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What is Network Marketing?

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Multilevel marketing is another form of direct marketing. It's primarily more focused on the organization of a sales network than with the sale itself.

The networker mostly starts to build up its own business before helping then other partners to build their own, such as a franchisor.multi level marketing

In difference to franchising where only 1 company opens new branches, in Mlm each independent company owner can open new network businesses, but low financial investigations and without risk.

A networker undertakes the work to organize the network, to have paid for the sales qualified for bonus within that branch network.

Another feature of Mlm is to build up an transnational business by sponsoring international partners. Specifically in Europe, Network Marketing represents the most effective examples how to make use of a single European marketplace.

A report from Prof. Dr. Michael Zacharias, University Worms, in 1996 shows, that the total revenue in Germany made in Network Marketing is still really low (approx. 300 million EUR p.a.), however it will be fast-paced. netzwerk marketing

In the Ukraine the marketplace has just started (Nov. 2003), and the market in Russia will begin 2004 too. So during these countries we will see incredible and surpassing business development in the next years. In case you are from the Ukraine or Russia, or perhaps you know people from there, then you can directly benefit from it. It is possible to offer them an opportunity to build their own business.

This was just an example, there are other exciting success stories business countries as well, e.g. Sweden, Korea etc., along with the opportunity is identical in every supported countries.

In Europe the Network Marketing business is still in its infancy. Only 0.7% of trading are made with Network Marketing.

So this distribution channel carries a huge potential for development in future all over the world.

A few Pillars of Success in Multilevel marketing are:

1) Recurring income

2) Leverage (of energy and Money)

3) Duplication

Mlm, 'MLM', and Multi Level Marketing are typical terms that talk about the same type of business model. Even though many close-minded people outside the industry (and others who've tried it and failed), have biased or negative wrong impressions, and though it is used and abused by many crooks and con-artists, e-commerce model has exceptional performance potential.

You can find bad apples in every bunch, and this industry has greater than it's share. Nevertheless it can produce outstanding results once you know how to find the right company. And to enhance your potential, there are many simple concepts whose understanding is very important to your success.

Unlike franchises or conventional businesses, Mlm, MLM, and Network marketing are the only business mixers take advantage of all three with the important, yet misunderstood principles of:

Passive Re-occurring income - Leverage - and Geometric Growth.

Along with the combination of all three of these elements 's what gives the Network Marketing business model it's synergy and exceptional performance potential. Actually one outstanding company I'm aware of has actually built designed synergy within their business model.

Whether it's a franchise or conventional business, both require major investments of energy and money, and special skills should you hope to be really successful. Even relatively small percentage who achieve true success usually take years only to break even.

On the other hand, with the advent and popularity of the Internet along with the rampant quest to "Get Rich Quick for Doing Nothing", many individuals have gotten all enthusiastic about affiliate, associate, referral, or co-op programs as is also sometimes called. But hardly any of the thousands of these being promoted have any real chance of coming to a significant money for the vast majority of people who sign up.

A perfect example is an email that was recently caused by one of these programs who tell you he is 'the best'. They bragged that they were paying "over $400,000 in commissions every month!" and have "now grown close to 650,000 affiliates!"

Those are interesting statistics some may get excited about. Let's see... should they be true... They're paying an 'average' of $.61 per affiliate... That's sixty one cents ! Wow! How do you like to retire on that?!

They claim later within their letter that some are making $10,000 a month. If that's true, then to generate an 'average' of sixty one cents each, a large proportion have to be making absolutely nothing.

There is a much better way to achieve your dreams!

Nevertheless, you have to:

1) Spend some time to understand these three critical principles -



2) Discover how to ASK THREE A quick question! - so you can teach whatever you know to others.

If you're even moderately successful in networking, you undoubtedly understand and trust the three principles above. You will find yet had the success you would like, you may not completely understand these principles, or getting them across to others. Highly successful networkers have discovered how to ask the proper questions, then help others understand and make the most of these important and powerful concepts.

Unfortunately these principles are certainly not well understood through the majority of the population. Which is just one reason why countless fail at network marketing. There are lots of other reasons, and yes it would take a book to pay them all. But this is one of the more common ones. If you don't understand or have confidence in these principles, you will never help others fully comprehend and appreciate them.

After all, our educational system trains (or brainwashes) us to become conformists, to do what others reveal to do, and to prepare for a JOB, not an entrepreneurial business opportunity. So those of us who crave our independence and freedom, head because direction in spite of our education, rarely for doing this.

And even though many people claim they'd like to be their own boss or own their unique business, only a small percentage of people possess the necessary wish for success to risk stepping out of their 'comfort zones' to pursue their dreams.

Many people are afraid of failure, and then for them it may be better and easier to live life inside a rut. Others are satisfied as well as happy with their jobs, incomes, or lifestyles, that is certainly great for them. In case you're one of millions who yearn for more freedom and control in your lifetime, you must understand the following three principles to achieve True Success in Multi-level marketing.


Re-occurring income is recurring income that is constantly come to you long after the project you've done to produce it has ended. There are lots of solutions to produce residual income. But many people don't understand it. Others haven't ever thought about or been exposed to it. And unfortunately, a number of ways of producing it are out of reach for 'average' people.

Successful authors, actors, musicians, and insurance agents are some of the more familiar avocations that leave residual income. Probably the simplest and finest example of passive residual income is interest earned on money in the bank or other investments. It gets their wage or credited to you personally without you being forced to invest any more time and energy to produce it.

With all the "virtual millionaire" concept I will explain below, should you have had a million dollars secured earning 6% interest, that could produce about $60,000 of annual income (before taxes). So if you have any source of passive residual income producing $60,000 or higher a year, you are a "virtual millionaire".

Along with the right business, that can be much easier to accomplish than trying to overcome all the roadblocks to accumulating millions of dollars in the bank. Instead of Uncle Sam fighting you all the way (taxing your entire income), he actually becomes an engaged partner by giving all of you kinds of tax breaks and incentives to succeed.

There are only two causes of money:

1) PEOPLE At the office, and 2) MONEY At the job...


The simple goal of Retirement & Financial Planning is usually to make sure you accumulate enough money (or income producing assets), to ensure when you decide or are forced to retire, it will produce enough PASSIVE Re-occurring income for you to enjoy the lifestyle you select for as long as you live.

The same concept holds true in Mlm. But Leverage, and Duplication or Geometric Progression, will help you build it much faster inside the RIGHT Network Marketing program.

Among the first questions I often asks prospects is:

"If you had the choice of doing a job and earning $500 once, or getting money $100/mo for the rest of your life, which could you choose?"

You would be surprised at how many answer $500! These people either, 1) aren't good prospects or, 2) need some education. That question for you is one quick and simple strategy to pre-qualify people. Those who don't understand that principle may never achieve their true potential.

Obviously $100/mo. will surpass a 'one time' $500 relatively quickly. Of course, if it lasts for quite a while, or better yet - the rest of your life - it will really be a blessing. Producing enough passive residual income can make you a VIRTUAL MILLIONAIRE within a relatively short time, in comparison with working for someone else and scrimping and saving for Thirty to forty years.

A VIRTUAL MILLIONAIRE is anyone who has enough money being released every month, WHETHER THEY WORK OR NOT, to support the lifestyle THEY CHOOSE, provided they live. It's also nice to have something SIGNIFICANT to pass through on to your heirs or favorite charity.

But like any devices in life, even recurring income has a downside. The most important one is, just like compound interest or geometric progression, it typically takes a little time for the magic to get started on working. The POWER and wonder of residual income is for the back-end, not the front!

Many people have a hard time understanding this FACT and mistakenly chase false promises of quick or quick cash. That's why there will always be crooks and fraudsters in the world pitching "get rich fast and easy". Successful people ignore them. Naive or greedy people usually get burned.

Re-occurring income is NOT about "get rich quick", despite the fact that with the right opportunity it's possible to produce a small fortune in the relatively short time.

If you're especially talented or have the time and money to speculate, you may have some success in less than a year. And many people do. But with out a major investment of your time or money it will require most 'typical' people per year or two of in their free time work to generate a decent income, and another year or two to really hit the large time. But becoming successful with 2 - 4 many years of part-time effort beats the widely accepted 'standard' plan of slaving 20 to 40 years working for somebody else to make them wealthy!

Many people who fail at mlm either choose the wrong company or perhaps give up too soon and quit simply because they expect INSTANT results. But because the real beauty of re-occurring income is on the tailgate end, not the front, when you build it you have the financial security and time freedom to perform anything you want the rest of your life!

The RIGHT network marketing opportunity allows anyone, with no prior experience, special skills, or large capital outlay, to create long term, passive re-occurring income. If you don't know how to choose the best opportunity, I can help.

An important component to building long lasting residual income is offering good quality, high demand, value-priced, 'consumable' products or services that men and women use and re-order week after week.

Because of this simple fact, the most notable industry in Mlm by any measurable standard is Natural supplements and Personal Care products. A lot of people refuse to consider this industry because they do not take supplements themselves or don't get the 'Big Picture' and successful enterprize model of this industry.

Think Burger King and McDonald franchise owners invest hundreds of thousands of dollars simply because they like to eat junk food burgers? Not hardly! They are aware of human nature and trends in society. We're a benefit oriented society, along with a large part of the population would rather eat low cost convenience food, even when we know it's not best for us.

But there's and a booming trend toward enhancing health, improving your life, and developing personal and time freedom. Many 'opportunity seekers' completely miss or ignore these trends in society. Should your business is in front of multiple long term trends, you dramatically enhance your chances for success.

That's not me saying it's not imperative that you believe in and use your personal products, because it is! But also for true success you will need to recognize major trends in society, along with your products or opportunity must meet All of the highlighted criteria above - high quality, high demand, value-priced, and 'consumable'. (Plus this case, 'consumable' does not necessarily mean just 'edible'. It implies used and/or re-ordered on a regular basis.)

Along with the right business the rewards could be much more than just financial. It's hard to put a price tag for the goose bumps you feel or tears that can come to your eyes on occasions when someone thanks you profusely for introducing them to a product that has had an important impact on their health, their life, or their finances.

Unfortunately some people never hold the importance of this additional benefit. Most good people wish to feel they are doing something worthwhile using life. And it's not just about making money, even though many narrow-minded or greedy individuals will try to convince you it is. It's also about helping others. And doing both, could make the right business doubly rewarding.

However your business also has to own profit potential. Some 'price-based' products or services have lots of competition and limited potential profit. If you choose a business that way you have to do a lot more volume and hard to build loyalty, which can be an important element in producing lasting passive residual income.


Every successful person or business (in or beyond Network Marketing) takes advantage of leverage. There's only A day in a day! And no matter how talented you might be or how much you will get paid per hour, if you don't take advantage of leverage you're restricted to the number of hours in one day. By learning to leverage your time and efforts, you can also benefit from a part of other people's efforts, and dramatically enhance your income and freedom.

If you're reading this article on the web (on my website or someone else's), or in a magazine, that's one simple example of leverage. I haven't got to be physically show teach you something. I'll be sleeping, or vacationing on the other hand of the world while you are learning or sharing these details.

Unfortunately in most traditional businesses, the sole ones who benefit from leverage are the owners or stockholders. The loyal, hard-working employees do almost all of the work. The unique and wonderful thing about the Network Marketing business model, is that everyone has the same opportunity to get to be the 'owner' of their own business - having a fraction of the investment of energy and money of a traditional business or franchise.

And as an alternative to worrying about training people to become your competitors, in network marketing the people at the top use a vested interest in helping others on the team succeed.

Again, the question I ask prospects this is:

"If you had the choice to receive 100% of a single person's efforts, or 5% of 100 peoples', which may you choose?"

And again, if they answer 100%, either: 1) they are not a good prospect or, 2) they need a remedial math class or additional education.

Many talented people would rather just depend on themselves, and possess difficulty grasping the importance of this concept.

Obviously 100% of just one is always only one. But 5% of 100 is five. That's a 500% increase and is significant! And with synergy, sometimes it can be even more!

Not only will the total result with leverage almost always be a lot more, your income is not influenced by only one person. If it is, and that person gets sick or injured, disabled, dies, quits working, or decides to take a long vacation, your wages could stop!

If a income is produced by the activities of many, it is much more dependable. Even if something unexpected or negative transpires with one or more of those people, there are just a minor effect on the entire production. That's what enables people who understand and use this to live the lifestyle they choose or get paid while on extended vacations.

It's good to get paid throughout vacation or doing other items you love! That's among the numerous advantages of leveraging your time, and is just one of a lot of reasons so many high income professionals coming from all walks of life are flocking to obtain involved in Network Marketing.

Many pros who make great incomes, get frustrated with the 'bottom line' after putting in long hours just to cover overhead and miscellaneous expenses. Regardless how much you earn hourly, if you don't learn to leverage your time and energy, your earnings will always be restricted by the number of hours you can work in a day. And nobody wants to work A day! But even with a little network marketing organization, you are able to produce equivalent leads to working 24 hours a day, having a fraction of the individual effort.

Finding out how to leverage your time (and your money) is an important step toward gaining Financial Independence and Time freedom.


The top illustration I've seen of duplication may be the penny-a-day example. It's also frequently employed to illustrate the benefits of tax-free compound interest.

In case you start with one penny, and double it each day 30 days, how much will you have at the end of Thirty days?

If you haven't heard this before or don't remember, go ahead and take a guess. Day two you'd have 2 cents; day three you'd have 4 cents, then 8, 16, and so forth. How much at the end of 30 days?

I've never had anybody who hadn't heard this before compare. So don't feel unhealthy if you don't, and I promise never to laugh. Ready? Have you pick a number?

Would you believe over FIVE MILLION DOLLARS?! ($5,368,708 to be exact!) You heard right! Most people don't believe it until they punch it on a calculator. And even then it's sometimes hard to fathom. But it's true. Is certainly not amazing?

That's a simple instance of how networking could work. If I can teach you, I've doubled myself. As we each teach another individual, we've doubled again. So when this goes on and on it could produce amazing makes a relatively short period of time, just as the penny example.

The simpler your program is usually to do and the lower the charge to get involved, the harder people you can interest and the more potential for geometric progression to operate. Programs that are too complicated or expensive for 'average' people to do will forever hinder your growth.

Great salespeople can succeed at most situations they apply themselves to. However, not many people have the talents, skills, or desire to be great salespeople. IT'S NOT DUPLICATABLE!

The Network Marking business structure is about a lot of average people conducting a little, not a few talented people performing a lot.

While cheaper of entry is an advantage, many programs that are 'free', don't offer any real potential for significant income, and frequently attract people who aren't ready to work to build their business. So REALISTIC INCOME PRODUCING POWER is a vital area to consider.

Joining a 'downline club' or another program that promises any variation of - "we'll do everything for you" - will never produce significant Long-term passive residual income, since the majority of people who join are looking for a free ride or are too lazy to build anything significant. None of the programs have ever worked long-term and none ever will. It's really a simple fact of life successful networkers accept ahead of time.

The penny per day example is a great model for illustration, in 'real life' it never works just like that. Some people never recruit anyone, yet others find 10 - 20 - 30 or higher. It helps to understand human instinct, and an IMPORTANT, but hidden reality called REVERSE GEOMETRIC GROWTH.

Although it rarely works the truth is like it's illustrated in some recoverable format, the principle of duplication remains one of the THREE PILLARS TO SUCCESS with the appropriate Network Marketing Business Opportunity. With the proper business and these POWERFUL PRINCIPLES, even average people who find themselves willing to work also to learn can achieve their dreams. And excellent people may exceed their greatest expectations.

If you can UNDERSTAND and Trust those three principles, and discover the RIGHT company, you may succeed in Network Marketing. If you're willing to TEACH these 3 principles to a few others, the outcomes might just amaze you!

The beauty of Network Marketing is that you can begin with very little investment of energy or money, no major changes in your present lifestyle. Eventually, passive residual income can give you the FREEDOM to call home the lifestyle YOU CHOOSE, and pursue and enjoy your dreams - whatever they are!

I read somewhere that, "according to IRS statistics, twenty six years ago 20% of NEW millionaires originated from Network Marketing. By 1994 it turned out 50%. It's predicted that by 2004, 70 - 80% of NEW millionaires will come through the booming Network Marketing industry." I do not really believe those statistics. But it doesn't matter what the percentages are, certainly many new millionaires are manufactured every year in the Multi-level marketing industry.

Many positive CHANGES happen to be made in the industry, and many simultaneous MEGA-TRENDS help make this local plumber ever to get involved! Some time to start is NOW! But it is important to pick the RIGHT company and industry!

In the event you UNDERSTAND:

1) The value of 'CONSUMABLE PRODUCTS' ... 2) The REASONS to the popularity of the Nutritional Supplement Industry... 3) The importance of high quality, high demand, value-priced, products...

You are much MORE LIKELY TO HAVE Excellent SUCCESS!

Successful Network Marketing offers many benefits: Passive Recurring income - No Boss - No Commute - No Dress Code - Taxation Reduction - More TIME for kids, family, hobbies, or whatever is very important to you - Excellent Income - plus much more.

If I had to conclude in one word it could be FREEDOM! - Freedom to be effective as much or as low as you want, to come and go when you please, and to spend more time doing whatever is essential to you. Once you experience this FREEDOM, you'll wonder how you ever lived another way!

There's no free lunch though. It's like mowing the lawn. If I asked, "Would you rather ride a motorbike uphill or downhill?" most normal people would say, "down." But also in order to coast on the hill, you first ought to ride your bike up. Once you start, you may find yourself experiencing and enjoying the exercise and additional advantages of improving your strength, endurance, and health. The same holds true in this business. You have to 'climb the hill' (learn the business) before you can 'coast'. Many people learn to enjoy the process of becoming better people, helping others, and improving much more than just the financial part of their lives.

There are many routes to the top with the hill. Some people choose to take a gradual incline and may take a little longer to acquire there. Others choose the direct route, and choose to pedal directly up the steepest side. The beauty is, it's your choice. We can show you the routes, and you also decide what's best for you personally. We'll be there to encourage and guide you every inch of methods.

Best wishes for True Success as well as a HAPPY, HEALTHY, PRODUCTIVE LIFE!


Posted Aug 28, 2015 at 6:07am