Network marketing defined

(Network Marketing Defined)
Copyright © Muneer Al-Busaidi


www.moneytimesecurity.ws

Financial freedom begins with educating yourself

Many of us have heard of the standard ways in which people get rich…investing in property, actually hitting the top of the career ladder (for those fortunate and patient enough), playing the stock market in an intelligent way or starting a business…
A business though is a difficult things to develop if you dont know what you are doing and failure rate is statistically high, however if you plan well and have a very good business system backing your product you will be able to reep the many rewards of success.
As unfair as it may seem, it really is becoming a lot more about the business system than the product, many of us can make a better burger than McDonalds yet they make more money due to an extremely solid business system.
This is why people buy franchises as businesses. These are proven business system without the hassle of having to create it yourself. There is however a growing phenomenon of a business system that has began to prove itself globaly and that is the network marketing business concept. A business system recommended in many financial self help books including the best selling books “the millionaire mind”, “rich dad poor dad”, “cashflow quadrant” among others.
As an individual investing in my financial education I needed to learn more, I have done a lot of research and sifted through countless websites offering all sorts of things. This information is provided because I wish I had found it when I started:


What on earth is network marketing?

Lets break it down:
What is marketing?
Marketing is down to two main things:

Exposure: Getting as many people to know about your product as possible
Impact: Generating enough interest in your product for an individual to make a sale
Which is why conventional marketing methods focused on television ads, magazines etc and spent enormous amounts for that exposure. In days where there was only one tv station that everyone watched it would make sense.


What are the shortfalls of conventional marketing?
Personally I grew up with five television channels when I was younger and not too many ads, so i would remember them. In this day and age however our minds can get saturated with whats available while companies are forced to find more shocking ways to generate that impact of remembering a commercial.
Commercials are now considered successful if they are remembered 3 seconds after someone has seen them.
As for billboards and the like, please take a look next time you walk around, have you noticed how every single day you can walk by a poster or board without having noticed it! Someone has paid huge money and its such a shame that its all been wasted…

What about the network part?

This is split in two parts:
• 1. “Its who you know, not what you know”:
Companies organize functions in order for them to network, this is basically done because people are more willing to trust someone they know in person. Therefore companies create sessions that allow people to get to know each other. This just illustrates how we often take our mere knowledge of people for granted.
In comparison to the example used earlier with the 3 sec success rate for a commercial, an individual will remember any one person they speak to at least a half hour after they have spoken, this applies to other forms of contact (email, phone etc) with people you know.
Add to this that you have a much more powerful persuasive effect on any of your friends than a commercial will ever have. Consider a new restaurant will always tell you how great it is (and naturally you will be sceptical); however if a good friend tells you he tried and loved it, you will definitely be more willing to try it.

• 2. Have you ever heard the theory that you are five degrees of separation from any individual in the world?
I don’t know if its true or not but in essence the theory states you will always know someone who knows someone who knows someone who knows or had contact with Nelson Mandela for example or Bill Gates or anyone really!
Whether or not this theory is completely accurate, it really does provide a powerful insight again into how we take our knowledge of people for granted! Through our many individual friends we have the potential to reach anyone anywhere by using the people they know and their friends. Our friends and family, have friends and family who in turn respectively have their own friends and family. This is an enormous resource that so many of us never tap into living our lives.

1+1 = Network marketing

So putting the two together you have a business system that utilizes this colossal resource of any individuals network in order to market products. Network marketing systems are designed to bring as many people on board as possible by offering financial incentives for your whole network and its exponential growth. These incentives can easily entice people to focus on the business system completely and not at all on the product!
Its fundamental strength is the persuasive power that individuals have over one another.
The exponential growth is inherent in the fact that you may know 10 people who each know 10 people who each know anther 10 people (thats 1000 people through you, only 3 levels down!)
To make the systems both legal and beneficial for both the product people and the individuals, there are usually five levels or generations that these go up to. This allows the profits to be split in a predictable way and shies away from scams such as pyramid sales and the likes.

Passive income

I am just going to side step for a moment, and explain passive income. This is income that is generated for a lifetime through means other than your employment. This could be through vehicles such as rent from property you own, royalties from intellectual property or even dividends that come from shares.
Passive income is extremely beneficial as it will come whether you are sick, on holiday, temporarily incapacitated etc. I have found the only setbacks in the previously mentioned vehicles are the amount of investment required (or coming up with an idea for intellectual property).
Books on financial freedom will always outline the path to financial freedom as growing your passive income to overtake your expenses and be larger than your earnings.
Large one off payments of money will do you no good in the long term as so many of us will find that we are too acustomed to spending and easily find the money has been spent on needless items!

Tying this in with network marketing;
the charm that network marketing has and its effectiveness; comes from the fact that there is no large investment involved as with a house. In return you are given a seed for growth, you will have an opportunity to grow a passive income that can get larger and larger and larger if you do the work. Just as a seed is nothing if not watered, network marketing is nothing if no work is done. If you do the work though over time, you will have the potential to have one hell of a passive income tree!

How does the internet fit into all this?

Up until now we have talked about network in the physical sense, however a book recently written by three time winner of the Pulitzer prize Thomas Friedman “ The world is Flat” describes how the internet is removing boundaries and limitations that previously hindered us. It has changed the way we act, interact and increasingly how we conduct business.
We are now in situations where we can be best friends with people across continents and speak to them every day while not even know our next door neighbor. I for one am guilty of that situation. We chat to people online every day all over the world and have more courage to meet someone online than to introduce yourself to a stranger in a crowded room.
Expensive or slow communication was a thing of the past, letters hardly exist and free instant internet communication has now become an alternative to international calling ( not to mention more useful with the instant and simultaneous sending of pics and files etc!)

So is internet network marketing a good or a bad thing?

Well if you remove boundaries, you get more freedom and with more freedom you have more opportunities, it is natural for people to become scared as you have now changed the playing field! Yes, as it is a different playing field you must actually adapt to the new surroundings.
However these are surroundings that seem intimidating but the good news is that most internet marketing systems can only be successful by their ability to replicate themselves. In other words they will have systems that will provide you with an already existing infrastructure and adequate support to help you with your journey. After all it is in their best interest that you become successful.
One great example of the way a company will standardize a process in order to make you successful is found on this website and their 30 day success guide:

http://www.moneytimesecurity.ws

It is literally a do this do that now go here fast track to shorten the learning curve!




Why is network marketing highly recommended by people?
It has become popular because it is a way that people can become successful by making others successful. My success really is dependant on the success of my friends. You will also always love a friend that makes you successful and that is something that draws people to these opportunities.
What should you look at when looking at the different options out there?

Believe me there are loads and loads of options, lets go back to marketing theory though:

You may have heard of the 4 Ps of marketing:
Price: The price offered for a product and how it compares to everyone else
Promotion: (where you fit in with network marketing), getting people to know about a product and why they should buy it.
Product: The actual product itself (should be a very important part of the mix but often easily overlooked in network marketing)
Place: where the product can be sold.

When you look for an opportunity you want the right mix of the 4 Ps:
There is no advantage having an internet company that only sells to one city! I have seen opportunities restricted to certain countries. I live in a smaller country that has been unable to utilize many of these opportunities, so I just focus on global ones that have more potential anyway.
Although the product is not the be all and end all of network marketing systems, it would not hurt to have a great product that sells itself, rather than just using the business opportunity to sell the product. If you believe in the product, the chances are others will as well!
Lets also face it nearly all systems you have to buy into at some point. The question is, how willing are you to pay a certain price for a product or opportunity and how willing will your friends be to pay that price for the opportunity.

A good example of a global utilized product I believe you can find on

www.moneytimesecurity.ws

I felt that these people had perfected the mix of 4 P’s and you should take a look at their video (the promotion part) and judge yourself.

Once you find something you truly believe in, that sells itself you can really harness the power of the internet to grow a network that builds a solid financial future through the power of duplication.
With that I wish you every success in your financial future and hope that you become financially free whatever path you decide to take.

Sincerely yours,

M

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