The Three Primary Powers Of Network Marketing
Network Marketing, 'MLM', and Multi Level Marketing are all terms that refer to the same type of business model. This industry has had more than it's share of scumbag crooks and con artists that have used and abused the concept. However, if you do your homework and get involved with a legitimate network marketing organization, this business model has exceptional income potential.
Network Marketing can produce outstanding results if you know a few simple concepts, the understanding of which is critical to your success.
Network Marketing, MLM, and Multilevel Marketing are unlike franchises or conventional businesses in that they take advantage of all three of the important, yet misunderstood principles of:
1) Leverage (of Time and Money)
2) Residual Income
3) Geometric Growth Through Duplication
Unfortunately these principles are not well understood by many of the people that undertake network marketing. And that's just one of many reasons why so many fail at network marketing. There are lots of other reasons, and it would take volumes to cover them all. But this is one of the more common ones. Because if you don't comprehend and believe in these principles, it's impossible to help others fully understand and appreciate them.
First, lets look at LEVERAGE:
Every successful person or business takes advantage of leverage. There are only 24 hours in a day and no matter how talented you are or how much you get paid per hour, if you don't take advantage of leverage you're limited by the number of hours in a day. As a side note, I have heard of cases where an occasional lawyer was billing more than 24 hours per day...but, I guess that's another story. By learning to leverage your time, you can also benefit from a percentage of other people's efforts, and dramatically increase your income while creating more free time for yourself.
The unique and wonderful thing about the Network Marketing business model is that everyone has the same opportunity to become the 'owner' of his or her own business - with a fraction of the investment of time and money of a franchise or traditional business.
In network marketing the people at the top definitely have a vested interest in helping others on their team succeed.
Would you rather receive 100% of one person's efforts, or 5% of the efforts of 100 people?
Obviously 100% of one is always only ONE. But 5% of 100 is FIVE.
Not only will the total result with leverage almost always be amplified, but your income is not dependent on only one person. If your income is produced by the activities of many, it is much more dependable. Even if something unexpected or negative happens to one or more of those people, it only has a minor effect on the TOTAL production.
It's great to get paid while you're sleeping or away on vacation. That's one of the many advantages of leveraging your time.
Now, lets consider RESIDUAL INCOME:
When someone mentions residual income many people automatically think of actors or musicians.
Residual income is recurring income that you continue to receive long after the work you've done to produce it has ended. There are lots of ways to produce residual income. However, many people don't understand it, and still others have never thought about or been exposed to it.
A very simple example of residual income is interest earned on money in the bank or investments. You continue to receive this income without having to invest any more time to produce it.
Suppose you had the choice of doing a job and earning $1,000 once, or getting paid $50/month for the rest of your life...which would you choose? If you chose the $50/month you obviously "get" the concept of residual income.
Clearly, $50/month will surpass a single payment of $1,000 relatively quickly. And if it lasts for a few years, or better yet - the rest of your life - it will really be a blessing.
Residual income is certainly not about "getting rich quickly", even though with the right opportunity it's possible to produce a substantial residual income stream in a relatively short time.
Most people who fail at network marketing either choose the wrong network organization or just give up too soon and quit because they expect overnight results. It is important to recognize that the real beauty of residual income is on the back end, not the front, and that once you build it you have the financial security and time flexibility to do just about anything you desire for the rest of your life!
Last, but not least, lets address GEOMETRIC GROWTH (DUPLICATION):
The classic illustration of geometric growth is the frequently used penny-a-day example.If you save one penny on the first day, and double it every successive day, (day two you have 2 pennies and day three you have 4 pennies, and so on) how much will you have at the end of 30 days?
The answer, to the astonishment of many, is $5,368,708! Amazing, but true.
That's a simple and dramatic illustration of how networking can work. If I can teach you, I've doubled myself. If we each teach someone else, we've doubled again. As this duplication or geometric growth process goes on and on, it can produce some amazing results in a relatively short period of time, just like the penny example above.
So there you have it, understand and apply these three principles
1) Leverage (of Time and Money)
2) Residual Income
3) Geometric Growth Through Duplication
and, given sufficient time and effort, you should enjoy a successful and financially rewarding network marketing experience.
----------------------------------------------------------------
This article is freely available for reprint provided that the
resource box at the end of the article is left intact and the
article is published complete and unaltered. If you are using
this article on a website or e-book, please make sure that the
link in the resource box is live or clickable.
----------------------------------------------------------------
Kirk Bannerman operates a successful home based business and coaches others seeking to start their own home based business.
Visit his website at Legitimate Home Based Business for more details.
Related Articles:
MLM Network Marketing Recruiting Training - The 5 Magnetic Phrases that Paint Word Pictures
One of the most powerful secrets to recruiting in network marketing. Do you use them?INFERNO Secret:Word Pictures can increase your recruiting ratio by 50% overnight!Ok.
My First Leap Into Network Marketing
I started into Network Marketing to find a way to make additional income I was making a 6 figure income in my store front business, but I was maxing out my time and because of my exceptional skills in my chosen profession I was unable to employ anyone who could meet the quality standards I have set for my work
Choosing A Network Marketing Company
In Phase 1 we touched briefly on researching companies at the Direct Selling Association (dsa.org) website. Choosing the right network marketing company is a time consuming but well worth the effort process. The right company should be a company who has been around for a few years or more and has a proven track record of growth and a strong, positve outlook for the long road ahead. A word of caution. Do not join a company who claims to be "Ground Floor Opportunity". The internet is loaded with these types of so called " opportunities" that in the end presents itself as a real waste of time. Some of these ground floor companies do not have a product and are interested in positioning people and leading them on until they take enough money fro...
Building Million Dollar Network Marketing Organization Secret Is Superior Newsletter Design
You can build a network marketing empire on the backs of well written, well designed, and impossibly interesting newsletters. Sure, this may sound like the prelude to yet another e-book touting the magic bullet for making sales and turning leads into willing buyers and distributors, but in this case building a million dollar network marketing organization secret is superior newsletter design!
The Street Smarts Guide On How To Succeed In Network Marketing
Network marketing sounds like a get-rich-quick-scheme to people who want easy money and think that network marketing requires little or no effort to do However, true network marketing requires a lot of business mettle, good judgment, rapport with people, and an ability to spot something that will sell
A New Paradigm - Network Marketing Is No Longer On Trial
Network marketing, or MLM, has survived as a formal business model for more than half a century, and the underlying concepts that drive this industry have been around since the dawn of marketing And while once there was great skepticism surrounding this form of home business, the majority of educated entrepreneurs now accept network marketing as a valid and lucrative option
Network Marketing Training - The 5 Things In Your Home That Can Destroy Your Home Business!
The fact that you have decided to build a home business is awsome And I congatulate you on a great choice
In Network Marketing Does The Five By Five By Five Animal Really Exist?
If you've been exposed to a network marketing presentation, the chances are that you have heard that, "all you have to do is to find five people and when they each find five....". When I first heard this way back in 1969 I couldn't believe my luck. All I had to do was find five people. The fact that very few other people were in it, just persuaded me that the concept of network marketing was so new in my country that the world was my oyster.
Network Marketing Success- Network Marketing Success Vault Secrets
Network Marketing Success is very elusive, as most do not know the Combination to the Lock of Network Marketing Success. Most folks are too busy "working the business" to ever become successful in Network Marketing.
Network Marketing as a Home Based Business
With the Internet being such a large part of everyone?s lives today, it?s only natural that many people are also seeing it as a way to earn money at home. Although some people are operating ?regular? jobs on the Internet such as distribution of products and secretarial services, the majority of Internet home based businesses focuses around network marketing. It is, by far, the most popular home based business on the Internet, as well as the easiest with the lowest initial investment.