First thing to do is get clear on Network Marketing & MLM. There is no difference between Network Marketing & MLM. They refer to the same thing. It is 2 different ways of expressing the same business model. By network marketing we refer to the fact that we work within a Network of people. By MLM we are referring to the different levels within our organization on which we get paid. MLM has a negative perception & connotation in the media. Network Marketing & MLM are the same thing. Today most people refer to it as Network Marketing.
Network Marketing is a Business Opportunity. You get an opportunity to start your own business and you need to relate to it as such. Most people who fail in Network Marketing because they do not relate to it as a real business. Most Network Marketing companies have a startup cost of $500 or less. Most businesses startup costs are $100,000 or more. The fact that Network Marketing business is a bargain should not be the cause of you treating it like it has no value. You need to be the same way as if you had invested $100,000.
Listen to Robert Kioysaki, author of Rich Dad Poor Dad. He and Donald J. Trump have partnered up to promote Network Marketing.
It is a relationship business; it is about helping people build a business and focusing on customers for your products and services. Network Marketing really is an unseen business and it is all about referral sales. Its something we already do everyday but have not been getting paid for. For example: have you ever referred a good movie or a restaurant to a friend? Did you get paid? Well in Network Marketing or MLM you get paid for referring people to your products & services. Every time you refer someone and every time they pay for the service or product you get a percentage.
That is referred to as residual income. You acquired a customer once and then every time they use the service you get paid, month after month, year after year. Its the same as Jerry Seinfeld, he has stopped making his shows in 1998, yet every time an episode airs on TV he gets paid. Another benefit of this way of doing business is that you have an opportunity to build a team. You recruit others who want to join you as a business partner. Not only do you make money from your customers, you also make a percentage of your team’s customers. Now you are using the key wealth principle of leveraging your time. There is absolutely no limit to the number of people that can join you and no limit on the number of customers you & your team can have. Some companies have “Bonus Plans” in place where you get a bonus when a new Representative joins your business either through you or indirectly through someone you recruited.
Jean Paul Getty, The worlds first Billionaire and founder of Getty oil said “I would rather earn 1% off a 100 people’s efforts than 100% of my own efforts.”. This is the basic wealth principle. This how the rich make money and this is the underlying principle in a good Network Marketing company.
It is businesses in which anyone can invest a small sum of money and through sheer tenacity achieve staggering levels of financial reward and personal freedom. But it requires education based on market tested results. The biggest reason why people fail in Network Marketing or MLM is the lack of training. Before joining you must find out what training the company provides and what training & support the person that is recruiting you will provide. Ask them “Are they willing to hold my hand, go shoulder to shoulder and take me through step by step until I am successful”?