Sunday, June 8, 2008

STEP 2: THE SOLUTION

There is a better way; it’s called network marketing or direct selling.

It is the only business system that has all the elements of asset creation, exponential income growth, franchising and duplication system, minimal capital, very little to zero risk and very low cost or overhead.

Why does it make sense to start a network marketing business?

Here are the 14 important reasons why network marketing is so compelling for 67 Million people globally:

1. People trust personal recommendations. It is most likely that the movie you watched or the restaurant that you visited or the book you are reading was recommended to you by a friend. A summer blockbuster movie lives or dies by the word of mouth advertising it generates in the 1st week of opening. In fact word of mouth advertising is the most effective means of sharing information. This blends well with the rapid changes in the society as we are no longer in the age of physical distribution but of intellectual distribution. The rate at which 1 person shares with only 2 people, when duplicated will grow exponentially to 10Million in only 30 days! So one can see why word of mouth works so well.


2. Home base business boom is exploding. While many jobs are being moved to cheaper countries or eliminated due to consolidation and cost cutting initiatives, many newer opportunities are being created and they are happening at home. With no commute, no boss, flexible work hours and better work life, network marketing is changing people lives. The need for security and control has led to a rise in home-based businesses. "In the new economy the sheer quantity of compensation is no longer enough...we don't simply want money we want lifestyle." Paul Zane Pilzer, The Next Millionaires, 2006

3. Low investment (~USD500) means low risk. Can you imagine how much investment it would take to start your own business, employment, renovation, inventory, legal fees and transportation costs? And with these capital costs comes the huge risk. Barely 5% of all businesses stay in business after 5 years. Not many can afford to lose their hard earned savings that way.



4. The ability to build internationally and expand into various markets makes network marketing a truly diversified and exciting opportunity. Not only can you create assets locally, you can create assets globally. This creates a larger market size; which also means an opportunity for explosive income earnings.

5. Attractive tax advantages that were only limited to businesses (and the rich) can now be realised by anyone starting their own network marketing business. Such as certain legitimate operating expenses and taxed deferred savings and benefits. This is a huge benefit to most people who are employees who want to have the same tax benefits as normal businesses.

6. Residual or passive income can now be a reality. This means income keeps coming in long after you completed the work that created it. Although 80% of those who join the network marketing business make supplemental income, however, for many, “Network marketing gives people the opportunity to build an income generating asset and acquire great wealth.” by David Bach, Financial Planner and Author of “Start late, Finish Rich”.




7. Coupled with the power of world of mouth advertising; which grows at an explosive exponential rate, income generated from network marketing business does too. This is because in network marketing, distributors are compensated on multiple levels (>3 levels) for sharing and educating customers on ways to improve quality of life; and these customers in turn share and educate their friends and family. That is why; there are some very successful companies that have already paid out commissions of over USD1 Million to close to 600 distributors!

8. Network marketing is open to absolutely everyone who is determined to want a better life for their family and friends. It represents the purest form of equality through free enterprise. There are no glass ceilings or limitation between gender, race or education level. Based on data from the Direct Selling Association, 24% of distributors globally are high school graduates and more than 1/3 have a college degree.




9. Solid ethics and values are the cornerstone of good business. Network marketing operates on relationship built on trust. This long term business requires a high level ethics, integrity and a commitment to helping others become successful and more productive. It is a refreshing departure from typical traditional business of fierce competition and unethical practices. “You strengthen our country and economy not just by striving for your own success, but also offering opportunity to others. You also are a part of a global movement that promotes free enterprise and awards individual initiatives and in a very real way, promotes core values all around the globe.” – Bill Clinton, Former US President.



10. The need for personal development and growth is one of the key benefits people obtain through the network marketing business. The training and education delivered through network marketing teaches a person to be in the B quadrant, where leadership is required most. “Most schools train people for the E or S quadrants, and that is great if those are the quadrants in which you want to spend your life working for someone. Most MBA programs are training students for high-paying jobs in the corporate world as an E, not a B. Where can you find a business that will invest the time in your education, your personal development and building your own business? The answer is most network marketing businesses. I learned how to overcome my self-doubt, shyness and fear of rejection. And I had to learn how to pick myself up and keep going after I failed. These are some of the personal traits a person must develop if they are to be successful in a B-quadrant business, whether it is a network marketing business, a franchise or an entrepreneurial start up.” Robert Kiyosaki, Entrepreneur and author.


11. Expansion of social circles and networking among people is another ancillary benefit that can be most rewarding and valuable. “You are the same today that you are going to be in five years from now except for two things: the people with whom you associate and the books you read.” – Charles Jones. In network marketing, being able to be with, learn from and share with like-minded people who share the same vision and direction in life is comforting, synergistic and effective in achieving results.


12. The beauty of part time is in fact a very powerful proposition to many who are currently working full time and may not have the ability in terms of time and finance to go full time. In network marketing, starting off with 15-20 hours a week alone is sufficient enough to start with building a serious global opportunity. Part time also provides an ideal platform to network from and create relationships with which to expand and grow. Consider this, “I’m currently working full time on my living and working part time on my fortune. And I’m making twice as much part time on my fortune as I am working full time on my living. Would you like to hear my story?” – Jim Rohn, Master Motivator and Mentor to Anthony Robbins. That’s the magic of part time.

13. High stress & health issues in working life. Many professionals and business people are finding it hard to cope with the pressures of work while maintaining a healthy and stress free life. We see more and more examples of young people having symptoms of bad health and aging. Bad health and stress leads to lower performance, more stress and in some cases strains the relationship at home with family members. As work continues to build up with higher quotas, greater cost cutting measures and aggressive competition, network marketing provides a refreshing platform to create a flexible environment to better control one’s life, time and effort, in other words, be more productive and effective, and ultimately create a stress free life.


14. Leverage is a very powerful concept made famous by J. Paul Getty, who created one of the world's greatest fortunes, said "I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts." This very basic concept is the cornerstone of network marketing, because the business system of duplication and multi levelled compensation plan creates an exponential income generating platform that is leverages on efforts of more people (who is creating their franchises) than one person doing it alone.

The above are the 14 compelling reasons why network marketing works. Look at what the industry players are saying:

“An investors dream, the best kept secret of the business world, an industry with steady annual growth, high returns on invested capital and long term prospects for global expansion.” – Fortune Magazine. Aug. 2004


Network Marketing is quoted in Success magazine as the “Most Powerful way to reach the consumer”. We now have companies like Coca Cola, Microsoft, AT&T, IBM, SHARP, TEXAS INSTRUMENTS, Gillette, and Colgate-Palmolive distributing some or all of their products through the Network Marketing channels.




Robert Kiyosaki explains The Perfect Business







After understanding the 14 compelling reasons why network marketing works, you may have some questions or some resistance to the idea of selling or approaching friends. Why not find out more about these questions or resistance (to network marketing that you may have). Personally, I had the same as well. But I soon found that it was based on my personal experience, understanding and openness, with that basis, i found that it wasn't true. I used my own logic and common sense to see it from a business point of view and then learnt how to do the business from successful people. The next section helps answers even more questions you have on common questions.