Would you ask a friend for a diagnosis if you found a lump in your chest? Would you ask your parents to perform surgery on your pet? Would you ask a clown to defend you in court?
One of the most confused industries (but FASTEST growing in the world), is that of Network Marketing. Due to a mix of, lacking professionals in the field, a few untransparent companies and uninformed people making uneducated decisions when joining the industry. Seeing as I am in no way yet a professional myself, I am here to spread the message of Eric Worre. He is named the world’s largest business network helping professional, and author of the best-selling book Go Pro.
First, let us get clear on the definition of Network Marketing. Other terms used to describe Network Marketing are; Multilevel Marketing (MLM), Direct Selling, Referral Marketing, Affiliate Marketing, Direct to Consumer, Internet Marketing, Pyramid Selling, Pyramid Schemes. These terms are all used interchangeably, but each has its own significant meaning.
So, let’s get clear on what we do in this business and how we do it. This will give us a better understanding of Network Marketing and help narrow out the confusion.
What we do as a Network Marketer: we share products with consumers using word of mouth advertising.
How we do that is with three strategies:
- We personally gather customers and educate them on the value of products and services through word of mouth advertising.
- We build and expand a network of other distributors doing the same thing – we build a group distributors and those distributors build another group of distributors.
- We work as leaders – we apply leadership to that network to improve the productivity of the network.
Let’s look at a few of the other terms people use to describe this work:
Multilevel Marketing (MLM): This talks about the 2nd aspect above. That you can get more than one level of benefit from the group that you are building. It does not talk about sales or leadership or expanding a network. This does not adequately describe Network Marketing.
Direct Selling: A little kid who sells lemonade on the street to someone walking across the road is engaged in Direct Selling. A person selling their used automobile to someone else is engaged in Direct Selling. Direct Selling implies direct from the manufacturer to consumer. Yet, a network marketer is in the middle. A network marketer is a connector between the consumer and the manufacturer.
Referral Marketing: A method of promoting products or services to new customers through referrals, through word of mouth. This fails to recognise the position of leadership. Again this is only one strategy in Network Marketing.
Internet Marketing: or online marketing, refers to advertising and marketing efforts that use the Web and e-mail to drive direct sales via electronic commerce, in addition to sales leads from Web sites or emails. Not Network Marketing.
Pyramid Schemes: or (Pyramid Sellings) are illegal and very risky ‘get-rich-quick’ schemes that can end up costing you a lot of money. Usually, these do not involve a product or service or if they do they will be of a very low quality. These are an illegal practice in Australia and most countries around the world. For more information on this please visit the government website https://www.scamwatch.gov.au or the equivalent website in your country.
With some of those terms properly defined, we can understand that Network Marketing is a definition on its own. It is marketing products and services through an ever-expanding network of distributors through word of mouth advertising.
And for the average person with entrepreneurial dreams, it could be a better way.
For the Chloe 500, Network Marketing is the perfect tool, to create an abundant life.
Business in a Box
If you are like me and live a Chloe 500 life, chances are you have way to many ideas for Business.
Here I am going to tell you why Network Marketing is the perfect starting tool.
1 – Very low start up costs: everything is already provided for you. The marketing material, the customer support, the website, the products, the warehouse, the shipping. Imagine, only all the staff you would have to hire to run a business like this? They are all included. With all the overheads covered, it takes out a lot of expense and workload.
2 – You don’t have to buy the products first: wait until you have customers! instead of purchasing products to sell, the warehouse holds them until you find clients. This is smart as you won’t loose money due to unsold items. The client orders from your website and the company organised all the rest. You just wait for your commission (35% on each product, in my company).
3 – Does not consume your life: with all these aspects covered means you only need to netWORK. That is your job. This can happen in all forms and can be embedded in how you run your life normally. It could be starting a new hobby, travelling, going to the bar, your kids play dates, joining online groups.. it doesn’t matter what you like to do, as long as you are meeting people, following your passions, you can run your business.
4 – It can be run online: check out the system I use that allows me to run Global & Virtual . Leveraging the internet has never been easier. This means you can be free from a location. Want to move cities for a year? live in Bali for a couple months? Want to start a side business that you are really passionate about? No worries girl. As long as you got a comp and wifi. You’re good to go.
5 – You get paid to use your own products: network marketing products usually (always do your research) are of a very high quality. You get bang for your buck as the company can afford to reinvest it’s money back into research and development of the product, instead of paying huge celebrity endorsements. You know your fav makeup brand who has that familiar face on it? Your money is going into making that celebrity richer. Put the money back into your own pocket! turn an expense, into an income (and use the products that that celebrity is ACTUALLY probably using – high-quality ones)
6 – Teaches you how to be a #girlboss: Transitioning from employee to CEO is a learning process. A good Network Marketing company wants good distributors. Therefore, they usually provide a considerable amount of leadership and personal development training. Having successful people in front of you keeps the road to success, simple. That is not to say that it does not consist of hard WORK. A problem people make when entering the industry is being uninformed on what it takes to be a Network Marketing professional. Check out “Do I have what it takes” to see if this industry is for you.
7 – You make new friends: remember the friends from High School who maybe you meet up with once a year but during your every day, have no idea who or what you are doing and therefore do not support you? In network marketing, you got a group of #girlbosses who actually get you. If you do it right, you will most probably attract your own kind. They will cheer you on through your highs and hold you up through your lows. They are people you probably want to do life with as you will go through lots together.
Last but not least, each Network Marketing company is run a little different. They have come a long long way since the 80’s, with laws and technology to support them. The BabyBoomer era saw a lot of untransparent companies and the terms I defined above were much less refined. It is really important you research the companies compensation plan. Look for affiliations, connect with leaders in the industry, and most importantly make sure you have a quality product or service that you truly believe it.
If you are ready for the next step, find out how I chose my system for a Virtual & Global Business