Network Marketing, Multi Level Marketing, MLM, What is the difference? The names may differ but they refer to a system that is one of the fastest growing methods of moving products or services in the world today. It is similar to any business that hires people to sell a product and earn commissions but, without the huge financial and time investment it requirements.
There are a lot of misinformed people as it pertains to this subject so I want to clear up the myths, lies and the prejudice
Network Marketing is a simple method of distributing products and services... It has nothing to do with the company or type of company that you are with. it is simply that the company has chosen Network Marketing as it's business model. This business model is the company's preferred sales and distribution method. Instead of the company setting up house sales force to market the product or service, they allow people to independently sell/market it. In a `conventional' business, a company will spend millions of Dollars, training salespeople and advertising its products or services to potential customers.
* How much do you think an advertising campaign on TV, or a campaign in the daily newspapers, costs?
* Or full page glossy features in magazines with superstars earning millions for their endorsement of trainers, golf clubs, anti aging skincare products, clothing?
* Or the cost of cosmetic counters in departmental stores with demonstrators giving free makeovers or anti aging skincare testing?
In a `conventional' business, a company moves its products through a string of outlets, all of which incur running costs and additional profits which all have to be added to the final cost. The result is that all these additional costs can equate to 85% or more of the final price paid by the eventual consumer. In Network Marketing, the company usually deals directly with the end consumer or via independent distributors - either way the independent distributor who referred the customer will receive commission every time that customer buys. This method reduces the overall costs and allows the company to pay commissions to its distributors. This often allows the company to produce better quality products / services at very competitive prices and still receive a high profit margin which they share with distributors.
Which of the following options do you think would be the one that would get YOU to buy Product X?
1. A total stranger on a TV advert telling you that Product A weight loss product is the greatest of its kind in the world, or2. An advert in a national newspaper telling you that Product A weight loss product is the greatest of its kind in the world, or 3. A friend who you trust, recommending you buy Product A weight loss product because they have personally used it and believe it to be the greatest of its kind in the world
For most, it would be option 3, 'a friend who you trust that had personally tried and recommended Product A weight loss product'. Tens of thousands of companies use the incredible power of personal recommendations and either have MLM divisions of their own or offer you a gift or incentive to recommend their products to others. How many times have you recommended a movie or a restaurant and then have the manager of the establishment pay you a commission? I bet it's NEVER! Well, in Network Marketing you DO get paid for recommending your company's product or service to someone. And, usually, you get paid every time that person spends money with your company. There are two types of people in this world:
* The ones who pick up a check every month for recommending products / services
* The ones who do not pick up a check every month for recommending products / services
Which one would you rather be? Now, so far this sounds like a direct selling operation paying commissions to self-employed agents doesn't it? Of course it does! Well here is the BIG difference: You want to earn extra money when you introduce like-minded people who also want to earn extra money, you will earn a continuing commission on THEIR EFFORTS, too - and on the efforts of the people that they bring in! In most companies, this goes on for several layers of people- now that is powerful! You are basically developing a network of people and leveraging your efforts and money and their efforts and money in the same way that a Sales Manager would get an over-riding commission on his/her team's efforts. The difference is that you could have people in your network that you earn from even though you have not personally introduced them all - and probably will never have contact with them either! This is typical for Multi-Level Marketing (MLM). For example, If I introduce six people into one of my businesses and I teach them how to do what I do, in 8 months my business could grow to over 18,500 people. In a MLM, I would earn income from most of them - but all I did was introduce six people and taught them to do what I did! As I already said at the beginning of this article...
IT IS HANDS DOWN THE GREATEST INDUSTRY IN THE WORLD!
Be part of it! Go to www.silverwealthnetwork.com
