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The Power of Leverage
Considering that the American Dream is often paved with a college degree and a “good education”, you would naturally assume that leverage would be a term that the white house would want to expose all of it’s citizens to. However, it doesn’t happen that way.
Let’s take a look at two different but common scenarios:
As a child, you were told to study hard, get a college degree, and look for a decent job with decent pay. You followed your parents’ advice and landed a job with substantial pay—enough to cover your expenses but not sufficient to splurge on luxury items. You know that you truly deserve a promotion; with all the time and effort you’ve invested in your work. But years have already passed and you are still in the very same position you applied for.
As a child, you were told to study hard, get a college degree, and look for a decent job with decent pay. But in this case, you didn’t follow what your parents told you to do. Instead, you went out of your comfort zone and searched for the right business opportunity that is more than enough to cover both your expenses and luxurious lifestyle. A couple of years passed and you are exactly where you projected yourself to be, successful, happy, surrounded by like-minded people while far exceeding the income you would have earned had you followed the “Poor Dad” scenario.
Are you one of those people that lives your life making a living based on 100% of your own efforts? Or would you rather earn 1% out of the efforts of 100 people?
Unfortunately, the majority of the population is being educated and trained to experience the first scenario. They are taught to be a conformist—to do what others tell them to do and to look for a job after they complete a college degree. Forget about the idea of owning your own business. If you already have a job that guarantees substantial pay, why risk it all for some random idea that may never pay off?
These very same people claim that they would like to be their own boss but only a small percentage possess the burning desire for success and are willing to risk their comfort zones. Others are afraid of rejection, difficulties, and failure while some are simply satisfied with their jobs.
However, if you are more than willing to take a risk and go way out of your comfort zone to pursue greater economic freedom, then you must be able to understand the principle of leverage.
Leveraging is the art of duplicating your time through the efforts of others to achieve maximum results. It is through leveraging that you are given the chance to gain more with less effort.
Though the force of leverage is applied to almost every aspect of your life, it is only through network marketing that you get the most out of it. Undeniably, in a traditional business setting, the only people who benefit from leveraging are mostly the business owners or the top executives of the company. When in fact, it is the loyal and hardworking employees that are really the ones who do all the work. But sadly, they are left with little compensation.
As opposed to traditional businesses, everyone involved in network marketing is given an equal opportunity to build their own business by spending only a portion of their time and energy to experience maximum results. Through leveraging, everybody has the chance to earn what they’re worth.
One of the many advantages of proper leveraging is that whenever a business partner stops working, it will only have a minor effect on your business’ productivity. The stability of the business won’t be jeopardized and you still get to enjoy a continuous flow of residual income.
This principle allows people to live the lifestyle they choose; they can work whenever they want to and they can decide how much effort they will put into it. They get paid even on vacation! In this industry, you get to enjoy both time freedom and financial freedom at the same time.
Now ask yourself, “Where is my lever?”
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What is Network Marketing?
Are you interested in network marketing and a little curious about the industry? Or are you thinking about joining a business soon? Before you make a decision, let’s cover a bit of the basics and thoroughly define what network marketing really is.
Network marketing, also known as Multi-Level Marketing, is a legitimate business model whose method of selling is by distributing a company’s products and services through a network of independent distributors. These independent distributors use direct selling and network building to market the products and services to potential customers. They act as a franchise to the company and earn commissions based on the volume of merchandise sold, or equivalent to its point value, as a result of their group dynamics.
In effect, the networking company provides marketing tools to its distributors to help them promote the business and reach their maximum potential. Aside from this, the company also offers personal development orientations, business opportunity meetings, marketing and sales training, and leadership guidance to new and existing members.
The multi-level marketing company’s ultimate goal is to procure outstanding sales and gain a loyal customer base. Instead of using the traditional method and spending on costly advertising, they promote the business through word-of-mouth referrals. They bypass the middlemen and sell the products directly to consumers. This direct method, in turn, helps customers save more money by eliminating mark-ups on the products.
By using the network marketing model, they stay ahead of the competition against their traditional counterparts. Not only do they level the playing field by allowing small businesses the same opportunities which their competing large corporations enjoy, they also build valuable relationships directly with their customers which generates customer satisfaction and a loyal following.
Some companies even let their products speak for themselves by developing excellent quality and highly effective product performance. They allow prospects to taste their products, asking for feedback, ideas, and suggestions on how to improve the products. Satisfied customers will then provide testimonials to convey the benefits and advantages of using the merchandise. These testimonials will now be used by the companies as their promotional tools.
What makes this business model a highly popular choice by many is that it offers a virtually limitless potential that cannot be seen in any other traditional business. Independent distributors enjoy numerous benefits by operating their own “franchise.” Not only do they get to retail the products and services to consumers, they also get to expand their businesses by encouraging others to do the same.
But perhaps the most appealing factor in venturing into network marketing is that in return for a low risk investment, distributors get a chance to take home a most-coveted residual flow of income. At the same time, they take pleasure in time freedom and an improved quality of life. They can work whenever they prefer and decide on how much effort they are going to put into the business to make the income that they desire.
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Network Marketing: Facts and Fallacies
Over the years, misconceptions about network marketing have mounted dramatically. These false presumptions have been passed on from one inexperienced network marketer to the other, all the more adding misguided information. So how are these incorrect notions different from the truth?
To address these challenges, I wanted to answer a few common questions that many people have regarding the industry, giving you valid insight into whether it’s fact or fiction. And share how you can address these common questions if you’re also being asked them on a regular basis.
Some of the common questions that I often get from others are:
• Is network marketing really a scam?
• I just signed up with an MLM company; will I get rich in a month’s time?
• Are those in my warm market really my ideal prospects?
• Should I approach any individual looking for extra income, with my business?
Fallacy: Network Marketing is a Pyramid Scam
Fact: Though there are many companies out there, posing as MLM business models, the Network Marketing industry is not a pyramid scam. Although Pyramid Schemes do exist, they are defined as companies that are established solely for the purposes of recruiting people into the organization without the exchange of goods and services or selling of any products.
With the freedom of the Internet, it isn’t hard to create a magnificent website, put a comp plan together and begin marketing a company. However, it doesn’t take much to sniff out these types of schemes.
The easiest way to determine if a company is legit or not is to seek out a customer service number and call to see how they have the support lines set up. You can also sniff out a fraud when they don’t have a headquarters. No legitimate Network Marketing Company will be void of having an actual company headquarters.
There are additional ways that you can determine the legitimacy of a company by doing more due diligence. But the bottom line is this; before you join any MLM company, spend time researching the people behind the management team, the leaders history and track record and the professional structure of the company. Not only will doing this save you money, it will also prevent you from wasting your time.
Fallacy: I can get rich quickly by joining a network marketing company
Fact: Money doesn’t come easy. Not even in network marketing. It takes a lot of time, marketing effort, and sales to be extremely successful in this industry. Like any other traditional business, you have to put forth some level of effort in order to generate profits. The major difference between a Network Marketing business and a traditional business franchise is that it takes less time and less investment to get started, and you don’t have to work twelve hours a day to generate profits. By utilizing effective marketing strategies and techniques, you’ll be well on your way to success in a much more rapid time than it would have taken you in a traditional business setting.
Fallacy: Your warm market are your best prospective leads.
Fact: Your warm market may be your ideal prospects initially, but they’re also simply your starting point. Many people feel like “they don’t know enough people” to build a successful business. But it’s a fact that each person knows at least 30 people (really its way more than that). You start off with your warm market and you begin to ask for others that they know, amidst meeting new individuals in places like your church, salon or barber shop, community service, pta, kids soccer or basketball games, etc.
You don’t want to put all your hope in your warm market being your ticket to wealth. They’re simply a starting point to get your engine revved up, and once you’ve connected with them, you build through their referrals and new connections.
Fallacy: Network Marketing is ideal for any individual seeking an additional source of income.
Fact: Not all people can warm up to the idea of network marketing and many of them may not see the industry as an ideal source of profits. Some people have their minds tainted with misconceptions while some are simply not part of the niche that the company caters to.
Before you start convincing your prospects to join your company, make sure that they have a fresh outlook on the industry and that they’re the ideal person for the business.
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The Franchising Power of Network Marketing
Do you know the common denominator of Subway, Burger King, and McDonald’s? They are some of the leading franchises all over the world. Every year, these fast-food chains acquire more and more outlets to provide excellent service to their respective consumers.
All of them use franchising to penetrate a much larger and broader market. It is a business system wherein a head outlet sells its business concept and system to qualified business operators for an upfront franchise fee and monthly royalties.
A well-known franchise can sell their concept for a range of $30k to over $1 Million Dollars or more per store. A small-scale franchise, on the other hand, may cost from $3k to $150k+ per franchise.
So how does franchising relate to network marketing?
As a matter of fact, network marketing is very similar to franchising. Since an MLM business also operates as a traditional franchise. The only difference is that it is very easy to set up and on a micro-level capacity. You can put up your own outlet without worrying about staggering overhead and operating expenses. You get to enjoy the same income benefits a traditional counterpart offers with just a minimum amount of investment.
Network marketing has taken the concept of franchising by providing a ready-made, proven, and low-risk business opportunity to independent business owners. Through this business model, you’re not just enjoying proceeds from the sale of your products and services. You also get to earn income from the sales generated by the people you enroll into your organization.
It is through you and your network’s efforts that enable the business to produce generous amount of profits. That’s why the concept is called “The People’s Franchise.” The sales and distribution methods are based on a lot of people—doing a little bit each.
You, as a network marketer, leverage your time and energy by recruiting people to join the industry in exchange of the commissions you earn from the sales they’ve made. This explains why so many average people achieve a not-so-average success in the network marketing industry.
Like a typical franchise, you can also develop your network of walking stores globally. You and your network can create a “one world, one market” vision that aims to influence every opportunity seeker in every part of the world.
But unlike a traditional franchise, a network marketing business can be done in a mobile or home-based location. By becoming your own boss, you get to experience more time freedom and financial independence. With a minimum input that you’ve invested, you can achieve maximum results.
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Understanding The 4 Different Types of Network Marketing Companies
Network Marketing is a lucrative multi-billion dollar industry that has become the saving grace for many of the worlds “income seekers” during these rough economic times. If you’re considering partnering up with a company, you’ll find that there are numerous types of niches that exist within the Network Marketing Industry that fall under four main categories.
Below is an overview of the four main industries and what they offer to partnering reps:
1. Health and Wellness
The most common niche that exists in the Direct Sales/Network Marketing Industry today is the health and wellness niche. This industry is considered to be the most popular since more and more people are starting to become health conscious, along with the influence of the aging Baby Boomer population.
These products are highly consumable and have a wide appeal to the masses. They are usually called “alternative medicines” due to their ingredients consisting of natural herbs.
The Health & Wellness products generally promote improving body ailments, enhancing the energy and body’s immune system, while others even promote rapid weight loss without negatively harming the body.
This niche is big on autoship, direct sales and consumable products. Working within this niche will allow you to build up a large residual income if you have a great deal of sales reps focusing on customers who consume the products and commit to autoship.
2. Cosmetics and Personal Care
Following the trend of health and wellness is cosmetics and personal care. This niche focuses primarily on direct selling and consumer products as well, but instead of dealing with products to benefit your health, they deal directly with the image industry.
Make up and personal care product companies are designed to simply help you look your best. While health an wellness helps you feel your best, Personal care companies help you look your best.
Personal care product companies provide full marketing tools and training for specific product lines that are introduced to the market. The product line is promoted by throwing home parties, demonstrations, and business opportunity meetings. While health and wellness focuses more in recruitment, the compensation in cosmetics and personal care comes from the total number of products sold within a specific time period.
3. Internet Marketing Companies
Since the advent of the World Wide Web, more people are becoming Internet savvy and are seeking ways to financially benefit from it. With this Internet Marketing Revolution, network marketers are starting to switch to online marketing to promote their products and services.
As the world gets more comfortable with making purchases online, a new niche of Network Marketing industries has surfaced, and we will discuss two of these primary Internet Marketing companies below:
A. E-commerce Companies
These are Network Marketing companies that sell various products and services over the Internet. They range from clothing lines to books to various informational tools amongst other services.
One of the most profitable Internet businesses deemed by these companies is e-book selling. The cost to create an e-book is little to none, keeping overhead very low.
Another great benefit to Internet products is that they don’t even have to pay to ship the products to the customer, thanks to digital downloads. Once purchased, the product can be instantly downloaded directly to the client’s computer, making the customer extremely happy and the company excited with pleasant profits.
Other types of downloadable information products include CDs and DVDs instruction guides and manuals, which these companies also provide as well.
B. Internet Service Companies
There are also companies that specialize in selling internet services. Their business services focus totally on servicing the marketing with Internet tools like web hosting, web design software, auto responders, and e-mail marketing systems.
The market for this type of network marketing company is virtually unlimited since millions of traditional businesses are now recognizing the internet as their most powerful marketing and promotional tool.
4. Party Plans
Another popular type of niche within the network marketing industry is the party-planning niche. It is mostly preferred by stay at home parents seeking for part time income.
A party planning business only requires minimum investment to obtain your product demos, websites, and other marketing tools. Considered as the most family-friendly of all network marketing companies, this business is a gratifying way to earn profits. By joining a party planning company, members get to enjoy flexible schedules and take pleasure from networking with various types of people.
There are additional niches within the network marketing industry that we didn’t cover here like the traveling niche, investments niche, energy companies and motivational and educational niches. However, as you continue on your search to find the perfect fit for you, be sure to partner with one that you believe in and will enjoy! Either way, there’s so much to gain from this industry that you can only win when joining!
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Motivation: Why Your Greatest “Why” Matters
If you’re just getting started in network marketing and want to guarantee your success, here are a few questions you need to ask yourself:
• What’s the single biggest asset you can have on your side when building your business? (Take a minute to consider this)
• Is it a good starting capital?
• Is it a large existing network of friends?
• Is it a lot of time on your hands?
If someone were to say “I have a great opportunity here that can make you rich!” what would you ask them?
An overwhelming majority will ask the question “what”. “What do I need to do?” “What do I have to invest?” “What do I stand to lose?”
About half the people asked may also respond with the question “how”. “How will I succeed?” “How will I leverage my time and money?” “How can I maximize this opportunity?”
But precious few, perhaps one in ten, will ask the most vital question of all: “why”. “Why do I want to do this business?” “Why do I want to be rich?” “Why do I want to be financially free?”
In network marketing, work will create only 10% of your success. The other 90% will rely on your why. That’s because your why is what’s going to move you to do everything necessary to make the business successful.
As the great millionaire John D. Rockefeller once said, "Singleness of purpose is one of the chief essentials for success in life, no matter what may be one's aim."
Anyone can have the money, the time, and the network, but if they don’t have a compelling reason to grow their business, then they can’t generate the will to work and maximize what they have. On the other hand, a person can have none of these resources, but with a great “why,” they’ll move heaven and earth to accomplish their dreams.
So before you embark on building and growing your MLM, or on any kind of business, ask yourself: what’s your greatest why? Why start the business at all? What end do you have in mind?
Is it to buy the house of your dreams? Is it to get that private jet you’ve always wanted? Is it to acquire jewelry, a Jacuzzi, a Jaguar? Or is it something deeper?
Is it so that you can send the kids, yours or someone else’s, to the best schools available? Is it to support your parents so they can retire in style? Is it to shoulder the medical bills of a sick relative? Is it to build your family a fortune that would last through generations?
Or perhaps it has to deal with you personally. Do you want to have time freedom? To work only because you want to, not because you have to? To never worry about money again for the rest of your days?
All these are worthy dreams. Find out which of them are yours and list them down.
Better yet, cut out some pictures and post them on a tack board, a scrapbook, or even your own wall. Put it anywhere that you can see them everyday. And each time you feel disheartened, when you feel that everyone’s ignoring you and that you’ll never see the end of a long, soul-sucking day, look at those pictures and remind yourself why you’re in this business.
Let your biggest why be your greatest source of strength.
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7 Reasons Why You Should Join A Network Marketing Company
With the current state of a declining economy, more and more people are scrambling around out of desperation, looking for ways to earn an extra income to get by in their everyday lives. The tough economic times have forced people to juggle more odds and ends jobs than they can handle. A single day job is just not enough to cover those staggering monthly expenses.
If you’re looking to generate the right amount of compensation that you deserve, why not consider joining a network marketing company? The multi-billion dollar industry of network marketing offers not only a vast wealth of income, but also limitless possibilities.
The list goes on and on as to why people decide to partner up with this industry, but here are a few key reasons why you should strongly consider joining:
1. Personal Development
Network Marketing promotes and enforces personal development to any individual who joins the industry. It doesn’t just assist you with earning tons of money (although that is a great benefit to the industry), it also aids you in assisting others with doing the same.
The system of network marketing is built in a way that you don’t make much income unless you help others. It won’t work for you if you only prefer to focus solely on yourself and not share what you know with others around you. This industry is an “Each One Teach One” setting, allowing you to impact others around you who too desire to accomplish more in life and live their dreams.
The beauty of network marketing is this, not only does it develop your business skills, it also helps you become a better leader, teacher and mentor to others around you.
The key to wealth is this, “If you help enough people get what they want, you in turn will get what you want!”
2. Accountability Partners
You will find yourself surrounded by numerous accountability partners that will help you build your business accordingly. They will work with you hand in hand to make sure that you reach your goals.
The mission of these partners is to hold you accountable on your conduct, provide feedback when needed, support your endeavors, and encourage your growth as a business owner by encouraging you to get out of your comfort zone.
3. Like Minds
In this business, you will get to meet many people with a common goal: to achieve a better life. You’ll have the opportunity to share their ideals and be influenced by their passion. They will teach you how to properly manage your time and how to set your goals and realize them. You’ll also learn how to focus your desire and desire your focus.
4. Learn the art of sales and building relationships
Without sales, a business simply won’t succeed. And the first skill that you must learn is to sell is yourself. That’s what network marketing aims to do: provide knowledge and training on how to put you at the center of the trade.
The industry will teach you approaches and techniques that will make the sales process smooth, and a lot easier to handle. Here, you will learn how to properly deal with people and build meaningful relationships with them as you grow.
5. Opportunity to Mentor & be Mentored
As a new-comer, you’ll find yourself entrusted to well-experienced individuals who have been in the business for years. They will teach you the ropes and impart useful knowledge that you will later pass on to your own network.
You’ll have the chance to meet mentors and leaders that you can learn valuable lessons from. Once the knowledge is imparted to you, you can use that knowledge to help others do the same.
6. Dream Big
By attending team and company meetings, group orientations, team building activities and events, and leadership trainings, you are highly encouraged to dream big and to do what it takes to make those dreams come true.
You’ll get to listen to the success stories of other network marketers, and their stories will help you shape your own goals and dreams. The positive vibe emanating from them will hit you and motivate you to work hard towards reaching your maximum potential.
7. Unlimited Income
How does the idea of getting paid what you’re worth sound? Having the control over the amount of money that you can earn is so invigorating. You can choose when to work and how much effort you’ll put into it.
If you’re willing to maximize your income and put forth the effort to make it happen, you will be able to enjoy more income in one month than some people earn in a year, and generate an income that’s absolutely worth your effort.