According to Wikipedia, network marketing is way of doing business in which a sales force earns a commission not only for sales of products and services they personally generate, but also for the sales of others they recruit and bring into the business, which creates a downline of distributors and a hierarchy of multiple leveraged levels of compensation.
Whew. What a mouthful. Let’s break that down into something that makes more sense, shall we?
If like Jim Rohn, you realise you will never get rich working for someone else. You also know there are huge lifestyle benefits associated with building a success business:
- You can work from home part-time.
- You can pick the people you work with.
- You can pick the hours you work and how much you work.
- You have the chance to literally set yourself financially free.
When you join a network marketing company you are “signing up” to represent that company’s product and services and business opportunity.
You “sign up” by making a small investment (usually from £65 to £300) and by completing an Independent Distributor agreement. You are not being hired by the company as an employee but, rather, you are volunteering to represent the company as an independent contractor, business owner, dealer, representative or consultant.
You are awarded a commission based upon the volume of product sold through your own sales efforts as well as that of their downline organisation.
In other words, to make money you need to personally sell stuff AND teach your team to sell stuff because you earn commissions on the AMOUNT of product that moves through your new business.
Consider a franchise operation like McDonald’s.
McDonald’s is one of the largest fastfood organisations in the world. They have more than 33,000 restaurants that serves more than 64 million people in 118 countries each day.
More than 80% of MacD’s restaurants are owned and operated by independent business owners or contractors.
Now if YOU owned the mother-ship corporation, you not only earn money by selling burgers, fries and shakes from the 20% of the restaurants YOU personally own and operate… you also earn a tiny percentage on all the sales made by the entire organization including the other 80% you do not own or operation. Meaning you are now earning a LEVERAGED income generated by the time, talent and energy expended by the other business owners on your team.
Here’s another way to look at it…
Let’s say you earn a £100 commission for selling a particular product and it takes you two hours of “work” to make a sale. Break that down and your time is worth £50 per hour. Put in a full 40 hour work week and you pocket a nice £2,000.
Let’s also say you have spent some time “recruiting” a few people to join your team who also want the chance to earn £100 per sale and you earn a nice £10 check for every sale THEY make.
Over time you have built a team of 100 people. They each make 20 sales per week – independent of your time and effort.
YOU = 40 hours, 20 sales, £2,000
TEAM = 4000 hours, 2,000 sales @ £10 each = you get £20,000
See the magic? You get paid on the time and effort of other people. This is leveraged income versus linear income.
J. Paul Getty, one of the richest men in his time:
“I’d rather have one percent of the efforts of 100 people than 100 percent of my own efforts.”
No matter how you slice it, the only way you will ever build a highly profitable network marketing business is to be willing to MASTER the art and science of sales, marketing and leadership. Because network marketing is form of “direct sales” and no one makes a dime until products and services are sold. It’s that way in every business, not just network marketing.
So the KEY is to join a company, track down who is currently enjoying a level of success you aspire for, find out what they are doing… and simply be willing to DO the same things. Which, of course, may require you learn new skills and actually a few things (sales and marketing) you are not comfortable doing in the beginning. So what is network marketing?
- Network marketing is a career choice and a profession.
- Network marketing is a path to fame, fortune and time freedom.
- Network marketing is a leadership development platform.
- Network marking is fun, fast and exciting.
- Network marketing is a proven “million dollar” business model.
Robert T. Kiyosaki, best selling author of the ‘Rich Dad, Poor Dad’ series of books which combined have sold over 26 million copies sold worldwide, knows a good thing when he sees it.
That’s why, for the past several years, he has been a staunch supporter of network marketing. Like many people, Robert was skeptical about the industry at first … until he learned firsthand what network marketing is all about:
It’s about helping people.
Like billionaires Donald Trump and Warren Buffet, Robert is sold on network marketing. He wants to share his insights with you on why he believes it is the business model of the 21st century—and why now is the perfect time to take advantage of the opportunities it offers!
If you’re worried about losing your job through down-sizing, or just want to take charge of your future by taking control of your income source, you need The Business of the 21st Century!
He dedicated his book, The Business of the 21st Century, to the millions of you who are at a crossroads in life—who are affected by the current economic crisis and feeling helpless as to what you can do to secure your financial future. I want you to know that these are, despite what they may seem, the best times to take control of your future. I have spent my life educating people on how to attain financial freedom, and I know that this book, like the others in my Rich Dad series, will provide you with insight needed to create—and sustain—wealth for years to come.
Once you learn the truth of how money works and the business opportunities available to you in the 21st century, you will be able to begin building the life you desire.
He says, “The economy is in tatters; your job is in trouble—if you still have a job. And you know what? I’ve been saying it for years.
It took a global financial meltdown for most to hear it. But this book isn’t about how or why everything has gone to hell. It’s about why this bad news turns out to be very good news—if you know what to do about it.
He says, “I learned about business from two people: my father, who was a very well educated, highly placed government employee, and my best friend’s father, who was an eighth-grade dropout and self-made millionaire. My real father suffered financial problems his entire life and died with little to show for all the long years of hard work; my best friend’s dad became one of the richest men in Hawaii. I thought of these two men as my “poor dad” and my “rich dad.” I loved and admired my real dad very much, and vowed that I would help as many people as possible avoid suffering the kinds of indignities and failures that plagued his path.
After I left home, I had all kinds of experiences. I served in the Marines as a helicopter pilot in Vietnam. I went to work for Xerox, starting out as their worst salesperson and leaving four years later as their best. After leaving Xerox, I developed several multimillion-dollar international businesses and was able to retire at the age of 47 to pursue my passion—to teach others how to build wealth and live the lives they dream of living, instead of settling for mediocrity and sullen resignation.”
In 1997, he wrote about his experiences in a little book. He must have touched a chord with at least a few readers: Rich Dad Poor Dad shot to the top of the New York Times best-seller list and stayed there for more than four years, and has been described as “the best-selling business book of all time.”
Since then, he has put out a whole series of Rich Dad books, and although each one has a slightly different focus, they all deliver the exact same message as that first book, and it’s the message at the heart of this book you now hold in your hands:
His statement is clear:
“Take responsibility for your finances—or get used to taking orders for the rest of your life. You’re either a master of money or a slave to it. Your choice.”