Transition from a JOB to Network Marketing Can Be Challenging
If you ask a large number of people to create their ultimate business or career in detail, listing the specific things they would like to have and things they would like to avoid, they would most likely have lists that look similar to the ones below:
Positive atmosphere – Great product/service – Unlimited income – Residual income – Enjoy the people with whom you work – Time freedom – Work is something meaningful – Room for personal growth – Lots of perks – International opportunities – Contribution to worthy causes – Low risk – Low start-up costs – Economy-proof – Tax benefits – Fun!
Boss – Commuting – Alarm clocks – Work schedules – Other employees – Politics, cliques, & compromises – Discrimination – Educational requirements – Lack of benefits – Lack of training – Lack of advancement – Lack of appreciation/respect – Lack of challenge – Lack of support – Not enough pay – Don’t enjoy work duties – No fun!
Since most of us already know what a JOB is, I would also like to explain what Network Marketing is (and isn’t), so we are absolutely clear about our subject. We will begin this overview with a definition of some of the basic marketing terms:
Simply means the moving of a product/service from the manufacturer or provider to the consumer.
This is what most people think of as ‘selling’. This is includes product sales from retail stores, groceries, department stores, drug stores, etc.
This usually includes product or service demonstrations or door-to-door sales for items such as insurance, cookware, encyclopedias, Fuller Brush, Avon products, as well as home parties for things such as Tupperware, jewelry, scrapbooking, etc. Direct sales may also be done by mail order. With direct selling companies, you work for that company. If you decide to quit and move to another area, you have to start all over.
This type of marketing is sometimes referred to as ‘Multi-level Marketing’ (MLM). It is all about moving products and services by building relationships with others (networking). The main difference in Network Marketing and the other types of sales above is that in Network Marketing, you are in business for yourself… not by yourself… providing products and/or services to others.
If you choose to build this type of business with the company who sponsored you, in most cases if you move to another area you can resume building your network without losing the volume of the group that you left behind. In most Network Marketing companies, you are either buying products and/or services from the company you represent at wholesale prices and then providing them to your customers at a retail price (the difference being your profit), OR you are personally trying the products/services yourself and then sharing their benefits with others. Then they can purchase them through your company… usually at a lower price than they are currently paying. You are then paid a percentage on your use as well as on their continued use of those products/services.
When you build your own business by sponsoring and training other motivated persons like yourself, you build a ‘network’ through which to channel the movement of your products and/or services. The money made in this type of opportunity can be life-changing and is primarily made through the network-building activities. But large bonuses and outstanding residual income also comes from the product and service offerings. You get paid over and over for products/services you only had to provide once! Note: if you are operating out of your home, there can also be substantial tax breaks.
Multi-level Marketing (MLM):
This is the older term previously used for what is now referred to as Network Marketing above. It refers to a system of compensation provided to persons on more than one level who are causing the product to move or the service to be provided. (Some of the illegal ‘pyramid schemes’ discussed below and chain distribution schemes/letters have tried to pass themselves off as MLM companies, which has created a great amount of confusion and incorrect assumptions. )#)
Most Network Marketing opportunities are NOT ‘pyramid schemes’. Pyramid schemes are illegal and do not include the movement of either products or services. If a product doesn’t move, you can’t call it ‘marketing’.