MLM Network Marketing Basics: The Real Defination

Wednesday, October 13, 2010

        Network marketing is commonly known as multi-level marketing or MLM. It is part of the direct selling industry and is run as a business-distribution model that allows a parent company to market its products directly to consumers through a large network of distributors and consumers, thereby bypassing the middleman.

Network marketing is also known as a relationship business. In order for a person to succeed in this business model, you have to first of all help the people in your organization succeed. Then only will you be able to succeed. It is basically a 'people helping people' business.

Mention network marketing or MLM and many people will think of pyramid schemes and scams. A company is considered as a pyramid if there are no products or services offered or the distributors make money just by recruiting more distributors. This is illegal.

Most network marketing companies allow you to start a home business for just a very low capital. This allows more people to get involved. What is great about this type of business model is that for those with good compensation plans, it allows you to build your organization successfully and leverage upon the time and effort of others, whilst generating residual income.

As network marketing is all about sales and distribution, it is important to continuously prospect and generate leads for your home business. Prospecting is the lifeblood of the MLM business. Rather than just approaching any Tom, Dick or Harry, you must be able to identify your target market and market to your target market.

It is imperative that you communicate with your target market and build a great relationship with your leads before you start selling your products, services or mlm business opportunity to them. Since mlm is also defined as a business of moving products, targeting your target market will help you to move more products. Remember to always listen to what they have to say and pitch your offer according to their needs and desires.

At the same time, as your success is determined by how successfully you grow your organization, training those in your organization to do what you are doing in order to succeed is of great importance. If you miss out on this aspect, or do not do it well, you will not be able to leverage on your organization. It will thus be difficult for you to build your residual income.

In network marketing, you are in the business for yourself, but not by yourself. You will have a team to help you out. Thus, you do not have to worry that you are working individually. Although you are building your own business, you are not alone and if done correctly, you will be able to make good money by leveraging on your organization and earning a solid residual income.

Above picture describe the difference between traditional product movement & product movement through the network business.

See what people saying about Network Marketing worldwide.

"Success in this industry is not in finding the right person, but in becoming the right person." -- Dr. Forrest Shaklee, Founder of Shaklee

“Downsizing trends and the changing global market require people to reinvent themselves and think like entrepreneurs.” -- Les Brown, Author and Motivational Speaker

“I would rather earn 1% off a 100 people's efforts than 100% of my own efforts.” -- John D. Rockefeller, Businessman

“Of all the entrepreneurial opportunities available today, one of the most important is direct selling, also called network marketing.” -- Paul Zane Pilzer, Nobel Prize Winning Economist and Author

“You can get everything in life you want if you will just help enough other people get what they want.” -- Zig Ziglar, Author and Motivational Speaker

“You must as a Leader have a plan, a step by step trail, and direct your people down the MLM Power Path.” -- Doug Firebaugh, Network Marketer and Trainer

“Network Marketing is an equal opportunity opportunity.” -- Michael S. Clouse, Network Marketer and Trainer

“We’re in the midst of a boom in home-based businesses, and it shows no sign of slowing.” -- Paul Zane Pilzer, Nobel Prize Winning Economist and Author

"If I had to do it all over again, rather than build an old style type of business, I would have started building a network marketing business." -- Robert T. Kiyosaki, Entrepreneur and Author

"If you are a person with big dreams and would love to support others in achieving their big dreams, then the network marketing business is definitely a business for you. You can start your business part-time at first and then as your business grows, you can help other people start their part-time business. This is a value worth having - a business and people who help others make their dreams come true." -- Robert T. Kiyosaki, Entrepreneur and Author

“Home-based businesses are one of the fastest-growing segments in our economy, and that trend will only continue, as the age of the corporation, which began barely a century ago, now gives way to the age of the entrepreneur.” -- Paul Zane Pilzer, Author and Nobel Prize Winning Economist

"What you sow, you reap. It's a law of nature. Network Marketing is perfectly aligned with that. You get truly, EXACTLY what you're worth! No nepotism, no favoritism. That's rare today." -- Bob Proctor, Speaker and Author

“When I read in Fortune magazine that Warren Buffet, the billionaire investor and one of the world’s richest men, was investing in a direct sales (network marketing) company, I decided I was missing something.” David Bach, Author and Financial Columnist

“The future of network marketing is unlimited. There's no end in sight. It will to continue to grow, because better people are getting into it. They are raising the entire standard of MLM to the point where soon, it will be one of the most respected business methods in the world.” -- Brian Tracy, Author and Motivational Speaker

“I am often asked if Network Marketing is a Pyramid Scheme. My reply is that corporations really are pyramid schemes. A corporation has only one person at the top, generally the CEO, and everyone else below.” -- Donald Trump, Entrepreneur and Author

Labels:

0 comments:

Post a Comment