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What is Network Marketing?

1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic (by 4 people)   Your rating: 1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic

Ranked #6589 in Business, #94174 overall

Rated G. (Control what you see)

Network Marketing Defined

 

Defining Networking Marketing and understanding the impact it can have.

Why Gail Wahl wrote this Squidoo...... 

I've been in Network Marketing for about 3 1/2 years. I knew NOTHING before I began this journey so I became a student of the business and have done a great deal of studying and reading on this topic.

I'm a black and white, get down to the facts, don't sugar coat it kind of person. My eyes get all fuzzy when I pop on to a site that is filled with about three to four feet of content. When I do a search on-line I am looking for consice facts that are easy to find and easy to understand. I don't need all the jargon usually added to make it rich in "content". Just give me the facts.

That's why I decided to author this site. It is a consice, yet thorough overview of the topic of Network Marketing. By the time you are done reading through it you should:

  • Know the difference between Network Marketing, MLM and Direct Sales.

  • Understand why so many people are choosing Network Marketing.

  • Understand what a Pyramid Scheme really is and why it isn't much of an issue any more.


I'd really appreciate you taking the poll at the beginning and the end of this Squidoo so that I can be sure that I am being clear enough for those that don't need all the "content" to grasp the facts.

Enjoy!

Gail Wahl
Team Leader & Success Coach
http://www.at-home-networking.com

What are your BELIEFS about Network Marketing? 

Before we dive into the FACTS about Network Marketing, let's Poll your belief system about Network Marketing

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Don't forget to participate in the 2nd POLL located at the bottom of the page AFTER you've read through the material.

Network Marketing 

Network Marketing is nothing more than the movement of products or services from the manufacturer or producer to the end user via word of mouth marketing. It is conversational marketing.

Example: When you purchase a product in a retail store that you really like you tell other people about that product. If they like it too, they will tell someone they know. Wouldn't it be great if that retail store gave you a commission on the sales you generated from just sharing your testimony?

Well that is exactly what Network Marketing is; sharing your testimony with others and earning on-going commissions from your efforts.

Here are some facts about Network Marketing you might find interesting:

  • Network marketing is well over 50 years old and is legal in all 50 states and 125 countries.

  • The network marketing industry does about $100 billion in retail sales annually.

  • There are approximately 50 million distributors worldwide (14 million in the U.S.)

  • Business Start-Ups Magazine (a division of Entrepreneur magazine), rated Network marketing as one of its 100 Best Businesses to start.

  • In recent comparison, publicly traded network marketing companies outperformed both the Dow and S&P 500 by nearly 80%!

  • In an issue of Entrepreneur magazine they wrote, "Literally thousands of people are realizing annual incomes in excess of $1000,000."

(Facts found in "The Twelve Power Secrets" by Rod Nichols)

What Network Marketing Offers 

Now that you understand a little better what Network Marketing is, let's look at how it could provide a solution to your uncertain future.

Network Marketing offers......


  • A positive, supportive environment in which to work.

  • Unlimited income potential.

  • Part-time effort can generate a solid full-time income.

  • Work from home means more time with the family.

  • Great family business where the kids can learn about business and money.

  • Excellent tax benefits.

  • In a short period of time (2 to 5 years) people can secure their financial future with a long-term residual stream of income.

  • Residual income can result in more free time to spend with family and enjoying life.

  • Network marketers can help people get control of their financial life and reduce financial pressures.

  • Great opportunity for personal growth.


How To Fail In Network Marketing

Why are so many people choosing Network Marketing? 

Recession looms before us. Layoffs are common, Social Security is uncertain, Real Estate is plummeting, the stock market is volatile.

Many are choosing Network Marketing as a primary or secondary source of income because:


  • Low Start Up Cost - Try to start a traditional business or open a franchise for under $500. You can create a million dollar business with a very small investment.

  • No Experience Necessary - Any successful Network Marketing business will have duplicatable systems you can implement.

  • No Degree Necessary - Network Marketing is a "learn while you earn" business. The opportunity is available to ANYONE, but not all choose to take the challenge.

  • Low Overhead - All you really need is a voice, a phone, and ambition. Having a computer will progress your business faster, but not necessary.

  • Start Part-Time and Work to Full-Time - Network Marketing can be started along side your other job until your income builds up to the full-time level.

  • Very Little Risk - Your investment is low and often includes products and services you can personally use.

  • Residual Income - Network Marketing offers you the opportunity to leverage your time by earning off the efforts of others. This is called residual income. Is this any different than the owner of a company earning off the efforts of his employees? Actually, the difference is, ANYONE can earn big in Network Marketing; not just the owner.

  • Home-Based Business - You can stay home and be with your family while you work your business around YOUR schedule.

Differences Between Network Marketing, MLM and Direct Selling 

MLM (Multi-Level Marketing), in its' original form was originated over 50 years ago. This system of marketing was developed prior to computers. Companies used multiple levels of people to distribute products and pass down the commissions.

A typical arrangement was for people to join a company and begin purchasing their products from another distributor. This other distributor (Direct) had achieved a level with the company where they were contracted ot purchase large quantities of the product (at a discount) from the company and provide it to the rest of the distributors in an area. They would sell the products at a profit, thus justifying the huge inventories they were required to carry. As distributors in their downline would begin to qualify for commissions, the company would pay the Direct and he or she would have to determine what to pay the downline distributors and issue checks. This was very time consuming and led to many errors. (Defined by Rod Nichols in "The Twelve Power Secrets")

Network Marketing - We've already defined Network Marketing as the movement of products or services from the manufacturer or producer to the end user via word of mouth marketing. It is conversational marketing done by distributors that are all contracted directly with the company. Products and commission checks come directly from the company. Products sold primarily through one-on-one sharing and commissions are paid on multiple levels.

Direct Selling- The sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople. Depending on the company, the salespeople may be called distributors, representatives, consultants or various other titles. Products are sold primarily through in-home shows and commissions are paid on limited levels.

Is Network Marketing a Pyramid Scheme? 

Answer: No. Pyramid schemes are illegal because no products or services are ever really involved, only money and paper trails. As a matter of fact, many large and successful companies have found Network Marketing to be an efficient and cost-effective way to distribute and market their products, with some such companies having been in business for over 40 years!

Pyramid operators benefit from the fact that on the surface, their schemes look simple. An individual is asked to contribute money, and in exchange, as new people are recruited into the scheme, money will flow back to them. But the results of pyramids are inevitable and predictable. All eventually collapse and fail.

The bottom line is this: if it sounds too good to be true... it is!

Has your Belief System Changed on Network Marketing? 

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Interested in Investigating a Network Marketing business with a Start Up Under $50? 

Suggested Reading 

Wave 3: The New Era in Network Marketing

Amazon Price: (as of 10/10/2008)
List Price: $14.95

The Wave 4 Way to Building Your Downline

Amazon Price: $10.85 (as of 10/10/2008)
List Price: $15.95

Your First Year in Network Marketing: Overcome Your Fears, Experience Success, and Achieve Your Dreams!

Amazon Price: $10.85 (as of 10/10/2008)
List Price: $15.95

Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not!

Amazon Price: $11.53 (as of 10/10/2008)
List Price: $16.95

New Guestbook 

jackieulmer

Great lens. You sum up MLM and Network Marketing beautifully. 5 stars!

EXPECT Success!

Jackie Ulmer

Posted April 23, 2008

monica fancher

Gail, great work this team is so educational for me. I have learned more in the past 4 months about networking marketing than I have known my entire life. thanks

Posted April 13, 2008

LeadersByDesign

Hey Gail,

Very informative lens. You've clarified many aspects about network marketing and highlighted its professionalism as a fun and authentic business choice! Kudos!

Deb and Brad

Posted April 08, 2008

Kristi in TN

Your lens is really terrific! You're definitely someone I love to watch and learn from. I think you've given me the courage today to finally try making my first lens soon! Thanks for sharing it!

Posted April 08, 2008

tanyahommes

Gail, this is a great lens. You have provided very specific information on Network Marketing. I like the poll first to see where people stand and then at the end to make sure the information is understood. Great job!

Posted April 08, 2008

Yvette Mason

Nice lens, Gail! So many people are confused about network marketing. You have captured valuable information about this subject in your lens. Thanks for sharing!

Posted April 08, 2008

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GailWahl

About GailWahl

Gail Wahl has been a professional network marketer for over three years.

Gail loves to help others to cross over from being bossed to becoming their own boss. Then the real fun comes as they work together to grow a business that is built around THEIR style.

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