Simplest Explanation to Network Marketing

The simplest explanation of network marketing is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods.

In order to accomplish this, network marketing companies and their associates recruit individuals i.e. “their sales force,” just like other companies and franchises, have done for years, take for example the insurance industry.

How often have you seen ads on television that use the term, “Independent Representatives or Associate?”

Yet, as we watch these advertisements we naturally assume they are employees of the company, when in reality they are independent business owners!

No doubt you have noticed as you have driven through your neighborhood many of these small businesses, they have signs and other advertisements designed to draw your attention to them.

Yet, you will rarely see advertising from the approximately 13 million people who are either involved with direct selling, or in the network marketing industry according to figures by the Direct Selling Association (DSA).

There is distinct difference between us and them, in most cases they are assigned an exclusive territory and therefore cannot market outside of their assigned territory. Where as in network marketing in most cases, you can market just about anywhere your company is established!

Why are companies willing to pay you to market for them...

...Why don't they just utilize the internet or other traditional marketing methods?

It’s quite simple, they want access to your network, that is your network of friends and family members! Today there are hundreds of companies offering products and services. Many of these products and services you recognize by their brand name!

The products and services you can market today cover everything from Communication Services, Internet Access, Nutritional Products, Weight Loss Programs, Water Filtration Systems, Financial Programs, Electrical Power, Solar Power, just to name a few.

So why do they need us? Traditional marketing methods have companies spending millions of dollars each year to market their products and services.

They know that word-of-mouth marketing is a far more powerful and effective method of marketing, especially, when that message comes from those whom we know and trust!

And these companies are more than willing to pay you, to communicate this message to your network of friends and family.

It is extremely important to understand that this method of marketing is not about bugging your friends and family members, as many would love for you to believe.

It is about your ability and skill to determine from those individuals within your circle of influence who would be interested in the products or services that your company has to offer...

... That information alone is one of the critical elements that separates those who fail, from those who go on to become very successful!

And occasionally you might uncover a few individuals, who also want to start a business!

I truly believe Robert Kiyosaki summed it up nicely; it really is the business school for people who like helping people!

If you want to call your own shots in life, if you’re willing to get the education you will need to run a small business, if you enjoy working with people, then network marketing just might be right kind of business for you.

If on the other hand, you’re only in it for the money or you just don’t like dealing with people well then...

... You’ll most likely end up failing!

Personally I’ve found running a network marketing business to be a very rewarding. While it does give you the freedom from punching someone else’s clock, now you’ll be punching your clock and will have to hold yourself accountable!

If your currently employed the training you'll get from having a network marketing business will give you a deeper appreciation of what your employer has to deal with on a daily basis. You will also become a far better communicator, someone who really listens and address the wants and needs of others!

With the economy the way it is today, working from home makes more sense than acquiring a second job in order to make ends meet. And thats if you can find one!

Is Building a Network Marketing Business Worth It?

If you are not sure whether starting and building your own network marketing business is worth it, let me ask you this. Do you know how much it costs to start a regular business or franchise and how much the expenses are every month for these people? Let alone all the paperwork that needs be filed for the state, the employee insurances and taxes, etc.

If you want to learn about the costs involved in starting a franchise, you have to consider the franchise fee which is normally around $20,000, plus legal fees, build-out costs, inventory, supplies and your working capital, or the day-by-day cash that you will need on hand to run your business. As far as starting your own business, I can tell you from watching one of my friends closely who started his own business a couple of years ago that the start-up prices are quite high as are the monthly expenses, the paperwork is at times overwhelming, and if he doesn't work, he doesn't get paid.

However, one good thing these three ways of doing business have in common is that you get a tax-break. The government rewards those who decide to start their own small business and gives them many tax-breaks, whether they work from home, or they work from some type of locale or business building. However, many businesses that are self-started or franchised are noted to fail within a few years because the expenses are so overwhelming and they don't find it worth the effort. However, those who see the value of building a network marketing style of business succeed.

Let's look at some of the positive things Network Marketing offers us which are the reason motivated entrepreneurs succeed in this type of business. First of all, when you build your home-based business network marketing style, the start-up cost is very low compared to the other two ways aforementioned.The monthly expenses are low as well and normally are just to maintain the websites and back-office the company we partner with offers us, which have a ton of tools and training for us. A serious builder will also get business cards made up and get some DVDs and brochures that the company offers for their success, since we all may not be experts at the company or products, "but everyone can be an absolute master at using tools", as Robert Butwin states in his book Street Smart Networking. There is no paperwork to be filed with the state, the shipping and handling services are handled by the company we partner with, and normally there is no inventory that we need to keep in our home. In addition to this, we can build our business as we go about our daily lives - continuing the job we already have whether it be stay-at-home parent, secretary, doctor, nurse, personal trainer, banker, etc. No matter what your occupation is, or what degree you may have gotten in school, or what gender and race you are, you can build your own business without tremendous risk and without having to take out a big loan or cash in all your savings.

Now let's look at some of the frustrations we need to face as network marketers. The market has gotten a bad rep over the years because of all the people that simply signed up to get rich quick but were not really motivated and therefore quit before they experienced any real success. In addition, many people think that just the people on the top get rich, but those who sign up later will never make as much. Let me ask you this: when was the last time you noticed that the owners of a regular company - the company you currently work with or have worked with in the past - are those that make the most money, whereas the employees, you included, are simply getting paid a small paycheck, without any tax breaks?

Other frustrations may include telling people about the business (especially friends and family), approaching strangers about the products or business opportunity, not seeing quick results, and not knowing exactly what to do to make your business grow. Let's approach each of these frustrations individually since they are all valid. First of all, if you have your own business, no matter what type it is, you NEED to tell others about your business. If you have started your own business non-network-marketing-style, who would you tell first? Strangers or your family and friends? I'm sure the answer would be a resounding family and friends. Well, approach your NM business in the same way; you don't want your family and friends to find out LATER that you have a business, do you? No... You want their support right off hand. Let them know your store is simply online, not offline, like many other companies have (which also have retail stores in your area). Secondly, we have approaching strangers, so let me ask you this: Do you have thousands of family members and friends that you don't need to tell anyone else about your business and the products you offer? You believe the products are excellent and that is why you offer them, right? So tell others about them. If you don't tell others, if you don't advertise with whatever method you want, you will not be getting any business. You can't just expect people to come knocking at your door nor calling you if you don't tell them you offer something, can you? As far as not seeing quick results goes, let me assure you that those who start their own business traditional style do not usually get quick results either, and yet their expenses keep piling up. And as far as not knowing exactly what to do to make your business succeed, I encourage you to simply look at and follow the roadmap that people that are in a rank above you have followed and succeeded. These people, and even the company itself, have taken the time to put together a roadmap, so all we need to do is follow it; it's as simple as that. When you start your own business traditional style, there truly is no real roadmap to follow; you simply have to get out there and tell people about your business and talk to other entrepreneurs who have successful businesses of their own to see what they have done.

So, to answer the question "Is building a network marketing business worth all the frustrations", I would say it is, but you need to answer that question for yourself after reading this article in which I have written the positive things to consider, as well as addressed the frustrations that most people face. What do you think? Would you invest your time and effort in building a network marketing business yourself? Why or why not?

Network Marketing Home Based Business

Hello Friends,

Network marketing has an inverse relationship to recession. By that I mean when the economy is weak, home based network marketing ventures are especially strong. As the economy is especially weak right now the time could not be better to start a home based network marketing business.

The reason for this economic track records is that more and more people in difficult times come to realize that their income is up to them. It has been pretty much proven that relying on a job can be a scary way to place your bets. Many people in this downturn have lost jobs that the felt were secure right up until the moment they were let go. On the other hand it is pretty difficult to get laid off or fired from a business you own.

The biggest hurdle that most folks face in this process, is taking responsibility for their own paychecks. It's true that some people just can't wrap their heads around being their own boss. You see people that were dedicated to their jobs and would do pretty much anything for their companies unwilling or unable to step into the street so to speak and take on the perceived burden of self sustainability.

The lesson in all this is that we must be responsible for ourselves. No one else is going to be. Even if you have a good job, you are still responsible for yourself even if some feel that it's their company who is responsible for them... it's not true. No one and I mean no one is responsible for you except you. I hope you can absorb that because it is the first great step in personal freedom.

Once you have accepted personal responsibility, doors begin to swing wide open when you push on them. You have entered a world of enhanced possibilities where the clear winner is you. As you begin to adopt this new philosophy you will find that your mind will start to provide you with all sorts of creative possibilities.

Now you're in charge, perhaps for the first time ever and it's a grand feeling. Tasks that used to be a drudge are now easily accomplished if you truly recognize who benefits from them... you in other words.

Now I'm not saying for a moment that you have to work for yourself to be responsible for yourself but I am saying that if you do work for yourself you absolutely do have to be responsible for yourself or none of what you have planned will work. Network marketing is not difficult it just takes discipline. Discipline is all but impossible without self reliance.

It's self reliance that gets you up ready to tackle the world in the morning. It's self reliance that gets you through the dozens of boring repetitive tasks that make up success. And it's self reliance that let's you experience the wonderful afterglow of a job well done.

Do both of us a favor and reflect on what has been said in this article to discover just how self reliant you are. If you find that you came up a little short you should pat yourself on the back because unlike 95% of others, you are focusing on a subject that can do more to improve your life than just about anything else.

Good luck to you and keep on moving forward!