Network Marketing Basics

The success of your Networking Business depends upon what your knowledge of Network Marketing really is.

To help you understand what network marketing is.

I must first explain what it is not.

First, network marketing is not a pyramid scheme.

Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they will get rich.

A pyramid is strictly a money game and has no basis in real commerce.

Normally, there is no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.

Network marketing is a legitimate business.
First, it's based on providing people with real, legitimate products or services they need and want at a fair price.

While some people do make a lot of money through network marketing, their financial benefit is always the result of their own dedicated efforts in building an organization that sells real products and services.

Pyramids are illegal. It is designed to take advantage of people and bilked them out of their hard earn money.

For a person to actually profit in a pyramid scheme, someone else has to lose money.

In network marketing, each person can multiply his or her efforts, skills and talents by helping others become successful. Network marketing has proved itself as part of the new economy and a preferred way to do business here and around the world.

Network marketing is not about taking advantage of your friends and relatives.
Only a few years ago, network marketing meant retailing to, and sponsoring people from, your "warm list" of prospects.

Although sharing the products or services and the opportunity with people you know remains the basic foundation of the business.

Today we see more people using sophisticated marketing techniques such as the Internet, conference calling and other long-distance sponsoring techniques to extend their network across the country.

Network marketing isn't a get-rich-quick scheme. Some people who are determined and persistent with their business attitude do make large amounts of money very quickly.

Many would say those people are lucky.

Success in networking isn't based on luck. Unfortunately, money does not produce wings and fly into your bank account no matter what someone has promised you.

Success in network marketing is base on following some very basic yet dynamic principles.

Now let us discuss what network marketing is.

Network marketing is a serious business for serious people. It's a proven system where the design, creation and expense the corporate team has gone through becomes a road map for your own success.

Just follow the simple, proven and duplicable system that the good companies provide.
The real key is this:

Network marketing is all about leveraging.

You can leverage your time and increase the number of hours of work effort on which you get paid by commissions on the earnings of the people you sponsor and train in the business.

Earn profit from other people’s effort.

J. Paul Getty, who created one of the world's greatest fortunes, said. "I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts." This very basic concept is the cornerstone of network marketing.

For example, most successful people building a network marketing business do so in an organized method. They work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth.

Then they sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process.

By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business.

You leverage your time by helping others be successful and earn an income from all their efforts.

With most network marketing, there are no big capital requirements, no geographical limitations, no minimum quotas required and no special education or skills needed.

And you can start as part time.

Network marketing is a low-overhead, home based business that can actually offer many of the tax advantages associated with owning your own business.

Network marketing is a people-to-people business that can significantly expand your circle of friends.

It is simply a sharing of information with others about a product or service you believe in and helping others to do the same.

People working together to achieve a common goal and ensure the success of everyone involved.

It’s the type of business that will enable you to travel and have fun as well as enjoy the lifestyle that extra income can provide.

Network marketing is the definition of fair compensation. It plays no favorites. It compensates everyone in exact proportion to individual efforts.

The PYRAMID scheme is evident in corporate America.

Every BIG company will have a CEO at the top of the echelon (pyramid), along with the President, Vice, COO or what have you.

Then they have the management team; the guys that usually absorbs the frustration of the higher ups when the going gets rough.

Then you have the Supervisor’s who mostly gets the blame and pass it down to the regular employees, who will remain in the lowest totem pole regardless of the profit made by the company.

Though it gets the boot when tough time comes…. You probably heard of it already, I think they call it downsizing.

When the company is expanding or I think they call it merging these days.

The lowest rank and file staff will always get the boot.

Why? I don’t know! You ask them.

If you’re not familiar with all this things, then you are probably very busy with your work and come home dead tired to miss or even understand the news unfolding in your TV screen.

In Network Marketing, you start in the lowest totem pole. Your sponsor (not your boss) is inclined to support you all the way to the top without feeling insecure because your production will bring him a profit.


CEO
President
Vice Pres.
Management
Supervisors
Employees and Other Workers

Everyone has an equal opportunity to earn as much as they want. No limits, it doesn’t matter where you are in the hierarchy.

Everyone earns the reward accordingly.

The only person who decides how big you will become is yourself.

According to "Network Marketing for Dummies" By Zig Ziglarand John P Hayes here is the full concise definition ofnetwork marketing (p. 2):

Network Marketing is a system for distributing goods andservices through networks of thousands of independentsalespeople, or distributors. The distributors earn money byselling goods and services and also recruiting andsponsoring other salespeople who become part of theirdown line or sales organizations. Distributors earn monthlycommissions or bonuses on the sales revenue generated bytheir down line.

It's the most powerful wealth creation vehicle on theplanet, the gold rush of the 21st century, powerful life changer.

It's hard and frustrating at times, but not difficult to learn.It's a roadmap to financial freedom, and a character builder in becoming a savvy businessman.

I simply sum up network marketing to be a great step up ladder towards financial independence.

Make money while having fun traveling, meeting and helping other people achieved their dreams of having the freedom to do what they want to do when they want to do it.

Ultimately you’ll have to decide for yourself if this is the kind of thing you want to do in your life.

No matter what you do in life, if you don’t have passion for doing it. You’ll never gonna like it.

My success and your success is already given to us we just have to learn how to use it.

That’s the main reason why our head is located on top of everything, it’s our command center.

That’s all for this edition folks…

Next week we will talk about power of leveraging, duplication and some bonus e-book that I’m giving away for FREE to my subscribers.