In 1860 traveling salesmen were known as canvassers, peddlers, hawkers and drummers. Some of these former peddlers created trained sales organizations. Had it not been for their influence, many of the corporate names we’re all familiar with today might never have been. Names like Heinz, Avon, Fuller Brush, Nutrilite, Shaklee, Stanley Home Products, Mary Kay, Tupperware and Amway. These companies paid commissions to distributors for the products they sold and were given bonuses on sales volume. If the distributor was able to recruit others into direct sales of the company’s products the distributor’s sales volume increased and so did his sales volume bonus.
Direct sales or multi-level marketing required these sales men to go door to door and demonstrate the products. Stanley Home Products sold household cleaners, broom, mops, etc. Stanley Home Products decide to sell to organizations to increase sales. This was the beginning of home presentation parties. New distributors were recruited and had to be taught how to use and demonstrate the products they were selling. Distributors bought their products at discount and sold them to their customers at full price. They also sold their products to new distributors with a smaller mark-up so the new distributor could make money. The regional distributor would also share in the sale volume bonuses with his distributors.
In the 1980’s multi level marketing shifted gears with a business model of I’ll pay for my products for personal use and you buy your products for personal use from the same supplier and this way we can create sales volume and build individual distributorship business. Still direct sales were and still are a major component of any multi-level marketing company. The distributors were still required to hold their own inventory, deliver their products and collect money. In order to grow their company the distributor would have to sponsor new distributors. This was hard because you would start trying to sponsor family and friends and normally be soundly rejected. Except for that one prospect who believed in the product, or system, the distributor would be turned away. It would take some tough people to persevere in the multi-level marketing business. The multi-level marketing system unfairly gained unfortunate notoriety because of people trying to market to family and friends.
Yeah, okay but it is still a pyramid. Yes it is a pyramid, inverted. In any traditional business the business owner, CEO, President is always at the top and everyone below him or her works for him or her. All the employees earn a paycheck. All net profits go to the one on top of the pyramid. This is leveraging. The one at the top leverages your time and effort so they can extract the profits from the company and you take home a defined amount of money for your efforts no matter how loyal and hard you work. There is a 99.999 percent chance you will never become the business owner, CEO, or President of the company or corporation.
In network marketing and I prefer to call it network marketing instead of multi-level marketing because network marketing is a network of like minded individuals who are entrepreneurs that are equals in every way except that some have built stronger businesses than others. Multi-level marketing suggest there are people above you and hold domain over you. This is not true because an individual through their own efforts, desire and talents could earn and produce a sizable business that is greater than their sponsor.
In the picture on the left, the darker shade of the pyramid represent the traditional business model. The employees are on the second level and below. Creating the base are the employees who generally put in the most effort and are paid the least. All employees have almost a 100 percent chance of never making it to the top of the pyramid. The inverted or lighter shade of the pyramid represents network marketing. The sponsor at the bottom of the pyramid networks or sponsors other people to build their own business always teaching, coaching and pushing up their new business owners. By networking the base is on the top as the network of business owners grow. Every new business builder has the choice how large their business will be and that may be larger than their original sponsor.
How has network marketing become easy? Network marketing is not easy it is simple but not easy. In any business endeavor it takes time and energy. It takes short term goals, long term goals and a lot of dreaming. It takes failures and disappointment. It takes reeducating yourself from an employee mentality to a business owner mentality. You can no longer work behind the scenes. This is your movie and you are the star, director and producer. This is your baby and you have to nurture and guide the business to what you want it to be.
Why is the network marketing simple? Well the missing ingredient has finally made it presence known – the internet. The internet is still trying to find itself. The internet is still in its infancy but it has found a good friend and that is network marketing. In the past you would burn up fuel, money and time going to house to far away house as you built your down line. Your appointments would not show up after you drove a hundred miles to show them your business. With the internet you are as close to anyone in the world as soon as you sit down with your computer or laptop. How about that? Top that off with the products that customers and business builders buy are directly shipped to their house and they pay for their products on line under your name. Now prospects find your advertisement on line, connect with your website, qualify themselves, and submit their information to you asking you to call them! I am in the Freedom Project and this is my business. I don’t have to make speeches in someone’s house, deliver products to them and collect money from them. You cannot find a better business for such a small monetary investment. This is why network marketing particularly the Freedom Project is simple.
Network marketing is not easy. You still have to advertise, you have to wait for business to come to you, you have to learn new internet advertising skills, and you have to change your employee mentality to a business owner mentality. You have to be coachable and you have to want to coach others to be successful. You have to want and desire change to be successful.
As the automobile and airplane was a major change in transportation. The internet is a major change in the way people will shop for goods, work, socialize and educate themselves. The internet and network marketing is the future as business continues to grow on the internet and soon you will see more stores in strip malls closing because they will not be able to compete in the new world of business. So where do you want to be? In the fore front of the new business model or fall behind and compete for the ever increasing low paid service job? Come build a team with me and together we will build a very nice income and lifestyle. http://www.miniofficeoutlets.com/gjr
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