Network Marketing – Doing It the Right Way

The Ideal Business

How Network Marketing Fits That Structure

How NOT To Do Network Marketing

How To Do Network Marketing SUCCESSFULLY

Attraction Marketing

Conclusion

So what would the ideal business look like?

I think it would look something like this...

1. Low entry cost. Allowing its owner to easily set up shop.


2. No inventory. No cost and risk of carrying stock.


3. Provides a consumable product that is in demand.


4. No staff. Staff is very expensive and can be a major cause of headaches.


5. No office space required. If structured correctly legally, it can operate out of your home, leasing "office space" and reducing your tax liability.


6. May be built part-time. Allows you to build your business even if you have a normal job to attend to.


7. Has a pre-existing support system in place allowing you to get up and going without a steep learning curve to overcome by yourself.


8. Marketed online with potential clientele not limited to those within your own country.


9. Creates a residual income that can outlive you, and be passed on to the next generation.


10. Creates an income that grows exponentially (leveraged) as opposed to linearly (unleveraged).


11. Privately owned and controlled. No one has claim to your intellectual capital.


12. Portable and not limited by geography.
    
    Once your profits are big enough, you might decide to incorporate offshore in a tax-friendly jurisdiction that offers a zero percent tax rate (all legally). You might even decide to personally reside in a Caribbean paradise of your choice - "taking" your virtual business with you.

[Ahem... a little note on Taxation: The cost to you of every US$5,000 you pay annually in income tax over a forty year period, instead of investing it at 20% per annum (doable), is about US$44 million. That means there's about US$44 million generated from your time and productivity that you would have got, but wont. But someone else did. And no, they wouldn't have told you this in school.

And like Inflation, income tax is not one of those things that should necessarily be a part of life - like gravity. In fact, prior to 1913 there was no income tax in the US. The entire government was paid for via tariffs (duties on imports) and excise tax (taxes of stuff like cigarettes, alcohol, and gas). And no, neither would they have been big on pushing this in school.

See, you have to come to the Internet to learn this cool stuff. Or else buy books - the right books.]

So, is there such a business? Yes, there sure is.

I believe that a Network Marketing business, if done correctly (more on this later), and coupled with the Internet, fits this structure and offers people like you and I the best shot at setting up their own (leveraged) business and obtaining real financial independence.

Here's how a good Network Marketing business matches up...

1. Network Marketing companies typically have no to low start-up costs. Often you just need to purchase some of the company's products (at a discount rate) and you will be able to register with them as a business owner. Some of them do have a start-up fee, but it's often below US$100.
   
   A major point is the cost of doing product research and development. Hooking up with a good Network Marketing company gives you the ability to supply the market a range of quality products that you did not have to develop yourself. Typically this would have cost you many thousands of dollars. Instead, the company has paid this on your behalf.
   
   The company gets its return on its investment via all the sales that take place through their affiliated business owners. And you generate revenue on the associated commissions on those products moving through your (leveraged) business system.


2. No matter how big your business gets, you do not need to hold stock. The company warehouses and ships products to your clients on an as-needed basis.


3. Depending on the Network Marketing company you choose to be associated with, you can supply the market with a consumable product that is in demand.
   
   Needless to say, consumable products bring repeat purchases - you're not dependent on finding new customers to sustain business volume.


4. Regardless of how many people in your organisation, you do not need to employ anybody. Each person affiliated with you in your business is an independent business owner responsible for himself or herself.


5. A Network Marketing business can be operated from home, even from a single desk in a room. By its nature, the business is mostly virtual, and makes for the ideal home based business.


6. Due to the leverage aspects of this kind of business, it may be built part-time at whatever pace you can. However, to get something decent going though, you would probably want to put in at least ten hours per week.


7. A good Network Marketing business would offer you an efficient system by which you can be trained, and also train your associates with the minimum of time and hassle. It should be able to do this regardless if you intend to train ten people or five hundred people at a time.
   
   Some systems even allow you to test-drive them at no cost before you commit yourself.


8. The Internet allows you to do business anywhere in the world. And a good Network Marketing company, operating in multiple countries, allows you to do business seamlessly in any country it operates in.


9. Because you are dealing with a leveraged business model, the income generated will come predominantly from others people's effort. Hence it will be residual in nature.
   
   Many Network Marketing companies in their contracts allow you to will your business over to your heirs. However, I believe a better way to go about it is to make use of entities such as trusts and corporations. This way you can have nothing form part of your estate - no estate taxes, no hassle. (This is only necessary to do once you have a business worth protecting, and is best done with sound legal advice.)


10. The income generated from a Network Marketing business is highly leveraged and hence grows exponentially, not linearly.


11. A properly set up and operated Network Marketing business should owned and controlled by you.
    
    But avoid Network Marketing companies that in their contracts state or imply that your intellectual property (i.e. business) is their property. Some of them even forbid you to have dealings with other Network Marketing companies. (Sounds a bit like fascism doesn't it?)


12. A Network Marketing business making good use of the Internet is not limited by geography.

So, those are the reasons I like Network Marketing businesses. I believe that they offer the best opportunity for the average person to "mind their own business" and create a residual income.

A quick disclaimer: Even though good Network Marketing businesses have all these positive attributes, it is important to keep in mind that they are still businesses - not get-rich-quick schemes. If you fancy schemes, buy a Lotto ticket.

To my embarrassment, I spent years doing Network Marketing the traditional (wrong) way...

• Make a names list of all the people you can - people you know and that your family know.


• Contact all those people to try to "show them the plan."


• Of those few that do sign up with your opportunity, get them to do the Name List thing, and then chase after those people. (Never mind that people that do get in, do little or nothing and only last a couple of months, max.)


• Those that don't get in try to convert to product-users - especially family. (Hmmm, I always wanted to punt soap powder.)


• And whenever you go shopping, remember that every person you come into contact with is your prospect. (Cringe!)


• Go to all those rah-rah meetings so that you can convince each other how well your business is going. NOT!


• Take prospects to the weekly opportunity meetings so that they can hear from the gurus how well this business is doing, and how great it is. Riiight!

Even though I now cringe in retrospect when I think about how I initially went about this, I did it out of ignorance and trusting in and following the "expert" advice I was being given.

Even though I had poor results, I stuck to it because I knew that the Network Marketing model made sense and was good. I just kept going, hoping that my break would come.

I have subsequently learned...

• This way of chasing people goes against human nature and leads to rejection. And rightly so.


• Doing this does not work!


• Doing this will cause you to lose your self-esteem and your confidence (if you are normal).


• You may even lose friends and alienate your family.

And my greatest disappointment with my former "Network Marketing" experience?

I believe that the leaders knew all along that their "business opportunity" wasn't sound due to everyone's dismal results. Yet they kept punting their book-audio-video tools as the solution to all our woes. A system that possibly made them more money than the commissions derived from product usage in their organisations.

If anyone wasn't having success, they simply "didn't have a big enough 'Why'" and "needed to purchase and read/listen to/watch more tools."

But all along, it was their system that was broken!

The good news about this ordeal is that it has been a great learning experience for me. I have seen both sides of the coin. I have seen what doesn't work and what works.

I understand where I came from, and I understand what other people may have gone through and where they may be coming from.

The bottom line...

When stripped away of all its smoke and mirrors, traditional Network Marketing doesn't work technically because it has no marketing (ironically).

The key to doing this right is literally to do the opposite of what traditional Network Marketers get taught to do...

• Instead of running after people, you attract them to you.


• Instead of chasing people down spending big bucks doing so, have qualified prospects pay you to be a member of your team.


• Instead of hounding people, trying to "get them in," offer them something of value first. Those that like what you are about will respond in kind.


• Instead of desperately spending your time working with any human being still breathing, you will only have to spend your time with decent prospects that have already pre-qualified themselves.


• Instead of running around, driving all over the countryside (unleveraged), let technology go to work for you (leveraged).


• Instead of violating natural inter-relational principles in dealing with people, you co-operate with them and feel a whole lot better about yourself. They feel better too!


• Be normal. Not some prospect-hunting psycho.

All in all, the above is embodied in the science of Attraction Marketing. And Attraction Marketing is a major key to making any business work well, Network Marketing or otherwise.

To do Attraction Marketing successfully you need to take care of matters on two fronts...

1. Making sure that you're communicating effectively with people, in co-operation with human nature and not against it.


2. Making use of a highly-leveraged platform through which you do your marketing, and going about it in a professional way.

And the Internet is the ideal medium through which to achieve this. It is also very cost-effective.

In utilising Attraction Marketing, you make use of the principle of differentiation. This is very important. Most of your competition out there are all doing the same thing, chasing after people, making a nuisance of themselves, asking "would you like fries with that?" (Yuck.)

People running away from them run into someone like you. A valuable person with credibility - because you have something of value to offer and you don't do any chasing.

Things started changing for me when I first stumbled across and started using an Attraction Marking Training System and Business Platform called Renegade Professional. (It's baby brother is called Renegade University, and is available to try out for FREE. I suggest doing so.)

In the beginning I knew nothing about the subject and had never put up any content on the Internet. Now that has all changed!

Renegade Professional takes the newest person, click-by-click, through the system to help them get a functional business up and running on the Internet in as short a time as possible. In as little as a couple of weeks. (As far as I know, there is nothing like it out there on the Internet.)

Renegade Professional has hours and hours of video tutorials available on the one hand. And on the other, it has a business platform built into it enabling you to start "monetizing" your business right away.


To get your teeth into the whole concept of Attraction Marking, I encourage you to download Ann Sieg's free report called The Attraction Marketer's Manifesto.

She explains a lot about what works in business and why it works.


Ann is also the creator of the controversial, yet highly acclaimed, The 7 Great Lies of Network Marketing (free) report.

It's the kind of report that blows how traditional Network Marketing is done right out of the water.

No wonder the big traditional "buy some more of my training materials" players don't like it! If too many people in their organisations get to read this report, and find out what is really going on, they stand to lose considerable income.

Needless to say, it's a very worthwhile read.

Ann also happens to be one of the people behind the Renegade Professional System.

Thankfully, Ann and her team have made a massive impact (for the better) on the Network Marketing industry.

The key is to promote yourself and attract people to you. And using a well-oiled Attraction Marketing System allows you to do this.

Not only are you able to dramatically increase your leverage in the global market place, the system will allow you to effortlessly train as many new business recruits as you can throw at it.

In light of all this, doing things in any of the "old" ways is pure madness. It's like pitting someone (even like Lance Armstrong) on a bicycle in an across-country race against you in a sports car. He has no chance! So why bother?

I hope you see the value in Attraction Marketing, and what it can do for you.

For your convenience here are those links again...

• The Attraction Marketer's Manifesto


• Renegade University


• The 7 Great Lies of Network Marketing

Best wishes for your financial future.

Thanks for reading my article.

Please kindly...

1. give me your FEEDBACK (below), and


2. RATE my Lens (top of page).

Much appreciated.

Tell your friends if you like what you've read.

Copyright 2009 by Tony Kennard