Exactly what is Network Marketing?


Network Marketing is another kind of direct marketing. It is mostly more concerned with the organization of your sales network than with someone by itself.

The networker generally starts to build up its own enterprise before helping then additional business partners to build their particular, similar to a franchisor.

In big difference to franchising where only 1 company opens new twigs, in Network Marketing each indie business owner can open completely new network businesses, but with minimal financial investigations and not having risk.

A networker undertakes the task to organize the multilevel, to get paid for the gross sales qualified for bonus inside of that branch network.

A different feature of Network Marketing should be to build up a transnational small business by sponsoring international lovers. Especially in Europe, Network Marketing provides one of the best examples of how to make make use of a single European marketplace.

A written report from Prof. Dr . Michael Jordan Zacharias, University Worms, inside 1996 has shown, that the overall revenue in Germany manufactured in Network Marketing is still very low (approx. 300 million EUR l. a. ), but it will probably be fast-paced.

In Ukraine, the industry has just started (Nov. 2003), and the market in the Russian Federation will start in 2004 too. Thus in these countries, we will see outstanding and surpassing business growth in the next years. If you are from Ukraine or Russia, otherwise you know people from there, you may directly benefit from it. You could offer them an opportunity to build their own personal business.

This was just a case in point, there are more exciting success stories from a foreign land as well, e. g. Luxa, Sweden, Korea, etc ., and the prospect is identical in all held countries.

In Europe often the Network Marketing business is still in its infancy. Simply 0. 7% of buying and selling are currently made with Network Marketing.

And this distribution channel has a large potential for growth in the future around the globe.

The Three Pillars of Accomplishment in Network Marketing are:

1) Residual Income

2) Leverage (of Time and Money)

3) Copying

Network Marketing, ‘MLM’, and Multi-level marketing are all terms that involve the same type of business model. Although many close-minded people outside the market (and others who’ve tried out it and failed), have got biased or negative completely wrong impressions, and despite the fact that it truly is used and abused simply by many crooks and con-artists, this business model has excellent performance potential.

There are poor examples in every bunch, and this marketplace has more than it shows. But it can produce outstanding benefits if you know how to find the right corporation. And to maximize your potential, here are a few simple concepts whose comprehension is critical to your success.

Contrary to franchises or conventional corporations, Network Marketing, MLM, and Multi-level marketing are the only business designs that take advantage of all three with the important, yet misunderstood key points of:

Passive Residual Income instructions Leverage – and Geometric Growth.

And the combination of the entire group of these elements is what increases the Network Marketing business model its synergy and exceptional performance likely. In fact, one outstanding corporation I’m aware of has basically built designed synergy in their business model.

Whether it’s a team or conventional business, equally requires major investments of energy and money, and exclusive skills if you hope to possibly be really successful. Even the somewhat small percentage who gain true success usually takes several years just to break even.

On the other hand, with all the advent and popularity of the Net and the rampant quest to “Get Rich Quick for Undertaking Nothing”, many people have become all excited about affiliate, affiliate, referral, or co-op courses as they are sometimes called. Nevertheless, very few of the thousands of all these being promoted have any kind of real chance of making any kind of significant money for the majority of people who get involved.

A perfect example of this is an email that was not too long ago received from one of these courses that claim to be ‘the best. They bragged that they can be paying “over $400, 000 in commissions each and every month! ” and have “now produced to over 650, 000 internet marketers! ”

Those are intriguing statistics some might get anxious about. Let’s see… if these kinds of are true… They’re paying an ‘average’ of $. sixty-one per affiliate… That’s 62-one cents! Wow! Would you15479 like to retire on in which?!

They claim later in their letter that some are generating $10, 000 a month. If that is true, then to come up with a good ‘average’ of sixty 1 cents each, the vast majority need to be making absolutely nothing.

There is a far better way to achieve your desires!

But you have to:

1) Take time to understand these three crucial principles –



2) LEARN HOW TO ASK THREE SIMPLE QUERIES! – so you can teach that which you know to others.

If you’re possibly moderately successful in marketing, you undoubtedly understand along with belief in the three principles earlier mentioned. If you haven’t yet possessed the success you desire, may very well not completely understand these guidelines, or how to get them over to others. Highly productive networkers have learned how to question the right questions, then aid others understand and benefit from these important and strong concepts.

Unfortunately, these rules are not well understood by the majority of the population. And that’s just one single reason why so many fail from network marketing. There are lots of other reasons, and it also would take a book to protect them all. But this is among the most common ones. Because if a person understands or believes in these kinds of principles, it’s impossible to help other folks fully comprehend and enjoy them.

Let’s face that, our educational system educates (or brainwashes) us to get conformists, to do what other folks tell us to do, and to plan for a JOB, not an entrepreneurial home business. So those of us who seek our independence and flexibility, head in that direction in spite of the education, rarely because of that.

And even though many people claim they might like to be their own superior or own their own small business, only a small percentage of the population possess the necessary need to have success to risk treading out of their ‘comfort zones to pursue their wishes.

Most people are afraid of malfunction, and for them, it may be considerably better and easier to live life in a very rut. Others are satisfied or perhaps happy with their jobs, revenue, or lifestyles, and that’s suitable for them. But if you’re considered one of the millions who yearn for additional freedom and control before, you must understand the following several principles to achieve True Accomplishment in Network Marketing.


Residual income is recurring revenue that continues to come to you after the work you’ve done to create it has ended. There are lots of approaches to producing residual income. But many folks don’t understand it. Others have not thought about or been exposed to that. And unfortunately, many ways of manufacturing it are out of reach for ‘average’ people.

Successful editors, actors, musicians, and insurance policy agents are some of the more well-known avocations that produce revenue. Probably the simplest and perfect example of passive residual income is definitely interest earned on cash in hand or other investments. The item gets paid or a certain amount to you without you requiring you to invest any more time to make it.

Using the “virtual millionaire” concept I will explain down below, if you had a million dollars inside the bank earning 6% curiosity, that would produce about $60, 000 of annual income (before taxes). So if you have virtually any source of passive residual income creating $60, 000 or more per year, you are a “virtual millionaire”.

And with the right business, that may be much easier to accomplish than wanting to overcome all the roadblocks to be able to accumulate a million dollars inside the bank. Instead of Uncle Sam combating you all the way (taxing your entire income), he actually will become an active partner by giving you actually all kinds of tax breaks and benefits to succeed.

There are only a couple of sources of money:



Thinking about the goal of Retirement as well as Financial Planning is to be sure you accumulate enough money (or income-producing assets), to ensure that when you decide or are forced in order to retire, it will produce sufficient PASSIVE RESIDUAL INCOME for you to take pleasure in the lifestyle you choose for as long as you reside.

The same concept holds true within Network Marketing. But Leverage, as well as Duplication or Geometric Advancement, can help you build it considerably faster in the RIGHT Network Marketing system.

One of the first questions I frequently ask prospects is:

“If you had the choice of doing work and earning $500 as soon as, or getting paid $100/mo for the rest of your life, which would you select? ”

You’d be surprised at exactly how many answered $500! These folks either, 1) are not great prospects or, 2) require some education. That issue is one quick and simple way to pre-qualify people. Those who don’t understand which principle may never accomplish their true potential.

Certainly $100/mo. will surpass the ‘one-time $500 fairly quickly. And if it takes a few years, or better yet — the rest of your life – it is going to really be a blessing. Generating enough passive residual income forces you to a VIRTUAL MILLIONAIRE in a relatively short time, compared to being employed by someone else and scrimping along with saving for 30 – 4 decades.

A VIRTUAL MILLIONAIRE is usually someone who has enough money to come together every month, WHETHER THEY WORK NOT REALLY, to support the lifestyle THEY DECIDE ON, for as long as they live. Recharging options are nice to have something IMPORTANT to pass on to your heirs or maybe your favorite charity.

But similar to everything else in life, even revenue has a downside. The biggest example is maybe, just like compound interest or maybe geometric progression, it usually takes a little time for the magic to get started on working. The POWER and Involving residual income is on the back-end, not the front!

Many people find it difficult to understand this FACT along with mistakenly chasing false pledges of quick or quick money. That’s why there will regularly be crooks and con artists on the planet pitching “get rich fast and easy”. Successful individuals ignore them. Naive or even greedy people usually obtain burned.

Residual income is NOT regarding “get rich quick”, despite the fact that with the right opportunity it’s possible to create a small fortune in a relatively limited time.

If you’re especially talented and still have the time and money to get, you may have some success in under a year. And many people accomplish. But without a major expense of time or money, it will require most ‘typical’ people a couple of years of part-time work to have a decent income, and yet another year or two to really hit the main time. But achieving success using 2 – 4 a lot of part-time effort beats typically the widely accepted ‘standard’ preparation of slaving 20 — 40 years working for someone else to create them wealthy!

Most people who else fail at network marketing possibly choose the wrong company or simply give up too soon and stop because they expect INSTANT outcomes. But because the real great residual income is on the tailgate end, not the front, once you develop it you have the financial security and time mobility to do anything you want for the rest of your lifetime!

The RIGHT network marketing opportunity will allow anyone, with no prior practical experience, special skills, or substantial capital outlay, to build long-run, passive residual income. If you don’t realize how to choose the right opportunity, I can aid you.

A critical component to building lasting residual income is offering high-quality, sought-after, value-priced, ‘consumable’ products or services that folks use and re-order week after week.

Because of this simple fact, the top market in Network Marketing by virtually any measurable standard is Food supplements and Personal Care products. Some people won’t consider this industry because they may take supplements themselves as well as don’t understand the ‘Big Picture’ and successful business model in this industry.

Do you think Burger Ruler and McDonald’s franchise users invest hundreds of thousands of cash because they like to eat fast food burgers? Not hardly! Many people understand human nature and general trends in society. We’re a new convenience-oriented society, as well as a large part of the population chooses to eat low-cost convenience meals, even if we know it’s not best for us.

But there’s also a thriving trend toward improving your health and fitness, improving your life, and establishing personal and time flexibility. Many ‘opportunity seekers’ entirely miss or ignore these kinds of trends in society. If your shop is in front of multiple long-term developments, you dramatically increase your probability of success.

I’m not expressing it’s not important to believe in addition to using your own products, because it is! Except for true success, you have to realize major trends in contemporary society, and your products or prospect must meet ALL the set of criteria above – high-quality, high demand, value-priced, and ‘consumable’. (And in this case, ‘consumable’ doesn’t necessarily mean just ‘edible’. This would mean used and/or re-ordered consistently. )

And with the right small business, the rewards can be a great deal more than just financial. It’s challenging to put a price tag for the goosebumps you feel as well as tears that come to your view sometimes when someone cheers you profusely for launching a product that has had a serious impact on their health, their very own life, or their financial predicament.

Unfortunately, some people never hold the importance of this additional gain. Most good people desire to feel they are doing a good gift with their life. And it’s not simply about making money, even though a lot of narrow-minded or greedy men and women will try to convince anyone it is. It’s also about aiding others. And doing both equally can make the right business two times as rewarding.

But your business has also to have profit potential. A number of ‘price-based’ products or services have a great deal of competition and limited earnings potential. If you choose a business prefer that you have to do a lot more volume and it’s really hard to build loyalty, and that is an important element in producing, in the long run, passive residual income.


Every successful person or maybe business (in or outside of Network Marketing) takes benefit of leverage. There are only twenty-four hours in a day! And no matter exactly how talented you are or just how much you get paid per hour, nearby take advantage of leverage you’re restricted to the number of hours in a day. Through learning to leverage your time, you may also benefit from a percentage of others’ efforts, and dramatically improve your income and freedom.

If you are reading this article on the Internet (on my website or an individual else’s), or in a magazine, gowns one simple example of leverage. My spouse and I don’t have to be physically given to teach you something. I may always be sleeping, or vacationing conversely of the world while you are learning, or maybe sharing this information.

Unfortunately, generally in most traditional businesses, the only versions who benefit from leverage are definitely the owners or stockholders. Typically the loyal, hard-working employees perform most of the work. The unique, as well as wonderful thing about the Home business model, is that everyone has exactly the same opportunity to become the ‘owner’ that belongs to their business – with a small fraction of the investment of time as well as money of a traditional company or franchise.

And instead associated with worrying about training individuals to become your competitors, in multilevel marketing the people at the top have a vested interest in helping others on the team succeed.

Again, typically the question I ask prospective customers here is:

“If you had the selection to receive 100% of one personal effort, or 5% involving 100 people, which would you decide? ”

And again, whenever they answer 100%, either: 1) they’re not a good prospect or maybe, 2) they need a helpful math class or more education.

Many talented men and women would rather just depend on themselves and have difficulty grasping the value of this concept.

Obviously, 100% of a single is always only one. But five percent of 100 is 5. That’s a 500% increase and it is significant! And with synergy, this can be even more!

Not only does the total result with taking advantage of almost always be a lot more, but, but your income also is not dependent on just one person. If it is, and that individual gets sick or hurt, is disabled, dies, quits doing work, or decides to go on a good vacation, your income could prevent it!

But if your income is manufactured by the activities of many, it is a lot more dependable. Even if something unforeseen or negative happens to several of those people, it only carries a minor effect on the total manufacturing. That’s what allows those who understand and take advantage of this to reside in the lifestyle they choose or maybe get paid while on extended vacation trips.

It’s great to get paid out while you’re on vacation or undertaking other things you love! That’s among the numerous advantages of leveraging your time, which is just one of many reasons so many excessive income professionals from most walks of life are flocking to acquire involvement in Network Marketing.

Many pros who make great revenue, get frustrated at the ‘bottom line’ after putting in hard just to cover overhead along with miscellaneous expenses. No matter how very much you earn per hour, if you do not learn to leverage your time, your wages will always be limited by the number of times you can work in a day. And no one wants to work 24 hours! Nevertheless, even with a small network marketing corporation, you can produce equivalent leads to working 24 hours a day, with a portion of the individual effort.

Finding out how to leverage your time (and money) is an important step toward attaining Financial Independence and Moment freedom.


The most effective illustration I’ve seen regarding duplication is the penny-a-day illustration. It’s also frequently used to show the benefits of tax-free ingredient interest.

If you start with one particular penny and double that every day for 30 days, how much would you like to have at the end of 30 days?

Should you haven’t heard this just before or don’t remember, make a guess. The day a couple of you’d have 2 mere cents; day three you’d have got 4 cents, then 7, 16, and so on. How much in late 30 days?

I’ve never got anyone who hadn’t read this before to come to close up. So don’t feel bad should you do not, and I promise not to have fun. Ready? Did you pick many?

Would you believe over ALL 5 MILLION DOLLARS?! ($5, 368, 708 to be exact! ) Pay attention! Most people don’t believe it until finally they punch it out for a calculator. And even then they have sometimes hard to fathom. Although it’s true. Isn’t this amazing?

That’s a simple example of this of how networking can work. Merely can teach you, I’ve multiplied myself. If we each coach someone else, we’ve doubled all over again. And as this goes on basically it can produce amazing results in a relatively short period of time, just as in the penny example.

The easier your current program is to do as well as the lower the cost to get engaged, the more people you can be interested in and the more potential for geometric progression to work. Programs that can be too complicated or pricey for ‘average’ people to carry out will always hinder your progress.

Great salespeople can do well at almost anything they employ themselves to. But not most people have the talents, skills, as well as desire to be great salespeople.


The Network Paying attention to business model is about a lot of normal people doing a little, not really a huge few talented people doing a lot.

While lower cost connected with entry can be an advantage, quite a few programs that are ‘free’, have a tendency to offer any real chance of significant income, and often appeal to people who aren’t willing to perform to build their business. Thus REALISTIC INCOME PRODUCING STRENGTH is an important area to consider.

Signing up for a ‘downline club’ or some kind of another program that claims any variation of: “we’ll do everything regarding you” – will never create significant LONG TERM passive revenue, because the majority of people who be a part of are looking for a free ride as well as too lazy to build whatever significant. none of these packages have ever worked long run and none ever will probably. It’s a simple fact of lifetime successful networkers accept ahead of time.

The penny a day case in point is a great model for illustration, but also in ‘real life’ it never ever works exactly like that. Some individuals never recruit anyone, and they like to find 10 – something like 20 – 30 or more. It assists to understand human nature and a vital, but little-known certainty is called REVERSE GEOMETRIC GROWING.

Despite the fact it rarely is effective in reality like it’s descriptive on paper, the principle of duplicity is still one of the THREE KEYSTONE TO SUCCESS with the RIGHT Multi-level marketing Opportunity. With the RIGHT business which is POWERFUL PRINCIPLES, even common people who are willing to work also to learn can achieve their ambitions. And above-average people may well exceed their greatest targets.

If you can UNDERSTAND and HAVE CONFIDENCE IN those three principles, in order to find the RIGHT company, you will realize your aspirations in Network Marketing. If you’re willing to INSTRUCT these THREE principles to a couple of others, the results might just surprise you!

The beauty of Network Marketing is you can get started with hardly any investment of time or cash, and no major changes in your current lifestyle. Eventually, passive revenue can give you the FREEDOM to live the lifestyle YOU CHOOSE, and pursue and revel in your dreams – whatever they are!

I read someplace that, “according to INTERNAL REVENUE SERVICE statistics, in 1984 twenty percent of NEW millionaires came from Multi-level marketing. By 1994 it was fifty percent. It’s predicted that by simply 2004, 70 – 79% of NEW millionaires will come into the booming Network Marketing industry. very well I don’t really consider those statistics. But no matter what the percentages are, certainly, brand-new millionaires are created every year from the Network Marketing industry.

Many beneficial CHANGES have been made in the automotive market, and several simultaneous MEGA-TRENDS help to make this the best time ever to obtain involved! The time to start is currently! But it’s important to pick the CORRECT company and industry!


1) The IMPORTANCE of ‘CONSUMABLE PRODUCTS’… 2) The REASONS for your popularity of the Nutritional Supplement Business… 3) The importance of high quality, popular, value-priced, products…


Effective Network Marketing offers many benefits: Unaggressive Residual Income – No Supervisor – No Commute rapid No Dress Code rapid Income Tax Reduction – More of their time for kids, family, hobbies, or maybe whatever is important to you rapid Above Average Income – and many more.

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