NETWORK MARKETING…. are no longer the dirty little words that they once were. Why? Because as people, we’ve come to the realization that it’s how we operate, it’s how we function and if those words were to somehow mean something bad, wouldn’t that mean that we as people were wrong in some kind of way?
When you really think about it, what ISN’T NETWORK MARKETING?
You see a good movie and tell three people….chances are if they see it and like it, they’ll tell more people.
You find a product that actually takes grease stains out of your laundry…..you tell someone, who in turn tells someone else.
Have you got a really good air conditioning guy, the best hair dresser in town, know of the best place your girlfriends can get their nails done?
Do you have the skinny on the best Chinese food place on the Northwest side, or have you found a fabulous new pizza joint?
How many others will you let know about all of these great deals?
If you’re a Mom, how many other Mom’s do you have to call to find out who a good pediatrician is? Chances are good that the same Pediatrician’s name could come up more than once.
I’m not sure how Network Marketing originally got it’s bum wrap, but I’m willing to bet that it was started by someone or someone’s in the advertising industry. I’m not pointing fingers, just admitting a hunch.
Historically, before print media and television, with the exception of the newspaper, if you decided to start your own business, how do you think the word spread about your operation, whether good or bad? If your business was run with integrity and hard work the chances are pretty good that your one satisfied customer turned into several other satisfied customers through word of mouth advertising or network marketing.
In business, direct selling a.k.a. Network marketing is the oldest most respected way of selling in the world. Why? Mainly because of the power of selling directly to someone you know who trusts you and knows that there is a loyalty, a bond that they won’t get from the guy or gal’s whose flyer came in the mail last week. After all, they’ve known you for more than decade, call you on your birthday or spend Christmas with you every year.
Direct Selling or network marketing businesses also use what many successful traditional business owners use, leverage. Donald Trump, Robert Kiyosaki, Robert Allen, Warren Buffet and John Long are a few names that you may recognize that use leverage.
What exactly is leverage? The easiest way to describe leverage is that…. everyone does a little to achieve a lot, or by duplicating or multiplying the efforts of many. Leverage can be used in many different forms, but it has the same basic principles. Here are some examples of businesses that use leverage:
THE MORTGAGE BROKER
A mortgage broker leverages or duplicates their efforts this way –
A broker has 10 loan officers working under them. If 1 loan officer can close 10 loans per month, the efforts are duplicated when 10 loan officers each close 10 loans per month, for a total of 100 loans closing each month, the broker has achieved time and money leverage. The mortgage broker didn’t have to spend all of their time trying to acquire and close 100 loans, but is still paid a small portion on each of the 100 closing loans.
THE FRANCHISE
A franchised restaurant (we’ll use McDonald’s) uses leverage by duplicating it’s efforts this way –
A restaurant franchise creator creates a system to efficiently cook and distribute food in a timely manner. Once they have worked out all the kinks and bugs and have been in existence for a certain length of time, they are allowed to apply for the right to distribute franchise rights of their “system” to the public or business investors for an initial franchise fee (in the case of McDonald’s at the time of this writing –franchise fees range from $750K - $1.9 million). Once the franchises are sold, the new franchise/business owner pays a percentage every month to the Franchise creator for the use of their “system” and their franchised name.
THE MUTUAL FUND
The mutual fund is a vehicle used to leverage money. Often times the company you work for will offer stock options in the form of a 401K mutual fund. This is simply picking low, medium or high risk stock investments and then contributing a portion of your (usually pre-taxed) payroll each week or month. The collective money input from the people working for your company creates a larger purchase power to buy more types of stock in the mutual fund.
DIRECT SALES/NETWORK MARKETING
Similar to the mortgage broker or the real estate broker, direct selling companies enlist independent representatives to market their products and services. Independent representatives may then create teams of representatives to share time and money leverage and acquire more customers through those teams thereby creating larger income streams.
There are a plethora of different ways to acquire market share: traditional advertising can be costly and may not reach as many as you think it will; while networking or word of mouth advertising can give you the opportunity to provide people with more of a 3 - dimensional idea of what you and your company have to offer.
Copyright 2014 - Noelle Sangster/Sangster Entertainment LLC - All rights reserved
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