Your Ultimate Guide to Network Marketing
LEARN ALL ASPECTS OF NETWORK MARKETING AND HOW YOU CAN BENEFIT FROM THIS BUSINESS MODEL
In the network marketing space, there are a few thousand companies using this business model. All of them proclaim that their products are the best, the compensation plan pays more than anyone else and it can get pretty confusing. Of course, the reality is usually quite disappointing, when compared to these grand promises. Here, you'll find the information that will clear up any misconceptions and I'll provide you with my best advice for you.
On RickBillings.com, you'll discover reviews of the network marketing business model, things to consider before joining a company and how to create success using the power of the internet.
What is Network Marketing?
It's a marketing strategy for the sale of products or services where the revenue of the Network Marketing company is derived from a non-salaried workforce selling the company's products/services, while the commissions earned by its representatives is derived from a compensation plan.
There is NO CAP on your earning potential in Network Marketing no matter when you join the business. That is why in my opinion it's 'the perfect business model'.
Why Network Marketing?
People often ask why network marketing is a better way of making money than a job or a traditional business. Having done both to make money, I have a simple explanation as to why I believe network marketing to be the best vehicle out there for the average person to create a better lifestyle for themselves and their families. I have broken down the ways people make money into three basic vehicles and, to help you remember, I will explain the advantages and disadvantages of each using the following analogy.
1. The Bicycle (a job)
This is the vehicle that most people use to get where they want to go. The reason a bicycle is so appealing is primarily the comfort level. Bicycles are easy to obtain, and if you lose one it's not very difficult to get your hands on another. Typically not much thought is required to ride a bicycle one you get the hang of it. They are little to no cost financially to own and it's easy to settle for this vehicle because most other people are on bicycles as well. The issue with this vehicle is that it takes forever to get to where you want to go. Imagine your favorite destination and how long it will take you to reach them with a typical job. Most people have to work 30 to 40 years with a job just to hopefully have the possibility of retiring and that is if they are lucky and
something unexpected doesn't happen suck as a layoff or a downsizing. Although there may not be much financial cost to owning a bicycle, the real price is how much of your time and/or energy and effort will go to the vehicle, and there is still no guarantee of getting to your destination.
2. The 2000 Corvette (traditional business, real estate, sales, etc.)
Sometimes people realize that the bicycle is to slow or they understand that it will never allow them to reach their destination in their lifetime. Many who understand this tend to trade their bicycle in for a 2000 Corvette. The 2000 Corvette is very appealing because it has the potential to go so much faster than a bicycle. You can arrive at your destination in a fraction of the time, and just the thought of being in a Corvette versus a bicycle is very exciting. This is the route I took in 2000. What's the downside? It was made in 2000 so it can be a very unpredictable vehicle. The Corvette may run great in
the summer, but terribly in the winter. With traditional business, your business may run great when there is a great economy or when you are on your game working 16 hours per day...but what happens in the winter (bad economy)? Your vehicle may stop working completely. It can be an absolute drain of your time and cause you to sink all of your money into it just to keep it working. Even though the nature of the Corvette is to be much faster than the bicycle, the downside is there are so many things outside of your control that can completely destroy your vehicle. When this happens. most people go back to a bicycle and have to start all over from scratch once more, slowly heading toward their destination.
3. The Leased Jet (network marketing)
The jst is the fastest of all vehicles the average person can choose to reach their destination. Regardless of where you want to go, there is nothing out of reach of the jet and it will get you there fast...once you learn how to fly. The reason network marketing is classified as a jet is because of these five characteristics.
- Residual Income (The ability to do the work once, yet continue to get paid over and over)
- Leverage (The ability to get paid on the efforts of others vs. just your own)
- Proven System (Franchise model has an 80% success rate vs. 80% failure trying to figure it out on your own)
- Mentor (The most important thing is having someone who had mastered the system and it willing to teach you step by step)
- Low startup cost (with most opportunities costing less than $500 to $1,000 to start, the amount of risk is greatly reduced over most businesses out there).
When you have these five things all together, you have a jet. An added benefit, however, is that you get all of the benefits of the jet without having to personally spend the millions of dollars to but the jet yourself. That's why we call it a "leased" jet. You won it without have to but it.
With network marketing, you get the benefit of having a multimillion-dollar opportunity at your fingertips without having to personally spend millions yourself trying to create the company.
With the power of a jetat everyone's fingertips, why don't more people take advantage of it? Most likely it's because in order to fly a jet you must obtain a pilot's license. Unlike the bicycle and the Corvette, learning to fly a jet is much more difficult and requires that you learn and master some skills before you can fly the jet to your dreams. There skills can take time to acquire. It's so sad to see people get into the jet, go to the cockpit, take one look at all the buttons and dials, then get overwhelmed thinking it's impossible to ever become a pilot and then trade in their jet to go back to a bicycle. Here's the good news: Even if it takes you five years to master these skills and get your pilot's license, the jet will still get you to your destination much faster than a bicycle or a Corvette.
The Power of a STRONG Reason WHY!
A young student approaches his mentor one day and asks: "Sir, How do I become successful? It seems I am missing something. I have tried different businesses, I have worked hard, I am great with people and I know how to focus, but it seems everything I try never works out the way that I plan." The mentor looked at the student for a moment and said, "Let me tell you a story..."
It's Thursday morning and Roger rises slowly out of bed. His bones aching and head spinning, it takes a good 10 minutes just to get his feet. His wife and daughter are still asleep. He walks slowly to the bathroom and next to the mirror there is a scale. He hops on just like every morning for the past 15 years. It reads 589 pounds. He is 39 years old and has been battling obesity his entire life. He hasn't weighted less than 400 pounds since he was 19 years old.
Roger had tried every diet, every exercise regimen and every weight-loss program out there. Thousand of useless dollars down the toilet, he thought. He started thinking of how hard he had tried over the years. He truly gave it everything he had and regardless of effort, he never managed to lose more than 40-50 pounds, and it always came back shortly after. Depressed, he finally just accepted the fact that it's just not possible. Maybe my body type and metabolism won't allow me to lose weight, he mused.
One night, Roger and his family were out having dinner at their favorite restaurant and he looked up and saw an uneasy look on his daughter's face. She was 12 years old and she was his world. Moments later she collapsed and passed out at the table. The police were called, and a few moments later an ambulance arrived to take her to the hospital. Roger and his wife rushed to the hospital, scared to death, and prayed dearly that she was OK. They were in the waiting room for about an hour when the doctor came out with a worried look on his face. He explained that their daughter was stable but there was a big problem...her kidneys were failing and although she was on dialysis, she was going to need an immediate transplant.
Roger, still in disbelief, immediately offered to be a donor for his daughter. The doctor modded and the workups began for the transplant. But a few moments later the doctor came in and had a sad tone in his voice. He informed Roger that the workups came back...and the news wasn't good. Due to his weight, it would not be possible to perform the procedure and Roger could not donate his kidney to his daughter. It would be too dangerous and they simply could not take the risk. Roger, holding back tears of disbelief asked the doctor a simple question.
"I have to be my daughter's donor. How can I make this happen? How much weight would I need to lose and how much time do I have for this to work? The doctor, looking concerned, informed Roger that to even consider the procedure, he would have to lose 250 pounds in the next five months.
The mentor looked at the student and asked him a simple questions.
"Do you believe Roger lost the weight?"
The Student replied immediately. "Of course he did."
"Then there's the answer to your questions," the mentor wisely replied. "If you can truly understand why he lost the weight that time and not all of the others times, you will truly understand how to be successful in anything you pursue in life."
It's never the "HOW." It's always the "WHY" that hold people back from their dreams and desires.
What's your why?
If the "why" is big enough, the "how" is easy. Your why will keep you going when things get tough. It's best to make it specific, emotional, and something worth sacrificing for.
The Fortune is in the follow-up...
% of Distributors WHo Follow Up
Number of Follow-ups
Percentage of People Who Join
Follow-up is critical for your success!
"It's a Pyramid!"
A simple explanation for understanding the difference between Network Marketing and a pyramid scheme.
We are including this objection because it is common. Many new distributors don't fully understand how to handle this objection because they often don't have a simple answer themselves.
Remember: Network Marketing and a pyramid scheme are two completely different things.
A perfect example of a pyramid scheme is the lottery. Millions of people put money into it. You get nothing for your money. One or two people win and everyone else loses. And yet that is totally legal and accepted by society.
Regarding network marketing however, the difference is simple.
A pyramid scheme is where you are making all of your money from recruiting others. There isn't a real or tangible product or service being offered, and if there is one, it's usually not valuable and nobody within the organization is really promoting sales. When the entire focus is recruiting and not getting customers, or when everyone is only talking about joining the team and never the value of the products or services, this should set off some red flags.
Network Marketing is nothing more than a franchise built through online stores instead of buildings. Think about it this way:
McDonald's, Starbucks, Wendy's, Dunkin' Donuts, do TWO things...
- They want customers.
- They are recruiting new people to become franchise owners in order to build distribution so they can acquire more customers.
Network Marketing is the exact same concept but instead of opening up buildings to build your distribution, you build a team of online stores. The powerful thing about this is that you get all of the benefits of the franchise model (mentorship, a step-by-step system, proven track record, residual income, leverage) but without many of the headaches (overhead, inventory, building costs, employees, business license, etc.).
And you get some added benefits to being online. There's usually a relatively small startup cost, you are open 24/7, and with many companies you are able to do business globally from day one.
Many people think legit opportunities are pyramid schemes just because you are recruiting people, when the reality is the greatest organizations in the world are always recruiting; such as the Navy, Army, Marines, NFL, NBA, MLB, every real estate company, every mortgage and insurance company, every tech company, etc.
Recruiting is nothing more than building a family/team of like-minded people to pursue a common goal or objective.
So the next time someone tells you that your opportunity is a pyramid, respectfully help set them straight by showing them how the most successful business models of today are employing the same business practices...and succeeding!
Network Marketing is a Powerful Business Model
- 1TAX BENEFITS
- 2STARTUP COST — Low startup cost vs. a traditional business- a) typical MLM <$500 dollars to join- b) average cost to start a traditional business: $30,000
- 3PROVEN SYSTEM — Franchise model has an 80% success rate vs. and 80% failure rate to start your own.
- 4PART TIME — Can be done part time and from home.
- 5NO EMPLOYEES
- 6GLOBAL — Global opportunity potential reach.
- 7LESS OVERHEAD — You don't have to increase your overhead to increase your income.
- 8POPULAR — Perfect business model to capitalize on the explosion and rising popularity of social media.
- 9IMMEDIATE ROI — You earn while you learn.
- 10TOTAL CONTROL — Can typically will the business, sell it, or transfer it.
If I had a few minutes with you to help you understand what I believe to be some of the most important attributes, activities and skills to be successful, this is what they would be.
BELIEF: Understand this is a business about belief. It's your passion, posture, belief and enthusiasm that attract and influence others. Every time you talk to someone, you're either buying or selling. Your buying their story about why it won't work or you're selling you story about why it will. Who has the most influence? The person with the greatest level of belief will have influence over the other. They key to belief is to stay plugged in. THis means attending events, listening to the conference calls and especially doing the business.
CONSISTENCY: If you're not consistent you're starting over all the time. Be consistent with your time. Consistent in your activities. Consistent in your message. Consistent in everything you do.
PERSONAL CHECK UP: Ask yourself, "On a scale of 1 to 10, how am I doing? What am I doing well? How am I doing with my prospecting? With my follow up? With my three-way calls? Where do I need to improve?
FOCUS: What we focus on becomes our reality. If you focus on problems, you will have problems. If you focus on success, you will have success. Focus on doing the right activities and on doing them right. At least once a day ask yourself, "What am I focused on?"
YOU ARE THE EXAMPLE: Understand that everything you do set an example of what others think they should do. You teach far more by what you do than by what you say. Be and do the things you want your team to do.
MINDSET AND PERSONAL DEVELOPMENT: This is even more important than all the rest. As Earle Nightingales says, "You are what you think about". As Jim Rohn says, "Work harder on yourself than you do on your job. Work on yourself and you can make a fortune. Work on your job and you will make a living". Having the right mindset and personal development are just like bathing every day. If you ignore them you will start to smell and guess what, no one will want to be around you. If you don't do personal development and maintain the right mindset you will self-destruct, and no one will want to follow you.
The 5 Pillars on a Great Network Marketing Company
- The COMPANY
- The PRODUCTS
- The COMPENSATION PLAN
- The TRAINING
- The TEAM
Will the company go long-term? The first place you have to look is track record. Companies don't build companies...people build companies. Do the executives have experience and a track record to build a multi-generational international network marketing company? Do they have the resources and are they well-funded to achieve this? And lately, do they have the vision and passion to become a multi-billion dollar company?
Will the products sell outside the network? Will the products attract customers instead of just distributors buying the products. If the products DO NOT sell outside the network then the furthest a network marketing company will make it to $100-$200 Million a year but most likely will not go above that.
The COMPENSATION PLAN
Will I be well paid for my efforts? There are many compensation plan experts in network marketing. You need a compensation plan that compensates people fairly not matter when they join and allows for anyone to create unlimited income.
Will the training produce an effective distributor? There should be multiple types of training. A home study course, online and at events. Training is what keeps people from making millions of dollars in the network marketing industry. Experienced network marketers should be able to plug right into the training systems and marketing campaigns with ease.
Success leaves clues...and a good mentor will share what's made them successful in their network marketing business. Depending on how you want to build the business the team you join and especially your sponsor can make a big difference. So make sure that you ask plenty of questions and that your personalities complement each other.
Residual income is derivided from your efforts in the beginning and your paid month after month and year after year when you have consumable products.
THE PERFECT BUSINESS
The perfect business is a business where pretty much anyone can get involved and create unlimited income through their efforts.
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