The Three
Primary Strengths Of Network Marketing
by: Kirk Bannerman
Network Marketing,
'MLM', and Multi Level Marketing are all terms that refer to
the same type of business model. This industry has had more
than it's share of scumbag crooks and con artists that have
used and abused the concept. However, if you do your homework
and get involved with a legitimate network marketing organization,
this business model has exceptional income potential.
Network Marketing
can produce outstanding results if you know a few simple concepts,
the understanding of which is critical to your success.
Network Marketing,
MLM, and Multilevel Marketing are unlike franchises or conventional
businesses in that they take advantage of all three of the important,
yet misunderstood principles of:
1) Leverage (of
Time and Money)
2) Residual Income
3) Geometric Growth Through Duplication
Unfortunately these
principles are not well understood by many of the people that
undertake network marketing. And that's just one of many reasons
why so many fail at network marketing. There are lots of other
reasons, and it would take volumes to cover them all. But this
is one of the more common ones. Because if you don't comprehend
and believe in these principles, it's impossible to help others
fully understand and appreciate them.
First, lets look
at LEVERAGE:
Every successful
person or business takes advantage of leverage. There are only
24 hours in a day and no matter how talented you are or how
much you get paid per hour, if you don't take advantage of leverage
you're limited by the number of hours in a day. As a side note,
I have heard of cases where an occasional lawyer was billing
more than 24 hours per day...but, I guess that's another story.
By learning to leverage your time, you can also benefit from
a percentage of other people's efforts, and dramatically increase
your income while creating more free time for yourself.
The unique and
wonderful thing about the Network Marketing business model is
that everyone has the same opportunity to become the 'owner'
of his or her own business - with a fraction of the investment
of time and money of a franchise or traditional business.
In network marketing
the people at the top definitely have a vested interest in helping
others on their team succeed.
Would you rather
receive 100% of one person's efforts, or 5% of the efforts of
100 people?
Obviously 100%
of one is always only ONE. But 5% of 100 is FIVE.
Not only will the
total result with leverage almost always be amplified, but your
income is not dependent on only one person. If your income is
produced by the activities of many, it is much more dependable.
Even if something unexpected or negative happens to one or more
of those people, it only has a minor effect on the TOTAL production.
It's great to get
paid while you're sleeping or away on vacation. That's one of
the many advantages of leveraging your time.
Now, lets consider
RESIDUAL INCOME:
When someone mentions
residual income many people automatically think of actors or
musicians.
Residual income
is recurring income that you continue to receive long after
the work you've done to produce it has ended. There are lots
of ways to produce residual income. However, many people don't
understand it, and still others have never thought about or
been exposed to it.
A very simple example
of residual income is interest earned on money in the bank or
investments. You continue to receive this
ncome without having to invest any more time to produce it.
Suppose you had
the choice of doing a job and earning $1,000 once, or getting
paid $50/month for the rest of your life...which would you choose?
If you chose the $50/month you obviously "get" the
concept of residual income.
Clearly, $50/month
will surpass a single payment of $1,000 relatively quickly.
And if it lasts for a few years, or better yet - the rest of
your life - it will really be a blessing.
Residual income
is certainly not about "getting rich quickly", even
though with the right opportunity it's possible to produce a
substantial residual income stream in a relatively short time.
Most people who
fail at network marketing either choose the wrong network organization
or just give up too soon and quit because they expect overnight
results. It is important to recognize that the real beauty of
residual income is on the back end, not the front, and that
once you build it you have the financial security and time flexibility
to do just about anything you desire for the rest of your life!
Last, but not least,
lets address GEOMETRIC GROWTH (DUPLICATION):
The classic illustration
of geometric growth is the frequently used penny-a-day example.If
you save one penny on the first day, and double it every successive
day, (day two you have 2 pennies and day three you have 4 pennies,
and so on) how much will you have at the end of 30 days?
The answer, to
the astonishment of many, is $5,368,708! Amazing, but true.
That's a simple
and dramatic illustration of how networking can work. If I can
teach you, I've doubled myself. If we each teach someone else,
we've doubled again. As this duplication or geometric growth
process goes on and on, it can produce some amazing results
in a relatively short period of time, just like the penny example
above.
So there you have
it, understand and apply these three principles
1) Leverage (of
Time and Money)
2) Residual Income
3) Geometric Growth Through Duplication
and, given sufficient
time and effort, you should enjoy a successful and financially
rewarding network marketing experience.
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About The Author:
Kirk Bannerman operates his
own successful home based business and also coaches others seeking
to start their own home based business. For more information
visit his website at:
Proven
Work At Home Business |
