What is Network Marketing or Why Network Marketing?

For those new to our industry your first question may be: What is network marketing? Network marketing has been around since the 1940’s. Network Marketing or NWM for short, is also known as multi level marketing, mlm, and sometimes direct sales.

In each of these, the participants earn money from their retail sales and the retail sales of their distributor team. Usually the company has other bonuses based on production and leadership development. Distributors may also be known as associates, independent business owners, ibo’s, brokers, or other names.

Most participants in network marketing are introduced to the business by a friend or associate they trust through word of mouth advertising. Most participants in network marketing start their network marketing business part time.

After asking, what is network marketing, a sincere person is also likely to ask: Why network marketing? There are several reasons why network marketing offers great potential for building a lifestyle of freedom, as well as monetary wealth.

One reason is the ability to recruit a team of distributors through prospecting locally or on the internet. As you train your team to retail and recruit, momentum can, and does kick in.

One of the biggest reasons to be a network marketer, is not likely to be mentioned, by many network marketers. It is, the character building that can occur in network marketing. It has the potential to turn you into more than you ever were. Network marketing has been known to turn shy people into outgoing people. It has helped many people develop their unseen leadership abilities.

Robert Kiyosaki is a big proponent of network marketing as a business. His new book The Business School For People Who Like Helping People Lists the Eight Hidden Values of a Network Marketing Business, Other Than Making Money.

What is Network Marketing Going To Do For Me?


Mr Kiyosaki says this about network marketing:

NWM is a revolutionary way to earn wealth

NWM makes it possible for anyone to earn wealth

NWM is open to anyone who has drive, determination, and perseverance.

"If you are a person with big dreams and would love to support others in achieving their big dreams, then the network marketing business is definitely a business for you. You can start your business part-time at first and then as your business grows, you can help other people start their part-time business. This is a value worth having - a business and people who help others make their dreams come true." -- Robert Kiyosaki

In addition network marketing has a very attractive component. It is passive residual income. In this model, one can work hard for several years, and then reap the rewards of their labor, year after year, without much labor.

The next thing, that is very attractive about NWM, is the great leverage, without the huge risk and investment a traditional business entails. This leverage is twofold. First, leveraging your time, without the large investment required in hiring employees. Second, by leveraging your small investment of less than a thousand dollars, into an income steam that can turn into thousands per month, for years.

There are lots of rumors and myths about the industry. Be sure that this is a get rich slow business, not a get rich quick business. If you’ll become a serious student of the industry and be patient as it grows, it will be a rewarding career.

Your small investment in people can grow geometrically as you grow and develop other leaders in your network marketing organization. If you’re coming from a traditional business background, this leverage of time, and money without a huge dollar investment, may seem like a dream come true.

To me it was a dream come true, as years ago, I sat down and penciled out my perfect business on the back of a 3x 5 card. I was having a vision of the future of business. I just did not know it at the time.

I was frustrated with the huge expenses and risk of my traditional business. Traditional businesses require way more capital than the average entrepreneur has. This leads to either taking on partners, selling a share of your business, or taking on the partnership and risks of a bank loan, if you qualify.

The biggest risk a traditional business person faces when they’re first exposed to network marketing, is the risk of not taking it seriously. This is predictable. The average businessperson asks: What is network marketing going to do for me? They just can’t understand how a few people retailing and recruiting can make so much money.

A businessman looks at the small startup costs and says it can’t be true! The possible rewards, are much more, than they may believe to be possible. It may not make sense to you either, on first glance. I have known business owners, with debts of hundreds of thousands of dollars, who found their financial salvation in a network marketing business.

“The only people who aren’t involved in network marketing are people who don’t understand it.” -- Mark Segars

This happens because of the leverage, the passive residual income and the geometric growth a network marketing business offers. What can network marketing offer you? In a nutshell more than any other type traditional business or franchise can hope to, with smaller risk.

You get, to hire on team members with very little cost. You pay no payroll. They get paid, from retailing products and services. You override your associates and make money when they make money. As you build a team it all multiplies. Now you’re building what Robert Kiyosaki calls a B Quadrant business.

Each of your developing leaders has their own network of distributors and developing leaders. As your team grows, you’ll have a strange experience. At times, they just don’t need you, as their competence is growing. It’s sweet, to see them developing their leadership skills.

“Any person who contributes to prosperity must prosper in turn.” -- Earl Nightingale

This is a good thing, as it frees you up, for more family time, ability to take off for an emergency, or a needed vacation. The bonus is, not worrying about your business while you’re away. After all, your team members own their own businesses and that’s whose business they’re building. The side benefit is their business growth helps you too.

What is Network Marketing?

There are two kinds of people in the world when it comes to network marketing. Those who love it and those who hate it. Generally these are easily broken down into two camps. They are those who made good money in mlm and those who didn’t. Question for many is: Is MLM Bad or Good

Still not sure how to pick a good company? Not that we’ve answered the question of what is network marketing, let’s move on to choosing a network marketing company.

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What is Network Marketing? Updated 08/31/10

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