Myths and Facts about Network Marketing or Multi-level Marketing (MLM) (Part 1)

What is network marketing?

Network Marketing is a kind of Direct Selling. It describes the opportunity, to offer products to any interested consumer through a network of independent distributors. This bypasses the traditional retail outlets.

You can do everything yourself and earn 100% reward

Or you can earn between 2% and 5% of the work of 50 other people. Every distributor in a MLM company does not only sell product, but it’s an advantage for him to find other distributors and build a team of people all selling the product and finding new distributors. This is referred to duplication.

The enroller is rewarded through the bonus payments and by receiving a percentage of products sold. In every step further into the matrix (team) he receives additional payments from the revenue of additional distributors that were enrolled by members of his team. Unfortunately the prejudice exists that people think of this as a scheme to get rich quick to the cost of others. This is not correct as the basis of every income is the number of products sold. You are only successful if your team is successful this is a direct reflection of your business.

Every MLM company works with their own bonus system or compensation plan. The initial investment for a distributor is very low if you compare it with starting a traditional business. Most companies offer a complete starter pack with product, video and administration centre from as little as 200 US.

Network Marketing offers advantages to the consumer

Independent from opening hours, comfortable shopping from home, professional advice and customer service: Can I do network marketing as a part-time job?

The answer is YES, you can do network marketing as a part-time or full-time job. You decide what is best for you. You can start network marketing on a part-time basis without loosing the security of your current full-time employment. Many people are happy with an additional income of 500 US per month. These people count for about 90% in network marketing.

Remember: This is your own business, you work for yourself and you are the one making decisions and you carry the responsibility for your business. However it is important at the beginning that you invest enough time and energy in your business. Think of it as a plane. You need enough thrust to reach a certain altitude. Once you have reached the flight altitude, it requires less energy to maintain your position, i.e. you are in cruising speed. (maintaining and supporting your team)

Do I have to attend Meetings, Training Events or Product parties?

If you like to attend then the answer is yes. Remember, it is your business – be creative! As long as you comply with the rules within your MLM Company and with the law, you are free to do whatever you want. Only you can be the obstacle on your way to financial success. So you decide which way you play and reach your own potential.

Don’t reinvent the wheel – many people tried this before you. Take advantage of the experience of others. The MLM industry has been around for more than 50 years. Decide on your marketing strategy. Talk to your sponsor or directly to the company what they recommend. Examples are: send out mail, organize meetings, have one on one presentations, product parties, and flyers or run an ad in a local paper. The possibilities are endless – go to your local shopping centre with your sponsor and simply talk to people.

There is no need to get burned a much better way is get in contact with other networkers and listen to their experiences. It is normal that you meet people that are not interested don’t let them spoil your success. There is no product in the world that walks the streets and forces itself on the first buyer. I.e. sells itself! You are going to be challenged. There is only one factor in network marketing that ensures success and financial gain: Sell the product, believe in the product and breathe the product.