Industry Knowledge: FAQs and Resources on Network Marketing
This page is your one-stop research hub on all the relevant facts about the network marketing industry. Here we give you the most important details about the industry because the first critical step for ensuring your success in this business is for you to know how it works. Learn what the professionals know so you can acquire the knowledge and the skills to become an expert network marketer.
Enjoy reading up! If you have added questions, please feel free to post it on the comments section of this blog or send us an email or leave your message at our website.
Here is to your success,
Jason Grilli – President, Perfect Pitch Marketing Group
A QUICK OVERVIEW OF NETWORK MARKETING
What is it? Network marketing is a marketing system that a company uses to distribute its products or services by means of networking through multiple channels of distributorship. It is a very low-cost way to start your own business since the network marketing company supplies you with the product and the training you need to get going.
How do you earn money? Your earnings are computed from your personal sales of the network marketing company’s products or services and also from the sales of people who sign-up under you. Some network marketing companies offer other bonus benefits for signing-up a certain number of new members and/or reaching a particular amount of sales volume.
Is network marketing legal? Network marketing ventures are legal because people get paid only for products sold within their network. If people were to get paid a fee for recruiting people into the business without any sales requirement then that is illegal. Network marketing companies operate legally in all 50 states of the USA and in many other countries outside the United States. The Direct Selling Association, a group composed of over 200 well-known brand names using the network marketing model that is committed to safeguard the ethical business practices of the MLM industry, has a wide list of legitimate network marketing companies. If a company is a member of this trusted association, then it is usually proof of its legitimacy.
How do you choose the right company for you? The right company is a matter of personal preference. Here is a checklist to help you evaluate.
Company Track Record
How long has the company been in business? A good stable company has been in existence for more than 3 years at the very least.
What is its past and current financial condition? Examine revenue growth for the past 3- 5 years and check if there have been periods of fluctuation? Check if there were or are any past and present lawsuits? Does it have capital for development? Are there any evidence for expansion and growth? Are existing members paid their commissions in a timely manner?
Is the company listed as a member of the Direct Selling Association? DSA membership is a form of validation that the business is a legitimate network marketing company.
Does the management team have a solid experience in the industry?
Is the company technologically “with the times”?
Does it have a physical address?
Does it have a website or blog that discloses all possible information which a potential customer would search for about the business? Check if the site has details on products & services, compensation plan, customer testimonials and customer service support?
Are there fully functional phone numbers, toll-free numbers and e-mail addresses?
Initial Investment Outlay Required
How much do you need to shell out as capital? If there is, then it should only be a minimal amount that is considered a one-time membership fee. This fee normally includes all the materials that comprise a basic training kit.
What does the capital cover? Does it include training fees? Does it include business materials? Is it for initial volume inventory of products or services? If yes, check quantity of volume or duration of service.
Product Or Service
Does it cater to people’s needs thereby ensuring long-term consumer appeal? Or is it more of a fad or trendy item that people can do without?
Is there potential for repeat purchase?
How much earnings can you expect from a specific volume of sales?
Will the earning potential give you residual income and cover for your retirement?
When do you receive your payout? How do you receive your payouts?
How long can you expect a return of your investment? Can you earn right away and get back initial costs put in?
Upon sign-up, what level are you in the organizational hierarchy?
Aside from your commissions, what are the benefits and other perks in line with your membership level?
How far can you grow with the company?
What requirements do you need to meet in line with each membership position?
Is there product training and business training support for new distributors?
What support can you expect from your recruiter?
Does the marketing provide any marketing support?
Are there weekly business meetings , monthly seminars or annual conventions to update you on product information and current business skills?
” BECOME A NETWORKING MARKETING PROFESSIONAL…. LEARN THE LANGUAGE”
Sources for statistics on Telecommunications and The US Economy:
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Get the Professional answers to those tough questions asked by your
Gain a professional understanding of the MLM distribution model. This video will assist you in becoming the professional you aspire to be in our industry. According to its author, Brilliant Compensation is the surefire way to present Network Marketing to prospects in any MLM industry, and have them begging for more information about your business”. Yes, this a great prospecting tool, but first, please watch the entire presentation,* take notes and gain wisdom!
” What the Wealthy Buy on Payday opens your mind to the idea of being in control of your money. Wealth is not a mystery. It’s a formula and this presentation explains that formula, without mentioning network marketing. It sets you up to understand from the very beginning that if you choose to see the business as a way to wealth, you must invest in your business because when you’re in business you’ve got to make yourself known. ” Tim Sales
The Perfect Business
(an exclusive interview with Robert T. Kiyosaki)
Where he shares powerful strategies to create personal security and financial freedom, and he reveals Network Marketing as his first choice to retire young and rich. Kiyosaki, a multi-millionaire businessman, investor, educator, and speaker is the author of Rich Dad, Poor Dad and other internationally reknown books (the Rich Dad series) on how to become financially free.
MLM: Who’s Getting Rich – Who’s Not?
In this video, Tim Sales shares who makes the most money in network marketing and who really makes it to the top. He answers critical questions like do you need to get in at the beginning to be successful? Find out for yourself who is getting rich with MLM.
MLM: Who’s Lying?
Tim Sales answers the questions most new network marketers dread. Are you getting honest information about MLM? Is the advice you’re getting about MLM really true? Is the information you are getting from a reliable source? He also teaches you how to determine if the information you’ve been given about network marketing is valid.
MLM: Do Most People Fail?
In this video Tim Sales tackles the questions: “Do most people fail at network marketing? How can MLM companies get away with claiming that everyone can succeed? Learn what you need to know to accurately estimate your chances of success.”
Your 1st Year in Network Marketingby Mark & Renee Yarnell
To listen to its proponents, network marketing is the greatest thing since sliced bread: top performers earn $1 million a month, reside in alluring places like Aspen and Kauai, and still find quality time to happily raise children and lovingly cement spousal relationships …read more
Think and Grow Rich by Napoleon Hill
Napoleon Hill interviewed with William Wrigley, Alexander Graham Bell, Andrew Carnegie and 500 others.
He shares with you the secrets that helped all of these great leaders rise to the top in their respected industries. Many of today’s top achievers credit Napoleon Hill’s work as being the blueprint for their success.
Who Stole the American Dream by Burke Hedges
Have you ever been made fun of… ridiculed… and abused… until finally there came a time when you said, “ENOUGH IS ENOUGH!” ? That is exactly why Burke Hedges wrote this book — to tell you the truth… to tell you what your real chances are today to make it in conventional businesses that are closing their doors every day – and laying off people by the thousands! Is Network Marketing a scam?… A scheme?… Or the American Dream? Discover the truth. …read more
Developing the Leader within you by John C. MaxwellIn this repackaged bestseller John Maxwell examines the differences between leadership styles, outlines principles for inspiring, motivating, and influencing others. These principles can be used in any organization to foster integrity and self-discipline and bring a positive change.
Developing the Leader Within You also allows readers to examine how to be effective in the highest calling of leadership by understanding the five characteristics that set “leader managers” apart from “run-of-the-mill managers.”
The 21 Irrefutable Laws of Leadership by John C. MaxwellWhat would happen if a top expert with more than thirty years of leadership experience were willing to distill everything he had learned about leadership into a handful of life-changing principles just for you? It would change your life.
John C. Maxwell has done exactly that in The 21 Irrefutable Laws of Leadership Audio CD. He has combined insights learned from his thirty-plus years of leadership successes and mistakes with observations from the worlds of business, politics, sports, religion, and military conflict. The result is a revealing study of leadership delivered as only a communicator like Maxwell can.…read more
The 17 Indisputable Laws of Teamwork by John C. MaxwellThe 17 Indisputable Laws of Teamwork has quickly become one of John Maxwell’s bestselling books on leadership. Now, in this companion workbook, Dr. Maxwell provides a tool every person can use to adapt the 17 Laws to leadership at home, work, and church..…read more