Why Network Marketing

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It IS the Business of the 21st Century, however not clearly understood and not encouragingly accepted. If we wish to ride on the upcoming wave of wealth and prosperity, then we need to understand this well and smell the coffee well in time. Just deliberated on the WHY?

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Why Network Marketing

  1. 1. WHY NETWORK MARKETING
  2. 2. EVOLUTION OF RETAIL DISTRIBUTION • PHASE – 1 : AGRICULTURAL AGE (BEFORE 1800 AD) • BARTER SYSTEM • PHASE – 2 : INDUSTRIAL AGE (1800 AD – 1970 AD) • MOM & POP STORES • DEPARTMENTAL STORES • SUPER MARKETS/HYPER MARKETS • FRANCHISES (195-60) • PHASE – 3 : INFORMATION AGE (1980 ONWARDS) • TELE MARKETING • TV SHOPPING • DIRECT SELLING • E - COMMERCE
  3. 3. • DIRECT SELLING IS A DYNAMIC, VIBRANT, RAPIDLY EXPANDING CHANNEL OF DISTRIBUTION FOR THE MARKETING OF PRODUCTS AND SERVICES DIRECTLY TO CONSUMERS. • MONITORED BY WFDSA. • THERE ARE PRESENTLY OVER 60 NATIONAL DSAs REPRESENTED IN ITS MEMBERSHIP. • IN 2012, WORLDWIDE RETAIL SALES BY ITS MEMBERS ACCOUNTED FOR MORE THAN US$166 BILLION THROUGH THE ACTIVITIES OF MORE THAN 89 MILLION INDEPENDENT SALES REPRESENTATIVES. WHAT IS DIRECT SELLING SIMPLY PUT, IT IS ASSISTING THE INCREASE IN SALES OF PRODUCTS OF A COMPANY THROUGH WORD OF MOUTH, AND GETTING PAID FOR IT. SOMETHING WHICH WE HAVE BEEN DOING THROUGHOUT OUR LIFE, BUT NEVER GOT PAID.
  4. 4. RESEARCH SHOWS SOME OF THE MOST POPULAR REASONS WHY PEOPLE CHOOSE DIRECT SELLING ARE: • DIRECT SELLING IS A GOOD WAY TO MEET AND SOCIALIZE WITH PEOPLE. • DIRECT SELLING OFFERS FLEXIBLE WORK SCHEDULES. • DIRECT SELLING IS A GOOD WAY TO EARN EXTRA INCOME. • DIRECT SELLING IS A GOOD WAY TO OWN A BUSINESS. • THERE ARE NO REQUIRED LEVELS OF EDUCATION, EXPERIENCE, FINANCIAL RESOURCES OR PHYSICAL CONDITION – ANY ONE CAN DO IT. • PEOPLE OF ALL AGES AND FROM ALL BACKGROUNDS HAVE SUCCEEDED IN DIRECT SELLING. • YOU ARE YOUR OWN BOSS, WHICH MEANS YOU CAN WORK PART-TIME OR FULL-TIME; YOU CHOOSE WHEN AND HOW MUCH YOU WANT TO WORK; SET YOUR OWN GOALS AND DETERMINE YOURSELF HOW TO REACH THEM. • EARN IN PROPORTION TO YOUR OWN EFFORTS. THE LEVEL OF SUCCESS YOU CAN ACHIEVE IS LIMITED ONLY BY YOUR WILLINGNESS TO WORK HARD. • OWN A BUSINESS OF YOUR OWN WITH VERY LITTLE OR NO CAPITAL INVESTMENT. • RECEIVE TRAINING AND SUPPORT FROM AN ESTABLISHED COMPANY. BENEFITS OF DIRECT SELLING
  5. 5. VERY IRONIC
  6. 6. WHAT PEOPLE SAY • IT IS A SCAM • IT IS FOR HOUSEWIVES • IT IS A PONZI SCHEME • IT IS A SIDE BUSINESS • IT GIVES ONLY SOME ADDITIONAL INCOME • IT WILL FOLD UP SOON • YOU HAVE BEEN DUPED • YOU WILL LOSE YOUR MONEY
  7. 7. WHO ARE THE PEOPLE WHO SAY THIS FAMILY NEIGHBOURHOOD FRIENDS FAILURES COLLEAGUES THE CROWD
  8. 8. WHEN YOU NEED ADVICE ON A SPECIALISED SUBJECT (LIKE, WHEN YOU ARE SEVERLY ILL), WHOM DO YOU SEEK AND TAKE ADVICE FROM? NOVICES? OR EXPERTS? WHOM TO LISTEN TO
  9. 9. SO, WHAT DO EXPERTS HAVE TO SAY ABOUT IT
  10. 10. WHAT DO EXPERTS HAVE TO SAY ABOUT IT
  11. 11. WHAT DO EXPERTS HAVE TO SAY ABOUT IT
  12. 12. I AM DELIGHTED TO HAVE THIS OPPORTUNITY TO TALK TO SO MANY OF THE SALESPEOPLE WHO HELP OUR ECONOMY GROW, AND HELP KEEP THE AMERICAN DREAM ALIVE FOR MILLIONS OF AMERICANS. YOU STRENGHTEN OUR COUNTRY AND OUR ECONOMY NOT JUST BY STRIVING FOR YOUR OWN SUCCESS, BUT BY OFFERING OPPORTUNITY TO OTHERS. YOU’RE ALSO PART OF A GLOBAL MOVEMENT THAT PROMOTES ENTERPRISE AND REWARDS INDIVIDUAL INITIATIVE, AND YOU’VE SEEN REMARKABLE GROWTH BOTH AT HOME AND ABROAD. IN ADDITION TO PROVIDING OPPORTUNITY, YOU BUILD OUR AMERICAN COMMUNITY. AMERICANS FROM EVERY WALK OF LIFE, EVERY CREED, ARE SEIZING THE OPPORTUNITIES OF DIRECT SALES. I’VE FOLLOWED YOUR INDUSTRY’S GROWTH FOR YEARS. BUT WE NEED EVEN MORE OF THE KIND OF OPPORTUNITY DIRECT SELLING REPRESENTS. YOUR INDUSTRY GIVES PEOPLE A CHANCE, AFTER ALL, TO MAKE THE MOST OF THIER OWN LIVES. THANK YOU FOR YOUR WORK, GOD BLESS YOU, AND GOD BLESS AMERICA. - BILL CLINTON
  13. 13. DIFFERENCE BETWEEN FRANCHISING AND DIRECT SELLING FRANCHISING DIRECT SELLING SEED CAPITAL VERY HIGH LOW WORKING CAPITAL HIGH NEGLIGIBLE RISK VERY HIGH NEGLIGIBLE BREAK EVEN 2 – 5 YEARS IMMEDIATELY, VERY QUICK CONTROL HIGH LOW THE ONLY ASPECT TO GUARD AGAINST – IT NEEDS SELF DISCIPLINE
  14. 14. PARAMETERS FOR EVALUATING A COMPANY PRODUCTS COMPENSATION PLAN LEARNING PLAN MENTORSHIP
  15. 15. LET THE FACTS SPEAK
  16. 16. LET THE FACTS SPEAK, AGAIN
  17. 17. WHILE WE GLEEFULLY ACCEPT THE OTHERS AS ‘INDUSTRIES’ OR ‘GENUINE BUSINESSES’ WE CONTINUE TO LABEL NETWORK MARKETING OR DIRECT SELLING AS ‘HOUSE WIFE’S SPARE TIME BUSINESS’. SURELY, THOSE HOUSEWIVES MUST BE LAUGHING AWAY THEIR WAY TO THE BANK TIME TO WAKE UP AND SMELL THE COFFEE
  18. 18. WORLD STATISTICS FOR 2012 FROM WFDSA REGION RETAIL SALES (IN MILLION USD) % SALES CHANGE (YOY) IN USD SIZE OF DIRECT SELLING COMMUNITY 2012 2011 2012 2011 GLOBAL 166876 158319 5.40% 89675927 84592449 ASIA/PACIFIC 73276 70177 4.40% 46090251 41961639 INDIA 1051 858 22.60% 4853232 3962521 AFRICA/MIDDLE EAST 1260 1207 4.40% NA NA AMERICAS 66448 61606 7.90% 31192151 29948477 EUROPE 25892 25330 2.20% 11356048 11308346 Source : http://www.wfdsa.org/files/pdf/global-stats/Sales_and_Community_2012.pdf WORTH NOTICING: -IN INDIA, THE EARNINGS ROSE BY 22.6% - IN INDIA, THE INCREASE IN NUMBER OF MEMBERS IS CLOSE TO A MILLION, AN AVERAGE OF 75000 PER MONTH (OR 2500 PER DAY). THAT IS STILL A MINISCULE OF THE POPULATION POTENTIAL OF INDIA.
  19. 19. WORLD STATISTICS FOR 2013 FROM WFDSA REGION RETAIL SALES (IN MILLION USD) % SALES CHANGE (YOY) IN USD SIZE OF DIRECT SELLING COMMUNITY 2013 2012 2013 2012 GLOBAL 178521 166876 8.1% 96257679 89675927 ASIA/PACIFIC 77569 73276 12.6% 50246543 46090251 INDIA 1175 1051 11.7% 5775345 4853232 AFRICA/MIDDLE EAST 1284 1260 6.9% 1496588 NA AMERICAS 68049 66448 5.7% 31786761 31192151 EUROPE 31620 25892 2.9% 12727787 11356048 Source : http://www.wfdsa.org/files/pdf/global-stats/Sales_Report_2013.pdf WORTH NOTICING: -IN INDIA, THE EARNINGS ROSE BY 11.7%, IN SPITE OF LACK OF CLEAR POLICIES TO PROTECT AND SUPPORT THE DIRECT SELLING INDUSTRY. - IN INDIA, THE INCREASE IS AGAIN AN AVERAGE OF 75000 PER MONTH (OR 2500 PER DAY). THAT IS STILL A MINISCULE OF THE POPULATION POTENTIAL OF INDIA.
  20. 20. VERY IRONIC
  21. 21. NM IS ALSO ENTREPRENEURSHIP
  22. 22. NEED OF THE HOUR COME OUT OF YOUR COMFORT ZONE
  23. 23. • THE BOOK ON NETWORK MARKETING by RICHARD KALL • CASH FLOW QUADRANT by ROBERT KIYOSAKI • BUSINESS OF THE 21ST CENTURY by ROBERT KIYOSAKI • THE SECRET by RHONDA BYRNE • THE SCIENCE OF GETTING RICH by WALLACE D WATTLES • THINK AND GROW RICH by NAPOLEAN HILL RECOMMENDED READING
  24. 24. AND REMEMBER, NETWORK MARKETING AND DIRECT SELLING ARE SYNONYMOUS YET, PEOPLE LOOK AT THE FORMER WITH A LOT OF DISTRUST, ONLY OUT OF IGNORANCE. THANK YOU ranvirsm@hotmail.com

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