Why is MULTI-LEVEL MARKETING or Network Marketing such an attractive business model for first time entrepreneurs?

Network Marketing is based on sales networks, where the main distributors of the company’s products are independent sellers, who can either deal with direct sales in the circle of their friends, family, or can also build their partner structure and derive passive income from the activities of their team. The task of the partner (called an independent distributor) is to sell products to their customers and recruit new people to become independent distributors. A multi-level structure is then created. The partner receives a commission fee for his own sales (active income), as well as through the work of their structure (passive income,). The method of remuneration is determined by a compensation plan.

Network Marketing is endorsed by many of the top successful business people like Warren Buffett, Donald Trump, Robert Kiyosaki, Jim Rohn, Brian Tracy and Richard Branson, and for good reasons. Network Marketing is one of the best ways for an ordinary person to be able to get into business with only a tiny initial investment and skillset.

I will insert some famous quotes from some the endorsers.

HOW DOES NETWORK MARKETING WORK IN PRACTICE?

You become a business partner of a given company and your main task is to sell certain products, both retail and wholesale by recruiting other business partners. If you’re a good seller, you can make a lot of money from it. But the most effective earning model in Network Marketing is direct sales combined with building your team, called structure. This can be compared to a geological tree. At the top you are you, you yourself have recruited 3 other people who are located directly below you. In this case, you earn money from your sales and get a certain percentage of your team’s sales

WHAT ARE THE ADVANTAGES OF NETWORK MARKETING?

• You do not need to have a lot of business experience. You can start from a small initial investment and learn as you go.
• You earn as much as you perform. Essentially an independent commission only sales representative
• You are not bound by a full-time contract,
• You bet on yourself, invest in your own development, because you are the key figure here,
• You do not have to start your own business, although you work on your own – no unnecessary paperwork, queues in offices and knowledge of the intricacies of the law,
• You can treat this as an additional income, you can safely earn a full-time salary,

• Passive income, which is the moment when your team earns money for you

Some Important Criteria to Evaluate a Network Marketing Company

 It is important to assess the wholesale and retail opportunities of the products as well as the ease of payments, sales and delivery. Choose the niche in which we feel best.

Leadership: Does the company have the right type of leadership? Support and Learning?: Mastermind groups?, product and Network Marketing training –assisting you to become an expert in Network Marketing ?

Proprietary Products: Are the products proprietary, and does the company own their technology? Do you use their products daily, and are you passionate and knowledgeable about the products and industry?

Compensation: Does the compensation plan appeal to beginners, intermediates, and the most advanced business builders. Many network marketing companies requires an initial investment to join as well as monthly personal purchases to remain active. Do your homework, and beware of the ‘sales hype’ of the sponsor who may gloss over the joining criteria.

• Can you start earning right away
• What purchases are required to remain active
• Is the compensation plan understandable?
• How much is the initial investment (starter pack) and are they useful to you personally as well as how quickly you can sell them on?.

Timing: Is the timing right? Is the company growing quickly and the saturation of the market? One wants to avoid oversaturated markets where it will be difficult to make any inroads quickly.

Does the company have a good easy back office and payment system as well as and lots of supporting sales and promotional media, testimonials and presentation templates to use for recruiting

The company should be doing business for at least 5 years.
Have headquarters offices at all countries where the company is doing business. Also have support personnel that respond to queries quickly.
Have a marketing plan that pays to many levels, be aggressive and pay good commissions.
Should let the distributor retire anytime, and allow you to continue to receive passive income.
Should provide a fast and simple way to expand operations internationally.
The company should launch and promote new products frequently as well as regular attractive promotions to keep driving sales.

The company CEO must have knowledge of Network Marketing Systems.
Should be legally established in your country

Do your homework well, as many people end up disappointed, or worse, even losing money because they did not understand the requirements, or the complexity of Network Marketing.

Often they were promised, and were hoping for a no effort quick win, rags to riches overnight, and it does not actually work like that.

Avoid any dodgy companies, especially where they do not rely on retail sales of their products but instead rely on recruiting new distributors as primary source of income.

So, to sum up,    do your homework well, as Network Market has so many wonderful opportunities in this current market and ‘New Normal’ way of life, and don’t let fear stop you from realising your dreams.                                                                               

In my next video I will be discussing… my preferred Network Marketing Company, and why I can recommend them

I will end this video with a humorous, over the top, excerpt from the movie Dumb and Dumber about not realising opportunities when they come your way