Why Network Marketing?
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 that are critical to your success.
The Three Pillars of Success in Network Marketing are:
- Residual Income
- Leverage (of Time and Money)
- Duplicability or Geometric Growth
Network Marketing is a term that refer to a 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 is the only business model 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.
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 I 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?!
Passive Residual Income
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. 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.
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!
Geometric Growth
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.
The Right Solution
One does have to look far and wide to find a Network Marketing model and product line to satisfy our above requirement. But there is such a beast out there. Statistics show that there are 79 MILLION people looking for something out there to make a difference. See here one way where folks are making a difference and earning a six figure income along the way.