So what is a Network Marketing Business really? Today we are going to take a look at exactly what this business model is and how you can use it to reach your goals and create the lifestyle you truly desire.
I congratulate you for researching this topic. Part of the problem with this industry is that a very high percentage of the people who get involved and join a company really have no clue what they are joining or what is involved in becoming a success. 
Most people and possibly you are one of them; had a close friend or family member convince them that this new opportunity they joined is going to make them and you all kinds of money.
You either joined because you got all fired up and excited or because that person would not leave you alone until you joined.
Now you are in business, you have a bunch of the company’s product sitting around your house and you really have no clue what you are involved with or what you are doing.
So let me clear all of this up for you…
First of all What Is Network Marketing?
In the end it is simply a business model that a company could choose to use to market & distribute their product to the market place i.e. you and me.
It is different then the traditional model used by most companies who manufacture and sell a product or service.
The traditional business model manufactures a product, then spends large sums of money to distribute their product to stores such as Walmart, Costco, etc. These stores are considered the middle man.
The company pays these stores (middle men) to put their product on the shelf.
They then spend large sums of money to advertise and market their product on TV, newspapers, radio, magazines and the Internet, etc, with the hope that this advertising will make you go out to one of the stores where their product is sold and buy it.
Network Marketing cuts out the middle men (stores) and the need to advertise the product on TV, etc.
They do not sell their product in stores, they do not pay the store to put their product on their shelf, they do not pay to ship the product in big trucks to these stores and they do not have to spend millions of dollars on advertising.
Why? Simply because it is a different model…
What They Do Instead
Instead what a company who chooses this model (which is also known as MLM, Multi-Level Marketing or Direct Sales) does is they go directly to the end user, the customer, the consumer, i.e. you and me.
It is why direct sales is actually a great term for this industry. They sell directly to the customer. They cut out the middle man (stores).
And this is accomplished by taking all of the money they saved by not shipping to stores, not paying stores to sell their product and not having to advertise and they instead spend that money by paying people like you and I who are in the business to market and distribute the product for them.
They take all that money they saved and pay you a commission every time you get a new customer or sponsor a new business builder (someone else who wants to build the business and buy the product).
For example…
Let’s say I join XYZ company that sells a weight loss product. By joining this company I become an independent distributor. I am not an employee of this company, I am in business for myself but I market and promote XYZ’s products.
So I pay my distributor fee to join and I also order some of the company’s products to use myself and to have on hand as samples to build my business. I am now in business.
My “job” is two fold:
- To go out and get customers. People who will use the product on a regular basis. Everytime someone orders the product from the company I get a commission paid to me from the company.One thing to note is you do not have to sell the product directly to your customers. You simply get them interested in the product and they order it directly from the company and because they are referred to the company by you, you get the commission every time they order.
- Sponsor other business builders. The real goal and where the large incomes are created is by creating a team (referred to as a downline) of other business builders like you.What happens here is that every time you sponsor a new person they are connected directly to you and are part of your team or in your downline. Everytime they order a product, sell a product or sponsor a new business builder you also receive a commission from the company.
The Power Behind this Model
And here is the cool part and where the power is behind this business model:
When that person sponsors someone, anything that person does in the way of sales you also receive a commission from because they are also part of your team and in your downline.
And this goes on and on. As your team grows, more business builders join and sales increase you get a commission on it all and your income and business grows.
It’s a brilliant business model which in the end is built on the most powerful form of marketing available… Word of Mouth!
Every company knows that if you like something you are going to tell your friends about it. This is what every company strives for.
But with Network Marketing they actually pay you to tell people. Pay you to spread the Word of Mouth.
Let’s say Pepsi comes out with a new flavor of pop, you try it and really like it and as a result you tell your friend bobby-boy about it, he buys one. Is Pepsi going to send you a commission check for your referral? Clearly not!
But when you join a direct sales company and tell bobby-boy about the company’s great energy drink, he tries it and likes it and decides to buy some and maybe even join as a business builder, guess what?
You are going to be paid a commission for your referral!
Pretty darn cool!
So that is the basics of how the industry works, of course there is more too it but in a nutshell that is the deal.
How to be Successful
OK so you now have an idea of how the business model works. What I want to do very quickly is show you how to be a raging success at it and create a very profitable business for yourself.
When I say profitable the first thing you need to understand is that the sky’s the limit here.
People have and do make 5, 6 & 7 figure incomes all the time. And you can also if you do it the right way. (the problem is that most people do it the wrong way)
This blog is filled with training on how to be successful in your business. I encourage you to browse around and do some research on here.
I also recommend that you sign up for my FREE prospecting boot camp (sign up is on the side of the blog).
Prospecting is the name of the game and the highest paying activity you can focus your time on and that boot camp will provide you with all of my best methods of prospecting, sponsoring and building a large and profitable downline.
Quick Tips on Being a Success
#1 Treat it Like a Business – The reason someone will not make it to the top here is simply because they do not treat it like a business. They treat it like a hobby, something they play around with and as a result it pays them like a hobby.
Treat this like the 5, 6 & 7 figure income opportunity that it is and it will pay you that way.
#2 Get Trained – It blows my mind how many people will spend their money to join a company and then not even bother to get trained.
They won’t even take the time to learn how to build their downline the right way. They think they know how to do it and they run around spamming and annoying the heck out of people and completely ruin their chances at success.
Get trained first, learn how to get started from your up line and blogs like this. Learn quickly and then get into action.
#3 Get Good at Prospecting – Prospecting is the name of the game. You are not a sales person, you let the company sales tools do all of the selling and telling to your prospect for you.
You are a prospector. Which means you want to get good at meeting new people (easy online), building a relationship or rapport with them (also easy online), and then simply asking them if they are open to looking at an opportunity.
Get good at doing that over and over again and success is not a matter of “If”, but rather a matter of “When”.
#4 You Can’t Fail Unless You Quit – It is important to understand that if you focus on prospecting there really is no way you can fail unless you quit.
Keep doing it over and over again and success will be yours.
Success can take 6 months to 4 years of consistent part-time action (10 – 15 hours a week).
If you are consistent and dedicated to your business the only way you can fail is if you quit. Don’t quit, success in this industry is so worth it.
Additional Resources
Alright so again those tips were the basics of how you build a profitable biz, the following are some other training on this site I recommend you check out to help with your understanding of this business model and also how you can crush it:
What is Network Marketing About?
What is the Best Network Marketing Company?
How to Rock Your Network Marketing Business
If you have any questions about what I covered feel free to drop me a comment in the section below. Plus if you found value in what I shared with you today do me a favor and also let me know.
Cheers to YOUR Success
Robb Corbett
P.S. Don’t forget to get your FREE subscription to my Prospecting Boot Camp on the side of the blog and let me show you how to build a profitable business fast!
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