Network Marketing is what its name implies… networking and marketing. (Yes, along with sales )

NETWORKING

Truly one of today’s buzzwords, what is the definition of networking according to the dictionary?

an informal system whereby persons having common interests or concerns assist one another, as in the exchange of information or the development of personal and professional contacts.

And really, in Network Marketing/MLM you do both: exchange information and develop personal and professional contacts. However, in this business, the “network” system has been made formal:

1. By rewarding you financially (among other ways) for exchanging information that results in product sales and;
2. By enabling you to build your own organization from your personal and professional contacts and to earn from the successful efforts of your network marketing business partners.

MARKETING

This can often confuse people as it includes all of the creative work that goes into a ’seller’ offering a product to a ‘buyer’. In MLM/Network Marketing, the company you affiliate yourself with provides much of the promotional material, as well as training on what to do;

How that material is used and presented is the individual associate’s business — literally!

Let’s keep it simple… marketing is making an offer people can’t refuse.

While traditional marketing includes advertising, merchandising and promotion… the marketing goals in network marketing are accomplished directly through PERSONAL, INDIVIDUAL WORD-OF-MOUTH marketing.

Really… there are two thing you market and make offers for:

• A product (or service)
• A business opportunity

Network Marketing is designed in such a way that you have the ability to earn income by buying products at wholesale, reselling them at retail, and pocketing the difference. This is your profit margin. This is often referred to as “right now” money because it’s a cash business.

By successfully marketing the business opportunity, i.e. finding new partners to enroll in your own Network Marketing organization, you are able to earn commission income on the sales productivity of the group of independent business people you enroll, manage and train.

SALES

Now, before you get nervous about that word you must realize… all businesses must sell somthing. Doesn’t matter what anyone is doing or where they are doing it… in order to earn money there is a successful completion of a transaction. That’s “sales”!

Network Marketing companies choose the unique method of sales to accomplish two primary selling objectives…

1. To get their message to consumers whom they would not be able to reach through advertising, merchandising or other methods.
2. To introduce those consumers to products or services and opportunities they otherwise wouldn’t know about.

Achieving these two objectives is the only way the company will accomplish its goal of sales.

Because so many people have a knee-jerk reaction to the idea of sales that makes them uncomfortable, please consider the following –

**What are preachers and teachers, if not salespeople?

**Have you ever been sold on having something in particular for dinner… on watching a particular TV show… on going to a party… on listening to a piece of music or reading a certain book?

**Were you to comfort a frightened child who woke up from a nightmare about a monster under the bed by assuring the child that everything was okay… would that not be sales?

**Is there anything you own and value that someone sold you?

**Have you ever been married?

Oh sure.. I can hear your argument that there is no money involved… (and I promise, we’ll have a talk about your money beliefs later) yet let’s be clear -

In Network Marketing, selling is the process of creating positive relationships based on the exchange of value — whether that value is achieved through buying your products… or joining you in your business opportunity.

And in MLM/Network Marketing, what works best is person-to-person, educational selling — giving customers and potential business partners an informed choice. We’re not talking about the hype and hustle… and more and more people today are demanding just this kind of educated choice.

In fact, the arm-twisting, hyped-up selling approach simply doesn’t work in Network Marketing because it IS a people business built on a foundation of integrity and positive personal relationships!

Actually, relationship based on manipulation is doomed to fail eventually so selling as described above destroys one of the most extraordinary and unique advantages of having a Network Marketing business — the possibility of earning RESIDUAL INCOME.

What is RESIDUAL INCOME?