The Power of Network Marketing - The Internet Home Business

	Written by Kelly L Reese CEO & President of Retire Quickly Corporation. 1. When it comes to network marketing folks tend to just throw out common sense and sound business principles.

1. Network Marketing - What it is and what it is NOT.
2. The top four mistakes to avoid that cause most failures in network marketing.
3. Your products and/or services are the key to success.
4. Understanding the "TRUTH" about geometric growth.
5. You must work "geometrically" to achieve geometric growth.
6. You can only EXPECT what you INSPECT.... the power to duplicate.

Network Marketing or Multilevel marketing (MLM) has more to offer more people than all the other forms of business combined. However, it is not as well known and is frequently misunderstood. So, I devoted an entire lesson just to network marketing.

Network marketing actually provides the purest form of reward in the entire free enterprise system.  Everyone can be paid for what they accomplish.  You can make more money than the person above you simply by doing more than they do.  That is free enterprise.

I could write a book on this subject alone. I don't mean from a personal interest perspective.  I mean as a financial consultant.  The Multilevel Marketing (MLM) or Network Marketing industry has such exciting potential for millions of people and for many reasons.

It really lends itself to my mission of showing folks how to retire in a few years.  I realize a number of you don't have any interest in network marketing, and that's perfectly OK. At least you might gain a better understanding of network marketing, and that could prove to be more valuable at some point in the future than you might imagine .

Any good business person looks for an advantage called "leverage", as we discussed in Lesson #3.  It is like facing a charging lion.  Do you want to be holding a big stick, or would you feel better if you were holding a submachine gun? 

I decided to use the submachine gun in this illustration; because as I thought about personally being in that situation, it dawned on me that if I just had a regular rifle I wouldn't be able to hit the lion.  I would be shaking too much.  I WOULD WANT AND NEED ALL THE LEVERAGE (extra power) I COULD GET.  

Obviously, we don't want to even consider facing a charging lion with or without a submachine gun.  However, you see the point about wanting something that gives us an advantage over whatever is challenging us. 

What motivated mankind out of the dark ages was that our ancestors continually used their ability to reason and think their way through problems, and then engineer solutions for those problems. Well ... business has also benefited from creative genius over the years.  

I wish I could convey to you just how incredibly powerful Network Marketing really is. It has been the beneficiary of so much creative genius. 

There has never been a time in history that can even approach today for providing life-changing network marketing opportunities for average men and women from all over the world.

The Internet has opened up the entire world's economy to you; and the associated technologies give you the leverage you need to make professional sales, recruiting and training presentations 24 hours a day, 7 days a week. The reality is you don't have to make the presentations. They are made for you.

The network marketing industry has tremendous potential to provide you with powerful success building advantages, like "Economies of Scale", "Synergy" and several additional forms of leverage.  

I want you to imagine that you are going to open a traditional or franchise business. You have to become very knowledgeable about so many things.  You have to learn about employee rights, laws of discrimination, employee benefits.  

You have to learn how to manage people and deal with all the problems associated with what to do when your little company has two key people out sick or on vacation at the same time.

You have to deal with hiring and firing.  You have to train new employees, only to frequently have to train again because they got married and moved away or he or she got a better job offer.  Or, as is frequently the case, he or she went into business as your competitor after you trained them. I could go on and on just about employee-related matters.  

Then there are the accounting requirements, like keeping track of inventory and carefully monitoring what percentage of your inventory has become obsolete, broken or destroyed.

There is the big expense of purchasing enough inventory to have a reasonable chance of having what your customers want when they come into your store.

Of course, there is the store itself and all those associated problems and expenses. The concerns about fire and theft. And, of course, one of our favorite subjects, there are INSURANCE requirements.  Have you ever had to deal with worker's compensation insurance?  

In sharp contrast, when you own a network marketing business, you are in an entirely different world.  Instead of the negatives associated with having to deal with any of those problems, you can have the incredible benefit of hundreds of thousands of dollars worth of professional sales and marketing support. 

Modern Network Marketing companies hardly even resemble the stereotypical network marketing company that most folks think of when they think about network marketing. 

Technology has made it possible for even non-sales oriented people to sell products and even to build significant organizations of distributors. 

Network Marketing, unlike any other form of business, also captures the incredible leverage produced by the use of Other People's Efforts (OPE) and Other People's Money (OPM).  

America's first BILLIONAIRE, the famous J. Paul Getty, said, "I'd rather have 1% of the efforts of 100 people than 100% of my own".  You could say the same thing about other people's money.

However, when all is said and done, the single greatest testimony of the very special nature of network marketing is found in the fact that untold millions have tried network marketing and failed and YET continue to try again and again.

They seem to sense that network marketing is their only real chance. For many, it is the only practical choice. In a few more years, network marketing will become even more highly respected, and I believe you will find that almost everyone will be involved in network marketing in one form or another.

Network marketing is a powerful form of business that has been terribly abused by greedy liars who would sell their own mother to make money. Like all businesses, network marketing requires hard work for at least a year or more, but the rewards can be nothing short of life-changing. Network Marketing is NOT a lottery ticket. It is a business and if you will give your network marketing business the respect it richly deserves, then you will be richly rewarded.

For the balance of this lesson I want you to carefully consider the four biggest mistakes that network marketers make that virtually guarantee failure. In contrast, if you avoid these mistakes you will surely succeed.

The first major mistake: Networkers try to tell their prospects how much money they can make with their income opportunity before they tell them how their life can be changed by their company's products and/or services.

There is nothing wrong with approaching a prospect about your income opportunity. However, unless your prospect gets connected to the value of your product or service, they will never believe the income potential is real. They may even join as a representative, but deep down they are NOT really on the team yet. Once they are excited about your products, then they are going to share that excitement with others.

It goes without saying then that you too need to be excited about your products or services. If you are then you will feel compelled to tell others and you will also have the "staying power" you need to give geometric growth adequate time to work its magic.

Once your prospect sees the great value that your product or service has for their own life, and for the lives of others, then your compensation plan is CONNECTED to something that is real and believable. In other words, your product is the engine that drives the compensation plan.

One of the best ways to build any business is to have customers who are so satisfied with your products that they decide to join you in business. They are known as "products of your product" and they will be passionate about the business, because they BELIEVE in the value of what they are selling.

The second major mistake: Failure to understand the "Mathematics of Geometric Growth", within a network marketing downline.

If folks understood how geometric growth worked, they would spend far more time working with their frontline and far less time enrolling new people, and they would rarely quit a program.

People have been lied to so much about quick wealth in network marketing that the "REAL THING" looks boring. Anyone who is willing to lie can always make something sound great. The difference is, the "boring" truth can set you free financially, but the lies will cost you precious years of your life and may very well destroy your financial future.

GEOMETRIC GROWTH:

It begins very small and it is deceptive. Geometric growth NEVER produces FAST money, as in get-rich-quick, but it can produce BIG money, if you give it a couple of years to grow. Consider the following numbers and you will see what I mean.

Consider the following income figures from an actual network marketing company. The numbers assume that you and your downline each enroll 4 new members in your first 3 months and that everyone spends enough for products to produce $65 in commissionable volume each month.

In 12 months your income would be $7,605 a month. That is $91,260 a year. In 6 monthsyour income would be less than $1,000 a month, which is less than $12,000 a year. And, in 3 months your income would only be about $50 a month, which would produce about $600 a year.

Anyone would be thrilled to be making $91,260 after their first year, but how many would be happy with $50 a month after 3 months? Sadly, not many. Yet, the same growth rate produced the $50 a month as produced the the $7,605 a month..

Consider the $50 a month income in the proper perspective. If you tried to equal that as an employee, you would have to save $10,000 in three months, then invest it at 6% interest to produce the same $600 a year ($50 a month).How long has it been since you saved $3,300 a month for three consecutive months? When you look at it the correct way, $50 a month, even after 6 or 7 months, is impressive.

SUMMARY: Using our hypothetical example, you would have averaged over $3,300 a month in financial improvement over your first three months. That is much more impressive sounding than $50 a month of income. I would venture that almost 100% of the people you know, including ones that have tried network marketing many times, don't understand what you just learned.

I realize it isn't a perfect world and that these numbers are purely hypothetical; but can you more fully appreciate why I said that if a person really understood the mathematics of network marketing they wouldn't quit? Isn't it exciting to imagine the possibilities, if many more networkers remained active and stopped dropping out of programs at the blink of an eye?

DON'T EVER LISTEN TO ANYONE WHO TRIES TO GET YOU TO CHASE AFTER FAST MONEY.
TELL THEM YOU ARE ONLY INTERESTED IN BIG MONEY. IT TAKES TIME, BUT IT IS WORTH THE WAIT!

The third major mistake: Networkers don't work "geometrically". They work non-geometrically.

Anyone who owns a business must exercise common sense in determining which tasks are worthy of their time. Nobody wants to work just for the sake of working. In network marketing not every task you undertake is worthy of your time.

Much has been said about the potential power of geometric growth, and rightfully so. It is a concept of mind-altering potential. However, a whole lot more is talked about geometric growth than is actually DONE about it. Not even most superstars have tapped into the power of geometric growth.

Use common sense... forget all your past ideas and just use simple logic to grasp the truth about geometric growth. For something to grow dramatically faster and bigger than normal you must have bigger than normal POWER behind that growth.

For over 30 years I have been exposed to network marketing, and in all that time everyone I have ever known in network marketing has focused on growth and ignored POWER.

It takes geometric power to produce geometric growth.

That is common sense and it is undeniable, and yet I have never met a networker, who fully understands the point..

To build a network that will stand the test of time and produce significant income, you must spend every possible moment working on tasks that have geometric power... that is all there is to it. That is all there has ever been to it.

How can you tell if the task you are working on has geometric power? See if it passes the following test.

TEST Can what I am doing be easily duplicated by my downline?

If I am doing any task that requires strong leadership skills, strong sales skills, a lot of time, a lot of money, or a lot of technical talent, then the task I'm doing can't be duplicated, and if It can't be duplicated, then it can't be geometric.

Let's examine several common tasks found in network marketing.

·         Conducting a training seminar for your entire downline - NOT geometric

·         Sponsoring a lot of new reps - NOT geometric

·         Selling a lot of product - NOT geometric

·         Sponsoring a few new reps - GEOMETRIC

·         Selling some product - GEOMETRIC

·         Inspecting the progress of one of your frontline - GEOMETRIC

·         Following your business plan- GEOMETRIC

Virtually every experienced networker has heard about the importance of duplication, but I can guarantee you they don't carefully examine their own efforts to see how many times they waste precious time working non-geometrically.

Examine the things you do to see if they can be duplicated. Just because something you are doing isn't geometric doesn't automatically mean you should NEVER do it. However, it probably means you should give serious consideration to doing one of several things. 1. Look for a geometric way to achieve the same goal. 2. Look for a way to introduce at least some geometric elements into what you are doing. 3. Look for ways to minimize the amount of time you spend working on such non-geometric tasks.

Example: You host a weekly sales call for your downline to bring prospects to. That is a non-geometric task, but you can dramatically increase the geometric power of each call by making certain that you always have one or more new people say something on each call. Get your GROUP involved, and the more you can do that, then the more geometric power you are tapping into. The more you can take a "back seat" without weakening the call, then the more power your call will have. Let your message be much more dynamic than you are. It is OK to want to be appreciated, but you want your message to be remembered, so let it take center stage. You personally must do your best to becoming a member of the supporting cast.

I am not suggesting that you should never do a team call. What I am suggesting is that you should recognize that team calls are NOT the answer, because most folks will never feel comfortable doing one for their group. Therefore team calls are NOT the most powerful way to grow your team, because they can't be duplicated.

In summary, let me just say that in order to achieve big things in network marketing, you must think SMALL. I don't mean set small goals, I mean think about working on tasks that involve you and your own FRONTLINE, and NOBODY else. Find four or five people willing to do the same thing and you can retire soon. Find four or five people and make them heroes. Build them up... put them in the limelight.

The fourth major mistake: Networkers try to be motivators, mentors, coaches and trainers. They only need to be an INSPECTOR.

Network marketers try to be very strong leaders for their downline. They take on responsibilities that frequently they are unqualified for, but they feel like someone must do it if their downline is going to grow. This is natural, especially for those who have strong leadership skills. However, it is NOT duplicable. The majority of people are NOT leaders and will never make good motivators, mentors, coaches, and trainers.

Fortunately, this is NOT a problem, because contrary to popular belief, it is unnecessary for networkers to be strong leaders. All that is necessary is each networker must INSPECT their new distributors once a week for about six weeks. What do you inspect? We'll get to that in a moment.

There is a wise business saying that says, "You can only expect what you inspect". This is not only common sense it is a well documented fact. Even the highest ranking military officers are INSPECTED on a regular basis. Parents tell their children to clean their rooms and then inspect the room to insure that it was cleaned.....teachers give exams to inspect the students progress in learning the information being taught. The power of the inspection process works with people of all ages, both child and adult.

If you expect your new distributors to work effectively, then you must inspect them along the way. You don't have to teach them, coach them, motivate them or mentor them. In fact they may know much more than you about network marketing, but they cannot effectively inspect themselves....but, you can inspect them.

There are only two fundamentals of the inspection process. First, your new distributor must agree to be inspected once a week. Second, you must have some standard to use in your weekly inspections. Ideally this should be a simple business plan. At a minimum it should include the following: The setting of goals. The establishment of a weekly work schedule for the network marketing business. A monthly budget to spend on growing their business. A simple marketing plan that identifies the various methods they will use to promote their business. This should include their warm market and advertising in one form or another.

Use one blank sheet of paper for each new distributor. Write their name on it and the date and time you both agreed to for your weekly inspections. Write the date of each inspection when it happens. On each inspection call simply ask your new distributor to tell you what he or she has accomplished since your last inspection call. Under the date make brief notes about their progress. At the end of each call ask them if there are any questions you can answer for them. You will be very pleasantly surprised at just how effective this simple process can be.... all of us need to be accountable to someone. Just knowing that you are going to call is enough to keep most serious minded new distributors on track. For the few who show no progress for two inspection calls in a row, unless there are unique circumstances, tell them it is obvious that the timing is not right for them at the moment. Tell them you must move on to work with someone who is dead serious about their business. Tell them that you will be ready to work closely with them when they are ready.

Ask the person who told you about the "How to Retire Quickly" eCourse to also let you look at the rest of our services. We have everything you need to fully promote your business.

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