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Network Marketing – Part II

Updated on May 9, 2011

If your reading this article I assume you have read Network Marketing – Part I (there is a link at the bottom of this page if you’d like to have a look) or you have a reasonably good idea about what network marketing is conceptually and what particular aspects of the business you need to be careful about.

If you look at it in one way all big companies are a multi level network. Consider the company you work for. I’m sure at the lower levels there are plenty of employees and at a level higher than them, there are the supervisors, and then come the mid level managers and then the top management. The people at the top always make the most money in a traditional company and in network marketing. The last article concentrated on the negatives in the network marketing world. Lets have a look at the positives:

The Benefits:

Duplication – One of the primary aspects of network marketing is duplication. Have you ever been to an Amway’s BWW seminar? You’ll notice that almost everyone wears the same coloured clothing. You’ll notice that they make calls pretty much the same way and follow similar practises.

The idea here is to imitate someone who is already successful. This of course does not mean you cannot experiment and find out new ways of doing things. It simply means that there is already a proven path you can use to make money. You’re free to find smarter ways of doing it and sharing it with others. For someone who is new this kind of tried and tested process helps in generating income as soon as possible if followed to the letter.

Time multiplication – Time multiplication is a concept used by all large organisations. It works like this: you as an individual have 24 hours in a day. You can’t do anything to increase that. So on your own you can only earn a maximum of 24 hours worth of pay a day.

Now let’s have a look at the company you work for. How many employees does it have? For calculation sake lets say your company has a staff count of 1000 employees. Each employee works for 8 hours in a day. So that means the company can create 8 * 1000 = 8000 man hours a day. You might have noticed that the company as a whole earns a lot more than you do too ;-).

Network marketing allows you to use that concept to your advantage. As you continue to build a large team of sales people, you begin to get a percentage of their sales revenue. This income is taken from the total volume and not from you team member’s income. After a stage when the team has reached a good level of turnover, you even begin to get royalty.

Passive Residual income - Royalty as mentioned above is generated from the total volume of the turnover. Nobody loses any money to pay you that royalty. What’s more! By creating more self sustaining high turnover units, you can receive royalty from each of these units. That’s true passive income that keeps coming into your pocket even if you decide to take a vacation for a year.

Of course let’s not forget that you really have to work your backside off before you make it there.

Free time – Who wouldn’t want some free time to spend with the family? A lot of companies talk about work life balance but few help employees achieve that balance.

The benefit of free time in network marketing flows from the benefit of regular passive income. When you no longer need to regularly work for your monthly cheque, you end up with a lot of time for family and friends and so many other things that really matter in life.

You can’t succeed without helping others: No matter what anyone may tell you, its an absolute fact that in a proper network marketing company, you CANNOT grow unless you teach other people to grow. You can’t become wealthy unless you help others become wealthy.

The whole model is built out of the necessity to grow your team first in order for you to grow. Sounds like a win-win situation doesn’t it!

Low entry barrier and high return – One of the most revolutionary benefits that network marketing allows is the level playing field. Gone are the days when people could say “you need money to make money”. That isn’t true any longer. You can join a network marketing company for a very low admission fee and grow your business to great heights.

Done properly, a large network marketing business would have one of the highest rates of return in any industry.

Low risk High return – As mentioned above it doesn’t cost you much to join a network marketing company. It also doesn’t cost you much to stay in the business without making a single sale. So you really have very little to lose if you don’t succeed or if you feel at a later date that you network marketing isn’t really for you.

Funny that the low entry barrier and low risk are also two of the many reasons for failure in the business. Many people who aren’t really serious end up getting in too. And quitting thinking it was a get rich quick scheme.

So now your somewhat sold on the idea that network marketing might just be for you after having done your bit of research about the industry and the company you are looking at joining. The next question is how your average day as a network marketer is going to be like and whether you can actually become rich through this business model. All of that in Network Marketing – Part III (link below).

Do check out the book Business School for People who like helping People by Robert T Kiyosaki of the Rich Dad Poor Dad series. He really makes a strong case for network marketing.


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