Network Marketing just seems to be one of those businesses. We’ve all either heard or said the famous question, “IS THIS ONE OF THOSE PYRAMID THINGS???” Network Marketing is one if not THE most miss-understood business models ever. In fact, Network Marketing is NOT EVEN understood by a large percentage of people involved in the business. Why is that, well in my opinion there are 2 primary reasons the masses don’t understand MLM.
The first reason people don’t understand network marketing is because; they have a preconceived notion of THE BUSINESS without having any information of substance. People THINK, they know – when really they have NO IDEA. We all look at business through a set of RETAIL eyes, unless we’ve received or sought out specialized training. In other words we all NATURALLY think of a store. We think of products being sold to an end consumer. Network Marketing sells to consumers too, but NOT in a traditional method – there is no store, wealth is not created in Network Marketing through traditional RETAILING or SELLING.
The second reason people don’t understand Network Marketing is because people make decisions BASED ON EMOTION, then AFTER – the decision is made they back the decision with THEIR LOGIC. Were all human and that’s how we operate. So, when someone is exposed to the opportunity they will FEEL a certain way about what they’ve seen. They may feel that THIS WILL BE EASY, IT’S TO GOOD TO BE TRUE, TOO HARD, THEY CAN’T DO IT, I DON’T LIKE SELLING, or LET’S DO THIS, people will FEEL a given way FIRST. Each individuals FEELINGS will be based on the individuals own experiences and self-image they will then back this FEELING with logic.
Humans are emotional beings; Network Marketing is an emotional business and has to be because people are emotional. So what emotion is a new person who sees the light going to experience??? You guessed it EXCITEMENT! Excitement and enthusiasm is important in any endeavor, unfortunately when it comes to Network Marketing it’s usually misplaced. This miss-directed excitement can become a problem when the new MLM’er receives or ACCEPTS no training. EVERY company offers training, but not every person ACCEPTS IT. Too often the attitude about how to build a business is “IT’S OBVIOUS” but the reality is Network Marketing is a simple business that requires a decision for success first, then the action necessary to achieve that success.
So to quickly review, MORE OFTEN than not in Network Marketing, someone who “SEE THE LIGHT,” gets started, doesn’t understand the business but THINKS THEY DO, receives or excepts no TRAINING, and then QUICKLY has success but doesn’t know why or how, so they can’t EFFECTIVELY train others, or they KILL their own dreams of a better life at the first sign of adversity and quit. The system of Network Marketing is designed to avoid these traps, but unfortunately most don’t follow the system.
SAD RIGHT! Of course it is. So why would 2 WELL RESPECTED, entrepreneurs like Donald Trump and Robert Kiyosaki stick there neck out and recommend Network Marketing?
Don’t they know most people don’t understand it or “FEEL” like it’s a scam or ARE THEY NUTS???
Well, Robert and The Donald understand that Network Marketing is first about PEOPLE and RELATIONSHIPS. The business is about people before products, commissions, or anything else. A Network Marketing business is comprised of PEOPLE, and PEOPLE are the asset to the Network Marketing business, and to all businesses. They also understand that Network Marketing is LEVERAGED – DISTRIBUTION business. That sounds kinda fancy, but it’s really SIMPLE. Network Marketing is not about retail, it’s about DISTRIBUTION. The distribution is created through RELATIONSHIPS. The goal is to create a distribution channel of like-minded people for the purposes of retailing through recruiting. It’s a model where distributors are CONSUMERS and can distribute to consumers, while creating individual and collective success. The real magic, is in the bond of like-minded individuals working toward the same goal. The leveraging component is created because of the commission structure, and because everyone has the same rights and ability to grow their business without any bias. Entrepreneurs of Robert and Donald’s caliber understand that the right relationships are the key to success in business and LEVERAGE is the only way wealth is created. Network Marketing combines relationships and leverage in a business with NO BARRIERS to entry or CAP on income.
Most business especially in a sales environment have commissions as well as leverage, BUT the leverage is limited. In mortgages origination, car sales, insurance, real estate, and many other professions managers earn their income based on the performance of the group. No one else is able to LEVERAGE from the efforts of many – only the managers and owners are given this privilege. HMMMMmmm. Limited leverage – limited opportunity, unlimited leverage – unlimited opportunity. Robert, Donald and many other entrepreneurs understand any business with an unlimited leveraging component can create a fortune.
Robert Kiyosaki admits, that he didn’t understand Network Marketing at first – his mind was closed to the opportunity, for him it took a wealthy friend whom HE ADMIRED and RESPECTED enough to listen with an open mind. Since then he’s been a strong advocate of the industry. His most recent book is titled, “The Business of The 21’st Century” and you can guess what it’s about – that’s right Network Marketing.
Donald Trump recognizes that hard work is required for success in anything. So, if you’re going to work hard anyway – why not work hard at something that has the ability to pay you again and again. This idea is readily scene in Donald’s real estate holdings – real estate is a business that can have booms and busts, but can also create a recurring income stream. Network Marketing on the other hand is known for its ability to withstand and THRIVE during recessionary periods. Donald and Robert co-authored the book, “Why We Want You to Be Rich” that had an entire chapter devoted to Network Marketing. Donald demonstrates his belief in the industry by endorsing a Network Marketing company and even featured the company on his prime time TV show The Celebrity Apprentice, while at the same time owning a separate Network Marketing company – that’s putting your money, time, and energy where your mouth is.
The Key Benefit’s Donald Trump and Robert Kiyosaki highlight are:
Tax Deductions – When you start a network marketing business you gain the tax advantages of a business owner and can do so without giving up your full time income. More often than not the benefit of the tax deductions can more than offset the initial and monthly expenses of the business. Consult with your personal accountant or CPA and get the advice you need to take advantage this HUGE benefit.
Low Start Up – Most Network Marketing companies have very reasonable start-up costs typically $500 or less. While traditional business and franchises have huge start up fees and unlimited operating expenses, all to gain limited territories and limited income potential. Network Marketing provides a low cost entry and a fixed monthly overhead, with an unlimited upside potential. Network Marketing is a SWEAT EQUITY business; you don’t need to bring a big investment, just your consistent effort.
The Network – The most undervalued asset in Network Marketing is the network of people. Where else can you get 100’s or 1000’s of people of ACTION together in one place with the goal of a better life? Network Marketing is a relationship business, and in this environment you can meet, learn, and partner with entrepreneurs from all walks of life. Many of whom are business leaders or owners of businesses outside of Network Marketing. It’s the meetings and the meetings after the meeting where bonds are made.
The Skills You Learn – Network Marketing will challenge any insecurity you have, and rebuild you as a leader. Communication is the most important skill in life, whether it is internal communication with yourself or external communication with an individual or a group. Communication equals wealth. Network Marketing will accelerate your learning curve, in sales skills, leadership skills, organizational skills, networking skill, and of course marketing skill. This industry is an entrepreneurs BUSINESS SCHOOL, where the grades come in the form of checks.
Leverage Existing Systems – Surveys show that most Americans dream of their own business, and we all know most business fail. Most businesses fail because they lack a system. The individual more often than not is THE SYSTEM, and that system breaks down because of the stress and strain. Like franchising, Network Marketing companies have an existing system in place. All we need to do is PLUG IN and operate that existing system.
Proven Business Model – Network Marketing is a proven business system. Results don’t lie, Network Marketing and direct sales has created more millionaires than any other business model. The industry has proven that it’s person to person marketing strategy can stand the test of time, as well as even the deepest recessionary periods.
In conclusion, Network Marketing is a business for people who are looking to make changes in their lives. If you are a person looking to make financial changes in your life, and want to do it within a community of achievers – you deserve to find out more. To schedule an appointment to speak with me in detail about how you can benefit CLICK HERE.