Network Marketing Business

There are many type of business in this world. Network Marketing Business, Direct business, E-mail Business, Multi Level Marketing and many more are some examples. Among them network marketing is a separate type of business. It involves sales mainly through distributors or a team of marketers. They move to field, explain about the products and sell the products. Here the product is sold directly to customer by explaining all factors. As a distributor he gets commission and other perks as per norms of that company. A good marketer will always try to show glimpses of smile at the customer.

In network marketing products manufactured are directly sent to show room or to the distributor. Hence the intermediate persons are eliminated. The brokerage and other commissions to the stock receiver are disabled. As the distributors and sales persons are getting sufficient commissions the involvement in sales will be more to achieve, more than the given target. Since there is no advertisement in the network marketing business the cost of articles are reduced and enhanced commissions are given to sales team. Consumers are benefited with cheaper price. Pyramid type of network marketing business may destroy the good will of the company and leads towards negative direction.

In network business the associates or distributors are just like an employee but without salary. They are working in field explaining all about the products of the company detail. Most of the networking company appoints distributors by purchase of some products of the company or by depositing some amount with validity period for business. The inbound duty is fixed to get income from the business. The only way the distributor can explain about the company is through some brochures and websites. Non other than these are shown by the company to reach all people. As and when the sales increase his position goes up with some rank. In some network marketing business a distributor is authorized to enroll a limited number of distributors to work beneath him. The commission amount increases as the appointed distributors develops their sales and a parallel commission is attached to the senior distributor. This set up is similar to franchise development. The only difference in network marketing business is some company will give royalty after sales up to the agreed periods and terms. The renewal of royalty also disbursed on some conditions of fresh documents and contracts.

Whether the network marketing is gaining small or more profit, a proportionate amount of foreign exchange is brought to the country where the network marketing business is dealt. By such marketing government is also benefited through this revenue apart from merits and demerits of this business. In all countries the network business is running with different name and with individual methods. To sell groceries also a network business is started and commissions are given. Irrespective of the type of business we can see the onward motion in this field. We cannot come to a conclusion as all the network business is MLM and pyramid based. But some good and best established companies are there involved in network business and achieved good target in sales. It is possible to earn goodwill in market by setting up good procedures and framing possible ways and means to do a network marketing business certainly get more and above the targeted sale and income.

The Hidden Values of a Network Marketing Business

While many distributors get started in network marketing because of the opportunity to make money, there are a number of other benefits that network marketing offers besides money. Often these other reasons are much more compelling than the money itself, but these additional benefits are overlooked and basically forgotten about.

Take time to study the most successful people in business and you will see that they all create their own networks that then lead to success. The creation of these networks results in unlimited income potential through leverage. This leverage then leads to the use of not simply your own efforts and money but the money, time and efforts of others. The impact of these networks on your business leads to exponential growth.

Robert T. Kiyosaki is the renowned author of Rich Dad Poor Dad, the Cash Flow Quadrant and many others, talks about the “hidden values” of a network marketing business in his book “The Business School for People Who Like Helping People”.

While there’s no denying the success and credibility of Robert Kiyosaki, especially when it comes to his ability to build businesses and his ability to acquire wealth, here he writes about the value of network marketing opportunities.

The first value that he discusses is the fact that network marketing offers a “True Equal Opportunity” by allowing far more people access into the B quadrant. As many of you know, entering into a ‘B’ quadrant business can be a very expensive venture. However, Network Marketing is a business that provides access to the ‘B’ quadrant at a much more affordable price.

How many of you have surrounded yourself with friends that will pick you up when you are feeling down? Personally, I don’t know that I could have too many friends that would be willing to do that for me. If you feel the same, then you will enjoy the fact that Robert Kiyosaki, explains that Network Marketing is a great place to find friends that will “Pull You Up and Not Push You Down”.

Network Marketing, also provides an opportunity whereby you are now investing in the same investments the rich Invest In. As Kiyosaki points out in several of his books the rich are able to invest in things that most people simply can’t. While many people may have the desire, the American Securities and exchange Commission also known as the SEC requires that an individual have an annual salary of at least $200,000 a year or $300,000 a year per couple in order to be classified as an ‘accredited investor’ allowing you access to the inner sanctum of investing. As a result he suggests people look into network marketing because of the investment advantages it offers. Those who are successful in MLM can afford to invest in the same things as the very rich.

However, according to Robert T. Kiyosaki the number one reason why you should look at a network marketing company is the education that it provides. There are a number of different skills that you learn in network marketing that have real world value both inside and outside your network marketing business.

So, the next time you are looking at a business opportunity remember that it’s important to look beyond the products and the compensation plan and look into the heart of the company. Is it a company that is interested in educating you? Sometimes it is more important to understand if your sponsor is not only capable of, but interested in training you. Often times people overlook the fact that when joining a new business opportunity you are in essence going into business with your sponsor. Additionally, since you need to learn about the company and their products. You should be asking: What sort of training is provided specifically related to the company and products?

Have you developed your most important business skill?

If not, then network marketing is a great training ground for those interested in improving their sales skills. Robert Kiyosaki, explains that selling is the most important skill of the “B-Quadrant” and that if you can’t sell don’t bother starting your own business. Network Marketing offers you a unique opportunity because not only must you learn how to sell, you must in turn teach others how to sell. Therefore if you are a great salesman, but can’t teach others to sell your chances of success are not very good. However, for those willing to learn how to sell and to further teach others to sell, you will do well.

In discussing “The Value of Leadership”, Robert Kiyosaki quotes his ‘Rich Dad’ who told him: “Money always flows to the leader. If you want more money, simply become more of a leader.” One of the most important values you can get from a network marketing business is leadership training. Leadership is necessary and a requirement for success.

For anyone that has read “Rich Dad, Poor Dad” or “CASHFLOW Quadrant”, you will understand why another value is the “Not Working for Money”. In his books Kiyosaki explains the differences between the four quadrants are explained. E=employee, S= Self-employed or small business owner, B=business owner and I= Investor. With that as a starting point he begins to explain that we should all strive to be in the ‘B’ or the ‘I’ quadrants. Network Marketing is a business model that can take you from the ‘E’ or ‘S’ quadrant to the ‘B’ or ‘I’, where you should be.

How about “Living Your Dreams”? This is one of the most important values of a network marketing business that Kiyosaki points out. For many people, a network marketing opportunity allows them to go after and live their dreams. Dreams are typically much more than monetary and go way beyond material things. For many these dreams include giving to their favorite charity, funding schools, churches and many more. Do NOT be afraid to Dream Big!

As many of you know, I feel that educating yourself is one of the most important things you can do to be successful, not only in network marketing, but in life. With that said, reading Robert Kiyosaki’s book “The Business School For People Who Like Helping People” should be part of your education.

“Can I Start a Home Based Internet Marketing Business With a Zero Budget?” and Other Good Questions

Anyone seriously looking to become a home based business owner should ask lots of questions in order to make a well-informed decision. A good place to begin is by doing several informational interviews with successful business owners in the same kind of business. Most people are more than happy to share their experience with others, and some will even recount the lessons they learned the hard way so that you can avoid costly pitfalls.

Following are a few questions that I often hear about start-up costs. It would be a good idea for you to ask these of other people as well, but here are a few of my own responses:

Q: I’d like to get into Internet Marketing, but I don’t have any money to invest. Can I still do it?

A: Depends on what you mean by “get into it.” If you are serious about becoming a successful business owner, then the short answer is “no.” It takes some money to start any business. The good news is that home based Internet marketing businesses require a lot less cash investment than traditional “brick and mortar” businesses, franchises, or even cottage industries that depend on expensive materials, production equipment, licenses and inspections, product shipping and/or inventory storage. All of that makes a home based Internet business accessible to almost anyone by comparison.

It also depends on what you will be marketing and whether you already have, or need to purchase the products and/or services in order to fulfill customer orders promptly and professionally. This will vary from company to company, so be sure you fully understand what is required of you, up front.

Q: So what kinds of costs are involved?

A: There are different kinds of expenses-capital expenses (one-time or infrequent) and operating expenses (those that recur monthly or even more often). You might compare the two to buying a truck for a business (capital expense) and buying gas, oil, insurance, and maintenance to keep it running (operating expenses).

Capital expenses for Internet Marketers include the cost of things like your computer, printer, phone, etc., and other home office set-up needs. You might find that you, like many people, do most of your work out of a wi-fi cafĂ© and “out-of-pocket” with your cell-phone, pda, and so forth. Easy, then, to keep these costs reasonable-especially if you already have the equipment and gadgets. But since these tools are the lifeblood of any Internet Marketer, they need to be up-to-date and reliable. You may also need to put some money out to get your business branded (your visual look, logo, etc). If you don’t have these things in place, you won’t be able to compete in the vast online universe. That will affect your profits, and hence your success. You might have people in your personal network who could help you with this, and that could save you money.

Operating expenses in this industry will primarily be related to these things:

o The actual marketing of the product, service, or opportunity in which you are dealing: that is, online advertising. There are lots of ways to market online, and the costs will range from free (yes-there is some) to…well, not free. The cost of paid advertising, and pay-per-click (most effective) usually depends on your volume, and may become more economical once you have a good reputation and add value to the ad vendor’s bottom line.
o You’ll need broadband Internet connectivity, phone service with voice mail and unlimited long distance, a merchant account (so you can take payments online), etc..
o Remember to budget for training (there is always a learning curve to scale) and ongoing professional development. If you don’t invest in becoming an expert, those who do will quickly soak up the profits that could have been yours. *Finally, don’t forget to budget for general office supplies, transportation costs, and other “everyday” items that you might not currently be spending money on in your life.

Q: How about fees to “buy into” an Internet Marketing business?

A: These will vary, but yes-you can expect that in most cases there will be some kind of application and/or start-up fee. Beware the exceptions because the costs will only be more hidden. Here are some tips to make sure you don’t get burned:

o Anything you pay while you are still gathering information about a company or opportunity should come with a written money back guarantee. o Check to see what period of time the guarantee covers-24 hours? (not so much) 30 days? (much better)-and use that time to learn all you can. o Avoid any company that does NOT provide such a guarantee up front. o With a guarantee in hand you should be able to pay the “start-here” fee confidently-you will have little to lose and perhaps much to gain.

Q: How much should I be willing to pay up front?

A: As with the previous questions, this one also depends-mostly on you this time.

o An application or start-up fee should be modest-affordable for you-and the compensation plan presented to you should thoroughly explain what you would need to do to see both a return on your initial investment and future profits.
o If you absolutely do not have the amount of money requested just to open the door, then the chances are good that this opportunity is out of your reach at this time.
o If you really, really like what you see and still don’t have the cash or credit available to get started, then do whatever it takes (legally and ethically, of course) to turn this situation around and find the money. Serious entrepreneurs think and act in these ways all the time: this could be a good test for you as to whether you have what it takes to be a successful entrepreneur. It’s not everyone’s cup of tea.

Q: Okay. So let’s say I find the money, get started and then find that there are MORE things to spend money on than I could see at the outset: Have I been scammed?

A: Not necessarily! In fact, probably not. You are now just far enough into it to begin learning what the top-tier producers do to succeed. This would be a good moment to take stock again:

o Are you willing and able to do whatever it takes to succeed, or is this all a little too hot to handle for you? If the latter, then it might be time for you to request your refund and step away from home based Internet Marketing. If, on the other hand, you are still highly motivated to succeed by taking on these challenges, then you would do well to press on. The returns can make it all worthwhile.

Remember that you are in business now and that you will have to spend money to make money. Don’t let anyone tell you otherwise. Here are a few good rules of thumb to follow on your way to Internet marketing success:

o On average, you should not spend more than 10-20% of your anticipated commission on the marketing needed to make that commission. For instance, if your compensation plan pays a $100 commission on the product or service you are marketing, then you should not spend more than $10-$20 to make that sale.
o Make your first goal to pay yourself back for your start-up costs.
o Once you have recouped your initial investment, continue putting 80-100% of your profits back into your marketing in order to build your business.

Q: ARE YOU KIDDING? I need to make money, not keep putting it down a hole.

A: Exactly! Drastic as this sounds, it is the only way to ensure that you will survive and thrive in the face of the competition. Consider these things:

o Once you have built a steady and profit-generating business, expect to put no less than 10-15% of your revenue back into marketing on a continual basis.
o The number one reason people fail in any kind of business venture is the failure to manage and reinvest profits in order to grow their businesses. If you take your first profits and buy that big screen TV with your name on it, chances are you will start to FEEL “scammed” because you won’t see the kind of traffic and response to your marketing that more experienced Internet marketers are having. So get your priorities straight and tough it out.
o The best home based Internet Marketing opportunities offer professional guidance and direction about how to start up on a limited budget and be responsible with your money.
o If the company you are connecting up with can’t show you a range of effective marketing options that fit your budget while you are still getting started, then keep on walking.

In business, it takes money to make money-there is no way around that. If you can easily accept that basic truth, then simply keep your wits about you while you are gathering information, and resist the temptation to react (positively or negatively) ONLY on the basis of reading other people’s testimonials about getting rich.

Internet Marketing has been identified as one of the few fairly recession-proof industries out there today. That doesn’t mean, however, that anyone can “get rich quick” with no effort, or simply become a millionaire without investing (and reinvesting) time, know-how, and a percentage of profit. In fact, only about 3% of those who enter this industry have what it takes to hit multiple six and seven figure incomes. Those who build wealth through Internet Marketing (and quite honestly the profits can be life-changing), regularly spend money to make money. They take their businesses and their reputations as successful entrepreneurs seriously. If you are prepared to do the same, you too may have the bright and prosperous future of your dreams with a home based Internet marketing business. Here’s to your success!