I’m reading another book this week and the subject matter is about: Understanding Network Marketing. If you asked 100 different people the question “What IS Network Marketing?” you would likely get close to 100 different answers. Some would tell you it’s probably a home based business. Others might go for specific company names they have heard of and then some might tell you that Network Marketing (NWM) is a scam. Yes, there are many who have tried and failed at NWM and as a result, instead of accepting the fact that THEY failed to do what is necessary to succeed and make money… they blame NWM as a whole. You may have met someone who has that opinion, right? Then there are some who will say that NWM is a Pyramid Scheme… (a common description a few years ago) and I simply tell them to go to Egypt if they want to see a pyramid. You really can’t win them all…
Cutting to the chase, the title of the book I’m reding is “The 45 Second Presentation That Will Change Your Life” by Don Failla. Network Marketing is also called Multi-Level Marketing or MLM for short. So WHAT is it? Marketing simply means moving a product or service from the manufacturer to the customer. Multi-Level refers to how the people doing that moving of product are compensated financially.
That’s a quick ‘what is it’ definition. We could talk for some time about the different ways companies compensate their team members but the bottom line is you get rewarded for moving products. The manufacturer makes product available for sale. You are able to purchase those products at wholesale and sell them at retail for a markup. The difference between those two prices is YOUR profit. You are also paid a bonus on the product volume you move.
Additionally, you are able to SPONSOR people into the business you are in as your team members. You are also paid a bonus on the product volume THEY move. This is where the ‘networking’ really comes into play as you network with others and find people who have similar wants and needs and are able to SEE the “bigger picture” that Network Marketing offers. When you Sponsor someone it becomes YOUR job to train them so that they understand what it really takes to make MLM work for them. If you don’t do that training… they will soon drop out and you’ll be looking for more people to Sponsor. People who don’t learn this often talk about having to get people in their business faster than they get out!
In the book, Don Failla says that you really don’t have anybody sponsored until you’ve taken them three levels deep. What does that mean? Let’s say you Sponsor Joe. Joe knows Sue and he Sponsors Sue. Sue is excited and knows everybody and brings on three or four new team members. About that time, if you have been doing training like you should and teaching your team members to do the same… Joe is really IN because he will be getting a regular check and he has something to lose should he quit.
This is such an interesting book. I have been involved with several different MLM companies and had I known what I am learning from this book… Life would likely be so different today for me and my family.
If you find this short post interesting and would like more information, reach out to me and I will get back to you.
David writes from Historic Frederick, Maryland