Network marketing is essentially a compensation plan that allows a person to get paid as a business by leveraging their immediate personal relationships or "warm market" to sell a product or service and eventually grow beyond that warm market into the cold market of targeted leads. Many times the network marketing compensation plan allows a person to recruit and teach a system of sales and talent management which allows the recruiter to earn a percentage of the efforts of the team they build. It's a system, which properly executed creates an environment that breeds success.
One particular network marketing system is also widely known as multi-level marketing.
So let's address the obvious question - Why does network marketing get a bad reputation? Luckily for you, I wrote about that too, so go check it out. Some of the most influential things, people, and ideas have bad reputations. Doesn't make any of them any less powerful.
Network Marketing is a Business
Network marketing franchises can be held and operated by businesses or by individuals as sole proprietors. The future belongs to those who can earn enough to design their own lifestyle. And businesses are designed by definition to earn more. If you want more control of your financial future, you need a business.
Network Marketing has a built in Business Plan
A goal without a plan is a wish. Anyone can start a business. Most state filed LLC's can be registered for under $500. Whether you start a $100, $500, $10,000, or $1,000,000 business, you need a plan a for your business - without fail. A business without a plan is a dead business simply waiting to topple over. This is still the reason why if you want a loan from a bank to support your business, you better show them a plan or you won't even get a conversation. But we all know in today's era, small business loans, especially for startups are almost unheard of.
Network Marketing is a Duplicatable System
Any company worth their weight has success stories. Stories which highlight the human condition as benefited from their product, service, vision, or mission. A good company worth its weight knows how to duplicate these success stories at the most efficient rate possible. A good company is of value to the market and helps the people it touches. A good network company is no different. It's entire existence is based on developing a better system of success for those who want to plug into it. It's simply up to the individual business owner to connect their product with their customer - which is the exact same thing for any business owner. Which brings us to...
Network Marketing is just like every other business
Network marketing is no different than any other business you put your hands on. It all comes down to a plan, making connections, communicating value, positioning, making calls, talking to people, follow-up, build up people, evaluate, rinse and repeat. It has a failure rate of over 97%, which is no different than any other American startup. It's a business. If you work it as one, it pays you as one. If you work it as a employee who's waiting on someone tell them what to do, well....you probably won't get paid anything. And that's what different about it as well...
Network marketing isn't like other businesses
You can choose your industry. There's a network marketing model in ever industry from make-up, health supplements, cook ware, legal services, pharmaceuticals, energy, and my personal favorite, bills. Basically, if you look hard enough, you should be able to find a company that suits your interests. That's the beauty of having a choice in what you sell, unlike your current job which expects you to push a product, service, or person you don't believe in. Also, unlike many traditional brick and mortar franchises [$1,000,000+ for McDonlds and Taco Bell], network marketing business have some of the lowest cost of entry making them accessible to every day individuals who sometimes have more work ethic than cash in the bank.
Network Marketing can change your inner circle
The people you breathe the most air with shape your life. This includes your spouse, your children, your family, your friends, and your co-workers. You spend time with them, and your gonna get what they have, including the common cold. But you'll also get their opportunities, their mindset, their challenges, and their relationships. We are who we choose to hang around with. Some of you reading this know your friends aren't worth much to your future. In many cases, they're holding your future from being what it can be. Many times, choosing a reputable network marketing company with people you can see yourself emulating, will automatically put you around a better group of individuals bound by shared goals, self-betterment, and shared success.
Network marketing teaches sales skills
Newsflash: You Live in America. Which basically means you spend your days either selling something or being sold something. Usually both - because our entire economy is built on sales. Sales is the single universal skill in our world. No matter if you manufacture metal widgets, or you want to live on your artwork. If you don't know how to turn your product into cash, you have nothing of monetary value. Salespeople keep commerce moving, and if you want to have an impact in this country, you better be sharpening up your sales skills.
Network marketing can change your life
Let's just be real for a second. People who get involved in network marketing are looking for something, a vehicle that can change the trajectory of a person's life. Through network marketing - but more importantly through sales - a person can learn how to earn substantially more money than they ever would have by clocking in and out at measly hourly wages. By plugging into a proven system of sales, success, and mentorship, a person can grow into an individual they always knew was inside, but maybe didn't know how to bring that person out. Or grow into a person who truly can touch the lives of thousands of others in positive and meaningful way on a consistent basis. The life-changing stories are always the best ones.
Network marketing can make you a better person
As I mentioned earlier, network marketing at its core a compensation plan - math. It's a legal way to potentially earn more income without selling drugs. But way more important than that, it will test who a person believes themselves to be. If money is your issue, the compensation plan and promotion model will show you exactly how you can earn more money. It's simply math. You sell, you grow, you earn. That's the easy part. The hard part is facing who you believe yourself to be so that you can honestly humble yourself enough to learn and more importantly, execute on the plan at hand. And it's an uncomfortable process to face your shortcomings so you can be the best version of yourself possible. And that's why people quit. Most people would rather make an excuse rather than face the person they need to be in order to be successful. The upside is for the ones who face themselves and their personal growth head on, the sky is the limit. You can have a lasting impact on thousands of lives and thousands of families throughout time.
Network marketing teaches you how to serve others
No company or person finds ultimate success without service. And therein lies the disconnect with our culture and our culture's success model. Our culture teaches consumption whereas no success comes without service. In many reputable network marketing companies, your success as a business owner is directly linked to your ability to breed successful habits and behaviors in your team. In order to do this, you need to be of tangible service to your team. Training, phone calls, accessibility, simply lending an ear, coaching, redirecting, or whatever else comes to mind. You are there to serve others, and your customers. Personally, unless you find yourself voluntarily serving Charlie Sheen, I've never seen someone become a worse person by learning how to be more selfless.