10 August 2005

Network Marketing 101


I am beginning a series of posts to provide those that are new and/or are considering becoming engaged in Network Marketing. Each Wednesday, I will offer some background information and my experience on topics that I hope will assist the reader.

So, this being Wednesday let's kick this off and walk this road together, and let's see if we can exchange some information that will be of value for all.

Network Marketing - Definition

Many people make an all too common mistake, as I did in the beginning, in believing that Network Marketing is an industry. This is simply not true.

Network Marketing is a method of distribution that is inclusive of a never ending selection of goods and services. Network Marketing involves the movement of products, goods and services from the supplier or manufacturer to the end-user (consumer) through direct representation by independent contractors. These contractors are commonly referred to as Independent Business Owners or IBOs.

These business owners earn money by selling goods and services and by enrolling (sponsoring) other entrepreneurial-minded individuals to join their organization. Typically, commissions and bonuses are earned and paid on a monthly basis relative to the specific details of that company's compensation programs.

There are many misconceptions about Network Marketing that include:

  • Network Marketing is illegal, unethical, and a pyramid or ponzi scheme.
  • Network Marketing is a get-rich-quick scheme.
  • Network Marketing is a way for companies to sell products that no one needs, wants or uses.
  • Network Marketing is a way to sell products at inflated prices and avoid traditional marketplace pricing reality.

There may be some obvious exceptions and abuses, but on the whole, the beliefs listed above are simply not true. There are hundreds, if not thousands, of ethical, legal, and highly reputable companies that utilize Network Marketing as their delivery system for their goods and services.

If you are seriously considering joining a network, tune in next week and we will talk about what to look for in your networking opportunity before you sign on the dotted line and invest your hard-earned money.

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