The Perfect Network Marketing System!

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Network marketing is hard. Don't kid yourself and truthfully don't even attempt a network marketing venture unless you either have or plan to put into place a highly potent and highly duplicatable network marketing system
geared for 2005 and beyond.

Before I tell you what a perfect network
marketing system
should look like let's talk about what doesn't
work for most
network marketers. As I'm sure you probably
know, network
marketing is notorious for having a 95% failure
rate. Let's
talk about why.

Have you ever heard of Occam's razor?

Basically it states that the simplest
explanation for a
phenomenon is usually the best. We'll use this
theory to
explain why more than 95% of network marketers
fail.

Ready?

Most network marketers fail because the
marketing methods
that they are taught don't work 95% of the time.
Pretty
simple right?

So we're led to ask the logical next question,
what are most
fledgling network marketers taught?

Well, I can only speak from my experience, but
what I was
taught was to buy and cold call leads.

Now, I'm not going to say this doesn't work, but
I will say
is that after six months of cold calling leads
for 3 hours a
day with very little success this tactic doesn't
work for
me. Don't get me wrong some people are very good
at cold
calling leads, but most people aren't.

What happens to most people after they've spend
thousands of
dollars on leads with very little success after
months of
effort?

They give up.

Another factor contributing to why most network
marketers
fail is the type of leads they use. Why does the
type of
leads make a difference?

Business opportunity leads, the leads most new
network
marketers are told to use, are generic. These
leads answer
an ad that just asks them if they want to be
financially
free, or make money from home or something like
that.

Well . . . of course they do!

But that doesn't mean they want anything to do
with YOUR
network marketing program. When the average
network marketer
calls these generic bizz opp leads the leads
don't know
anything about the network marketer's business
and for the
most part honestly don't care. This leads to
the fledgling
network marketer hearing a lot of "NOs".

Hearing NO all the time leads to quite a bit of
self doubt,
both about the network marketers own ability and
the
validity of their association with their network
marketing
company. Negative feelings begin to harbor and
as I said
before eventually the network marketer gives up,
usually
with 3-6 months.

The fledgling network marketer's perception of
their
business goes from one of opportunity to one of
complete
doubt and negativity. Reality follows
perception, so because
the fledgling network marketer believes both
themselves and
their business as having little hope this
becomes TRUE.

That's basically why 95% of network marketers
fail if you
asked me.

So how do we change this paradigm?

We build a Perfect Network Marketing System!

Now we get to the good stuff! What does a
perfect network
marketing system look like?

For the average home based network marketer to
be successful
certain thing MUST be in place. I will list them
here:

o Lead capture page designed specifically for
specific
Network Marketing Company:

This page must contain strong sales copy that
tells the
prospect why he wants to opt in for more
information. The
best way to do this is to offer a High Value
Free Report in
exchange for there contact information.

o Free Report specifically designed for Network
Marketing
Companies Opportunity:

The free report must be highly informative. It
must explain
all of the features and benefits of joining the
network
marketing organization as an independent
distributor and
must focus on the support and resources
available to the new
recruit should they choose to purchase a
distributorship.
The company's products and compensation plan
must be clearly
explained here as well. If possible,
testimonials should be
used, as they are extremely powerful sales
conversion tools
in this portion of the sale process.

o Follow up Email System:

Attached to the Free Report there must also be a
follow up
system that continually markets through email
the program to
the lead. Most leads don't act immediately and
must be
marketed to at least 7 times before they take
action. The
email follow up system must have strongly worded
sales copy
and must have a system for getting through spam
filters.

o A Continual Feed Back System that uses the
Fear of Loss:

Along the with email follow up system there must
be a
feedback system that will alert the prospect by
email when
new prospects opt into the system and invoke the
fear of
loss during this process by telling the prospect
that if the
next prospect in line upgrades to a paid
position before he
does then he will forever loose commission on
that prospect.
This is an extremely powerful psychological tool.

o Strong Support:

It's one thing to get someone to buy a
distributorship, but
it's a totally different thing get them to work
the business
effectively. There must be an email follow up
system once a
new distributor signs on to ensure that he
receive adequate
training on how to market successfully. There
must also be
human support at this point. So, there must be
strong
relationships built between upline and new
distributors.

o A Good Product or Service:

In order for this entire marketing process to
work, the
system must be back by a strong and ethical
network
marketing organization that sells a high demand
product that
people need and would purchase even if there
were no
compensation plans attached to it.

o You:

You must be an active part of your business. You
must be
willing and open to learn new ideas and tactics
at all
times. You must have a passion for your business
and truly
believe in the product that you plan to build your
organization around.

In Conclusion:

I've listed the basic component's a of a perfect
network
marketing system. This system will involve NO
cold calling
because the prospect will opt in to request more
information
specifically about your business before you even
talk to
them.

Cold calling generic bizz opp leads and hearing
a lot of
NO's is what causes most network marketers to
fail. We want
to avoid this at all cost. This is what this
system is
designed to do!

By having your prospects opt in specifically for
more
information about your product and business plan
and then by
giving them a detailed report explaining all of
the above
before you even speak to them your chances of a
successful
sales conversion will greatly be increased. The
email
follow-up and fear of loss systems will increase
your
chances successful sales conversion even
further. These
factors will cut down on the number of NO's that
the you
must endure before success. This will increase
your home
business's duplicability vastly.

Further, having uniform training and exceptional
support are
the basics and must be present.

So,

Before you spend another dollar on your network
marketing
efforts ask yourself if you're using a perfect
network
marketing system. If your answer is no and you
aren't having
any success then ask yourself what you can do to
change your
system to one that will work for you and your
future
distributors using the principles that I have
detailed
above.

I struggled with network marketing myself using
the old
fashion methods, but as soon as I studied
internet marketing
and how to apply it to network marketing things
got a lot
easier. I was able to spot network marketing
organizations
that were specifically positioned for internet
marketing and
earmark what I thought to be the best of the
bunch. After
that, it was simple a matter of choosing the one
that with
what I though had the "best product".

You can view my choice here:
http://www.the1andonly.biz. As
a result of making this choice I recruited new
members my
very first day without having to call anyone or
hear
thousands of NOs. All I do is get traffic to my
website and
I make money.

Network marketing can certainly make you rich,
that is... if
you have the perfect system in place!

==========================================

Wanna Learn the Secret of Creating Passive Income Online

From a man who made $3,244,842.32 from the Internet in Only 27

months? => http://www.the1andonly.biz

Presented by:

Perfect Home Based Business Opportunities [http://www.perfect-home-based-business-opportunities.com]

Article Source: EzineArticles.com

Jim Rohn Building Your Network Marketing Business

Top Network Marketing Company - Why Are the Products So Expensive?

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I'm sure you've heard this question before, Why are top network marketing company's products so expensive?

This is one of those ever-present questions that networkers and direct sales people will continue to encounter (probably) forever--and there's always more to it than meets a simple answer.

One key is not to side-step it. There are good and genuine reasons for legitimate, premium-priced products--and of course there are over-priced ones as well. Honesty is best, as always, and I'll endeavor to give you the general truth with my answer to the question.

Special Products at Special Prices
First, the products available through top network marketing companies sales and distribution model are mostly what are called "specialty" items. They are higher priced products to begin with, having more costly ingredients and more complex designs or formulas; they are simply more expensive to make and package. Some well-known non-network marketed examples are Clinique makeup and fragrance products, Apple computers, iPods and iPhones, Armani clothing, Mercedes and Lexus automobiles.

Unless you're dealing with a scheme or a scam, these premium products outperform their cheaper, off-the-shelf counterparts, giving consumers more and better benefits. Since they have greater value, they cost more.

If these products are being outsourced by the networking company (produced by a "third-party" vendor/supplier), they tend to be manufactured in smaller production runs that do not allow for all the optimal low-cost advantages of buying and making in the high volumes mass-marketers enjoy. The manufacturing processes are more complex and exclusive. The profit margins are higher. This results in a higher quality product with more attention to detail and quality control.

The reason manufacturers and marketing companies select network marketing and direct sales is because these higher-priced products are of higher quality, and they therefore require special methods of distribution and sales.

Simply put, they cannot compete with the lower-priced, lower quality "commodity" products, which are sold based mainly on discounted mass-market pricing and brand awareness alone. Think Wal-Mart and Costco.

Specialty products are "education-intensive." They need greater explanation; for example, what formula, ingredients and/or processes makes the product more expensive than those mass-market goods available through direct response marketing (such as the Internet and mail-order) or retail chain store sales. Many require demonstration.

Mass-market products depend on advertising, promotion and merchandising at "point-of-purchase," all of which are required to get consumers' attention, let them know the product exists (to create "trial" especially if it's "brand" new), and to give them enough compelling reasons to purchase and keep on purchasing.

Going head-to-head with nationally advertised products, many to most of which are heavily discounted and sold at the lowest price possible, is a tough game for just about all smaller businesses to win. Imagine trying to sell vitamins or nutritional beverages or "prestige" cosmetics against a major manufacturer selling through Wal-Mart, or a natural toothpaste against a tube of Crest® through Kroger or Publix supermarkets.

Specialty products are perfect for the person-to-person, information-rich education, demonstration and service oriented methods of network marketing.

And that's where the important second aspect of network marketing's "higher price" comes in: the added value which you as a "distributor" add to the specialty products you sell.

Added Value Added

Network marketing and direct sales representatives add significant value to the product they sell and they are well paid when they do so successfully.

We reach consumers with the awareness of new products and services that ads and merchandising--no matter how persuasive or promiscuous--would not be able to reach out and touch. And by virtue of our one-on-one, personal relationship with these buyers, we appeal to them with a level of trust and service no mass-market, retail product advertiser could hope to compete with.

The extraordinary level of service Network Marketers provide is not available when buying through mail order or retail outlets. It is a real and tangible benefit, part of the product's value--and its price.

For example: Someone tries a network marketing anti-aging health product. It's personally presented for them--either in person or via mail--with a host of educational material about the product: scientific studies, article reprints, even books or tapes explaining how the product was made, how to use it, its unique features and its benefits.

Within one to two days, the network marketer again contacts the person to follow up, asking how they are doing, checking to see that their customer is following use directions properly, make recommendations, etceteras. These service calls continue daily, bi-weekly or weekly until the customer is satisfied and happy.

The network marketer will also continue to send informative and educational material such as updates from scientific literature. He or she will also let the customer know about other products the company offers that this particular customer with his or her unique needs and wants might also enjoy.

This is an extraordinary level of service that is a real and tangible benefit for the consumer. This kind of personal and knowledgeable attention is not available when buying through the Internet alone, or mail-order or most all retail outlets. It is one of the things network marketers are paid for and it is part of the product's value--and its price.

Are there cases where the above education and service are not offered? Of course.

Are there products that do not have special ingredients or qualities that support a higher price? Sure.

And are there times when a network marketed product is simply more expensive to pay for the multiple-level commission structure? Yes.

Back in the early 1950s, a dog grooming service was opened in New York City to serve people living in the exclusive Park Avenue, 70th and 80th Streets area. They charged $25 to shampoo and clip a dog. They had no customers. Then they jacked-up their prices to $250 per visit--and were an instant success. The Cadillac Seville, when first introduced in test-market showrooms priced at under $10,000, bombed; at $14,000 the very same automobile became an instant best-seller.

Value is a perception. The relationship between quality, benefit and price, i.e., value, is in the mind of the consumer-beholder. Businesses price goods and services according to what the market will bear. Successful marketers come up with just the right mix of value-benefit-price.

The majority of network marketing direct sales products are of the genuine higher-quality variety, not available in stores, special in ingredients, design and making.

Most offer the convenience of in-home or on-line ordering and to-the-door delivery. They are also special in terms of...

Marketing and Customer Service

The network marketing "sales person" adds value to the product through his or her education, service and sales to the customer.

All of this has its price. And according to consumer trends and the explosive growth of network marketing direct sales companies and their products worldwide, more and more people every day think it's worth it.

What's the truth about the price of products offered through network marketing? Are they too high? And if so, why?

The full answer to this one is complicated. If you need a short one, mine is:

High? Usually, yes.

Too high? Sometimes... yes, but generally no.

So, if they are high, why? Let's start with looking at what kind of products we're really talking about here.

The Truth is, Specialty Products Cost More

Network marketing is predominantly a "specialty products" business: The products we sell most often tend not to be the type you'd find in supermarkets, drug stores or any other mass merchandiser. They are not the kind that combines the lowest possible price for the least acceptable level of quality. For a conventional retail parallel, look at the products in a natural or health food store, beauty salon, boutique or upscale department store.

Specialty products cost more to make. The ingredients are unique and high quality and production is low quantity--the amounts manufactured usually are not great enough to take advantage of the economies of scale enjoyed by big-time, high-volume, mass-market producers. So these products more expensive--both to make and to buy.

Also, specialty product makers usually cannot depend on major advertising to increase sales: they don't have that kind of money. So they have to use more expensive forms of distribution, such as small, individual retail outlets whose profit margins are higher than mass-market stores and chains.

Profit Margins and Markups

Here's an example: a discount chain drug store might be able to markup a bottle of vitamins that normally sells for $3.00 wholesale for less than the normal 33 percent retail profit margin. And, because they buy in large volumes, they'll get the product for less than $3.00 to begin with.

A natural or health food store might buy that same product at the full $3.00 wholesale price, and use a markup of 50 percent to get their full 33.3 percent retail profit margin.

To the consumer, buying at retail, here's the difference: $3.99 at the drug store and $4.50 at the health food store.

And then there's "what the traffic will bear."

There are sexy boxes of imported chocolate that go for $38.00 each, and poly-bags of 50 mini Reeses Peanut Butter Cups you can get for less than $3.80. If your taste tends towards expensive, you'll generally pay more--in "margin" percentages to middle-people and in total dollars.

Let's look at a comparison of one single product offered through the conventional manufacturer-to-retailer distribution system and the exact same product sold through network marketing.

$$$ From Conventional Manufacturer to Consumer

We know specialty products cost more to make; again, the ingredients are unique and high quality, and the production is low quantity, so they are simply more expensive.

Manufacturers speak of "Cost of Goods" (CoG): that's the figure that a product costs the company to make, including overhead, ingredients, packaging and labeling, sales commissions (such as broker's fees), etc.

The very minimum a manufacturer needs to sell that product for is double, or a 50 percent margin. Considering that most competitive businesses operate on a six percent pre-tax profit, that leaves them 44 percent to pay for everything else. So, the $2.00 CoG product they make, they sell for $4.00.

Now, some manufacturers sell direct to retailers--not many, but a few do, and when they do, they'll take a higher profit margin to pay for the Cost of Sales (CoS).

However, most manufacturing companies deal through distributors, who charge for warehousing, shipping and selling the products to retail stores. Normal wholesale is a 25 percent markup, which you get by multiplying the purchase price--plus freight if not included--by 1.33. So, our $4.00 item would be sold by a wholesale-distributor to the retailer for $5.32. (Again, plus or not freight costs which can run 10 to 15 percent additional.)

To achieve a 33.3 percent profit margin, the retailer has a 50 percent mark-up--or higher. Our $5.32 product ends up on the shelf at $7.98.

Now, this is the minimum scenario--not what normally happens except in the more strongly competitive markets. It's not the least bit unusual to find the manufacturer selling that $2.00 CoG product for $5.00 or $6.00... the distributor working on 35 percent instead of 25 percent... and a retailer - especially from a specialty market segment--look for a 50 percent profit (i.e., a 100 percent markup), instead of "only" one third.

And if all of that were true, the retail price of the product through that sales and distribution system would be more like $14.95.

$$$ In Network Marketing Direct Sales

Let's work this one backwards (because that's how most of the numbers are figured for your commissions).

If the networking company's product sells to consumers for $15.00 it will have an average retail commission to the networker of from 20 percent to 40 percent. So, using a 30 percent retail commission, the company's "wholesale" price to the mlm distributor will be about $10.50.

Let's say that your company pays out a full 50 percent in "downline" or organizational commissions. That means that the company's lowest from-the-warehouse price for the product would be half of wholesale, or $5.25.

That's right in the ballpark for specialty manufacturing, distribution and sales.

It's a Question of Value

There is also a greater value, beyond the "specialty products" issues of ingredient quality, cost of manufacture and so forth and that's the education, information and service delivered by the person-to-person distribution network.

Learning the product's proper use, additional uses, history, all about the ingredients, etceteras, is all part of its value. And products offered through word-of-mouth network marketing have more of this "added value" than any others.

This last point begs the question:

"Are products purchased through network marketing higher priced to make up for the compensation or commission payments to distributors and their networks?"

Can they be? Yes.
Are they... usually? No and Yes.

In an authentic, intelligent, sincere and sensible network marketing direct sales company, one that's well-managed and directed... a company that understands that the financial health and well-being of the men and women in the field MUST lead their mission, decisions, strategy, policies and procedures... no.

But that new ostentatious corporate headquarters in the prestige location... corporate jet... an army of "distributor service" personnel... rock concert "conventions"... $50,000 "big name" keynote speakers... resort vacations and incentive cruses to exotic locations paid for by the company... luxury car allowances... are all expenses that need to be paid for. Where does that money come from?

Directly (in terms of potential commissions that will not be paid out to people) or indirectly (in over-priced products and/or inflated charges for marketing materials, self-replicating websites, business building tools and trainings), the money comes from only one place... the men and women in the field.

"So... do network marketed products cost more?" Sometimes yes and other times no.

Can they be more expensive than similar items of equal value offered in a conventional market such as a retail store? Yes, they can.

In fact, you can find numerous examples of both conventionally retailed products and networking products of similar sizes, shapes and qualities at prices that vary by as much as 30 to 40 percent or more.

The only sure rule in product pricing the world over is, "What the traffic will bear..." No matter what distribution and sales route the product travels. It's not so much a game of "Let the Buyer Beware," as it is and always will be...

"Let the Buyer Be Aware."

Factor in the at-home shopping convenience... the customer service... the satisfaction guarantee... personal attention... education and information--and in today's increasingly competitive global marketplace, the "aggressive pricing" posture being taken by more and more networking companies around the world--along with the generally superior quality of the products available through network marketing and direct sales...

... and I believe a growing number quality-conscious consumers will agree with me, top network marketing company's products represent outstanding value.

John Milton Fogg authored the million-selling industry classic, The Greatest Networker in the World. You can receive useful tips, tools, news, updates, links and other resources to help you build a better network marketing business free from John on his website: http://JohnMiltonFogg.com Be sure to visit John's weblog: http://TheFoggBlogg.com where (almost) daily he posts commentary and resources for authentic, intelligent, sincere and credible network marketing.

Your feedback on this article is encouraged. Please scroll (all the way down) and give it some stars. Thanks.

Thanks.
I Appreciate You.
-- John

Article Source: EzineArticles.com

How to Recruit for Network Marketing using Facebook

What is Network Marketing?

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Network Marketing is another form of direct marketing. It is primarily more concerned with 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 business partners to build their own, similar to a franchisor.

In difference to franchising where only one company opens new branches, in Network Marketing each independent business owner can open new network businesses, but with low financial investigations and without risk.

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

Another feature of Network Marketing is to build up an transnational business by sponsoring international partners. Especially in Europe, Network Marketing represents one of the best examples how to make use of a single European market place.

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

In the Ukraine the market has just started (Nov. 2003), and the market in Russia will start 2004 too. So in these countries we will see incredible and surpassing business growth in the next years. If you are from the Ukraine or Russia, or you know people from there, then you can directly benefit from it. You can offer them an opportunity to build their own business.

This was just an example, there are more exciting success stories from other countries as well, e.g. Sweden, Korea etc., and the opportunity is identical in all supported countries.

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

So this distribution channel has a huge potential for growth in future all over the world.

The Three Pillars of Success in Network Marketing are:

1) Residual Income

2) Leverage (of Time and Money)

3) Duplication

Network Marketing, 'MLM', and Multi Level Marketing are all terms that refer to the same type of business model. While many close-minded people outside the industry (and others who've tried it and failed), have biased or negative wrong impressions, and despite the fact that it is used and abused by many crooks and con-artists, this business model has exceptional performance potential.

There are bad apples in every bunch, and this industry has more than it's share. But it can produce outstanding results if you know how to find the right company. And to maximize your potential, there are a few simple concepts whose understanding is critical to your success.

Unlike franchises or conventional businesses, Network Marketing, MLM, and Multilevel Marketing are the only business models that take advantage of all three of the important, yet misunderstood principles of:

Passive Residual Income - Leverage - and Geometric Growth.

And the combination of all three of these elements is what gives the Network Marketing business model it's synergy and exceptional performance potential. In fact one outstanding company I'm aware of has actually built designed synergy into their business model.

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

On the other hand, with the advent and popularity of the Internet and the rampant quest to "Get Rich Quick for Doing Nothing", many people have gotten all excited about affiliate, associate, referral, or co-op programs as they are sometimes called. But very few of the thousands of these being promoted have any real chance of making any significant money for the vast majority of people who get involved.

A perfect example is an email that was recently received from one of these programs who claim to be 'the best'. They bragged that they were paying "over $400,000 in commissions each month!" and have "now grown to over 650,000 affiliates!"

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

They claim later in their letter that some are making $10,000 a month. If that's true, then to come up with an 'average' of sixty one cents each, the vast majority have to be making absolutely nothing.

There is a much better way to achieve your dreams!

But you have to:

1) Take the time to understand these three critical principles -

PASSIVE RESIDUAL INCOME - LEVERAGE - GEOMETRIC GROWTH

Then...

2) LEARN TO ASK THREE SIMPLE QUESTIONS! - so you can teach what you know to others.

If you're even moderately successful in networking, you undoubtedly understand and believe in the three principles above. If you haven't yet had the success you desire, you may not completely understand these principles, or how to get them across to others. Highly successful networkers have learned how to ask the right questions, then help others understand and take advantage of these important and powerful concepts.

Unfortunately these principles are not well understood by the majority of the population. And that's just one reason why so many fail at network marketing. There are lots of other reasons, and it would take a book to cover them all. But this is one of the more common ones. Because if you don't understand or believe in these principles, it's impossible to help others fully comprehend and appreciate them.

Let's face it, our educational system trains (or brainwashes) us to be conformists, to do what others tell us to do, and to prepare for a JOB, not an entrepreneurial business opportunity. So those of us who crave our independence and freedom, head in that direction in spite of our education, rarely because of it.

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

Most people are afraid of failure, and for them it may be better and easier to live life in a rut. Others are satisfied or even happy with their jobs, incomes, or lifestyles, and that's great for them. But if you're one of millions who yearn for more freedom and control in your life, you must understand the following three principles to achieve True Success in Network Marketing.

1) RESIDUAL INCOME:

Residual income is recurring income that continues to come to you long after the work you've done to produce it has ended. There are lots of ways to produce residual income. But many people don't understand it. Others have never thought about or been exposed to it. And unfortunately, many 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 produce residual income. Probably the simplest and best example of passive residual income is interest earned on money in the bank or other investments. It gets paid or credited to you without you having to invest any more time to produce it.

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

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

There are only two sources of money:

1) PEOPLE AT WORK, and 2) MONEY AT WORK...

THAT'S IT!

The simple goal of Retirement & Financial Planning is to make sure you accumulate enough money (or income producing assets), so that when you decide or are forced to retire, it will produce enough PASSIVE RESIDUAL INCOME for you to enjoy the lifestyle you choose for as long as you live.

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

One of the first questions I often asks prospects is:

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

You'd be surprised at how many answer $500! These people either, 1) are not good prospects or, 2) need some education. That question is one quick and simple way 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. And if it lasts for a few years, 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 in a relatively short time, compared to working for someone else and scrimping and saving for 30 - 40 years.

A VIRTUAL MILLIONAIRE is someone who has enough money coming in every month, WHETHER THEY WORK OR NOT, to support the lifestyle THEY CHOOSE, for as long as they live. It's also nice to have something SIGNIFICANT to pass on to your heirs or favorite charity.

But like everything else in life, even residual income has a downside. The biggest one is, just like compound interest or geometric progression, it normally takes a little time for the magic to start working. The POWER and BEAUTY of residual income is on the back-end, not the front!

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

Residual income is NOT about "get rich quick", even though with the right opportunity it's possible to produce a small fortune in a relatively short time.

If you're especially talented or have the time and money to invest, you may have some success in less than a year. And many people do. But without a major investment of time or money it takes most 'typical' people a year or two of part time work to generate a decent income, and another year or two to really hit the big time. But achieving success with 2 - 4 years of part-time effort beats the widely accepted 'standard' plan of slaving 20 - 40 years working for someone else to make them wealthy!

Most people who fail at network marketing either choose the wrong company or just give up too soon and quit because they expect INSTANT results. But because the real beauty of residual income is on the back end, not the front, once you build it you have the financial security and time freedom to do 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 build long term, passive residual income. If you don't know how to choose the right opportunity, I can help.

A critical component to building long term residual income is offering high quality, high demand, value-priced, 'consumable' products or services that people use and re-order month after month.

Because of this simple fact, the top industry in Network Marketing by any measurable standard is Nutritional Supplements and Personal Care products. Some people refuse to consider this industry because they don't take supplements themselves or don't understand the 'Big Picture' and successful business model of this industry.

Do you think Burger King and McDonald franchise owners invest hundreds of thousands of dollars because they like to eat fast food burgers? Not hardly! They understand human nature and trends in society. We're a convenience oriented society, and a large part of the population would rather eat low cost convenience food, even if we know it's not good for us.

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

I'm not saying it's not important to believe in and use your own products, because it is! But for true success you have to recognize major trends in society, and your products or opportunity must meet ALL the highlighted criteria above - high quality, high demand, value-priced, and 'consumable'. (And in this case, 'consumable' does not necessarily mean just 'edible'. It means used and/or re-ordered on a regular basis.)

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

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

But your business also has to have profit potential. Some 'price-based' products or services have lots of competition and limited profit potential. If you choose a business like that you have to do a lot more volume and it's hard to build loyalty, which is an important element in producing long term passive residual income.

2) LEVERAGE:

Every successful person or business (in or out of Network Marketing) takes advantage of leverage. There's only 24 hours in a day! And no matter how talented you are or how much you get paid per hour, if you don't take advantage of leverage you're limited by the number of hours in a day. By learning to leverage your time, you can also benefit from a percentage of other people's efforts, and dramatically increase your income and freedom.

If you're reading this article on the Internet (on my website or someone else's), or in a magazine, that's one simple example of leverage. I don't have to be physically present to teach you something. I may be sleeping, or vacationing on the other side of the world while you are learning or sharing this information.

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

And instead of worrying about training people to become your competitors, in network marketing the people at the top have a vested interest in helping others on their team succeed.

Again, the question I ask prospects here is:

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

And again, if they answer 100%, either: 1) they're 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 have difficulty grasping the importance of this concept.

Obviously 100% of 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, but your income is not dependent on only one person. If it is, and that person gets sick or injured, disabled, dies, quits working, or decides to go on a long vacation, your income could stop!

But if your income is produced by the activities of many, it is much more dependable. Even if something unexpected or negative happens to one or more of those people, it only has a minor effect on the total production. That's what allows people who understand and take advantage of this to live the lifestyle they choose or get paid while on extended vacations.

It's great to get paid while you're on vacation or doing other things you love! That's one of the many advantages of leveraging your time, and is just one of many reasons so many high income professionals from all walks of life are flocking to get involved in Network Marketing.

Many professionals who make great incomes, get frustrated at the 'bottom line' after putting in long hours just to cover overhead and miscellaneous expenses. No matter how much you earn per hour, if you don't learn to leverage your time, your earnings will always be limited by the number of hours you can work in a day. And nobody wants to work 24 hours! But even with a small network marketing organization, you can produce equivalent results to working 24 hours a day, with a fraction of the individual effort.

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

3) DUPLICATION:

The best illustration I've seen of duplication is the penny-a-day example. It's also frequently used to illustrate the benefits of tax free compound interest.

If you start with one penny, and double it every day 30 days, how much will you have at the end of 30 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 on. How much at the end of 30 days?

I've never had anyone who hadn't heard this before come close. So don't feel bad if you don't, and I promise not to laugh. Ready? Did you pick a number?

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

That's a simple illustration of how networking can work. If I can teach you, I've doubled myself. If we each teach someone else, we've doubled again. And as this goes on and on it can produce amazing results in a relatively short period of time, just like the penny example.

The easier your program is to do and the lower the cost to get involved, the more people you can appeal to and the more potential for geometric progression to work. Programs that are too complicated or expensive for 'average' people to do will always hinder your growth.

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

The Network Marking business model is about a lot of average people doing a little, not a few talented people doing a lot.

While lower cost of entry can be an advantage, many programs that are 'free', don't offer any real potential for significant income, and often attract people who aren't willing to work to build their business. So REALISTIC INCOME PRODUCING POWER is an important area to consider.

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

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

Despite the fact it rarely works in reality like it's illustrated on paper, the principle of duplication is still one of the THREE PILLARS TO SUCCESS with the RIGHT Network Marketing Business Opportunity. With the RIGHT business and these POWERFUL PRINCIPLES, even average people who are willing to work and to learn can achieve their dreams. And above average people may exceed their greatest expectations.

If you can UNDERSTAND and BELIEVE IN those three principles, and find the RIGHT company, you will succeed in Network Marketing. If you're willing to TEACH these THREE principles to a few others, the results might just amaze you!

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

I read somewhere that, "according to IRS statistics, in 1984 20% of NEW millionaires came from Network Marketing. By 1994 it was 50%. It's predicted that by 2004, 70 - 80% of NEW millionaires will come from the booming Network Marketing industry." I don't really believe those statistics. But no matter what the percentages are, certainly many new millionaires are created every year in the Network Marketing industry.

Many positive CHANGES have been made in the industry, and several simultaneous MEGA-TRENDS help make this the best time ever to get involved! The time to start is NOW! But it's important to pick the RIGHT company and industry!

IF YOU UNDERSTAND:

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

YOU'RE MUCH MORE LIKELY TO HAVE ABOVE AVERAGE SUCCESS!

Successful Network Marketing offers many benefits: Passive Residual Income - No Boss - No Commute - No Dress Code - Income Tax Reduction - More TIME for kids, family, hobbies, or whatever is important to you - Above Average Income - and much more.

If I had to sum it up in one word it would be FREEDOM! - Freedom to work as much or as little as you want, to come and go as you please, and to spend more time doing whatever is important to you. Once you experience this FREEDOM, you'll wonder how you ever lived any other way!

There's no free lunch though. It's like riding a bike. If I asked, "Would you rather ride a bike uphill or downhill?" most normal people would say, "down." But in order to coast down the hill, you first have to ride your bike up. Once you start, you may find yourself enjoying the exercise and additional benefits of improving your strength, endurance, and health. The same is 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 of the hill. Some people choose to take a gradual incline and may take a little longer to get there. Others prefer the direct route, and choose to pedal directly up the steepest side. The beauty is, the choice is yours. We can show you the routes, and you decide what's best for you. We'll be there to encourage and guide you every inch of the way.

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

Phillip Dawson is a member of the Renegade University [http://www.phillipdawson.com] and will be able to help you.

Article Source: EzineArticles.com

Robert Kiyosaki The Perfect Business | Network Marketing | Royale Business Club

Does Network Marketing Offer People a Real Chance of Creating Financial Security and Independence

Click Here To Get Access FREE!

This unique business has millions of distributors doing billions of pounds in sales annually. It is conducted in nearly 100 countries around the world. It has been praised by leading business people and also by heads of state for boosting the economy. Yet most people in the UK are still totally confused by it.

Network marketing has created many millionaires and spread that excitement to millions more, but just what are the realities of this business?
So what is network marketing?

Network Marketing is based on the concept of 'networking'. We all have a circle of people we know through the circumstances of our daily lives and each of these people will have their own circle of acquaintances, colleagues, family and friends. Network Marketing involves tapping into these networks not only to sell product but also to offer the business opportunity to potential new distributors who then start the process of developing their own networks for selling and recruiting.

In network marketing, services and products are distributed to the final consumers through a network of independently contracted distributors or agents (also known as consultants). These distributors are then financially rewarded in two ways: a) from commissions and overrides from sales generation and b) for their contribution to the building up of the network by getting new 'recruits' to be downline distributors. The network marketing business model works because of the price differential that is generated from the distributor to the consumer. If the recruits of the one you recruited generate sales, you get a percentage of the price differential for the sales, and so on.

Network marketing is usually associated with pyramid or ponzi scams. This is because the main structure of the two models can be quite similar at first glance. However, if one takes a closer look at the models, there is one big and defining difference between them. The main difference between a legal network marketing firm and a pyramid scam is that the first one offers real products and services, the latter only promises opportunities and generates money from the cost of entry of the recruited members. A pyramid scam re-channels the incoming funds from the fees that newly recruited 'members' pays for entering the scheme and does not generate any kind of profits from other endeavors. The masterminds of the scam benefits while leaving most, if not all, of the downlines in financial burdens.

o As the networks widen, so the individual leader benefits not only from their own sales but also a percentage of the sales from their network. As more people join the network, so residual income increases.
o network marketing allows its distributors not only to network outwards in order to sell the product but also to benefit from their downline's downline, either to a limited depth or ad infinitum. However, the two terms tend to be used fairly indiscriminately.
o As with any other home-based business, distributors need to work hard and have courage and determination. Finding a good sponsor is just as important as finding an interesting product and a good compensation plan which offers flexibility and just reward for effort. Contrary to expectation, the newcomer has the same potential for success as the long-term sponsor provided that the necessary research and skills training takes place. It is not necessary to be 'in at the beginning' and in some cases it may prove more difficult and risky to join at the beginning than to join a plan which has reached a more mature phase. Network Marketing is particularly suited to married women with family commitments as it offers them an opportunity to start a business on a part time basis with very little capital. The opportunity now exists for enterprising women to use their talents and the skills gained from motherhood to build businesses based both on selling and on finding and supporting the efforts of others.

There are 2 trends that are driving this industry forward:
a. General shift towards self-employment.
b. People's quest for a better lifestyle - They no longer want to work 40 or 50 hours a week just to pay bills.

For many people Network Marketing is the only way to Create Financial Freedom in the UK today.

One business magazine wrote "Network marketing is so far ahead of the competition when it comes to money and lifestyle that is in a league of its own."

With a traditional career you only get paid for the hours that you work. When you leave your employment your monthly salary stops and all you are left with is experience and perhaps a pension, which is rarely enough to live on. Network marketing is entirely different - Your efforts are multiplied by helping people succeed with their businesses, so that your investment comes back many times over, to create time and financial freedom. The longer you work at it, the easier it becomes. The more you help others become successful, the more successful you become.

"Network marketing offers people an opportunity to build a business of their own, with a small amount of capital, in their own time and with the help of a sponsor who is willing to help them every step of the way". Prime Time Magazine

As you leverage your efforts you create a 'residual income' - by helping enough people become successful. Over time, you can build a truly passive income that keeps paying you long after you have done the work.

Network marketing offers people an opportunity to build a business of their own, with a small amount of capital, in their own time and with the help of a sponsor who is willing to help them every step of the way". Prime Time Magazine

As you leverage your efforts you create a 'residual income' - by helping enough people become successful. Over time, you can build a truly passive income that keeps paying you long after you have done the work.

Consider this-
According to a study conducted in the USA in 1995, 'Out of 100 people who are working at age 25, by the age of 65...

o 63% are dependent on Social Security, friends or relatives
o 29% are dead
o 3% are still working
o 4% have adequate capital for retirement
o 1% are wealthy

Questions normally asked about Network Marketing .

Q.Can Network Marketing be done successfully part-time?

A. Absolutely...it's very common in fact. You can start your Network Marketing business on a part-time basis without giving up your current source of income until your Network Marketing business is generating the income you require. And the best part is that you can continue to operate indefinitely on a part-time basis. What would you do if you were financially independent and most of your time was free to do with as you pleased? This is why so many people are flocking to Network Marketing. And that's why we say that Network Marketing puts the freedom back in free enterprise!

Q. Do I have to sell products door-to-door or hold parties or meetings?

A. No. One of the greatest features of Network Marketing is that success can be achieved using a wide variety of methods. You choose the methods that YOU are comfortable with. Within Tiscali we use amazing internet technologies . No delivering products, no collecting money, no party plan meetings!

Q. Isn't Network Marketing one of those pyramid schemes?

A. Definitely not. Though Network Marketing and pyramid schemes do share some similarities, there's a very important difference that makes the latter illegal.You see, in pyramid schemes, income is generated solely on the process of recruiting others into the pyramid. Sometimes a product or service of questionable value is involved(that is never retailed to the general public by the way), but generally what you're buying is the right to recruit others into the scheme. This is illegal. Also, in pyramid schemes, those who get in first and who are at the top win, while everybody else loses. In a legitimate Network Marketing company, on the other hand, distributors are paid only on product movement; not on recruiting. Both at wholesale and retail. There's also compensation based on the training and managing of your marketing team. And unlike illegal pyramids, in Network Marketing, no matter where you're positioned or when you join, you can advance to the very highest income levels and even make more money than those above you in the network.

Q. I'm not a salesperson, so this probably isn't for me.

A. Actually, studies have shown that people with no sales experience do great in Network Marketing. In fact, the studies show that they often do better than those with previous sales experience. This is because Network Marketing isn't about selling; at least not in the way most people think of selling. There's no place for arm-twisting or high-pressure techniques in Network Marketing. Rather, Network Marketing is simply about sharing the concepts and products of your Network Marketing company that you use and you're excited about.

Q. How much money can I make?

A. The bottom line is you'll get out of it what you put into it. It works...if you do. But that's the beauty of it, too; you are in control; it's up to you how far you take it. And don't forget, the income you create in Network Marketing is residual. This basically means that for the work you do just today, you have the potential to earn money not only for today but for years to come.

Q. What's so important about sponsoring in this business anyway?

A. It's like this... it doesn't matter how intelligent, rich, energetic, or dynamic you are;we are all limited to the same 24 hours a day. By sponsoring, however, you can overcome this limitation. By sponsoring, you can virtually clone yourself and have dozens, hundreds, even thousands of people all working indirectly on your behalf on their time and receive a cut of everything they do. Sponsoring also builds your security in this business. Why? In most traditional businesses, what happens if you become ill or disabled and are unable to service your customers? Or perhaps you just want to take a nice long vacation? Whatever the case, you could lose most if not all of your income overnight because it relies on you being there. That's not owning your own life and that's certainly not financial freedom.Through the process of sponsoring and building a downline in Network Marketing, however, you can create total financial freedom for yourself. With a downline of independent business people working for you, you no longer have all your eggs in one basket. On the contrary, because each person in your downline has a vested interest in continuing and building their own businesses, you create an income that is non-dependent upon you - an income that can continue, even grow, indefinitely with or WITHOUT you.

Q. Do I have to stock and deliver products?

A. Most Network Marketing companies today allow its distributors (and often even retail customers) to order direct from the company. The company simultaneously tracks your commissions, credits your account, and automatically sends you a check for the total amount due.

Q. Isn't Network Marketing just another "get-rich-quick" scheme?

A. No, "get-rich-quick" is a fairy tale. It just doesn't happen in the real world. Sure, there are a few exceptions, but they're extremely rare. In fact, if overnight riches is your dream, your odds are probably better playing your state lottery than doing it in business - any business.

Q. I couldn't get involved in Network Marketing. It's not a "real" business.

A. It's very real. Network Marketing is now a multi-billion dollar industry involving millions of independent business people and major U.S. corporations like Colgate-Palmolive, Gillette, Sprint, and MCI, just to name a few. And it's a rapidly-growing international force, too, with thousands of Network Marketing companies already in operation in Canada, Mexico, Europe, Japan, Australia, New Zealand, and the Pacific Basin.

Q. If Network Marketing is so great, why aren't more people involved?

A. That can be summed up in one word: misconceptions. The general public just doesn't understand what Network Marketing is or its potential. But that's finally starting to change. Right now it's estimated that only about 2% of the U.S. population is involved in Network Marketing. But industry experts predict that that number could climb to 10% by the end of this decade. You can position yourself to take advantage of this trend by getting started in Network Marketing now. The timing is great for getting involved!

Q. What are the costs involved in starting and operating this kind of business?

A. Virtually all Network Marketing companies require you to first purchase some kind of "Starter Kit." This is a one-time cost, and is usually less than $100. In addition, of course, you'll have monthly expenses for office supplies, postage, advertising, etc. A total of £50-£150 pounds per month is probably a realistic expenditure to expect. Anyone can afford this amount of money without jeopardising their current lifestyle while they're trying to build a better one. And here's some more good news - most, if not all of that, is tax deductible.

Q. What if I can't afford to buy extra products.

A. You're not supposed to. Network Marketing companies just want you to replace those products you now buy elsewhere with the equivalent-but-higher-quality products your Network Marketing company manufactures. By doing so, you'll likely save money since you now get to buy at wholesale. Plus, it only makes sense to buy from yourself - to buy from "your own store."

Q. I've tried Network Marketing before and it didn't work for me.

A. Let's say you've just moved into a new city and you decided to go out to eat that evening. Unfortunately, the food at the restaurant you picked turned out to be horrible. But just because of this one bad experience, you surely wouldn't swear off eating at all the other restaurants in the city, would you? Of course not! Network Marketing is no different. There are fair Network Marketing companies, great Network Marketing companies, and, yes, even some bad Network Marketing companies. But Network Marketing works! You just need to link up with the right company and the right opportunity at the right time. See MLM RockStars.

Q. I don't have the cash right now to get involved in Network Marketing.

A. Get it! If a brand new £60,000 Mercedes were offered to you for £1000, would you find the money somehow to buy it? Go and get the money because your own Network Marketing business could be worth a lot more than that Mercedes.

Q. I can see how others have become successful, but I don't think I could do it.

A. People of every age, every background, from every walk of life are making it in Network Marketing today. If you have the desire, you can succeed in Network Marketing.

Q. If I would happen to be sponsored by someone half way across the country, how do I get questions answered? And what about training?

A. Free consultation and assistance from your sponsor, other upline associates(and often the corporate staff of your Network Marketing company) is a phone call away.Faxes, E-Mail, Voice Mail, and other new technologies also provide fast and efficient communications between upline and downline...no matter where they're located. As for long-distance training, this is easily handled through video training CD's, audio taped seminars, books, online computer and telephone conferences, etc.

Q. I just don't have the time to start a Network Marketing business. I've got too many irons in the fire already.

A. That's precisely why you should consider Network Marketing. Besides creating financial freedom, Network Marketing is specifically designed to create personal freedom for you so that you can do all the things in life you really want to do that you don't have the time for now.

Q. Don't you have to get in at the beginning to make any real money? Doesn't saturation eventually occur?

A. That's another big misconception that's been perpetuated by the media for years. The fact is, there has never been any evidence produced that "saturation" occurs in Network Marketing. This very topic was debated in U.S. courts at one time and that was the conclusion by the courts.Secondly, realise that because Network Marketing is still a very young industry, there are hundreds of millions of prospects worldwide who have never even heard of Network Marketing. It will take years to even make a dent in that.But here's the main reason why "saturation" is a myth: Timing. In the U.S. alone, there are tens of thousands of brand new prospects "hatched" every year.Part of that figure is young adults who have only just reached the stage in their lives where they'd consider (and could afford) to start a business. Then there are the thousands who have just experienced a major shift in the direction of their lives because of changes at work, at home, etc. These same people, who just months before could in no way, shape, or form be considered prospects for Network Marketing, NOW are suddenly very open to the proposition. And this is happening constantly. Bottom line: The market is wide open and the potential is enormous.

Finally, Internationally acclaimed business people agree that Network Marketing represents one of the greatest opportunities in the world today.

I am an independent associate for a Brand Company in the United Kingdom. if you require further information .please contact me on [http://www.comesurfwithme.co.uk]

Article Source: EzineArticles.com

NETWORK MARKETING

Successful Network Marketing Tips - Secrets to Finding and Building a Lucrative MLM Business!

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Are you tired of struggling to get ahead? Are you weary from worrying about how you are going to make ends meet? Would you like to find an avenue that could remove these uncertainties from your life and help you to become financially free? If you answered yes to any or all of these questions, then network marketing may be for you!

Every year thousands of people take the plunge into network marketing and, unfortunately, a large majority of them end up quitting before they really give their businesses a chance to succeed. While there are many reasons why people quit their new ventures, one of the most prevalent reasons is feelings of inadequacy in being able to make them work. One of the biggest reasons for these feelings of inadequacy is lack of training and preparation for growing their businesses. Regrettably, some individuals recruit new team members for inclusion into their network marketing businesses and, once they sign these new members, they do not follow through with them. They do not prepare their new recruits for success by working with them and training them on how to grow their businesses. This is not an intentional faux pas, but more a lack of understanding on how to build winning business teams.

People continuously ask me how they can build a successful network marketing business and what the secrets are to making it work. They tell me they have tried network marketing and failed, but see others that are being highly successful with the very businesses they could not seem to master. With that in mind, I have put together some tips on how to find a network marketing business that is right for you, and how you can make that business a success. While building a lucrative network marketing business is not brain surgery, it does require some key components in order to be abundantly successful. In this article, I will discuss some of these components and why they are essential to building your empire.

Opportunity

If you are looking for a way to improve your financial situation, do not judge all network marketing ventures by bad experiences you may have had in the past, or do not let your lack of experience with network marketing prevent you from exploring it as an avenue for income. Network marketing can be a fantastic opportunity to truly make a difference in your life. The truth of the matter is that network marketing can be a very lucrative way to earn an extra income and, if one is committed to building a business, can be a significant tool in improving ones overall financial status.

A network marketing business can be life-changing if you have the desire, dedication, and commitment to making it work. It is even possible to realize financial freedom through network marketing if you are persistent enough to persevere in your endeavors. You are the one that has to make the decision on where you want to go in life and it is up to you to devise a road map that will get you there. The right network marketing business can be the vehicle that drives you to financial success!

Decisions

You may be asking yourself, How do I know if network marketing is right for me? How do I go about finding a network marketing business that will meet my needs? How can I be sure I am choosing the best company? How can I determine up front if I will get the help and support I need to build my business and move it forward? These are all perfectly legitimate questions, and they are also questions you need to make sure you have the answers to before taking the plunge into the entrepreneurial world. While we will address these issues as we move forward in this article, one thing you must understand is that you are ultimately the one that will be the key to your victory. Up line mentors and team members can provide needed training and support to help you get your business off the ground, but what you choose to do with that training will be the determining factor in your success.

There are some key, essential elements you will need to consider before embracing a home-based business enterprise. Some questions you need to contemplate are, Do I want to control my destiny? Do I want to be my own boss? Do I want the flexibility to work from home (or from wherever I choose to work)? Do I want the time freedom to set my own work hours? If you answered yes to these questions, then network marketing may be right for you. Now ask yourself, Am I serious about owning my own business?

Am I committed to building this business? Can I spend a minimum of 1-2 hours per day building my business? Can I commit to working with a mentor on step-by-step training to help me achieve optimal results in building my business? If you answered yes to these questions, you can be very successful in network marketing. These are just some of the criteria you will need to consider before making the decision to join the world of network marketing. You must do some serious soul searching to find out if you have what it takes to build a financial empire that can set you free.

The Product

Before becoming involved with any network marketing venture, do your homework! First, you must choose a product or products that you believe in and are passionate about. These products must be something people want, and for which there is a high demand. It will accelerate and stabilize your success if these products are consumable, where customers come back month after month to repurchase them. This is what builds residual income.

The Company

Secondly, research the company that sells the product or products of choice. Is it a reputable company with a proven track record? A good rule of thumb here is to look for a minimum of five years in the business. You do not want to associate yourself with a fly by night type of company that is here today and gone tomorrow. Does this company sell proprietary products? Do they have any patents pending? What have they done in the last six months to expand or promote growth? Do they offer a money-back guarantee on their products? What type of start-up money is required to start a business? What are the monthly requirements to maintain the business?

The Compensation Plan

Next, review the compensation plan. What type of compensation plan is it? How does it pay? Does the company offer fast start bonuses or service pools? What are the ways in which you get paid? What type of incentives does the company offer, and how do you maximize the benefits of these incentives? Most companies pay out between 25% and 55%. The difference is in how the money is paid out. As you will be aligning yourself with the network marketing industry to make money, this is a very important piece of the puzzle to research!

Sponsorship and Training

Finally, once you have gathered the information you need on your product(s), the company, and the compensation plan, the next step is to determine the best sponsor with whom to enroll for your network marketing venture. While finding a sponsor will be a relatively easy endeavor (you can call the company and they will put you in contact with a distributor for their products, or you can simply do a search on the internet to find one), finding the best sponsor for your needs may require a little more work on your part. In order to determine if this person can and will provide the training and support you will need to build a successful network marketing business, you must ask them some pointed, in-depth questions pertaining to the commitments they are willing to make to new members that join their team. Do they (or the company) have a training program in place?

How does it work? What type of support can you expect during your first 30 days with their team? Will they train you, guide you, and demonstrate step-by-step proven methods to help you jump start and grow your business? Will you have a mentor to guide you through the learning stages of your new business? Is your sponsor and/or up line willing to assist you with prospecting, closing, follow-up, and training of your new recruits until you learn how to effectively do this yourself? Can you count on their support and expertise to help you get your business up and going? In other words, is this sponsor someone who will work with you and provide you with the support and leadership you are going to need to help you get your business moving as quickly and efficiently as possible? Remember, they have a vested interest in helping you to grow your business.

The more they help you, the more it helps them. The bottom line here is that network marketing is all about duplication, and you want to join a winning team. Successful network marketers will have a system in place for showing their new team members exactly what they need to do in order to be successful. You do not want to waste your time with someone that is going to sign you up and leave you to flounder. If this sponsor cannot give you a commitment to provide you with the guidance and support you will need to successfully launch your new business, look for another sponsor. You have made the decision to pursue an avenue with network marketing that could change your life forever and you owe it to yourself to make sure you team up with a sponsor that is as serious as you are about achieving ultimate success.

The Commitment

Once you have found and secured your niche, it is time to make a commitment. Network marketing is not a get rich quick scheme. While it can very well be the avenue that will lead you to financial freedom, it requires some work on your part. It takes time to build a down line. You have to prospect and close your recruits. You have to follow-up with them and provide training and support (just like your sponsor did with you!) to help them build and grow successful businesses. You have to be willing to put the time and effort into building your business and making it a success. This will not happen overnight. Make a commitment to yourself that you will give yourself adequate time to build your business and not become discouraged and quit. You are not going to recruit everyone you prospect. You are going to get some turn downs along the way, and that is okay. It means you are working!

In order to fully optimize your business success, make a commitment to participate in special training sessions provided by the company, and make every effort to attend the company conventions. These are vehicles that will facilitate networking opportunities with the leaders in your company and keep you excited about your business. Listen in to the corporate business building and product calls as this will accelerate your learning curve about the company and the products.

When you join a network marketing company you need to commit to staying with them for a minimum of six months in order to know if the business will work for you. It normally takes about that long for the average business builder to start reaping significant benefits from all the time and work they have invested. Plus, you have to give yourself enough time to learn the business so you can become a productive marketer. It generally takes about a year to be able to adequately evaluate the success of a network marketing business. Make a commitment to give yourself and your business ample time to flourish. In the long run, you will most likely be very glad you did!

Setting Goals

The next step is to set some goals for yourself. Where do you want to be at the end of 30 days into the business? 90 days? 6 months? 1 year? The purpose of these goals is to keep you on track and moving forward. They provide you with a road map to follow to build your business. Make these goals realistic and attainable, and work to achieve or surpass them at each interval. And, remember, you can update and revise these goals at any time.

You might want to start out by setting daily, weekly and monthly goals for yourself, as well. How many phone calls will you make each day? How many live people will you prospect every day? How many recruits will you shoot for each week? What is the minimum number of enrollments you will strive to make for the month? If you do not reach your goals for the day/week/month, do not become discouraged and quit. Just work harder the next day/week/month. As you get more comfortable with building your business, and as your productivity accelerates, you can revisit your goals and revise them to keep yourself moving forward.

Words of Wisdom

Network marketing is a magnificent tool that can significantly improve and even change your life. If you decide to join the wonderful world of network marketing, make sure you treat it as a business and not as a hobby. You need to develop the mindset that it is a business; it is a business that can end up being your future lifeline if you take it seriously and work it accordingly. Network marketing can be the resource that sets you free!

I hope you have found my article to be helpful, and that I have given you some insight into building a successful MLM business. If you have the want, need, and desire to improve your financial situation then you might want to seriously contemplate network marketing as the medium to help you accomplish this goal. Traveling the road to success via network marketing can sometimes be a bit rocky (especially if you do not meet your goals as soon as you think you should!) but, make no mistake, it is an awesome journey! In addition to the incredible income you can generate, there are many notable perks that also go along with this business. The amazing people you meet, the extraordinary lessons you learn, and the fascinating experiences you encounter are life-changing within themselves. Network marketing is a remarkable experience that I, personally, would never have wanted to miss!

For questions or additional information, or if I can assist you in any way in your network marketing endeavors, feel free to contact me at 1-800-836-4792. Good luck to you in your business ventures!

I am a teacher and Independent Marketing Consultant, and I live in Naples, FL. One of the things I do is teach people how they can make enough money with network marketing to change their lives forever. I am extremely serious about what I do. I show people how they can build a strong residual income, working either part time or full time, and how they can become financially free if they are committed to doing so. I love working with people and I love helping them achieve their dreams!

Article Source: EzineArticles.com

Network Marketing Training with Will Smith

The Truth About Network Marketing - From One Sceptic to Another

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What is Network Marketing

Network Marketing is often called Direct Selling, Affiliate Marketing, or Multi-Level-Marketing(MLM). It is an honest, viable business structure. It is designed to build a marketing and sales force by compensating not only sales made by the individual but also the sales made by the people that individual has introduced to the company. This structure effectively moves the task of building and supporting a sales force away from the company and onto the individual. The company benefits from this because it can focus on the product instead of building a sales force and the individual benefits because it can hire others and make overrides on their efforts in addition to their own. A company can use the structure to create a sales force quicker and easier than traditional means. That may be critical to the company's success, particularly if the company has a new hot product.

What Network Marketing Is Not

Network Marketing is not a pyramid scheme. It is not a scam. A pyramid scheme is illegal, Network Marketing is not. A pyramid scheme is a business setup where the primary and many times the only way to be compensated is to recruit others into the business. In a pyramid scheme, there is essentially no product. Instead you simply sell "nothing" to others in order to get them to join. While con artists will attempt to use the structure as a guise for their pyramid schemes, it doesn't mean all companies that use Network Marketing as a sales structure are themselves a pyramid scheme. In fact, it is fast becoming a recognized structure among business leaders today, including Donald Trump. It has also been used in part by respected companies such as PayPal, AT&T Wireless, Wachovia, and Vonage. It is also not a get rich quick scheme. As with any business, no matter the structure they choose to employ, you have to work to be paid. The same is true of Network Marketing. However, even though it doesn't offer instant riches, it does offer some unique advantages over traditional employment opportunities.

Why Network Marketing

Network Marketing is a not a get rich program but instead a real business opportunity and one that requires real work. That being said, the unique advantages offered by Network Marketing are incredible compared with what's available in the traditional job market. First, you get to set your own hours. You are effectively your own boss. So if you do not feel like working one day then you do not have to. Of course it goes without saying that just because you can doesn't mean you should. But it is nice to know that you could if you wanted to. Another way to look at setting your own hours means that you can literally work as much as you want. You set your business hours and can operate whenever you want. This provides the potential to increase your earnings simply by working harder.

The second great benefit is the ability to work from home. We all hear about the work-from-home scams that are posted on those little signs on telephone poles along the roads. Well, unlike most other work-from-home offers, it truly allows you to work from home, provided you have the bare essentials to do business. By bare essentials, I mean a phone line and a computer if you need one. But you should consider that while working from home sounds great, it does require a certain level of self discipline to keep focused and get some work done.

Finally, the single greatest thing is the truly amazing opportunity that exists when they first begin. Imagine being there when Bill Gates decided to start Microsoft or when Google was first starting up and actually having a chance to join. Network Marketing provides that same kind of opportunity. Of course joining a Network Marketing company can be beneficial at any time but it is exponentially true when the company is just starting out. The expression of get in on the ground floor has a certain truth to it when regarding Network Marketing companies. This is mostly due to the fact that the earlier you get in, the more people you will have under you. That isn't to say that you shouldn't join a company that is well-established and been around for a while. For example, Mary Kay is still a viable business and you can make some money in that company. However, you have to consider that to get into the company you will be going underneath someone and that person is underneath someone else and so on. Imagine being that first person way up the chain that has thousands of people below them. That is the opportunity that exists by getting in early with a company.

Examples of Network Marketing Gone Wrong

Networking Marketing companies, like any other business out there, can be fraudulent, unethical, and in certain cases just plain scams. However, when a single business is caught in a scam, say an investment banker, it looks bad for the investment banker but not necessarily for investment banking as a whole. The same is not true of Network Marketing. When one Network Marketing company is caught in a scam people take the assumption that this one bad company represents all Network Marketing. We have all heard of people getting scammed by Network Marketing companies that go out of business, never end up paying out, or simply prove too hard to make a profit in. I'd rather not point fingers but a certain MLM comes to mind. This particular company recently boasted in a national magazine that they had sales of over $2 billion dollars a year. Right below this they said they had over 1 million distributors. For those who can divide, that's only $2,000 per year per distributor. That's assuming all distributors were performing the same. In reality, the top 5-10% made decent money while the rest made pocket change or even lost money. In an Independent Business Owner Compensation Plan released by the company itself, it stated that the average distributor earned $115 per month or $1,380 per year BEFORE taxes. Folks, that comes out to about $.69 cents per hour for an average 40 hour a week job. And these people paid to join the program! The good news is that not all Network Marketing companies are bad. There are indeed some very good, honest, and reputable Network Marketing companies out there. Many of which can earn you a decent living with some work. The key to avoiding these kind of Network Marketing disasters is to do some diligent research, run the numbers, use your head (too good to be true and it probably is) and make a sound decision before signing up with any company.

Examples of Real Network Marketing Success Stories

Like I said, not all Network Marketing is good, but not all is bad either. You can find several examples of successful Network Marketing companies out there. The key difference with a successful company is that it has a real product to sell. For the company to be successful with the Network Marketing structure, it must focus on the product. One such example is Mary Kay. Mary Kay started in 1963 and has since grown to a trusted global name in skin care, makeup & body care. It is an impressive organization in terms of volume and size. Mary Kay serves as one the few examples of a successful self-consumption company. In my opinion that is because they have a solid product that there is a demand for. Mary Kay offers some unique compensation to its beauty consultants including the very original pink Cadillac. Of course to earn the Cadillac requires you to achieve a certain level of success within the company. However, General Motor's estimates that they have built over 100,000 pink Cadillacs for Mark Kay.

Another great success story is that of Art Williams and his A.L. Williams company which later came to be known as Primerica. Art Williams was a football coach from Georgia. He happened across the idea of replacing old whole-life insurance with term life insurance (which is cheaper) and investing the amount you saved from switching. On a coaches salary, Art had very little chance of getting a company started with traditional means. He instead adopted the MLM or Network Marketing model. This allowed him to hire and train additional part and full-time individuals to help market his product. Using the power of Network Marketing, Art Williams went on to sell billions of dollars worth of insurance surpassing the top two insurance companies combined. Today the company has over 100,000 independent representatives and Art himself has a net worth of $1.4 billion. I have several people who I know that have made millions with the A.L. Williams company. You'll hear more about them later. For now, just know that A.L. Williams is the perfect example of how a company with a great product can use Network Marketing to become hugely successful.

How to Choose the Right Network Marketing Company

One of the first things you should do when entertaining the idea of joining a Network Marketing company is research. Find out about the company and what it is offering. As with all real businesses, the product is the key. The company has to have a great product that people are willing to pay for. If the product is not great than neither is the opportunity. Try to put yourself in the customers shoes, would you buy the product? If so, is it affordable compared with the current market? Take the time to research and fully understand the product. Test the product if you can. At the very least try to get some real life feedback from existing customers who have bought the product. Doing so will put you in a position to make an educated decision about joining.

As a general rule, there are certain types of Network Marketing companies that you should avoid. The key among those are businesses without a product. That is, you make a majority of the money from recruiting. These are shady MLM companies that are closer to a pyramid scheme than a real Network Marketing company. The second and perhaps more important to avoid is the self-consumption companies. These types of companies depend on you to buy their product as well as sell it. Do NOT invest in these types of companies unless you absolutely love the product and can afford it. Otherwise, you will eventually run out of "friends" and family to market to and will end up with a garage full of "product" and no one to sell it to.

Even with a great product a company still finds that a capable management team is essential to long-term success. Before joining a company, do some research on the founders. This is particularly true of new companies. Find out who is behind the curtain and if they have a reputation, good or bad. You are looking for people with a proven track record and lots of experience to make this company work. Another consideration is if the management team has a plan to manage growth. I've seen several Network Marketing companies with a great product, build a sales force just to collapse under its own success. The company should be upfront and honest about what plans it has to prevent this from happening. These should be real concrete plans and systems that are in place not just a "we have it covered". Funding is very important as well. While it is true that Network Marketing companies are easier to start they do take funding to keep going and maintain. Particularly in the beginning when sales are slow and people are just coming on board. And as history shows us, there may well be times when the company needs more money to operate than it is making. Having a management team with access to capital is crucial for long-term success of the company. Most of the companies you hear about going out of business were founded by people without sufficient capital. The last and also one of the most important parts of picking the right company is to evaluate the compensation plan. That's what Network Marketing is all about right? Making money and hopefully lots of it. So you have to make sure the compensation plan is viable, realistic, and still profitable. Never join any Network Marketing company that isn't up front and honest about their compensation plan. Always demand to see it and demand that any point systems be fully explained with realistic examples.

Can you make money without recruiting people. That is a key question to ask yourself whenever you are introduced to a new compensation plan. Even though you are (or should be) planning to build a sales team, it's important to know that you can make decent money without doing so. For this to work, the commissions offered by the company have to be sufficient. Depending on the price of the product and the amount of volume you expect to be able to sell the commission will differ. As a rule, you should be very wary of any compensation plan offering commissions less than 20%. Obviously, the higher the commission the better. Almost as important as the initial commission itself is the idea of a residual. Does the compensation plan allow for residuals? It effectively allows you to stack your work. In other words, you can sell something once and continually be paid on that sell every time the client renews. Residuals allow you to build true wealth by earning money on work you already did. That's exactly how the guys at A.L. Williams got rich. To this day they continue to receive checks on policies they sold more than 10 years ago.

The final question related to the compensation plan is how does team building work. It's important to have a full understanding of the mechanics used in the system. If they use points you need to grasp exactly how points are earned and how they convert into cash. If they use a binary or front line system, you need to understand the rules of both. Again, the company should be very upfront about how their team building works and how you are compensated for it. I'm not usually too interested in the team building because, as a sales man, I usually go after selling the product and consider the team building to be just an added bonus. However, if you are a big networker or well connected, the team building can earn you more money. By hiring and training the right sales people, you can build a very profitable team and earn more money than you could possibly earn just selling yourself.

Do Your Research, But Hurry!

As I said, you can have success by joining a well-established company. However, if you can manage to find that rare company with a solid product and good management that is just getting started then you should research quickly and jump on it. One key to easy success in any company is getting in early. As the company grows, super stars and rock star marketer will take notice and be recruited into the system. If you can get into the system before them they will be working for you and that can mean a lot of money. The longer you wait the more saturated the market will become and the harder it will be to make money. Time is money no matter what business you are in but it is particularly true in MLM. Once you join an MLM you should within two weeks recruit two other people and sell the product at least once. This is absolutely essential to your long term success with the company. Something about getting that first sell and hiring those first two people just makes it so much easier. Trust me, if you do this you will find the rest seems to just fall into place.

Michael Minton is a professional Internet Marketer. He's developed a system that combines network marketing with the power of the internet. To find out more visit Michael Minton here.

Article Source: EzineArticles.com