. If you sponsor six people, onlythree will fit onto your first level – the others will “spill over” to places further down line.This gives rise to claims that the system builds your downline for you. In a sense, it does. Butwhat many people fail to recognize is that the reward plan cuts out after so many levels. Thewidth and depth of your network are fixed – so your potential income is also fixed.This has led to enhancements such as “infinity bonuses”, which are, in reality, nothing remotelylike infinite, and “re-entry certificates”, which allow you to sponsor yourself downline whenyour matrix is full – a nice idea, provided that the products aren’t overpriced, so that youcompound your losses each time you re-enter your downline. This is precisely what happenedwith many of the gold bullion, coin and jeweler companies that sprang up in the mid-1990s.Trend 3 – Workplace Restructuring:Fundamental changes in business, brought about largely by technological advances and, to alesser extent, by greed (on the part of stockholders and senior corporate managements), areimposing serious changes on how we live. No longer is there any illusion of job security,seniority or loyalty in the work place. Disillusionment is the true hallmark of all these changes.Consequently, there is a growing groundswell of people — well-educated, skilled andexperienced — discarded by traditional, First and Second Generation business systems, who areincreasingly willing to consider network marketing as a viable option for them. Many, if notmost, of these professionals would rarely have contemplated involvement in MLM until now.Once they adapt their existing expertise to the unique nature of the only Fourth Generationbusiness system yet to evolve — MLM — they generally build their business faster than ever.They thrive in the dynamic, co-operative, synergistic, interdependent, relationship-basedenvironment of this most enlightened, egalitarian form of free enterprise. These are the peoplenow shaping the future of network marketing for the twenty-first century. Their most seriousthreat lies in not understanding the essential differences between First, Second, Third and FourthGeneration systems.These are the major trends in recent times. Other so-called trends are usually nothing more thanmanifestations of these two, or combinations of the two. Be sure to explore what we foresee forthe future of network marketing, especially as these trends continue to develop.The Future of MLM:Based on the three major trends currently influencing the shape and direction of networkmarketing worldwide, we expect to see the following developments in the coming decade.© Copyright 2012
  8. 8. This assumes there will be no other factors, such as global war or environmental catastrophe – anassumption that can never be safely relied upon where human beings are involved.Over the following decades, MLM has evolved and developed further into the wide array ofcompanies, product ranges, reward plans and cultures that exist today. This unique, powerfulsystem of free enterprise continues to grow, attracting more and more people to it. As we prepare to enter the twenty-first century, MLM has never been so well-respected, sohealthy, so attractive or so rewarding. Most network marketers have very limited understandingof its true power.Two streams of MLM:We foresee network marketing dividing into two distinct streams. This will be temporary.Ultimately, only one stream will survive as network marketing. The other will be absorbed intoanother trend currently taking shape in the world of conventional retailing.This scenario will arise from a combination of all three of the present trends, and will be thedirect result of two different applications of technology…  Technology used to acquire and service customers  Technology used to recruit, train, communicate with, recognize and support productive, pro-active retail sales networks.“Here’s why and how it will happen”, This divergence is already beginning to occur. As Internetaccess and e-commerce pick up speed (and they’re already outstripping all predictions), twoimportant things will happen:Consumers will use the Internet for more and more of their shopping needs, for more of theirrecreational and social activities, and for more of their work related activity (telecommuting).The existing home theatre, home gym, home office, home entertainment centre, etc will beaugmented by home medical centers (connected directly to doctors and other health specialists),home learning centers (instead of schools) and other in-home services so that consumers willhave fewer reasons to leave the comfort and amenities of their homes.Supermarkets and other conventional stores will increasingly convert to automated warehousesthat pick, pack and deliver, without the expensive real estate (including car parks) required now— or the staff. Shopping as we now know it will change dramatically. Fewer businesses will beable to afford the luxury of expensive premises, car parks, etc, and competition from home-basedor mobile in-home services (run by displaced former-employees) will add to their costs.Consumers will become increasingly isolated. Many will crave human contact. With the ageingof the world population, this need will grow.Those MLM companies moving in the direction of servicing customers on line will pursue thisdirection more vigorously than ever. To fund their growth, many (if not all) will be forced toseek listing on stock exchanges and go public. For their distributor networks, this may well be
  9. 9. Be a winner In Network Marketingthe beginning of the end. Before too much longer, most of these companies will cease to beMLM companies.Those companies who maintain retail focus in their distributor networks, and who opt for usingthe Internet primarily to train and support their distributor networks, will go from strength tostrength. Many of the newer generation of network marketers — most of whom are displacedformer middle and senior managers and professionals — will take network marketing back to itsorigins as a high-leverage retail sales and distribution system. There will be a return to the basicsas MLM rediscovers its roots in new, more powerful ways.They’ll be the people forging long-term, loyal customer relationships with people starved offace-to-face human contact. And, since income in MLM is unconnected to time, servicing thosecustomers will be seen as an essential — and enjoyable — part of running a successful networkmarketing business once more. Those customers will become the primary pool of goldenprospects for new distributors, too.“A very different target market”, Added to all this is the fact that the Baby Boomers will be theprime market. The Baby Boomers are the best educated, most accomplished, most outspoken,most politically active and most self-centered, consumption-oriented, demanding generation inrecorded history — and the first ever to limit the size, scope and opportunities of the nextgeneration.Because of this, their loneliness in retirement will be pronounced. They will expect — demand— regular service and human contact.Ultimately, this stream will be the only one to survive as network marketing. The other will betaken over by large, publicly-owned conglomerates focused on economies of scale and ReturnOn Investment to stockholders. While income streams will still exist, they’ll be more like currenton-line affiliate programs than traditional MLM, with limited scope and very limited returns.How do we earn in MLM?Each distributor has two basic jobs: (1) to recruit more distributors and (2) to sell the companysproducts as an independent distributor. Every new distributor into the organization recruits his orher own distributors. As a result the recruiter eventually develops a hierarchical substructureknown as a down line.Each distributor gets commissions for his or her own direct recruits. Distributors also make acommission on the indirect recruits done by their down line. They also get performance benefitsfor reaching certain levels.Since each distributor profits not only from direct recruits but also indirect recruits by down line,it is to the advantage of the distributor to guide and help those below to succeed.© Copyright 2012
  10. 10. A Complete Success guide for Network Marketers…! Be a Winner in Network Marketing This is the definitive book for helping you get started in a network marketing business!This new book will help you show distributors and prospects how network marketing:  Offers a worldwide network and global reach  Produces a duplicable, fully scalable business  Develops strong, effective leaders  Creates genuine wealthContact Elegant Global System at elegantglobalsystem@yahoo.in topurchase your full copy of this e-book Be a Winner in Network Marketing.
  11. 11. Be a winner In Network Marketing© Copyright 2012

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