So, what is this? What is this Network Marketing thing I have been talking about? That so many people talk about and so many people think they know all about it? And even more people think is bad, illegal, colt, pyramid and so on and so forth?
Well I am not going to get into the deep details or into the deep legal issues involved. I have danced in the dance floor and I love it. Those that are outside can say anything they like. Unless they come in and experience the pulse of the music, they can say their bla bla bla. I will tell you my version of the story and through my research and experiences what I feel.
Network Marketing has been around forever in various shapes and forms, but modern Network Marketing or Multi-Level-Marketing or Direct Sales or Referral Marketing, some say is being around since the 1920’s. What’s the story behind this? These companies have their product and/or service that want to promote, just like any other company. The big difference is in the way of promoting their product and/or service. Instead of typical advertisements on all media types, bombarding people with adds all over the place, Network Marketing companies compensate their distributors for doing so. And there are numerous types of compensations plans, depending of course on each company. Clearly, if there is no product and/or service to be promoted, this is illegal. If ever approached by anyone that does not offer a product and/or service and asked to join their company, simply RUN AWAY FAST and call the police. Period.
Where does the money come from
A big issue is where the distributors are making their money from. There should be no commissions paid for recruiting distributors but ONLY for selling the company’s product and/or service. And here is where the big difference is. In the way each company advertise and promote their product and/or service. Network Marketing companies pay their distributors for this but Corporate companies spend money on advertisements. Everything else is basically the same: structure and offices.
There are many types of compensations based on each company’s product and structure. Some companies ask you to build an X amount of teams of distributors in order to get into higher ranks and so on. Each company has a hierarchy which looks like a tree or a pyramid or triangle or whatever you would like to call or visualize it to be like. Just like all companies, there are different management levels like the CEO, Regional Managers, Area Managers, Branch Managers, and Workers. In Network Marketing companies each individual is the CEO of his organization. The more people he has in his system, based on the compensation plan of his company, his ranks advances. In corporate type companies the worker is impossible to get more money than his supervisor or manager or CEO. In Network Marketing, a person that just enrolled can surpass even his sponsor because he produced better results faster. An even better example, his sponsor could have left the company but he remains and works and succeeds! Isn’t that beautiful? EVERYONE starts from zero but EVERYOENE has the same potentials. So, is up to each person to work his way through and succeed and/or fail. And the only way to fail is by quitting. And people quit from everywhere as well as from Network Marketing companies: people quit their jobs, from universities, from marriages, from religious beliefs, from anywhere.
Success in Network Marketing is based on results and NOT on who got in the system first. Here, each person is rewarded based on his results and not on what he does or does not do. Typically in the corporate world the people are rewarded based on their time spent in the company, irrespective if they produced what they should or not. What are the potentials of success here versus the corporate ladder? Simply have in mind that most self made millionaires are created through Network Marketing companies. The corporate world ladder typically has a lid and does not allow people to earn more. Not the case in Network Marketing. Big difference!
These are some of my thoughts on Network Marketing in general. In upcoming blogs I will be talking in more detail about my experiences with this huge and very interesting subject that many people misunderstand. It can change many people’s lives, as it has changed mine!
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