What is Network Marketing?
Network Marketing (N.W.M.) is not a new industry; it’s been around for more than 100 years now and is currently a $100 billion+ annual industry. There are more than 60 million people globally who participate, and some of the most successful companies use it to market their products. Moreover, it has attracted some of the most successful investors to it in recent years. The world’s most renowned investor, Warren Buffett, owns a network-marketing company, as did Ted Turner. Donald Trump has his own company, and Bill Gates markets products through it. This industry is very much on the upswing.
“Never believe that a few caring people can’t change the world. For, indeed, that’s all who ever have.”
– Margaret Mead
Network Marketing, in my opinion, is the smartest way to start for the average person because you have the chance to make a very large income without the potential downside of a traditional business. There are no massive financial investments needed, no hours to keep, no employees, no storefronts, no large inventories, no tough accounting, and in some cases, it can be done through online processes so you don’t ever have to touch products, paperwork, or collect money. Nothing could be simpler. Here’s the kicker: You can start a business in NWM for one cost a few nights on the town! Many companies have a startup fee of just a few hundred bucks.
To give you a brief explanation of how this industry works, it’s like Facebook with a product (or service) and a paycheck. How did Facebook grow? Word-of-mouth advertising. The original owners of the company told all of their classmates to join Facebook, and they did. That second group of people shared it with a third group of people, and the third told a fourth, etc. Now more than a billion (?) people have joined Facebook simply through word of mouth – people telling people. At this point, many of you are probably saying to yourself, “And they didn’t pay me a dime!” Exactly! You did the work, but didn’t get a check. Stinks, doesn’t it?
In NWM, you start an entrepreneur from home with the company of your choice marketing a product you enjoy to people you know. The parent company pays you for your efforts. If you know anyone who might want to tell people about the products as well, you can connect him to the company. When he begins getting customers, he’ll get paid too. The really cool part is not only will the company pay your friend for his customers, but they’ll pay you for his customers, too, even though you didn’t directly refer those customers.
Why would they do that?
Because if it wasn’t for you, the company never would’ve met those customers, so they pay you and your friend for the referral. It doesn’t stop there, though. If your friend knows someone who wants to tell people about the products and get some customers, you can get paid for her customers, as well! This will continue for a certain amount of levels of referral, depending on your company’s compensation plan.
Essentially, in NWM, you’re building a word-of-mouth sales force to tell people about the product your company represents. Your goal is to have the most customers possible through your chain of referral. The more customers you have, the bigger your checks will typically be.
One of the most significant and underrated benefits of NWM is the training. While in most other avenues you’ll receive little or no training, in NWM it’s one of the major focuses of the business. In other models, it’s every man for himself – and your competitors surely won’t train you. In NWM, people are paid to make sure you learn, grow, and succeed.
Other Benefits of Network Marketing:
- Network with other successful local business owners – it’s like a giant chamber of commerce
- The NWM environment is always high-energy and upbeat. This is extremely necessary for an entrepreneur and quite the opposite of most people’s friends and family
- Great tax breaks
- Development of sales, leadership, and public-speaking skills
- You can do it part-time while going to school, working, or running other businesses