What is Network Marketing (MLM)
Network Marketing also known as Multi Level Marketing or MLM began in the 1940s. It has evolved consistently over the decades to become a multi-billion-dollar worldwide industry today. Latest figures we have from 2015 showed that Direct Sales reached a new record of 183.7 billion dollars. $73.4 billion (40%), of which was paid directly to distributors via commission payments.
This equates to $6.1 billion per month or $201 million each day, 365 days a year. In 2015, 103 million people were involved in Network Marketing globally, up 4.4% from 2014.
Network Marketing in the 21st Century is evolving fast by using the power of social media. There are two aspects of network marketing, one is product sales and the second is the business building opportunity.
Network Marketing is building a business through engagement with your social network, or your personal community. Using social media and face to face to get people to engage with your product or service.
You can also engage people through networking meetings that are now very popular across the country. You are creating your individual brand, ‘people buy people’ as I am sure you are aware.
Building the trust
Networking effectively is about collaborating, building trust, loyalty and creating a team engagement. Once a online contact has been made it is important to get off line and meet up face to face. Where in an informal meet up your “prospect” can sample products and be given some free samples to try out. It has been undisputedly proven that face-to face works and this approach will build your business far more quickly.
Your aim is to have lots of happy customers who will then through word of mouth share their experiences with their network of friends. These friends will in turn become customers (and team members) themselves.
People fail to realise that they are recommending all of the time to ‘their networks’, books, restaurants, films, etc. In network marketing you just get paid for the recommendation when the purchase has been made.
Network Marketing is a level playing field, everybody starts from the same place, zero. It is a totally equitable and transparent business model, “no work no pay”.
Network Marketing is a volunteer business and you have to be self-motivated as there is no boss to push you. This is one of the main reasons why people fail because people adopt a ‘hobby attitude’ to their new business. People who they thought would purchase or join don’t they become disheartened and give up.
The power of your business is building a team of business builders, people who see the bigger picture. This is where your income can grow quickly. You are paid not only on the product sales of all your customers but also the customers of your downline team.
What sets this business apart is you are paid a commission every time your customer purchases a product. Not just the first time, every time. This is called residual income and is the holy grail of income earning. You do the job once, you do it well, you get paid every month. Note, as-long-as the customer purchases your product or service.
The aim of every professional network marketer is to build a large team over time. Where over time you have recruited great people who will themselves become leaders. This allows you should you wish to step back from the day to day management of your team.
I know lots of successful network marketers who are financially secure and could easily walk away from their business. They love the company and their team members so much it becomes a way of life. Having said that it will not stop them having 6 holidays a year. And have a work/life balance that most people would die for. That is the power of this business.
Many of your happy customers will become team members over time, once they have had a great product experience. You will have shown them the financial benefits of becoming a business owner and being part of the team.
Engaging with Personal Development and becoming a true network marketing professional
Network Marketing is first and foremost a people business. I call network marketing a personal development business disguised as a …………. business. This all means you have to develop your personal skills to become a true professional. See my recommended reading list for personal development books).
It is a fact that all the successful network marketers will all have engaged with personal development. That is what I want for you.
Eric Worre is considered the world’s leading network marketing trainer and has trained thousands of people through his organisation, website is http://www.networkmarketingpro.com
His aim is to raise the raise the profile of network marketing and up skill people who join to be so they have the best chance possible to be successful. Eric is brilliant, I highly recommend you connect with him.
Watch Eric’s interview with Larry King. Larry King grills Eric Worre on Network Marketing