What is Network Marketing?

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 Donald Trump

“If I were starting over today,

I would make millions in the
Network Marketing Industry.”

Donald Trump 2007

 Robert Kiyosaki

“Network Marketing is the Perfect Business

The richest people in the world look for and build
networks everyone else looks for work”

Robert Kiyosaki,
Author Rich Dad Poor Dad
 Paul Zane Pilzer

“There will be 10 million new millionaires

created in the Wellness and Network
Marketing industry.”

Paul Zane Pilzer 2006

 How Do YOU Earn?

How do you earn your money? Are you:

• working for someone

• a professional or self-employed (exchange your
expertise for someone’s money) = small
business owner
• a business owner
• an investor
 Employment

Most people opt for employment because they see it as a

“safe” option. “Job Security” is what they want.

However, as many people will tell you; due to downsizing

and industries like the recording industry changing from
records to CD’s, where a skill is literally obsolete
overnight, there is no such thing as “Job Security.” Think
for yourself: What would you do if your boss tells you
tomorrow that you have no job? How long will you be
able to survive?
 Professional/Self Employed
The second way is to be self-employed, or to be a professional.
Some professionals have jobs, like teachers, nurses and doctors,
but most have a practice or are self employed.

Others are self employed by offering a service. If you ask

someone who is self employed why he is self employed, he will
often say: “I prefer working for myself and not for a boss.” That
is just about the only advantage.

Does the self employed have fixed hours to work? No, they
often work overtime. Do they have a fixed salary? No, if there is
a bad month, they have to take a cut in earnings. They can’t take
holidays, weekends or days off.
 Business Owner

The third way is to be a business

owner – this is someone who
leverages his time by having people
work for him, and/or own a big
network of businesses, such as
MacDonald’s.
 Investor

The fourth way is to be an Investor

– someone who uses money as
leverage.
 Who Has The Most Money?

You can possibly see from the descriptions

above that the last two: Business Owner
and/or Investor probably have the most
money.
Why do they have more money? There are
two words that give you a clue:
Network and Leverage.
 What is a Network?

My Thesaurus describes it as: A system, complex,

set-up, set of connections, and set of contacts.

Examples of Business Networks or Systems:

MacDonalds, Wendy’s, Starbucks and Wal-Mart.
These are each a network of businesses that branch
out across the country or even globally. They also
use a system that works, and just duplicate it.
 What is Leverage?

My Thesaurus says: influence, power, force,

control, pull, weight. Simply put, leverage is to
get other people to do work for you so you
can get more done. The owner of McDonalds
has 1000’s of people doing work for him in
stead of him doing it all himself.
 How can you use the power of networking?

You can start your own business. However,

starting your own business is quite difficult and
very costly, and most people don’t have the
money to get started.
You will have to come up with a new idea, or an
idea that gives you a competitive advantage
over an existing business.
 Lots of Money to get started

After putting lots of your own money into

research, brand names, copyrighting and start-
up costs, you will have to find loans somewhere
with your business plan that your accountant
wrote for you.
Most people who want to start their own
business take out a loan on the equity in their
property, or take out a second mortgage on
their house, to get started.
 True Leverage

If you bought your small business, and you are

running it, and it needs you to survive, then you
just bought yourself a job. But true leverage is
when you can walk away from your business
and it can carry on without you.
 True Leverage

Is there a way you can get this leverage?

It is called “Network Marketing.” In Network

Marketing, not only do you get paid directly in
proportion to your efforts, but you have the power
of leverage and networking working for you as well.

You have exactly the same opportunity as anyone

else to get promoted to the top positions. Now this
is fair.
 Pyramid Scheme

But isn’t Network Marketing an illegal Pyramid

Scheme?

In pyramid schemes, income is generated solely

on the process of recruiting others into the
pyramid. This is illegal.
 Products More Important

In a legitimate Network Marketing company, on the

other hand, distributors are paid only on product
movement, not on recruiting, both at wholesale and
retail.

There’s also compensation based on training and

managing of your marketing team. And unlike illegal
pyramids, in Network Marketing, no matter where you’re
positioned or when you join, you can advance to the very
highest income levels and even make more money than
those above you in the network.
 Still a Pyramid?

In all business and government structures, the pyramid is the

foundation. It contains the hierarchy of, and indeed shapes the
role of, all who participate in the organization.

Whether it is the president of the United States and his vice

president, Congress, and all the way down to the local
government employees, or Microsoft, where one guy sits on the
top, followed by his vice presidents, all the way down to the mail
clerks, the pyramid structure is ubiquitous. The first thing we
should agree on is that there is no inherent problem with the
structure of a pyramid.
The Pyramid
 Some things are the same in all
pyramids

•The further away from the pinnacle, the less

power an individual has, and the less money he
or she makes.
•There is usually one person on the top and that
position is typically unattainable to others in the
organization. If someone lower down in the
structure does assume that top position, it is still
reserved for one person at a time.
 Some things are the same in all
pyramids

•Normally those at the top like to stay at the top. Those toward
the top may have incentives to move up higher in their
organization, but there is typically no incentive for those higher
up to help advance those who are lower down to surpass them.
The order of the hierarchy is somewhat sacred.
•At each level in the organization job titles go along with
salaries. Normally a person cannot assume more money or more
power without the “permission” of someone above granting
those advancements. Normally, people have little control over
advancing. One cannot typically “self-advance.”
 It is not the pyramid that’s the
problem

We can agree therefore that it is not the pyramid that

is the problem.

What then, is the problem?

It is the fact that in pyramid schemes, it is about the

position in the matrix and not about the product. Also,
because of this, it is only the people at the top that
make all the money.
 It is about the products

In a good Network Marketing

company the product is so good it
can stand on its own. So this is the
way the money is made: From the
product, not from recruiting.
 Features of a good Network
Marketing Company

• Each distributor can surpass the level of anybody

who came into the organization before him or her, if
the new distributor’s performance is greater than
the one already in the business.
• Each new distributor is encouraged to become a
CEO, or the top of his pyramid, by the
encouragement, leadership, and training of those in
his support team. Those above the new distributor in
the organization are motivated to elevate the level of
everyone who is newer in the business.
 Features of a good Network
Marketing Company

•There is no glass ceiling, no job title with a fixed and

limited salary attached to it. The system does represent
financial freedom because the model for business
growth and the ability to generate income are
inherently limitless. The rewards, incentives,
acknowledgements, etc. at every level above the new
distributor, all the way to corporate, are authentic, on-
going, effective, and inspiring.
 Features of a good Network
Marketing Company

•There are no barriers such as race, education, gender,

previous experience, etc. Anyone who does the work
gets to the top. (Robert Kiyosaki, author of Rich Dad,
Poor Dad, and of The Business School for People Who
like Helping People has been a strong advocate of
network marketing. He tells a story of having been the
top salesman at Xerox; he was not promoted because
he lacked a college degree.)
 Features of a good Network
Marketing Company

• There is no single top position. There is

unlimited room for these so-called top
positions.
• People can “self-advance.” We give
ourselves a raise based on performance,
not on politics, nepotism, returning
favours, or anything else.
 Features of a good Network
Marketing Company

• No one’s earnings are limited to his or her

own efforts. Through the process of
leveraging ourselves, the bulk of our
commissions come from other people like you
and me, who want a better life. It is a business
of teaching other people to teach other
people, to teach other people, etc. It is an
ethical, high-spirited, method of distribution,
product consumption, and compensation.
 Network Marketing

Network marketing represents what we all crave:

financial freedom, and time freedom. The
opportunities for leadership and self-development are
as great as the chance to make a lot of money.

Whether or not you decide that this is for you, it is hard

to beat this model for building an asset that will pay
you over and over.
 Network Marketing

Network marketing makes sense; it is the only viable

model for creating financial freedom for the average
person. And it is fair.

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