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Network marketing


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This presentation shows what Network Marketing is and how it works.

Published in: Business, Technology

Network marketing

  1. 1. What is Network Marketing? MLM Training
  2. 2. Donald Trump“If I were starting over today, I would make millions in theNetwork Marketing Industry.” Donald Trump 2007
  3. 3. Robert Kiyosaki “Network Marketing is the Perfect BusinessThe richest people in the world look for and build networks everyone else looks for work” Robert Kiyosaki, Author Rich Dad Poor Dad
  4. 4. Paul Zane Pilzer“There will be 10 million new millionaires created in the Wellness and Network Marketing industry.” Paul Zane Pilzer 2006
  5. 5. How Do YOU Earn?How do you earn your money? Are you:• working for someone• a professional or self-employed (exchange your expertise for someone’s money) = small business owner• a business owner• an investor
  6. 6. EmploymentMost people opt for employment because they see it as a“safe” option. “Job Security” is what they want.However, as many people will tell you; due to downsizingand industries like the recording industry changing fromrecords to CD’s, where a skill is literally obsoleteovernight, there is no such thing as “Job Security.” Thinkfor yourself: What would you do if your boss tells youtomorrow that you have no job? How long will you beable to survive?
  7. 7. Professional/Self EmployedThe second way is to be self-employed, or to be a professional.Some professionals have jobs, like teachers, nurses and doctors,but most have a practice or are self employed.Others are self employed by offering a service. If you asksomeone who is self employed why he is self employed, he willoften say: “I prefer working for myself and not for a boss.” Thatis just about the only advantage.Does the self employed have fixed hours to work? No, theyoften work overtime. Do they have a fixed salary? No, if there isa bad month, they have to take a cut in earnings. They can’t takeholidays, weekends or days off.
  8. 8. Business OwnerThe third way is to be a businessowner – this is someone wholeverages his time by having peoplework for him, and/or own a bignetwork of businesses, such asMacDonald’s.
  9. 9. InvestorThe fourth way is to be an Investor – someone who uses money as leverage.
  10. 10. Who Has The Most Money?You can possibly see from the descriptionsabove that the last two: Business Ownerand/or Investor probably have the mostmoney.Why do they have more money? There aretwo words that give you a clue:Network and Leverage.
  11. 11. What is a Network?My Thesaurus describes it as: A system, complex,set-up, set of connections, and set of contacts.Examples of Business Networks or Systems:MacDonalds, Wendy’s, Starbucks and Wal-Mart.These are each a network of businesses that branchout across the country or even globally. They alsouse a system that works, and just duplicate it.
  12. 12. What is Leverage?My Thesaurus says: influence, power, force,control, pull, weight. Simply put, leverage is toget other people to do work for you so youcan get more done. The owner of McDonaldshas 1000’s of people doing work for him instead of him doing it all himself.
  13. 13. How can you use the power of networking?You can start your own business. However,starting your own business is quite difficult andvery costly, and most people don’t have themoney to get started.You will have to come up with a new idea, or anidea that gives you a competitive advantageover an existing business.
  14. 14. Lots of Money to get startedAfter putting lots of your own money intoresearch, brand names, copyrighting and start-up costs, you will have to find loans somewherewith your business plan that your accountantwrote for you.Most people who want to start their ownbusiness take out a loan on the equity in theirproperty, or take out a second mortgage ontheir house, to get started.
  15. 15. True LeverageIf you bought your small business, and you arerunning it, and it needs you to survive, then youjust bought yourself a job. But true leverage iswhen you can walk away from your businessand it can carry on without you.
  16. 16. True LeverageIs there a way you can get this leverage?It is called “Network Marketing.” In NetworkMarketing, not only do you get paid directly inproportion to your efforts, but you have the powerof leverage and networking working for you as well.You have exactly the same opportunity as anyoneelse to get promoted to the top positions. Now thisis fair.
  17. 17. Pyramid SchemeBut isn’t Network Marketing an illegal PyramidScheme?In pyramid schemes, income is generated solelyon the process of recruiting others into thepyramid. This is illegal.
  18. 18. Products More ImportantIn a legitimate Network Marketing company, on theother hand, distributors are paid only on productmovement, not on recruiting, both at wholesale andretail.There’s also compensation based on training andmanaging of your marketing team. And unlike illegalpyramids, in Network Marketing, no matter where you’repositioned or when you join, you can advance to the veryhighest income levels and even make more money thanthose above you in the network.
  19. 19. Still a Pyramid?In all business and government structures, the pyramid is thefoundation. It contains the hierarchy of, and indeed shapes therole of, all who participate in the organization.Whether it is the president of the United States and his vicepresident, Congress, and all the way down to the localgovernment employees, or Microsoft, where one guy sits on thetop, followed by his vice presidents, all the way down to the mailclerks, the pyramid structure is ubiquitous. The first thing weshould agree on is that there is no inherent problem with thestructure of a pyramid.
  20. 20. The Pyramid
  21. 21. Some things are the same in all pyramids•The further away from the pinnacle, the lesspower an individual has, and the less money heor she makes.•There is usually one person on the top and thatposition is typically unattainable to others in theorganization. If someone lower down in thestructure does assume that top position, it is stillreserved for one person at a time.
  22. 22. Some things are the same in all pyramids•Normally those at the top like to stay at the top. Those towardthe top may have incentives to move up higher in theirorganization, but there is typically no incentive for those higherup to help advance those who are lower down to surpass them.The order of the hierarchy is somewhat sacred.•At each level in the organization job titles go along withsalaries. Normally a person cannot assume more money or morepower without the “permission” of someone above grantingthose advancements. Normally, people have little control overadvancing. One cannot typically “self-advance.”
  23. 23. It is not the pyramid that’s the problemWe can agree therefore that it is not the pyramid thatis the problem.What then, is the problem?It is the fact that in pyramid schemes, it is about theposition in the matrix and not about the product. Also,because of this, it is only the people at the top thatmake all the money.
  24. 24. It is about the productsIn a good Network Marketingcompany the product is so good itcan stand on its own. So this is theway the money is made: From theproduct, not from recruiting.
  25. 25. Features of a good Network Marketing Company• Each distributor can surpass the level of anybody who came into the organization before him or her, if the new distributor’s performance is greater than the one already in the business.• Each new distributor is encouraged to become a CEO, or the top of his pyramid, by the encouragement, leadership, and training of those in his support team. Those above the new distributor in the organization are motivated to elevate the level of everyone who is newer in the business.
  26. 26. Features of a good Network Marketing Company•There is no glass ceiling, no job title with a fixed andlimited salary attached to it. The system does representfinancial freedom because the model for businessgrowth and the ability to generate income areinherently limitless. The rewards, incentives,acknowledgements, etc. at every level above the newdistributor, all the way to corporate, are authentic, on-going, effective, and inspiring.
  27. 27. Features of a good Network Marketing Company•There are no barriers such as race, education, gender,previous experience, etc. Anyone who does the workgets to the top. (Robert Kiyosaki, author of Rich Dad,Poor Dad, and of The Business School for People Wholike Helping People has been a strong advocate ofnetwork marketing. He tells a story of having been thetop salesman at Xerox; he was not promoted becausehe lacked a college degree.)
  28. 28. Features of a good Network Marketing Company• There is no single top position. There is unlimited room for these so-called top positions.• People can “self-advance.” We give ourselves a raise based on performance, not on politics, nepotism, returning favours, or anything else.
  29. 29. Features of a good Network Marketing Company• No one’s earnings are limited to his or her own efforts. Through the process of leveraging ourselves, the bulk of our commissions come from other people like you and me, who want a better life. It is a business of teaching other people to teach other people, to teach other people, etc. It is an ethical, high-spirited, method of distribution, product consumption, and compensation.
  30. 30. Network MarketingNetwork marketing represents what we all crave:financial freedom, and time freedom. Theopportunities for leadership and self-development areas great as the chance to make a lot of money.Whether or not you decide that this is for you, it is hardto beat this model for building an asset that will payyou over and over.
  31. 31. Network MarketingNetwork marketing makes sense; it is the only viablemodel for creating financial freedom for the averageperson. And it is fair.Network Marketing TrainingMLM Marketing System