What REALLY is Network Marketing
| Category: Entrepreneurship | Date: 2002-08-02 |
Do you really understand what Network Marketing is about?
Most people say yes, but when push comes to shove, they don’t get the basics. I would like to share a real life experience about the basics of Network Marketing.
I recently moved from small town Iowa to big city Texas, the Dallas/Fort Worth area to be exact. To say that was a change is an understatement. However, it was a great first hand experience of network marketing at work.
Day 1 - I arrive in Oklahoma City to spend the night. I will be leaving the next day for the final 4-hour drive to Dallas. Before hand I arranged to meet with a member of my downline who I have never met before. We chatted, I received a whirlwind tour of the local area, and she introduced me to a fast food type restaurant called Braums. I have never heard of them before, but they had some great Cherry LimeAids!
Day 2 - I arrive at my apartment in Arlington, TX, move in and am starving for something to eat. I drive down the only major street I know how to get to. I was on the prowl for a quick meal to get on the go so I could get back to moving in. Guess what I found? A Braums restaurant. I stop and I get my lunch. Several weeks later, I realized I drove past numerous other fast food places that I never heard of before and never knew it. However, based on my friend’s recommendation, I stopped at Braums.
Day 3 - After moving in, my new boss began to recommend the following to me because he knew I would need them - bank, grocery store, shopping center, restaurants, long distance service, accountant (tax time), golf courses (I love to golf), and other basic necessities. I then proceeded to go to the bank, grocery store and shopping center. I have since become a faithful customer at all of these locations (and even more) based on those simple recommendations.
Week 3 - The third week two of my friends come down to the same area to work. Much like me, they knew nobody or anything of the area. I promptly recommended to them the exact same places I was recommended to shop at, bank with, get their car fixed, receive a good haircut, etc... They too have become long-term customers with the exact same places I recommended (and were recommended to me.)
What is amazing is the amount of free advertising these businesses are receiving and the sales it is generating for them. I asked my boss if he received a check in the mail from Tom Thumb (a grocery store). He looked at me with the normal puzzled look people have to this question and said, "What are you talking about?"
I replied, "Well, I have spent hundreds of dollars at Tom Thumb (not to mention my bank account at Bank of America, numerous restaurants, my monthly haircut, etc...) and I figured they would want to compensate you for referring me to them. Plus, I told my 2 friends and they spend a lot of money at those places too. You started it all so I figured they would want to reward you with a commission from all of our sales."
Of course, he thought the idea was not possible. But with the distribution system called Network Marketing it is happens everyday. By taking out all of the middle men (such as national wholesalers, regional wholesalers, local distributors, retailers and the huge amount of advertising) the manufacturers can pay us for doing what we do naturally everyday; tell people about great products we use and like.
In my above situation, here is what would have happened...
My boss referred me to a grocery store called Tom Thumb. I go there every week and purchase my groceries. At the end of the month Tom Thumb would have looked to see how much I bought and sent a percentage of those sales to my boss as a way of compensating him for telling me to shop there.
I told my friends to shop at Tom Thumb so in return I would receive a commission check each month from them as well. But, in addition, my boss would have received a percentage of the sales from the people I referred to Tom Thumb. Why? Simple, in Network Marketing you get paid for what you start, NOT on what you do right now. (That is how you can receive a lifelong stream of residual income).
Lets take this a little further and say my two friends both told two of their friends about Tom Thumb and how big the isles are, how much fresher their bread is and what a great value their groceries are in comparison to their current grocery store. By doing this my two friends refer six of their friends to Tom Thumb. Now not only are my friends receiving a commission, but so am I and my boss - just for what we started.
If this seems somewhat unbelievable to you, well times are changing. No longer can companies effectively cut the costs of making a product. However, the distribution of a product to the end consumer results in a 75% mark-up or more. This is where fortunes will be made in the next 10 years - cutting the cost of distribution through more effective business models. Even more, by applying this to leading trends in the market place today, fortunes will be made in the next 5 years for those of us that recognize and take advantage of this.
I encourage you to start getting paid for what you are already doing by becoming involved with a high-quality Network Marketing company. You owe it to yourself to find out the facts of the industry.
About the Author
Kevin Wilke is a full-time distributor for the Network Marketing company USANA. He also publishes VisionPro MLM E-Training, an unbiased generic training newsletter and website for all network marketers. He lives in Arlington, Texas USA. He can be reached via email at kevin@lostandfind.com phone:(817)640-5590 fax:(707)215-6686 or the web http://www.lostandfind.com | http://www.lostandfind.com/visionpro
kevin@lostandfind.com
http://www.lostandfind.com
Most people say yes, but when push comes to shove, they don’t get the basics. I would like to share a real life experience about the basics of Network Marketing.
I recently moved from small town Iowa to big city Texas, the Dallas/Fort Worth area to be exact. To say that was a change is an understatement. However, it was a great first hand experience of network marketing at work.
Day 1 - I arrive in Oklahoma City to spend the night. I will be leaving the next day for the final 4-hour drive to Dallas. Before hand I arranged to meet with a member of my downline who I have never met before. We chatted, I received a whirlwind tour of the local area, and she introduced me to a fast food type restaurant called Braums. I have never heard of them before, but they had some great Cherry LimeAids!
Day 2 - I arrive at my apartment in Arlington, TX, move in and am starving for something to eat. I drive down the only major street I know how to get to. I was on the prowl for a quick meal to get on the go so I could get back to moving in. Guess what I found? A Braums restaurant. I stop and I get my lunch. Several weeks later, I realized I drove past numerous other fast food places that I never heard of before and never knew it. However, based on my friend’s recommendation, I stopped at Braums.
Day 3 - After moving in, my new boss began to recommend the following to me because he knew I would need them - bank, grocery store, shopping center, restaurants, long distance service, accountant (tax time), golf courses (I love to golf), and other basic necessities. I then proceeded to go to the bank, grocery store and shopping center. I have since become a faithful customer at all of these locations (and even more) based on those simple recommendations.
Week 3 - The third week two of my friends come down to the same area to work. Much like me, they knew nobody or anything of the area. I promptly recommended to them the exact same places I was recommended to shop at, bank with, get their car fixed, receive a good haircut, etc... They too have become long-term customers with the exact same places I recommended (and were recommended to me.)
What is amazing is the amount of free advertising these businesses are receiving and the sales it is generating for them. I asked my boss if he received a check in the mail from Tom Thumb (a grocery store). He looked at me with the normal puzzled look people have to this question and said, "What are you talking about?"
I replied, "Well, I have spent hundreds of dollars at Tom Thumb (not to mention my bank account at Bank of America, numerous restaurants, my monthly haircut, etc...) and I figured they would want to compensate you for referring me to them. Plus, I told my 2 friends and they spend a lot of money at those places too. You started it all so I figured they would want to reward you with a commission from all of our sales."
Of course, he thought the idea was not possible. But with the distribution system called Network Marketing it is happens everyday. By taking out all of the middle men (such as national wholesalers, regional wholesalers, local distributors, retailers and the huge amount of advertising) the manufacturers can pay us for doing what we do naturally everyday; tell people about great products we use and like.
In my above situation, here is what would have happened...
My boss referred me to a grocery store called Tom Thumb. I go there every week and purchase my groceries. At the end of the month Tom Thumb would have looked to see how much I bought and sent a percentage of those sales to my boss as a way of compensating him for telling me to shop there.
I told my friends to shop at Tom Thumb so in return I would receive a commission check each month from them as well. But, in addition, my boss would have received a percentage of the sales from the people I referred to Tom Thumb. Why? Simple, in Network Marketing you get paid for what you start, NOT on what you do right now. (That is how you can receive a lifelong stream of residual income).
Lets take this a little further and say my two friends both told two of their friends about Tom Thumb and how big the isles are, how much fresher their bread is and what a great value their groceries are in comparison to their current grocery store. By doing this my two friends refer six of their friends to Tom Thumb. Now not only are my friends receiving a commission, but so am I and my boss - just for what we started.
If this seems somewhat unbelievable to you, well times are changing. No longer can companies effectively cut the costs of making a product. However, the distribution of a product to the end consumer results in a 75% mark-up or more. This is where fortunes will be made in the next 10 years - cutting the cost of distribution through more effective business models. Even more, by applying this to leading trends in the market place today, fortunes will be made in the next 5 years for those of us that recognize and take advantage of this.
I encourage you to start getting paid for what you are already doing by becoming involved with a high-quality Network Marketing company. You owe it to yourself to find out the facts of the industry.
About the Author
Kevin Wilke is a full-time distributor for the Network Marketing company USANA. He also publishes VisionPro MLM E-Training, an unbiased generic training newsletter and website for all network marketers. He lives in Arlington, Texas USA. He can be reached via email at kevin@lostandfind.com phone:(817)640-5590 fax:(707)215-6686 or the web http://www.lostandfind.com | http://www.lostandfind.com/visionpro
kevin@lostandfind.com
http://www.lostandfind.com
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