What is Network Marketing and MLM?
So, what is Network Marketing and MLM? This is a common question most people have after hearing about it from a friend or family member.
It is also known as Multi-Level Marketing or MLM.
At the moment you are probably rather skeptical about the idea of building a network marketing home based business.
You are maybe also a little confused as to how this business generates an income and the idea of getting people to "sign up" underneath you.
That’s OK, I can tell you that you are not alone. The very first time I was introduced to the idea was at a wealth creation seminar.
A gentleman in a tidy business suit stood up in front of about a hundred people presenting the mechanics and benefits of Network Marketing / MLM.
I had a million questions of my own to ask after that presentation, so I know what it's like. To make it easy on you, let’s break it down by numbers and start from the top.
What is a Network Marketing and MLM Company?
Firstly, a network marketing company is one that has a variety of products available to their customers and distributors.
These may be health and nutritional products, bathroom and cleaning merchandise, cosmetics, cookware and jewelery.
These products tend to be specially developed by a team of top innovators and scientists. They are also generally high quality products which are fairly competitive with the commercial markets.
To become an Independent Business Owner or Distributor, you have to sign up to a network marketing company. The registration costs of joining the MLM industry will vary between companies.
This gives you the rights to buy their products at wholesale price and distribute them as a retailer where you can earn a nice little profit, or use as self consumption.
In addition to this, you are recognized for the volume of products sold under your business.
This gives you the opportunity to earn extra bonuses and monthly residual cheques. Of coarse, this will depend on the company's
network marketing compensation plan.
So, as long as your business is selling a certain volume of goods, you will be making money. The amount of money you earn depends on the
MLM prospects in your downline
of your business.
This answers the main part of the question "What is Network Marketing?". But there's more to it than that, let's move onto the nuts and bolts.
What is Network Marketing and Duplication?
The MLM industry is based on the theory of duplication. What this means is that your efforts are duplicated by the efforts of others.
So, the network marketing Company you are with will have certain products which you and your down line will consume.
This includes products that will usually need to be replenished on a monthly basis, and hence producing an on-going monthly income which is the main idea of this business.
It is important that you know about
because it's the foundation behind growing your business.
Is There Personal Development
in Network Marketing and MLM?
To ensure that your network marketing business grows, the company you have signed up to will generally offer a range of support and training resources.
This includes recommended books, DVD’s, CD's, and online tutorials. These can be very good resources, however, they do tend to come with a price tag.
I feel that they are more there to help develop you as a leader and as a better person, which is excellent, because it definitely helps to have good people skills in this business.
All I’m trying to say here is break into the use of these resources slowly, that way it won't be too overwhelming for you and also for your wallet.
But to get you started, here are two very useful resources that contain a lot of free self development training. The first website provides information on teambuilding
which is right up the alley of being a successful Network Marketer.
The second resource that I recommend focuses a lot on leadership development.
Leadership is a very valuable to have asset in this industry and this is what will help get you well on your road to your financial goals.
There are many old school methods for finding prospects and trying to get them to sign up underneath you, which helps your business grow (this is what you want to aim for).
The training resources provided by the majority of companies lean in the direction of old, out dated methods.
I have tried these approaches and personally feel that they can be very time consuming for the amount of effort you put in vs. the results you get out of it. This has led me to doing my own
MLM recruiting methods.
Is a Network Marketing Business for Me?
Overall, the network marketing industry can be a very, very powerful way for the average guy or gal to earn a lot of money. I must warn you, that many people try it as a 'get rich quick scheme'.
These people usually soon realize that things aren't working out to what they hoped for and then give up.
This results in those individuals bad mouthing the business which is a real shame. Because when people ask the question "What is Network Marketing?" they hear all of these negative aspects like "It didn't work out", "It's a waste of money", "It's too hard and you have to know a lot of people".
To be successful in the MLM industry, it really helps to have an approachable up line who are able to show you HOW to succeed at building a business of your own (sponsoring people into your opportunity).
So, if you have desires to eventually become financially free or you want to spend more time with your family, network marketing is definitely an investment that can make this happen for you.
Hopefully I have helped your understanding and answered your question "What is Network Marketing and MLM?".
If you have any further questions that need answering you will most likely find what you need throughout my site, so enjoy!
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