What is Multilevel Marketing?
Rather, we conceptualize what is Marketing:
It is a way of bringing a product or service to a consumidor.O most widely used is the
distribution channel for the traditional retail where a product leaves the factory, will undergo a chain of importers or wholesalers, then moving across networks to distributors of the products reach the stores of retail sales.
All this cost distribution is played in the value of the final product, which also has also embedded the cost of mass advertising, usually conveyed to high costs for a consumer to know that the product is in store. Traditionally 80% of the cost of a product to the consumer is related to advertising and marketing.
The Multilevel Marketing (or MLM) is a method of conducting a product or service to consumers, where marketing and advertising is done through an independent distributor who is not an employee of the company. This distributor is the only intermediary to the consumer.
In addition to reselling the products, network marketing distributor to make this new distributors to the company, and thus form a group of distributors from which you can receive commissions for sales made by the whole group. And each one has its own business!
It is the perfect vehicle for work at home and the decentralization of business that is rapidly approaching. It is the most effective and powerful marketing system in the world, it uses the word-of-mouth to a consumer aware of the product or service. Still, as more and more people are enjoying its benefits, most still are not familiar with the MMN, making it even bigger opportunity for people with entrepreneurial vision for new ways of doing business.
Companies MLM eliminate wholesalers, eliminate the high cost of centralized dissemination, eliminate the high cost of having employees, and deliver the product or service directly to consumers with the assistance of an independent distributor. This greatly reduces the cost to sell a product or service, and we can then produce the highest quality at very competitive prices and the profits are shared with the entire network of distributors.
Just imagine yourself as the owner of a shop where there would be need for a point, or do not have to pay rent, not employees, or do not have to pay wages or have headaches with labor problems, do not need inventory, therefore does not need high investments, or accounting or administration, the job would be to form its own customers, where every customer can also become a seller of the same product you sell and you earn a percentage of what he sells ! In a traditional organization, it would never happen. In MLM companies, this is exactly what
happens.
Or, if you're like most people: when you like something you do want to share it with others. How many times have you told others about a movie you really liked? Maybe ...
you have told 10 people about the movie
and these 10 have counted each one for 10 people and these 100 have counted for 10 others, each
More than 1000 people who were watching the movie because of his statement.
It would be nice if the cinema you pay a percentage for each person you refer? Again, a traditional business, this will never happen. But that's exactly what happens with an MLM company!
the first 10 people would be your 1st level the second person (10 x 10) would be your 2nd level and the third (100 x 10) would be your 3rd level
If that film was a MLM company, you would be getting a residual income of tickets now!
In Multilevel Marketing, as you know, you is often referred to Distributor. The people who you forward for the company are called your downline or Downline. Directing people to the company, you may receive commissions on their sales and on sales of their downline. In the examples above, those customers in your store and would be sponsored by you and
Distributors would be in your downline. Similarly, all these people going to the movies would be sponsored by you or by someone you sponsored and would be in your downline. The Power of Multilevel Marketing is in the process of duplication. The geometric progression can be really amazing. The incredible multiplier effect can build a group of thousands of distributors, each receiving commissions not only from their own work but also the work of hundreds or thousands of distributors in your downline.
No matter when you join an organization-level marketing, you will always be the head of your company! Unlike traditional corporations with a president at the top, Multilevel Marketing everyone is the president of his independent, and may be receiving commissions much higher than distributors who entered long before you or even your own sponsor as this will only depend on its ability to form their organization.
If you sponsor a new distributor every month in its organization, and teach him to do the same, let's see how many people you have in your organization after a year
Month:
1.You sponsors 1 and the total of your group (you and more 1) = 2 2.You and its 1 each sponsor 1 and the total of your group = 4 3.You and their 3 each sponsor 1 and the total of your group = 8 4.You and your 7 each sponsor 1 and the total of your group = 16 5.You and each of its 15 sponsor 1 and the total of your group = 32 6.You and each of its 31 sponsor 1 and the total of your group = 64 Slow until then, huh? Now look what happens
7.Você and each of its 63 sponsor 1 and the total of your group = 128 8.Você and its 127 each sponsor 1 and the total of your group = 256 9.You and its 255 each sponsor 1 and the total of your group = 512 10.Você and its 511 each sponsor 1 and the total of your group = 1024 11.Você and its 1023 each sponsor 1 and the total of your group = 2048 12.Você and its 2047 each sponsor 1 and the total of your group = 4096!
Now imagine that each of these 4096 are working on average 1 hour per day, calling a friend, or selling a product. Would be 4096 hours of work for your business day!
And how many of those 4096 you personally sponsored?
Only 12!
This is a geometric progression and is as Multilevel Marketing is designed to work.
Take a look at MLM and see if it will give you the security and freedom you need to achieve your dreams. You have nothing to lose. And think, for just a moment, what you may have to win!
Pyramid x Multilevel Marketing
Here's an article quite enlightening to explain the difference between Pyramid and NETWORK MARKETING, because many people think it's the same thing. This is because many of these financial pyramid schemes or chain linking their illegal businesses to network marketing, or network marketing or MLM. So careful, know how to differentiate a legitimate business network marketing of an illegal pyramid or disguised and current financial statements.
PYRAMIDS FINANCIAL NETWORK MARKETING X
With the rapid development of the broad trends, we realize that not all information is in our power to follow up adequately, such a development, because due to its great extent, some strive to focus on a particular subject or a cover superficial knowledge on relevant issues in today's world.
Since the Network Marketing, also called multi-level marketing, a new trend in the Marketing area, little has been disclosed or made with respect to further study on it, so as to make it a subject of current disclosure between business , academic and social.
Currently, this has become a relevant topic of interest and also the media, the fact that current data show its growth and a better understanding of the way it operates, with satisfactory results.
Possibly the failure to understand the distinction between financial pyramids and Network Marketing, many people refer to both as the same performance. Occasionally, it is generating the system of Network Marketing problems with its image because of the perception that the public is replaced by the company regarding this as unscrupulous and unethical.
How Network Marketing is a form of direct selling, also known as multi-level marketing or multilevel direct selling, is to prove that this method is highly efficient and successful to compensate retailers for direct placement and distribution of products and services directly consumers.
The WFDSA - World Federation of Direct Selling Associations and Direct Selling Associations have shown, with the global code of conduct, the appointment of its members with fair and ethical practices in the market. The WFDSA, founded in 1978, is a voluntary non-governmental organization which represents the global direct selling industry as a national federation of associations of direct sales (Direct Selling Association - DSAs).
There are currently more than 50 national DSAs that participate in the federation, and in 1997 global sales of its retail members were estimated at more than $ 80 billion, with the work of more than 25 million independent dealers. The WFDSA recognizes the need for ethical conduct in approving the market in 1994, the Global Code of Conduct for Direct Selling which all national associations must include in their national codes.
The Global Code of Conduct for Direct Sales brings:
- Satisfaction and consumer protection - Protection for direct resellers
- Promotion of fair competition along the lines of the company - Ethical representation of opportunities to gain industry
The code is a measure aimed at self-regulation of direct selling industry. There are no laws, but compliance with the code requires a level of ethical behavior that exceeds national legal requirements.
It is then clear that the difference between pyramid and the system of Network Marketing and Pyramid
In a basic concept, the system is a pyramid scheme, recruiting, generating income only recruiting new members and collecting the charges, without any actual product or service is busy.
Therefore, the reward is only with the addition of new participants, and investment of, and not for resale or distribution of products or services with legitimate business function.
No commercial support, the number of available recruits is finite and, arithmetically, later recruits have less chance of getting rich than the promoters of the scheme. Therefore, this scheme is short-lived, and finally join that virtually have no chance to recover their fees or to benefit from the scheme.
In the absence of a real product, such schemes attempt to coerce people, ensuring they are legitimate companies that operate a plan in Network Marketing. However, selling products used by this system have no market value because they are false certificates, newsletters, training programs, magazine subscriptions, business discounts, deceptive, and other treatments ineffective. The recruits buy these products without the prospect of resale or possibility of returning the amount paid for them.
MLM
The Evolution of Network Marketing, in a general context of marketing, is the junction of Relationship Marketing, which focuses on the quality of the customer relationship and direct marketing, which becomes the direct relationship between vendor and customer. Therefore, the Network Marketing allows the direct relationship of the distributor (seller) with the client in order to maintain a quality relationship between them, as this system is only devoted to the
permanence of a direct relationship in the long term.
Network Marketing is a distribution system or a form of marketing that moves goods and services from the manufacturer to the consumer through a network of independent contractors.
It is a way to organize and pay for dealers involved in direct sales. It has a compensation plan direct sales in which resellers can receive earnings in two ways.
First, dealers may receive compensation for their personal resale of products and services to consumers. Second, dealers may be paid for purchases or resales of people he recruited and sponsored the plan, and can be paid from the resale of the group or network that was recruited and supported by persons who are recruited in advance. Therefore, it is an opportunity for resellers to establish their own businesses, selling goods and services and developing and training an organization or a network of resellers they sponsor to do the same.
Therefore, a multilevel distribution company means any person, firm, corporation or other business entity that sells or distributes goods or services through independent agents, contractors or distributors, and such participants may recruit other participants.
Commissions, bonuses, refunds, discounts, dividends and other considerations of the program are or should be paid as a result of the sale of such service, product, recruitment, performance
shares or additional participants.
One of the key issues for businesses of network marketing has been entering the consumer focus in the whole process of product development. Each product is designed and
manufactured as the company was responding to a request from the consumer. For this reason, the process begins with a detailed assessment to ensure that the product will meet the needs and expectations of the consumer. This evaluation will continue at every stage of product development, through market research, analysis and development of prototypes and testing with consumers, to the final product.
These companies have a team of highly qualified and trained to meet the needs of distributors in order to help them with all the necessary guidance for the business to develop more and more. They support their dealers with an active training program. In addition, the new
distributors are motivated the most experienced, as well as advice and all necessary assistance to the beginning of its activities.
Gradually, as they learn more about the products, the sales plan and marketing company, they can develop their independent businesses on a sound basis and to achieve the desired success.
The Evolution of Multilevel Marketing
The First Wave began in 1941 when Carl Rehnborg introduced the first compensation plan of multiple levels in your company, Nutrilite Products, Inc. This was the rude and barbarous stage of MMN, when legitimate companies competed with shady pyramid scams, and neither the public nor the government knew right what was the difference. The first wave ended in 1979 when the Federal Trade Commission, the powerful American surveillance, decided that Amway - and, by extension, their own MLM - was a legitimate business.
Then came the Second Wave. For the first time the computer technology made it cheap and easy to organize the complex flow of commissions through an MLM downline. Armed with little more than an ordinary computer and a line of domestically made products, hundreds of
entrepreneurs have rushed to start their own MLM companies, based on rooms and garages all over the United States. The 80's witnessed an unprecedented explosion of new MLM
companies.
The Second Wave also saw millions of people joining MLM companies. Unfortunately, many were embittered by the experience. They found it difficult to make money in the companies of the Second Wave. It was a brutal work, twenty-four hours a day. The distributors had to build up inventory, fill orders for products, speak to crowds in meetings at hotels, train new recruits and spend all night taking calls from your downline. Although the company were forced to buy large quantities of products to meet the necessary qualifications in the company, which had filled with large stocks of silk in the garages of the distributors.
The third wave companies are committed to change all that. Since 1990, a new generation of executives came to improve the process of multilevel marketing, to make it more friendly for the User. The goal was to create a business opportunity that anyone could make money from what it gives only small part of his time to working full time.
The third wave companies use computers, sophisticated management strategies and the most modern telecommunications systems to make life as easy as possible for the average
distributor. The use of technology as a free service of DDD, TV, fax, video, Internet and cellular phone from others is the main feature of the Third Wave, which uses them to automate and standardize the once onerous task of administering a downline.
In addition, more and more companies are eliminating the "conditions" heavier their
compensation plans, so those who work part-time are no longer pressured to invest more time and money as they can.
Some experts are already calling the Fourth Wave: the most powerful force in business twenty-
first century. Where executives of the 500 largest companies listed by Fortune magazine encouraged by the growing respectability of Multilevel Marketing, are finally beginning to invest in your own programs
Through operational arrangements for distribution, strategic alliances, mergers and acquisitions, the forces of Multilevel Marketing are right now beginning to integrate into the overall strategy of the largest and most powerful corporations in the world. Hundreds of major companies now distribute their products through multi-level marketing. Transnational Behemoths, Dupont and Conagra joined together to create and launch the Legacy USA, a subsidiary of Multilevel Marketing, which sells nutritional products and medicines. IBM is selling training programs through Big Planet, a division of Nu Skin Enterprises that already sells well over 100,000 items in its e-commerce. Last year, Citigroup - the world's largest financial services - cut its workforce by 6%, laying off about 10,400 people. However, its level marketing subsidiary, Primerica, continued to expand. Citigroup embodies the transformation of the Fourth Wave, where "jobs"
disappear as opportunities "self" grow
The last lane of the Superhighway Distribution will be the Internet. Astute observers of the high- tech scene, they said, years ago, that the level marketing was leading the way for commercial applications of the World Wide Web
Internet is short for "internetworking", network of contacts. Multilevel Marketing is the very Networking. And probably there is a faster way to establish a network of contacts that the Internet today. Distributors of the future will use the Internet to receive business training videos in real time, business reports and scheduled meetings of opportunity, which, nowadays, they can only get through satellites. This prediction is Stuart Johnson, whose company Video Plus in Lake Dallas, TX, specializes in products and communications services to companies marketing Mulltinível.
A Chance to Work
Experts in sales, network marketing is a system that brings the industry's products to
consumers without going through traditional retail. For those who work in it, however, the MMN is, above all, an opportunity to earn money, to supplement the family income and achieve personal dreams.
Therefore, the MMN attracts ambitious people, with their own initiative and willing to work long hours to achieve their goals.
For MLM companies, the act of sponsoring someone who seeks the sponsored person becomes a consumer products company. This is nothing more than a strategy to increase market share. MMN focuses on each person as an microfat market, working directly to attract one by one in the everyday use of its products - competing, therefore, the appeal of mass propaganda that seeks to attract consumers to supermarkets, stores and other good shops in the industry .
For the distributor entrepreneur however is an opportunity to own a slice of the market for this company, that the more comprehensive with unique products that drive demand and create loyalty, with diversification of product segments and services that meet growing consumer trends and with the possibility of participation in any international markets new or existing home allowing your own your own business for international distribution, will you make unlimited profitability.
Some scholars have worried about this phenomenon and sought to define the causes that determine the success or failure of those who try their luck in MLM. There is no doubt that success depends on personal qualities - such as persistence and ability to withstand the initial frustrations - that not everyone has. But there are other important features that could be defined as "positive thinking" - mental attitudes before the difficulties that any job offers. But
undoubtedly the major cause of withdrawal in the short term is the total ignorance of this unique form of marketing and lack of direction by the person who appointed him to the business.
Therefore there is no other type of development where the support, guidance and training can make all the difference. Find your coach (coach or teacher) in its line of support and follow the steps that will lead to success for sure.
Compensation Plans
The compensation plan or marketing plan, is the method by which a multilevel marketing company pays commissions to its distributors. The compensation plan largely determines how much you earn, how long, for a certain amount of work. When choosing a company, pay close attention to their compensation plan.
Ironically, the compensation plans are one of the most misunderstood of MLM. Even veterans of MMN rarely know what they find out a compensation plan. No other area of multilevel marketing is shrouded in mystery, more fraught with myth.
The scope of the compensation plan is without doubt the most oriented perception of the business - says the editor of MarketWave Leonard Clements. - There are tons of ways to make a plan look more profitable on paper, when in reality it is more advantageous than any other.
The surest way to know this is research and know how long, how many people and what the fees received by distributors from various companies.
The income derived from a multilevel marketing company, can generally be divided into two categories: the retail profits and residual income.
As in traditional sales, retail profits reflect the ability of the distributor to sell a product or service.
The profits of a retail company multilevel marketing are typically little or much smaller than a company's traditional direct sales depending on the focus of each company, because this part of the margin was shifted from the point of sale for the portion residual product prices.
The amounts typically allocated for distribution and advertising by traditional companies are embedded in the compensation plan of the MLM and paid for the sales force distributor. This strongly encourages dealers to promote the company's products using the word of mouth. This is also the basis for many distributors do a little each and benefit collectively.
And from the standpoint of enterprise management, this means that instead of using venture capital in advertising, the advertising costs are paid and recovered both the sale of a product.
This helps companies keep the price of the product down.
To maximize the gains of a particular plane, it is important to understand how it works and what are the qualifications required to earn all commissions available. In general, plans with higher qualifications require distributors to expend more energy in retail sales and / or sponsoring the forefront of the plans with lower qualifications, in contrast to the residual gains are much greater.
To better understand the plans, see the types of plans exist today, but take time to consult the glossary of terms not to lose the description of the plans. See also the seven basic criteria for choosing a plan.
Criteria for Choosing a Plan
Simplicity - The easier it is to explain the plan, the easier it is to persuade new recruits to sign a contract. When people do not understand how their commissions are calculated, the tendency is to suspect that being fooled.
Potential Size of the Organization - Two factors affect the potential size of your organization - width and depth. Only plans dies set limits wide. But all plans except the binary (which is an array type), limit their depth to a number of levels. Depth can be treacherous. A plan of gradual emancipation can allow you to receive commission from the double levels of a single-level plan
of six steps. Although both are described as plans for six levels, one has more depth than the other.
Principle or EOL - Some plans provide for higher fees down the line - that is, after you are emancipated or started to build their lowest levels. A plan of this type can offer 1% commission on level one, but 20% at six. Plans "end of line" of this kind are far more profitable in the long run because the geometric growth of your downline concentrates large numbers of people at lower levels, where their fees are higher. But this only works for distributors ambitious, energetic and persistent work with commitment to building an organization deep enough to provide these commissions. In general order of line means hard work, delayed gratification and greater rewards in the long term principle of line means more money in the beginning, with less effort, but a potential for lower long-term gain.
Profit Potential - In order to estimate the profit potential of a plan, we recommend the following method:
1.Check the wholesale discount that the company gives to their product purchases. As with any retail business, the difference between your wholesale price and the price at which you sell is your profit retail. See the profit margin that you can get the initial level at the highest level of company performance.
2.Calcule profit wholesale. He is the profit you get by selling the product wholesale in your downline. Calculate the profit margin would have attacked you selling to distributors at each level of performance available in your company.
3.Num plan of gradual emancipation, there is a third criterion - the percentage of royalties or overrides the segments of emancipation.
This method will provide only a rough estimate of your potential earnings, but will give you information that will allow you to compare one plan with another.
Qualifications - Check the minimum number of people needed for the plan you are analyzing.
This is the amount of product that you need to buy wholesale every month in order to qualify as active distributor. also check the amount of product that you have to buy each month to qualify at each level of performance. If the required volume is too high, you could end up stocking more merchandise than its ability to sell it. If too low, your downline can feel unmotivated to sell whatever it is, once you have to buy just enough each month for personal consumption.
Small print - many compensation plans contain unreasonable demands - conditions rarely mentioned candidates and who are often excluded from the videos and printed recruitment - but which nevertheless have great impact on your business. Always try to know what are the penalties if they do not meet their monthly quotas. Another important question to ask is how the plan calculates your monthly fees. All turnover is taken into account or only part of it?
Plan type - You must understand the pros and cons of each type of plan and choose what meets your needs. There are three main types of plans: Emancipation Gradually, Matrix and Uninível. Although you may hear many other names designating compensation plans, they all fit into one of those three categories. The binary plan, for example, is a mode of matrix and the plan is an Australian variety of Uninível.
FAQ
In this section are the most frequently asked questions of who is getting to know the MMN MLM is a business like "get rich quick"?
Although thousands of people have become rich in less than 2 or 3 years due to the power of MLM, not a business like "get rich quick". In fact, MLM is a business like "get rich slowly" for
most people. It requires hard work, patience, persistence, commitment, time and money, a strong desire to succeed and an attitude of never giving up. Neither type of business is easy, and MLM is no exception
MMN is a legitimate business, legal and serious?
Yes, properly conducted, the level marketing or MLM business is a legitimate and credible.
It's like any other business - the people who lead and make it legitimate to give credibility. On the question of legality, all transactions are legal if there is no law that says otherwise.
Contrary to popular belief, the supervising agencies do not have to approve the plan of a company, they only investigate complaints and use the laws if necessary. But just because a company is being sued does not mean that your business is illegal. Every great MLM company has gone through painful proceedings to become a respected name.
There are hundreds of legitimate MLM companies, some of which are operating for decades (Avon, Amway, Nu Skin and many others). Empires with names like these, with total sales in billions of dollars have not come down there for nothing, based on a business without seriousness.
MLM companies that are successful come from unique products of high quality at a fair price to the consumer and have high attention and a fair compensation plan for their representatives The Multilevel Marketing or MLM is a Pyramid?
Pyramids are illegal.
MMN is recognized as a legitimate form of business for over 40 years by the U.S. government and most countries in the world, including Brazil. However, often an unscrupulous individual will lead a pyramid scheme disguised as a legitimate MLM company. This is stupid. The basic way to recognize a pyramid scheme is when there is a very high cost to enter and there is a very low or no product or service offered in return for cost. The focus of a pyramid is to make money through subscription fees, instead of moving products and real services to real consumers and real prices.
You can represent more than one MLM company?
Yes, if all you do is consume the products and not to promote the company.
But to ensure high income and long-term success you must be centered on work and promote only one company for 18 to 36 months.
Find a good sponsor a stable company and products of high quality, commit yourself to your goals and you will be successful
You have to become a "snake" to earn enough money in MLM?
No, absolutely not.
People who have the skill of a snake (who built a large network quickly and seems to attract many others) are not surprising, but you do not need these skills to be successful in MLM.
There are many, many ordinary people highly successful groups of very different social and educational bases quite different.
The biggest money-makers in some of the oldest established MLM companies are truck drivers, farmers, carpenters, nurses, hairdressers, housewives, secretaries, engineers, teachers, etc..
In all cases these people, like you and me, had a strong desire to change their social status without changing its nature. They just act normally, make new friends, organize meetings in
their homes that are not necessarily meetings are smaller treats, and of course they sell ... just being themselves, something we do every day.
Most snakes are good because of its extensive schedule of commitments. They fly around the country giving speeches, get a lot of people excited for a few hours, and then never seems to be there when you need support. The way they recruit can not be duplicated by ordinary people, so they are like a virtual machine, continuously recruiting so many people - to compensate those who leave the network.
The real beauty of MLM is that ordinary people like me and you can create a full-time income from a part-time effort at home.
So, in conclusion, you absolutely do not need to be a "snake" or become a "snake" to make it big in MLM. Ordinary people are doing great all day.
What is a "snake" MMN?
Approximately 1 person in 1000 in MLM is a level considered "snake". Are people able to recruit dozens or even hundreds of people with his charisma and charm. They have selling skills and presentation to the group, public speaking and other top talents of persuasion. Some have developed these talents and skills over time and others had of course. "Snakes" MMN are not necessarily the most to gain money in MLM, but so are seen.
Why choose MMN?
MMN offers for those of us who were lucky enough to be born in a golden cradle, the
opportunity to start our own business without money, experience or training. You learn on the job while you earn.
Many companies are marketing their products or services using MMN, as it reduces the time and cost of marketing to make the product or service reach the end consumer.
Compared to the conventional method of distribution via importers, wholesalers and retailers, in MLM there are few costs to start, and fewer employees needed for both short and for long-term.
This helps reduce the high costs of operation and to use the savings for research and development of high quality products.
MLM business owners typically are committed to the system and want to help people gain financial independence. See that financial independence can only be obtained on the understanding that their earnings are directly related to the amount of work that you invest Most people can develop the business skills necessary to succeed in MLM?
Will not be most people will acquire the skills necessary to become a billionaire businessman MMN. Nor will most people who acquire the skills necessary to become a corporate leader's most successful and paid out of the country. But this is only for reasons of disability for lack of will and determination to concentrate.
When you ask this question you need to separate "to develop the skills" to "develop the skills".
Most people can develop these skills. Most will not.
After all, the skills themselves are not so difficult to be acquired.
Most people can learn to talk to each other about an opportunity, to be on time for an appointment, asking for help from a more experienced upline, picking up a phone and call a prospect, the objections and answers to your offers; to spend time with the training of their downlines, to lead them to success, to use their own products and give testimonies of their quality.
There is really something that a practitioner of MMN should do to succeed, and that most
people can not learn? Not if they are willing to change.
Most people are willing to change? No
What products and services can be purchased through MMN? What are the advantages offered in relation to similar products sold in traditional shops?
The multilevel marketing system allows it to be sold all sorts of merchandise. In the United States, large companies, for example, sell through catalogs hundreds of product lines of cosmetics, home care, nutrition, personal care and household items. These are different products, with performance, in general, significantly higher than what is on the market because the end result of their use.
Furthermore, the multilevel system lends itself to the sale of services such as credit cards, health plans, sightseeing tour, etc..
It is true that most people who become distributors in MLM they give up?
There are several reasons that can lead to failure in MLM. Among them are: lack of
entrepreneurial spirit and knowledge of business and the products and lack of goals. As with any business, there will always be entrepreneurs who drop out, those who are moderately successful and those who are very successful. People unwilling immediacy should not expect miracles in MMN
When I buy a product for my use, through MMN, I am automatically classified as a distributor?
The fact of consuming products company MMN did not characterize the person as a distributor.
To be a distributor, it is necessary that the person sign a contract with the company and meets the standards laid down in the Manual of Business.
What are the rights and obligations of a distributor in a MLM?
According to the rules of good business MLM companies, the rights, duties and responsibilities of distributors are:
distributors can buy all the products and promotional materials directly from the company may not sell, display or offering for sale products and accessories at retail locations open to the public, including but not limited to fairs, exhibitions and other events such distributors should not present a misleading way of price, quality, performance and availability of products or services, should not make any statements about the products or services other than those expressly set out on product labels or in official literature whenever a client requests that the satisfaction guarantee will be honored, the distributor will offer options for full refund of the purchase price, full credit or exchange the same or another product the distributor must comply with applicable laws, rules and practices, including code of consumer protection, which govern the operation of your business distributor may carry out other activities or sell products other than those
marketed under the company's brand distributors always abide immediately and in full, requirements, systems, procedures and guidelines established in the Manual of Business.
How can I be sure that the firm will meet its commitment to me, crediting commissions on all sales made by my network? What guarantee do I have?
The company must have historical credibility and be legally constituted. Securities must be contractual.
Recommended Books
"All About Network Marketing" - Richard Poe
"Much More About Network Marketing" - Richard Poe
"Formula of Leadership" - Sergio Buaiz
"The Basics" - Don Failla
"Network Marketing - The Definitive Guide to MLM" - Will Marks Learn the Secrets of Network Marketing "- Leonard W. Clements
"The Greatest Salesman in the World" - Og Mandino
"The Magic of Thinking Big" - David Schwartz
"Marketing Word of Mouth" - Jerry Wilson
"How to Get Rich with Network Marketing" - John Bremner
"The Best Network Marketing Professional of the World" - John Milton Fogg
"Network Marketing with Cunning of the Streets" - Robert Butwin
"Wave Four" (The Fourth Wave) - Richard Poe
"Your First Year in Network Marketing - Mark Yarnell
"How to Win Friends and Influence People - Dale Carnegie
"Think and Grow Rich" - Napoleon Hill
"Positive Action Plan" - Napoleon Hill
MLM
by Robert Kiyosaki - Editora Campus
Also called multilevel marketing or direct distribution systems. Just as the deductibles, the laws at first tried to outlaw the marketing network, and I know that some countries could ban it and then restrict it severely. Any new system or idea usually goes through this phase where it is classified as "strange and suspicious." At first I also thought the marketing was a scam. But over the years, I studied the various existing systems through network marketing and have seen several friends to succeed in this form of "D" (Business Owner). So I changed my mind.
After I left my prejudices and began researching the network marketing, I found that there were many people who were dedicating themselves sincerely and diligently to build successful businesses of network marketing. When I met these people, I saw the impact that the business had in their lives and financial futures of others. I began to really examine the value system of network marketing. For a fee of reasonable value (usually around $ 200.00), a person can enter the system and start building your business immediately. Due to technological advances in the computer industry, these organizations are fully automated and headaches due to paperwork, order processing, distribution, accounting and monitoring are almost entirely managed by software systems marketing network. New distributors can focus all their efforts in building their businesses by sharing this business opportunity automated instead of worrying about the headaches normal at the beginning of a new small business.
One of my longtime friends who won more than one billion dollars in 1997 recently registered as a distributor of network marketing and began to build their business. I was surprised to see him build a business so diligently, because he did not absolutely need the money. When I asked him why, he explained it like this:
"I attended college to be state auditor, and have an MBA in finance. When people ask me how I got so rich, I tell them about the multimillion-dollar transactions to do with real estate and thousands of passive income that I receive each of my properties. Then I notice that some of them withdraw or are embarrassed. We both know that the chances of them carry multimillion- dollar investments in real estate are almost nil. Besides not having education, they do not have additional capital to invest. So I started looking for a way to help them achieve the same level of passive income that I developed from the properties ... without having to go back to college for six years and spent 12 years investing in real estate. I believe network marketing gives them the opportunities for them to build the passive income they need to support themselves while learning to become investors. Is why I will recommend network marketing. Even if people have little money, they can still invest 'sweat equity' for five years and begin to generate more and more passive income to begin investing. Developing your own business, they have free time to
learn and capital to invest with me in my big business. "
After researching several companies, my friend joined a network marketing distributor and started a business with people who will ever want to invest with him. He is doing well in your business, and also on their investments. He told me: "Initially, I did it because I wanted to help people to have money to invest, and I am enriched with a whole new business. "
He teaches classes on Saturdays twice a month. In the first class he teaches about business systems and the people, or how to become a "D" successful. In the second meeting of the month, he teaches them about financial literacy and intelligence. He now is teaching these people to be "I" (investor) in practice. Class sizes it is growing rapidly. The pattern he recommends is the same that I recommend.
OWN A FRANCHISE
And that is why today I advise people to consider network marketing. Many famous franchises cost a million dollars or more. Network marketing is like buying a personal franchise, and that usually costs at least $ 200.00. I know that most network marketing requires hard work. But success in any quadrant also. I personally do not generate any income as a distributor of network marketing. I researched several companies marketing network and their compensation plans. While doing my research, I joined several companies just because her products are good, and I use them as a consumer.
Still, if I could give some advice to help you move to the side of the Quadrant (Business Owners and Investors), I do not concentrate so much on the product, but in education the organization provides. There are organizations in network marketing who are interested merely in doing so to sell their system to their friends. And there are organizations that are interested mainly and instruct you and help you succeed.
From my research on network marketing, I discovered two important things you can learn through their programs and are essential to becoming a "D" of success:
1. To be successful, you must learn to overcome the fear of being rejected, and stop thinking about what people will tell you. Often met people who give back simply because they care about what your friends say if they knew what they were doing something different. I know because I too was like that. How was a small town, everyone knew what everyone was doing. If someone did not like what you were doing, the whole town knew about them and their business subject turned to them.
One of the phrases that he repeated to myself was: "What do you think of me is none of my business. The most important thing for me is what I think to myself. "One of the reasons why my rich dad encouraged me to work in sales at Xerox Corporation for four years was not because he liked copiers, but because he wanted me overcome my shyness and fear of rejection.
2. Learning to lead people. Working with different types of people is the hardest thing in business. The people I met and who are successful in any business are those that are natural leaders. The ability to get along with people and inspire them is a priceless quality. But it is a quality that can be learned.
Like I said, the transition from the left side of the Quadrant to the right side (going from
employee to entrepreneur) does not involve so much what you do but who you become. Learn to deal with rejection as not to be affected by what others think of you, and learn to lead people, and you will find prosperity. So I endorse any organization's marketing network that is primarily engaged in developing the human being than the seller. I would seek organizations that:
1. They are organizations that have adopted records a path of success and a distribution system and a pay plan that is successful for years.
2. Have a business opportunity with which you can be successful, in which to believe and share
with others with confidence.
3. Take continuing education programs and long term to develop it as a human being. Self- confidence is vital side of the Quadrant.
4. Have a mentor who is strong. You want to learn from leaders, not consultants. People who are already leaders on the right side of the Quadrant and want you to succeed.
5. Be with people you respect and with whom you would like to be.
If the organization to meet these five criteria, then and only then, pay attention to the product.
Many people pay attention to the product and not in the business system and the organization behind the product. In some of the organizations I researched, one of his slogans was: "The product sells itself. It's easy. "If you want to be a salesman, an" A "(Autonomous), then the product is the most important. But if you want to become a "D" in the long term, then the most important is the system, the education for life, and people.
A friend and colleague of mine, noted in this sector, reminded me of the value of time, one of our most valuable assets. A true success story in a company network marketing is when your time commitment and hard work in the short term leads to a significant passive income long term. Once built a solid organization under you, you can stop working and your current income will continue from the efforts of the organization you build. The most important key to success with a marketing company network is the long-term commitment, both on their side and by the organization for you to become the business leader who wants to be.
A SYSTEM IS A BRIDGE TO FREEDOM
Not a place to stay is not the kind of experience I would like to repeat. Still, this experience was invaluable for Kim and me. Today, freedom and security are not found in what is, but we know we can create with confidence.
Since that time, we have created or helped to develop a real estate company, an oil company, and two education companies. Thus, the process of learning to create a successful system was beneficial for us. Still, I do not recommend this process to anyone, unless you really want to go through it.
Only a few years, the possibility of a person be successful in the quadrant "D" was available only for the brave or were rich. Kim and I must have been brave, they certainly were not rich.
The reason so many people get stuck on the left quadrant is because they feel that the risks involved in developing their own system are very large. For them, it is smarter to remain in employment insurance.
Nowadays, mainly due to technological changes, the risks involved in becoming a successful businessman dropped slightly ... and the opportunity to have their own business system is available to virtually everyone.
Franchises and network marketing away from the difficult part of developing the system itself.
You get the rights to a proven system, and from there your only job is to develop its staff.
Think of these business systems as bridges. Bridges that will give you the path to you safely through the left side to right side of the quadrant of the cash flow ... the Bridge to Financial Independence.
Text Extract from Financial Independence Robert Kiyosaki's - Editora Campus
