I love my network marketing company for five reasons.
- 1. Of all my businesses, it has the most long-term potential for wealth creation.
- 2. I’m helping to redirect profits from huge corporations to hard-working households.
- 3. The startup costs are extremely low.
- 4. I have a clear conscious because no one gets hurt.
- 5. I’m part of a community of like-minded entrepreneurs who are there to help me.
How it Works
On the most basic level, my company is a mail-order wholesale club. Think Sam’s Club or Costco. There are over 300 high-quality products that are discounted to members, except I like the products better and in most cases, they are less expensive. Furthermore, the membership fee is almost half of what you would pay at Sam’s or Costco.
It’s that simple.
How We Make Money
Most of the members are just shoppers. They love the products and are perfectly happy with the value they get out of them. They have other ways to make money, but still choose to shop with the company.
Those members that want to make some extra money are offered a great way to do so. The company pays a commission to customers for the sale of any products bought by those they refer to the company. Since the company doesn’t advertise, a large portion of their income is redirected to customers who wish to refer others.
It’s basically an affiliate program. I get paid a commission from Amazon.com on every book sale that comes as a result of my referral. My network marketing company does the same thing.
Today’s affiliate programs can be found in just about every major retail company out there. Companies are realizing that word-of-mouth advertising is more powerful than another kind. Networking is the future of marketing.
Not only do I make a one-time commission, but I receive a monthly check for everything bought by a customer that I’ve referred as long as they remain a member. This is the residual component of my business. I get paid over and over for work done once referring someone.
Since my company has the highest retention rate of any business in the industry, the residual component is very strong.
The Power of Leverage
Getting a commission on referral sales is nice, and getting that check every month is even nicer; but the most powerful aspect of my business is the use of leveraging. This is where the real money is made.
You see, if one of my referred customers decides that they would like to start referring people as a way to make extra income, I get a commission on all of the products bought by people referred by them also. My time is leveraged because someone else is helping to make me money.
The other great thing about this is that it fosters a team community. Since I benefit from other people’s success, I’m willing to help them as much as possible. It’s a very supportive environment.
Not only do I make a commission on my referrals’ referrals, but I get paid commissions down several generations. The big money is made down in those deep generations where there could be hundreds of people.
The great thing is that there is no pressure to work the business because everyone benefits whether they are working the business or just a customer.
How We Market
In network marketing, there are two major groups of potential referrals: Your warm market and your cold market. Your warm market includes everyone you know, and your cold market includes everyone else.
The warm market is usually the best place to start because it represents your best chance for success. People you know are much more likely to trust you than people you don’t know. The downside is that a lot of people feel uncomfortable being approached by their friends and family.
To be honest, it’s kind of unfortunate that people are so skeptical of people they trust, but so willing to accept what a major corporation tells them. Maybe it’s fear of being scammed, but I think that you owe it to your friends to hear them out if it’s a legitimate company.
Besides, wouldn’t you rather direct some of your spending to your friends and family than blindly give it to the shareholders of some major corporation? I sure would.
You might be afraid of approaching people you know, but think about it this way: Wouldn’t you tell everyone you know about a great movie, or great sale? How often do you promote other people’s products without getting a commission?
I could understand your fear if you were trying to get people to buy overpriced products or do something that they normally wouldn’t do, but in my company, the products are at wholesale price and have a lot of great benefits. My company sells the types of products that people are going to buy anyway, so it’s not any new money out of their pocket. It’s a no-brainer.
My favorite market is people I don’t know, even though it’s the most challenging. I like the limitless potential of the internet. The leaders in the team that I work with closely were smart enough to invest thousands of dollars in a state-of-the-art website and online marketing system that is available for free to everyone in our team and anyone who joins our team. I helped design the system, so I can say: You won’t find a better system anywhere else.
We use various marketing channels to bring prospective members to our website. When a prospect is interested, they fill out a form to request more information. I get an instant email from the system notifying me that someone has requested me to contact them. I give them a call, get to know them for a few minutes and then escort them onto a 45 minute teleconference overview of the company.
Yes, I actually talk to people. I know a lot of people want to make money by just sitting at their keyboard, but the real money is person-to-person. If talking to people scares you, then you’re reading the wrong article. Like I said, I want tough people.
At the end of the teleconference, if they’re interested, I enroll them online and instantly set them up with their free website. I also give them access to our members area where they will be instantly connected with training, information, and access to help from members all over the world.
The new member is now my business partner if they choose to work the business. I am now their personal mentor.
The team I have been working with has a huge advantage over other teams even in the same company. Since network marketing is an entrepreneurial venture, the quality of marketers varies greatly from team to team.
I’ve spoken to several people that signed up under another company or team and never heard from their enroller again. They were left to re-invent the wheel if they wanted to be successful.
Our team is very active and supportive. We’ve built systems online and in person to make re-creating this business easy and efficient. Our mantra is “We’ll match your energy.” If you just want to be a customer, we’ll leave you alone. If you really want to go for it, we’ll be right there by your side.
One fantastic part of our team is that the senior members do most of the work for the newer members. The conference calls are hosted by people who know their stuff, so a brand new person can start referring people as they are learning.