What is Network Marketing?

This primer will explain the business model that has created more millionaires than any other

1. Primer on the Network Marketing Business Model AKA Multi Level Marketing, Relationship Marketing, or Word of Mouth Marketing

2. The Distribution Model Traditional Distribution model Manufacturer Wholesaler Distributor Retailer Consumer Network Marketing Distribution Model Manufacturer Consumer This marketing chain is all replaced by the NM associate talking to people Advertiser 50 % of the consumer volume is paid to the Associate in the form of thank you money just for spreading the word 2

3. What is Network Marketing? Network Marketing is a distribution channel just like a retail store or Amazon or any other method of getting products from a manufacturer to a consumer.   Network Marketing is the sale of products to consumers through a network using word-of-mouth advertising. 3

4. Key Elements of Network Marketing Associates can increase their income by building a network of others who do the same thing. They are then eligible for commission on the sales in their network. Associates can improve the productivity of their network through leadership, guidance and training of their network. Associates or distributors can sell products to consumers and receive a commission on their sales Many companies choose to use network marketing to distribute their product because they know it is the most efficient form of distribution. People trust the recommendations of people they know 4

5. What does Multi Level Mean? Multi level means that a percentage of the commission is shared among a group of people who all work to build a distribution system for the company’s product or service. Every new distributor begins his or her own team or downline. Everybody has an equal opportunity to build as big a downline as they want. There is no advantage to early entry. 5

6. Benefits Of Network Marketing Allows the average person with no business background or special education to own a business of his or her own Level playing field for everyone – No discrimination Free back office and customer websites Free training and mentorship with experienced associates You are affiliated with but not employed by the company that provides the product. So no product, places or people to manage Start you own business having huge upside potential with a very small investment. Freedom to control your time for your lifestyle You choose where & when to work No boss or corporation to answer to You determine who you will work with Stop exchanging your time for dollars You control your income Tax advantage of a home-based business Can start part-time or full-time 6

7. The company is responsible for everything to do with the business itself except the marketing Product development Customer Service Shipping, Legal issues Insurance New market development International expansion Payroll Billing What Does the Company Do? 7

8. Excellent free training resources Mentorship by people who have a strong incentive to make you successful How do I Learn the Business? You get to work with people with a common interest who are motivated to help you be as successful as you want to be 8

9. Is it for The Long Term? Allows you to create a residual income which pays you on work previously done when people continue to order your product each month. Over time you can develop a substantial income but still maintain the freedom to choose when and where to work. 9

10. How Does an Organization Expand? Leveraging and exponential growth can best be explained by understanding the growth effect of compound interest on money saved or invested. When you invest and reinvest the interest earned, (Money leveraging) your money will grow exponentially. In the first compounding periods, the interest is small. In the long run, interest on interest is a very big deal. 10

11. Level 1 - This is you – you invest 10 hours a week in your business and ten hours of work is accomplished - Level 2 – 2 more people added. These are folks that are each working 10 hours in their business resulting in a total of 30 hours in your business. Level 3 – 4 more people added working 10 hours on their business resulting in a total of 70 hours of work occurring in your business. Level 4 – 8 more people added working 10 hours on their business resulting in a total of 150 hours on your business. You are earning on the total sales generated by your whole team in 150 hours worked each week. Note that each one of your associates is earning on the work they do and the sales their team accomplishes respective team as well. So you are also helping many other folks earn a residual income. You can build as big a team as your vision allows.   If we look at this from a time invested point of view, here’s what happens: Let’s assume that each person will work 10 hours each week to build their business. A Network Marketing Organization Grows The Same Way 11

12. This is exponential growth You see how this can grow over time. Network marketing allows you to build as big an organization as your vision allows.   It’s not like sales where you have to sell a new widget every week to be paid. As people consume the product each month on an Autoship program, you are paid many times over for that original sale. Thus, creating an ongoing residual income.     12

13. What’s so special about a passive income? One of the amazing benefits of the network marketing business model is the ability to create a residual or passive income. Let’s take a look at the asset value of a passive income and what that means to your personal balance sheet. In order for you to create an income stream that returns to you $1000 per month or $12,000 per year in ongoing residual income, you would need an income producing asset of $600,000 invested at 2%. To produce $2000 per month would require $1,200,000. Said another way, you would need $1,200,000 invested at 2% to earn a monthly income of $2000. I don’t know many folks who have that kind of money to invest. But I know many people who earn more than $2000 a month in ongoing residual income in network marketing.   13

14. And Finally Many people have the dream of owning their own business but don’t know how to do that while still working a job. Network marketing allows you to build the business in your spare time with training and mentoring from experienced people who have a strong incentive to help you become the best you can be.  It is very difficult to find the ideal career where you can have both a substantial income coupled with abundant time freedom. Network marketing is the only business I know of where that is possible. Usually, you can only achieve one or the other.   Many financial wizards such as Robert Kiyosaki, Warren Buffet and Paul Zane Pilzer have endorsed the network marketing business model as the ideal business for the average person wanting to own their own business without having to make a huge financial investment. The investment needed is only time and commitment. 14

15. Join Us We Do Have A Better Way 15 See the comments below this post to set up an appointment to learn how you can begin enjoying the benefits of a Home-Based business.