What Is Network Marketing?What is MLM or network marketing all about and how does it work? To answer this question, the first thing we need to be clear about is what it is not. A true network marketing system is not, despite a common misbelief, a pyramid scheme, it is not illegal and, it is not a get-rich-quick scheme. It takes dedicated commitment, drive and perseverance to build a successful legitimate network marketing business. Network marketing is a very powerful marketing system that, if set-up correctly, could create you a very large passive (residual) income for life. Passive income is income generated from a business that does not require direct involvement from the owner or merchant. Network marketing is also known as multi-level marketing or MLM for short. It is similar to a franchising system except that each new distributor has the opportunity to not only run their own franchise but also assume the role of a franchiser by introducing new distributors into the system. >One of the most powerful aspects of the networking system is that it is built mainly on the power of personal recommendation also know as word-of-mouth advertising. For example, if we see a good movie or experience great service from someone, we recommend it to others, that is word-of-mouth advertising. The beauty of a networking company is you get paid for recommending it. This is a very democratic way of creating wealth and is open to, regardless of background, anyone who has the commitment, drive and perseverance to succeed. In his book "The Business School", Robert Kiyosaki (Author of "Rich Dad, Poor Dad" and "The Cash-Flow Quadrant") quotes, "there is more to a network marketing business than just a chance to make some extra cash." He goes on to say that "the network marketing industry continues to grow faster than franchises or traditional big businesses and is ideal for people who want to enter the B quadrant (see the book Cash-Flow Quadrant by Robert Kiyosaki) either part-time of full-time." There is a learning curve needed to become successful in network marketing and, while it is now taught in universities, you do not need a degree to succeed as most network companies provide thorough business training modules. How Do You Build A Large Network Marketing Business?A large, successful network-marketing organisation is built one person at a time. You are looking for particular like-minded individuals who have the commitment, drive and perseverance to succeed. Unfortunately, these are usually not your family and friends but rather acquaintances you meet. Recruiting the right people is a selective process and you should ask yourself a couple of questions before you offer your opportunity to that person. 1.
Do I want to
work with this person? The reason you ask these questions is you do not just sponsor people and then leave them to fend for themselves. You will need to show them how the system works and then be willing to coach them on an ongoing process. Therefore, wouldn't it make sense to recruit people with passion, drive and commitment that you would like to work with? The biggest mistake most network marketers make, and the main reason why most fail, is they introduce people as fast as they can and then leave them to fend for themselves. This is a people business, not a processing plant. You need to build a relationship with the people you introduce to your business. You need to teach that new person how to duplicate what you are doing. You then both go out and teach two new people how to do the same and before long you will be on your way to building a large and successful networking business, one person at a time. Did you know if you sponsored just one person a month and taught them how to do the same, build a relationship and duplicate the system that at the end of 12 months you would have 4,096 independent businesses within your organisation. And, you only personally enrolled 12 (one per month). Now that's time leveraging! In true legitimate network marketing companies you do not get paid for recruiting people, you get paid on product sales generation. Based on the above example of everyone purchasing and selling products, if your network marketing company only pays you 3% to 28% in product sales commissions you could earn between $12.000 and $20,000 per month. Not bad for only sponsoring one person per month for 12 months. In his book "The Business School", Robert Kiyosaki, author of "Rich Dad, Poor Dad" and "The Cash-Flow Quadrant", states: "simply put, a network marketing business, with its low cost entry and life-changing education system, is an idea whose time has come." Now before you rush out and join the nearest network marketing company you can find, there are a few things you will want to research first. 1.
Check the
Company's Track Record (Most start-up companies go broke in the first
few years) Bottom line is find a company that has a product you like (you will soon tired of promoting a product or service you're not passionate about) and meet the criteria listed above. The benefits for you are: -
You get to be
your own boss Finally, ask yourself this question, do I have the passion, drive, commitment and perseverance to make it happen? Related Articles How To Generate Home Based Business Leads For FREE!  
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