Is Network Marketing Success Luck or Skill?

Network marketing otherwise known as multi-level marketing (MLM) is one of the fastest growing yet most misunderstood methods of moving products in use today. It has been in existence since 1960 starting from the United States of America. The first network marketing company that started in history is known as AMWAY which is the short form for American Way. Presently Amway is quoted on the stock exchange and their annual sales turnover is in excess of $200 billion. Certain people see this industry as a resort for persons who could not get a place in the traditional corporate business world i.e the white-collar job. But network marketing just like every other product/service distribution model is an honorable means of livelihood and business model. What is network marketing? It is important you understand what network marketing is so that you can correct the negative uninformed knowledge that is planted in the minds of so many people who were listening to those who could not wait to understand how this industry works before they quit in their network marketing business. Let us start from the basic. Marketing simply means moving a product or service from manufacturer or provider to the consumer. Network marketing refers to the system of compensation provided to those persons who are causing the products to move or the service to be provided. Multi-level marketing or network marketing means more than one (network) level.

There are only three basic methods of moving products. The first is wholesale/retailing model. This is the traditional distribution model which uses the advertisement media and wholesaler to move their products. It is the most common model but it is aimed to enrich the already rich wholesalers and advertisement agencies. The second is direct Sales. This just like network marketing is a model where the manufacturer or service provider sells the product direct to the consumer. But sales instead of sharing are emphasized. The third is network marketing. This is a model where the manufacturer or service provider offers their products and services direct to the consumer at the cost price and also pay them compensation for buying their products/services and at the same time for sharing the products/services with their friends, associates and relations.

Most objections that people have about getting into network marketing are due to not realizing the difference between network marketing and direct sales method of marketing. Network marketing does not necessary mean door-to-door selling of products but sharing of valuable products and services. What I mean by this is that you use the product which is of more quality than their rival in the market and at the same time share same with others. (Mostly family, associate and friends)The most significant difference between MLM and direct sales is that you are in business for yourself. But in direct sales you are not for yourself but for the company you are representing. Being in business for yourself, you are buying the products wholesale from the company you are representing. This means that you can (and should) use these products for your own consumption. Note that many people get involved in a company at first for this reason alone, to buy wholesale. And many of those will get serious in building a business along the line. Since you are buying your products at wholesale, you can, if you wish to, sell those products at retail band make a profit. The most common misunderstanding about MLM is the notion that you have to sell retail to be successful. The most important point is that you should let your sales come as the natural result of building the organization. More people fail than succeed by trying to do it the other way around, i.e they try to build the organization by emphasizing selling.

The word selling triggers negative thoughts in the minds of about 95% of the people. In MLM you don’t need to sell the products in the traditional sense of the word. However, PRODUCT DOES HAVE TO MOVE or nobody gets paid. I define selling as calling on strangers and trying to sell them something they may neither need nor want. Again, product has to move or nobody gets paid! To understand this, I will adopt Metcalfe’s Law which states that a network’s economic value equals to number of users squared. (Robert Metcalfe is one of the people credited for creating the ethernet, the earliest form of internet) Stating Metcalfe’s Law in simpler terms, if there exist just one telephone, that single telephone really has no economic value. The moment there are two telephones, according to this law, the economic value of the phone network is now squared. That is, the economic value of the network would go from zero to two squared which is four. Add a third phone and the economic value of the network is now nine. In other words, the economic value of network goes up exponentially, not numerically. Similarly, in MLM when you build an organization, you are building a network through which you can channel your products. Retailing is the foundation of network marketing. Sales in MLM come from members sharing with their friends, neighbors and relative. They never have to talk to strangers but what they do is to consciously make more friends and in share their products with these friends.

Network Marketing Success: Find Your Inner Voice

Are you struggling to achieve success in network marketing but it seems some days you just can’t get into motion? Have you had people, maybe a mentor or upline leader, tell you, “Just face your fear and so it anyway” Do you wander where your fears come from? Do you ask yourself, “Why am I here?” Do you wander what’s holding you back? Are you looking for your “inner voice” to guide you and point the direction?

Most of us struggle with trying to understand our real purpose in life. Many of us drift daily through whatever life throws at us and rarely, if ever, seek to understand the deeper meanings of why we are here. We have a vague notion there must be something more but what is it?

Have you ever tried to connect with infinite intelligence and then gotten confused as to whether your thoughts are coming from source energy or from your own mind?
If we could connect with source energy and establish clear direction and purpose for our lives, we would be off to the races with enthusiasm, purpose and infinite energy. We couldn’t help but succeed in anything we tried to do.

I want to introduce you to a book that I just finished reading. It’s Russ Whitney’s book and it’s titled, “Your Inner Voice, Unlock Your Purpose and Passion.” It’s all about getting in touch with who we are, and what we’re supposed to do with our life. It teaches us how to get in touch with our inner voice so that we can receive guidance and direction from the universe. Russ teaches us how to handle difficult situations, and difficult people in our life.

The book focuses on how to live a life full of joy, peace, and harmony. It’s a really powerful book. One of the best books I’ve ever read. It’s a page-turner. I got my copy on Saturday and couldn’t put it down until I finished it on Sunday.

I highly recommend the book. It’s not very long, about 100 pages. It’s got some exercises in it for you to do to help you identify areas of your life that are holding you back, and what you can do to move through those areas of your life, and become more productive, get more in touch with your inner voice, understand what you’re supposed to be doing with your life, what your purpose is, what your passion is, and to live life on your terms. If you can find your inner voice and tap into source energy, you will find more success in everything you do in life and especially find your network marketing success. Now go find your inner voice and listen to it.

What Have You Tried in Network Marketing?

It’s a known fact, people change and times change. Although I’m dating myself by saying this, who can forget the old Alka Seltzer ads with “plop plop fizz fizz” or the old Burger King ads with the woman yelling, “Where’s the beef?”

I had the television on last week and saw a commercial for McDonalds. I was surprised to see them using a jingle from when I was a kid.

Marketing trends come and go. Two years ago I invested time in plug boards and getting my plug up as often as I could. Then, all of a sudden no one was using plug boards anymore and so I stopped investing time with them.

Today, I invest some of my marketing time in social networks. A few years back only teens were on the social networks.

When I first began marketing online, I wrote articles. Then I took those articles and began blogging. Today, I use my articles in directories, on my blogs and on message boards.

I’ve also run ads in newspapers. The general rule of thumb is that someone must see your ad several times before deciding to act on it. I found that having the ad run two or three times then withdrawing the ad and then resubmitting a few months later produced more results than just leaving the ad in the paper week after week.

If you put out a newsletter, try sending it out on different days and at different times of the day to see where you get the best results.

Any time you see that your marketing is not producing the desired results, change what you’re doing.

There are times that marketing from yesterday just will not work today. Other times you can take yesterday’s marketing, add a bit of today to it and reuse it, as in the example I gave from McDonalds using a jingle from when I was a child.

Marketing can be a trial and error process. Even in my article writing, I find that some topics and some titles get much better readership than other articles.

Keep trying new things. Come back to things that didn’t work before and add a little something to them to see if they can work today. Times change and so should your marketing.