Network marketing

First, let me thank you for visiting my blog and your curiosity to learn more about me the author
Saad ali
People often want to know the story, what drives someone to write and blog incessantly about a particular subject, in this case network marketing.

My wake-up call started many years before I became involved in network marketing. I had been approached frequently during my early twenties with various business opportunities.

Yet, like many I placed building a business it on the back-burner. I always felt that it was something I could do later; today I know it was procrastination.

I am still working in marketing and earning good even recessionary period.

During the 90’s I had chased the Stock Market, read dozens of books, used numerous systems all designed to make you wealthy beyond belief!

It was not impossible but still need a lot of hard work

And, yes made money doing it. Yet, a pattern began to emerge which clearly at least to me proved that it was being manipulated. The only one truly making money was Wall Street and the individuals peddling books and systems.

I had looked into Real estate investing as well during the 90’s and it is still a solid way to build and create wealth. Yet, it too suffered from manipulation as well; from 2000 to 2006 we say explosive growth in real estate.

Kind of ironic how both artificially create bubbles burst and has devastated the world’s economy.

But, it became clear that both methods required at least 5 years of self-education. This was the only sound advice I received from all this research.

Late in 2000, I was reading the books

While I learn is a very good job of motivating and getting you to open your eyes to what is happening.

Watching how corporations reacted and treated their employees after reading the book was a strong motivating factor. Yet, after years of running my own business you begin to develop a completely different perspective.

The second great book I read that really illustrated why building a network marketing business was the right thing to do.

Still, the more I learn about it...

Over the years, I’ve made some great life-long friends in this industry along with some who would later turn out to be...

...Well I’ll just call them opportunists, ready to jump at and promote anything they believe will generate them income. This song kind of sums it up, even though it is written about love scorned.

I am in love with network marketing business 

What is network marketing?
The simplest explanation of network marketing is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods.
In order to accomplish this, network marketing companies and their associates recruit individuals I.E. “their sales force,” just like other companies and franchises, have done for years, take for example the insurance industry.
How often have you seen ads on television that use the term, “Independent Insurance Agent or Associate?
Yet, as we watch these advertisements we naturally assume they are employees of the company, when in reality they are independent business owners!
No doubt you have noticed as you have driven through your neighborhood many of these small businesses, they have signs and other advertisements designed to draw your attention to them.
Yet, you will rarely see advertising from the approximately 13 million people who are either involved with direct selling, or in the network marketing industry according to figures by the Direct Selling Association (DSA)
There is distinct difference between us and them, in most cases they are assigned an exclusive territory and therefore cannot market outside of their assigned territory. Where as in network marketing in most cases, you can market just about anywhere your company is established!
Why are companies willing to pay you to market for them...
...Why don't they just utilize the internet or other traditional marketing methods?
It’s quite simple, they want access to your network, that is your network of friends and family members! Today there are hundreds of companies offering products and services. Many of these products and services you recognize by their brand name!
The products and services you can market today cover everything from Communication Services, Internet Access, Nutritional Products, Weight Loss Programs, Water Filtration Systems, Financial Programs, Electrical Power, Solar Power, just to name a few.
So why do they need us? Traditional marketing methods have companies spending millions of dollars each year to market their products and services.
They know that word-of-mouth marketing is a far more powerful and effective method of marketing, especially, when that message comes from those whom we know and trust!
And these companies are more than willing to pay you, to communicate this message to your network of friends and family.
It is extremely important to understand that this method of marketing is not about bugging your friends and family members, as many would love for you to believe.
It is about your ability and skill to determine from those individuals within your circle of influence who would be interested in the products or services that your company has to offer...
... That information alone is one of the critical elements that separates those who fail, from those who go on to become very successful!
And occasionally you might uncover a few individuals, who also want to start a business!
I truly believe Robert Kiyosaki summed it up nicely; it really is the business school for people who like helping people!
If you want to call your own shots in life, if you’re willing to get the education you will need to run a small business, if you enjoy working with people, then network marketing just might be right kind of business for you.
If on the other hand, you’re only in it for the money or you just don’t like dealing with people well then...
... You’ll most likely end up failing!
Personally I’ve found running a network marketing business to be a very rewarding. While it does give you the freedom from punching someone else’s clock, now you’ll be punching your clock and will have to hold yourself accountable!
If your currently employed the training you'll get from having a network marketing business will give you a deeper appreciation of what your employer has to deal with on a daily basis. You will also become a far better communicator, someone who really listens and address the wants and needs of others!
With the economy the way it is today, working from home makes more sense than acquiring a second job in order to make ends meet. And that if you can find one!
Throughout this site, you’ll find additional pages and resources that will help give you a deeper understanding; pages like network marketing training, understanding compensation plans, and much more...


How Do I Get Started ?
Ok so you like what you see in Network Marketing so how do you get started?
This is where the problem lies; it is in reality too easy to get started in this business. It should be much more difficult to get started.
Far too many people join a program without fully realizing what it will take to become successful.
Ok so what's next in getting started?

First: We must become educated about this business. How can you make an informed decision without the necessary education that will allow you to know if a particular opportunity or sponsor is right for you?
This is where we recommend a company called Leaders Club, a support and training organization for network marketers. They have a training only program that will give you the knowledge you will need to locate a company, a sponsor, it will help you make the right decision based on knowledge of the subject.
Second: If you have filled out online forms requesting information about a home business, know that someone is going to call you, be prepared for this. When they call to discuss their opportunity, if it’s not a good time let them know, most are people understand this. If they do not, you really do not want to do business with them.
Third: Be wary of income claims of 10,000 or more a month in only 3 months. This one is so obvious that it’s not even funny. People promoting systems and web site that will perform all of the work for you. They just do not work as effectively as they will lead you to believe. Or our favorite all you have to do is email them but no one knows how to write an effective email. Now do not get us wrong everyone should have a personal web site, something we teach our members.
Fourth: Ok, so you think you have found the opportunity the sponsor, now what? Most people freeze up at this point in time, I’ll do it tomorrow or next week. Pretty soon they find its years later and they are no better off now than they were then.
Procrastination is one of the biggest obstacles to overcome in all aspects of life. Time is such a precious commodity that really cannot be wasted. We have all know how compounded interest works with money, building your business also works on the same principle. It starts slow at first then gains momentum as our skills and education grow.
Fifth: If you’ve been doing your home work or due diligence you should be comfortable with your prospective sponsor. Give them a call and they’ll assist you through the signup process. It’s quick, simple and painless.
Most network marketing companies offer instant online signup through the internet, of course you’ll need a few items to fill out the forms because you’re starting a real business. Such as S.S# if you’re a U.S. resident or Tax I.D if you’re not. This may be different if you’re in another country but your sponsor will know what you need or can get the answers for you.
Sixth: Once you have joined a program, don’t just sit back you have to get moving. Think about it you’re now your own boss and sometimes this is good and sometimes it’s bad. Most of us are our own worst critics. Each day you will need to ask yourself this question "Would I have fired myself today for my actions."
Our hope is that you've already placed Leaders Club in your tool chest if not grab our free CD on the left.
Our goal and the goal of this web site is that you will see that Network Marketing is a real and viable business.
Together we can make this one of the most respected, invisible businesses in the world and truly make network marketing work for everyone.


How Does Network Marketing Work?

Today there are millions of people around the world building this unseen industry called network marketing.
The DSA reports that there are over 13 million people in the U.S involved in direct selling.
You do not see them but they are everywhere, some probably right in your own neighborhood. It is a business in which common people can invest a small sum of money and rise to staggering levels of financial reward and personal freedom.
Each day millions of people report to work, where your employer leverages your time to build his or her business and financial future.
In Network Marketing we help and assist others in building their business. We are also leveraging their time, with each of us is gathering customers along the way.
Hence the name Network. We get paid for this because we are assisting, coaching and helping them to establish their business. Helping them to reach their goals for their financial future. So Its only right that we also get paid for our time?
Just like your employer leverages your time, through network marketing you can leverage the time of others. What does this mean?
Let’s take a look at a typical employer in a service industry with 100 or more employees. That has a labor rate of 60 dollars per hour. The goal of our employer is to keep each employee active and busy for each hour paid.
Out of this once all the costs of doing business are factored in such as wages paid, health insurance, unemployment insurance, federal taxes, state taxes, fica taxes, permits, maintenance, housekeeping, the list just goes on and on. The employer may get to keep 5 to 10 dollars per hour of that labor rate.
In Network Marketing, we have our initial start up costs anywhere from just a few dollars to several hundred dollars. Where most network marketers fail is they feel that they don't need a marketing budget for advertising, they don't seek out the education required to succeed.
One of the important things to remember is, you are in a real business, you no longer have a boss holding you accountable. Your network marketing success or failure is dependent upon you and your actions.
Your primary task will be to gathering customers for your products or services. To help and assist others get started in their own business partnered with you. You are looking at a business model that will take 3 to 5 years to produce the kind of results you’re looking for.
So don’t give up your day job just yet. It will require 5 to 20 hours of consistent time and effort each week to build a successful Network Marketing Business. It will require a marketing budget, most people do not even consider this.
This is a real business this is your business, not a get rich quick overnight program, although it has been hyped by a great many naive marketers and web sites.
Network marketing is based on word of mouth advertising which is the most effective form of advertising. Think about it when you go out, watch a great movie, you will go out and tell people about it.
When Sam’s club or Costco moved to your area, you joined their buying club and started telling everyone how much you saved. This is the power of word of mouth advertising.
Major advertising agencies and companies count on this. This is one of the things that we do as network marketers. The major difference is that we get paid for our word of mouth advertising.
One of the most often asked questions is, will I have to sell products and services? The answer is of course yes.
Think about it, no one likes to have a salesman or woman come to the door and sells them products right.
We hate to go to the automobile dealers, where we are swarmed with 5 different sales people all trying to get you to buy from them right!
So how are we as a network marketer different? We recommend products or services that we like and personally use. If we know it’s good and personally use it, recommending it to our friends and family is very easy.

How Do You Evaluate ?

When you’re serious about getting started with a company what should I be looking for is a question that should be going through your though process.
With so many companies, how do you choose the right one you? Unfortunately, this is not as simple as it seems. You will be making a huge commitment of time, effort, and money to become successful! So you might as well get it right by approaching it with knowledge.
You do need an understanding of What is Network Marketing and How Network Marketing Works!
Without this basic understanding you could be setting yourself up for failure.
What do you look for in a network marketing company?
Today we can choose from so many different products or services it can become confusing. Yet we are often distracted by how much we can make based on the compensation plans without a full knowledge and understanding of them.
• Communication Services
• Internet Access
• Nutritional Products
• Hearing Conservation Products
• Weight Loss Programs
• Water Filtration Systems
• Financial Programs
• Electrical Power
• Solar Power • Website Hosting
• Home Safety Products
• Travel programs
• Health Care Savings Programs
• Legal Services
• Gourmet Coffee
• Network Marketing Training
• Pet Care Products
• And Many Others.
Can we sum this up in a few categories, probably not as there are many variables that we need to look at.
Most if not all Network marketing companies have:
• Integrity.
• Are Distributor-Driven.
• Have Products & Services people want.
• Great Management.
• Have Some Form of A Compensation Plan.
Integrity:
Does the company have it? Do they stand behind their products, services, and their distributors? No outrageous claims or exaggerations. Any company that does not have this does not last very long!
Distributor-Driven:
Does the company make its decisions with the representative and company in mind? Often, companies have to make decisions that are not popular this happens in everyday life in order to survive. They should provide tools materials to allow you to continue to grow your business and the company.
Products and Services:
The most people in network marketing love their products. It is much easier to promote a product or service when you actually do use and enjoy it. This is where I believe most fail in their marketing; they assume that everyone will see the same value in them.
The sad fact is that most products or services, “and it does not matter where they come from” are really luxury items that consumers can do without. This makes it even more important that there is an active follow up and follow through program for the customers.
Does it have a Duplicative Business System?
This was something that was told to me in the beginning of my network marketing career. While companies do provide some form of duplicatable system, what I’ve found through working with thousands of people is what works for one or a hundred individual will not work for everyone.
So even if you’re up-line quits it does not mean the end of your business! Today there are so many places to get the network marketing training you need to take you to whatever level you desire.
There are essentially two things you’ll need to be successful:
1. The willingness to learn.
2. The Ability to take action.
Management:
Good management is a must in this business, what is their experience. Think about this for a minute how many times in the past year have you heard of a new startup opportunity? We get them every other day it seems like! Most if not all of these companies are started with management that has little to no experience in network marketing. These companies often do contribute to the high failure rate!
One thing to keep in mind when looking at any company is who will the product or service appeal to? This is so important in order to determine just how our target market will be.
Not all products will appeal to everyone which is one of the reasons our warm market may not be a candidate for either our products or our business opportunity.
While you’re here take a look at my recommended network marketing companies. I'm always looking for sharp dedicated individuals who want to build a successful business



Network marketing compensation plans

Compensation plans in network marketing MLM vary from one company to the next. They are at best difficult to understand for both you and the person introducing them to you.
It is up to you to ask questions when evaluating any company's pay plan. Some are front end loaded or they may be back end loaded.
There are some plans out there that payout more than 100% fortunately these companies don’t last long but do end up hurting individuals and give the network marketing industry as a whole a bad name.

As a general rule of thumb anytime you see a payout of more than 60% be suspect. It generally indicates that:
• The products are grossly overpriced, unless it is a unique product or a exclusive patented product.

• Qualification/Quotas most well established companies will have some volume or monthly quota that each individual representative must maintain.

• Breakage/Break away several of the most popular programs out there use this one. Imagine after all your hard work you miss your quota for the month only to have all your hard work building an organization disappear.
Most compensation plans fall into binary, breakaway, matrix, stair-step or uni-level plan but there are other plans out there as well.
Network Marketing Binary Plan:
First level is limited to two with infinite depth.
Network Marketing Breakaway Plan:
Unlimited first level width, usually with a finite depth 10 to ? levels deep.
Network Marketing Matrix Plan:First level width 2 to 7 usually 5 to 50 levels deep.
Network Marketing Unilevel Plan:
Unlimited first-level width with a depth of usually 5 to 10 levels


Matrix pay plans found in MLM Or Network Marketing

The typical matrix is limited in width on the first level to usually 2 positions although with some companies it can go much wider.




Usually it has a predefined depth (levels) of 5 to 12 with linear commissions. Matrix plans often use the phrase two who get two etc...1/1 2/1 plans

Understanding The Binary Pay Plan.
This type of pay plan requires more work on your part.
While theoretically it revolves around two who get two on to infinity, which of course, we know will never happen.
Most of the companies that use this type of program, generally pay you on the weaker leg in the binary.
This requires you to keep a sharp eye on both legs of your organization.
There is nothing wrong with this type of pay plan, yet still in my personal opinion which counts only for me I like the unilevel the best.
One of the first companies I worked with used this type of pay plan with a twist it was not until much later that I learned how flawed the concept of their pay plan was.
The twist they added was that after recruiting my first two individual I would create another business center under on of the two previous individuals provided they had done nothing.
After several years I ended up with all these business positions with no one in between. While many programs offer compression, depending on the pay plan it could be harmful to your future income



Understanding Breakaway Pay Plans

Breakaway pay plans are different they are the oldest type of pay plan, once members of your organization reach a certain leadership level decided upon by the company, they breakaway into their own organizations.
At first glance, this looks pretty scary, yet in most cases you’re still paid to a certain extent on those new organizations.
Breakaway programs are the most popular in the mlm - network marketing industry. It is very important not to get sucked into graphs and numbers brought out and displayed for you.
Graphs and numbers can always be skewed to present a much better picture then what actually exists.




Unilevel Pay PLans

Many companies pay structure is laid out so that you must build a huge down-line to generate substantial income.
This is generally also true with our customer base.
In network marketing we should really be focused more on customer acquisition then downline building.
Often this is not the case with most company pay plans.
For example with the unilevel plan I know that if I go out and acquire ten customers that a company will pay me 100.00 for each customer.
Now I know that I’ve just generated $1000.00, if the customers are on a monthly order for products or services then I will generate a residual income from each customer repeating order.
This monthly residual income could depending on the companies pay structure range from 5% to 30% of their monthly recurring orders.
This gives me the incentive to get out and find new customers, but to also follow up with the customer’s I’ve already acquired.
With this in mind, you can now predict with some certainty what you income level could be based on your own actions.
You do not have to rely on the actions of others. Anything that your downline does should be in my opinion be considered just a fringe benefit!