Network Marketing: Why Do People Achieve Such Radically Different Levels of Financial Success?

One of the questions that people mostly ask in Network Marketing is that why is there such a radical difference in financial success? Why do ‘some’ people make so much money? While some people hardly make any or worse lose money in Network Marketing?

To understand a little better on why this is, and because this concerns ‘financial success’, we have to first understand:

What Network Marketers DON’T Get Paid To Do:

1. Use the Products: We don’t get paid to use the product! We sometimes hear people saying that ‘they get paid to lose weight’; ‘they get paid to travel’ or ‘they get paid to… (whatever you might like to put in here)’. It is just a false marketing technique to make such statements! This is simply not true! No Network Marketing company ever pays their members/ distributors just to use their products.
   
2. Go to Meetings: We do not get paid to go to meetings. Of course, meetings are helpful, they are informative and they can support our team. If your business has a system that does prospecting through meetings, these meetings do help you to develop your business. But, the final line is that you don’t get paid to go to meetings.
   
3. Manage the down-line: Some people recruit a few people and they switch to ‘management mode’. They want to just sit back and just ‘manage’ their ‘organization’. However, well you can manage your down-lines, you DO NOT get paid for that.
   
4. Send Out E-mails: You don’t get paid to send out e-mails.
   
5. Becoming a Product Expert: You don’t get paid to be a product expert. You don’t get paid to know every ingredient in every product, you don’t get paid to know every piece of the compensation plan or the company’s background, management or experience.
   
6. Put in hours: Most important and significant factor in Network Marketing is that you DON’T get paid to put in the hours! Now isn’t that a GOOD thing? If you were to be paid for hours, it would definitely be very boring as hours tend to ‘drag’ and there are only so many hours in a day!

But, when you get paid for RESULTS, everything changes! In Network Marketing we get paid for RESULTS! It is these results that Network Marketers DO get paid for.

What DO Network Marketers get paid for?:

Network Marketers get paid for only ONE thing and that is RESULTS! That result is to PRODUCE SALES VOLUME! Any legitimate Network Marketing company pays its distributors to produce Sales Volume. And Sales Volume in a Network Marketing company is produced by:

1. Creating New Customers: Network Marketing companies pay for distributors who create customers who will buy the product and (hopefully…) buy the product time and time again because they like it so much.
   
2. Finding and Enrolling New Distributors who do the same: They are paid when they enroll new distributors who ALSO create new customers who will buy the product and again (hopefully…) repurchase time and again. This concept is the one that creates ‘income residuality’ that is what we are looking for in Network Marketing.
   
3. Helping distributors in your ‘pay zone’ or ‘network levels’ to do the same: You get paid when you help your distributors in your network to create new customers or to enroll new distributors who create new customers. Basically, to help increase Sales Volume.
   

So we see that whoever that makes the most ‘Sales Volume ‘ makes the most money. That is very clear cut. So you would want to focus in on these activities.

Now we have defined the activities that Network Marketers DO get paid for, we then ask:

Why do Network Marketing Companies NEED to PAY Us?

Yes, WHY do Network Marketing companies need to pay us? Obviously, there are many companies that DO NOT have distributors nor do they have a compensation plan.

The #1 challenge today for any company today is:

1. Getting Peoples’ Attention: Getting peoples’ attention these days is definitely not easy. Sure you can advertise on the TV or Radio. But WHICH channel or station? How many people today STILL pay attention to advertisements? Most people today have already programmed their minds to ‘tune out’ to advertisements on the conventional media. Any organization today will tell you that the most part of their marketing budget goes to ‘ADVERTISING’. And after the high cost of advertising, the result is most of the time DISMALL!
   
2. Influence: Generally, companies that advertise DO NOT have the same INFLUENCE on people (hopefully again…) that you and I have. And, INFLUENCE is a very, very important element which is hardest for companies to get! And influence is what all companies want because:
   
   INFLUENCE leads to EFFECTIVENESS which leads to More RESULTS which leads to FINANCIAL SUCCESS!

So there is actually no secret to why people get such radically different levels of financial Success in Network Marketing. It is simply because they were more EFFECTIVE in the ACTIVITIES which Network Marketing companies DO pay their distributors for which will produce better RESULTS and therefore better FINANCIAL SUCCESS!

Network Marketing: Who's Lying to Who?

In the past many people have made fortunes in network marketing! Usually, only a small number of people at the top made money, they are 'Those with Skills' leaving the majority of distributors - associates failing to achieve any measurable level of success!

Not much has changed over the years, 'until now!' This still is one of the most rewarding home business opportunities you can start today.

Companies today offer products and services that the average person uses on a daily and consistent basis.

We have a much larger selection of products and services today, so no matter where you look you can find something you are passionate about like:
Communication Services, Internet Access, Nutritional Products, Weight Loss Programs, Water Filtration Systems, Financial Programs, Electrical Power, Solar Power.

When you know how you can become very successful!

'The true secret of giving advice is, after you have honestly given it, to be perfectly indifferent whether it is taken or not, and never persist in trying to set people right. '
-Hannah Whitall Smith

Becoming successful requires understanding 'What Is Network Marketing'. Many individuals fail to understand this and attempt to diversify instead of focusing on the tasks that will ensure their success.

Several years ago I received a mini calendar from Rich Dad it listed ten steps on “How To Get Out Of The Rat Race.”

While all ten are important step Nine really struck home, it is an area where we can all improve it is called F.O.C.U.S. - Follow One Course Until Successful.

Once you understand what it is and 'how Network Marketing works' you will place yourself in a much better position to increase your chances of success.

Everyday an untold numbers of individuals are asking the question of "How Do I Get Started In Network Marketing?"

In my opinion it really is far to easy to get started, although I've found a few companies that do it right by setting a few requirements before you can present it to your friends, family and public.

When looking at the many different companies out there today how do you choose a company, and what should you look for in a network marketing company? Of course, these companies should provide products or services that are unique or consumable, this is very important if we want repeat orders from customers.

Today the power, and reach of the internet have made stocking of products obsolete. Your customers are just a click away from ordering directly online. In fact many of them are shopping and doing their research there right now.

Keep in mind that what you may find exciting and are passionate about, your friends and family may not. On the other hand, they maybe very excited about them if they can actually save them money or give them better quality then what they can get from their local stores. Check out my recommended network marketing company.

There are two things you’ll need in order to achieve network marketing success

1.) A desire to Learn.
2.) A willingness to take action.

Training Network Marketers:

Contrary to popular belief, your company and your upline are not lying to you. They are not hiding any marketing method or techniques from you. Really what purpose would that serve, they want to see you succeed more then you probably do yourself.

In most cases those advertising this crap are lying to you!

The majority of us get started in this business and follow every rabbit trail looking for the path to success. We never really looked at is as seriously as we should of!

When you really get right down to it, it is easy, yet you have so many things to learn in order to become successful marketers, so what is the problem?

First, we are all different, each of us has different skill sets that we bring to our business. This is why some people are more successful then others in the same time period..

Getting a solid education should be your highest priority, as an independent marketer it is not anyones responsibility for our ultimate success or failure but our own.

What will it take to generate success?

It will take commitment and determination in time, money (marketing budget) and consistent action from you to build and market your business. This is why the 'right' Network Marketing
Training is not only necessary but vitally important to your future success.

If your serious about making this your life style, to have the ability to call your own shots, then take the time to really learn how to be a true professional!

Your Own Personal Accountability:

Our human nature is to achieve the greatest results with the least amount of energy expended. Think about it, by carrying over our employee mentality into our business, we our setting ourselves up for failure.

When you want to call your own shots, be your own boss, you had better show up for work. There is not going to be someone there standing over you holding you accountable, that's your job now!

Which Tools & When To Put Them Into Place!

In reality there are very few network marketing tools you actually need. The most important tool is you! Step ten of getting out of the rat race is to “Never Stop Learning!”

Everyone gets started with the best intentions. Yet, many of you have never done this before! This is a people business, which means our communications skills have to be developed! These skills are more important then just about anything else you'll ever learn!

Everyone wants to tie the internet & network marketing together with their business, and you should, yet you can fall into the trap of not focusing on the essentials that you'll need to become successful. I've said it for years that are learning curve is not linear but moving along parallel paths.

Laying a proper & solid foundation for your business with the right tools will pay you huge dividends later.

Why Do Network Marketers Fail with Leads?

"You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you."
- Dale Carnegie

Old School or New School, it really doesn't matter eventually your going to have to talk with your prospects or customers. It doesn't matter where you get your leads from a company or self generated, your conversion rate is going to depend on you and you alone.

Common mistakes we've all made:

When prospecting, are initial reaction is to place way too much importance on you company, the online presentations or your companies compensation pay plan. No wonder we are failing, we fail to address the want's and needs of our customers or prospective new business partners. Your prospect simply does not care about that! What is it that they truly care for?

This is what you have to discover, what is it that they truly want? When you begin to understand that a lead is more then just a name and phone number or email address, it is a real person that you'll be talking to!

Today we have advertisers selling us courses on how to "Create an endless Flow of Free Network Marketing Leads." If this really worked why are they paying for advertising in the first place?

Generating your own leads still will not guarantee your success, you still must establish credibility and trust with your prospects and customers in order to become successful!

What is Important to Remember:

This business is not about systems, video's, email campaigns these are just tools and processes. What it really is about developing long lasting personal relationships with both your customer base and downline members.

Even if it takes you several years to learn how to effectively communicate and connect with people, once you do, your set for life no matter what you do! With today's economic conditions, network marketing is the best work at home business you could ever start!

Are Network Marketing and Multi-Level Marketing the Same Thing?

As companies all over the world look for ways to market their products to consumers as cheaply as possible, network and multi-level marketing are fast becoming the buzzwords of the industry.

In many cases, these two words are being used interchangeably. In an attempt to avoid the rather tarnished reputation it has had bestowed on it, many multi-level marketers are in fact now calling themselves network marketers.

Originally, however, these two titles had very different meanings. Before you decide which business opportunity you'd like to pursue, it's important that you understand the differences and the similarities.

Although multi-level marketing is often a used in network marketing, it is actually a completely different concept. When most people mention the term multi-level marketing, the company that immediately comes to mind is Amway.

Multi-level marketers make their money by introducing others into their programs as distributors. They are then paid a commission on the revenue that the person they introduced brings in. This continues as more and more people are added to the downline.

Successful multi-level marketers are making money off of other people's work. The idea is that as you continue to recruit new people into the organization, you move yourself up from a worker bee to management. Rather than actually selling any product, you're responsible for additional recruiting, training and motivation for your team as it grows.

In many multi-level marketing programs, commissions are paid way down the line so the more people you and your team bring on, the better. Network marketing on the other hand, actually has a much wider scope. As mentioned above, it can include multi-level marketing but also has many other facets. Network marketing is quite simply using your relationships to sell a product or service.

Most of us do a little network marketing every day. The difference is that we don't really know that's what we're doing and we're not actually getting paid for it. Let's say you saw a great movie and recommended it to all your friends, you are doing network marketing for the theatre and the Film Company that produced the movie.

The same goes for a favorite restaurant; article of clothing, favorite album or a good book you just read. Herein lies the difference between network marketing and multi-level marketing. Network marketing does not have to be multi-level nor does it have to include building a downline.

The most successful network marketers today are simply using their relationships to encourage others to purchase specific products. The most prevalent network marketing is happening on the Internet.

As companies like Amazon.com introduce affiliate programs that allow network marketers to display and sell their products on their websites, the number of sites being designed simply for this purpose continue to grow by the thousands every day. Originally offered as a way for webmasters to generate additional revenue for their sites, it's actually become the reason for the site.

The difference between this type of network marketing and the kind you're doing when you send someone to the bakery you just visited is that in this case, you're getting paid. Some network marketers, as a matter of fact, are getting paid extremely well.

6 Reasons Why People Fail At Network Marketing

There are many people who are looking into starting an Internet Network Marketing business and are being approached with various opportunities. They are being promised that they would make thousands of dollars overnight. So, they proceed to sign up with the company with high hopes of reaching to the top of the compensation plan.They did everything that their Upline told them to do in order to achieve success in their business. But after a few weeks, they realized that they were facing rejections, spending more money in their business than they were receiving, and traveling from hotel to hotel to meetings with no true results. They are now frustrated and wondering why they have not made a dime and quit the business.

It is said that 97% of network marketers fail because of these 6 reasons:

1. Unrealistic Expectations: Often time when people get involve in a network marketing business they have a misconception of becoming rich overnight. Now, when this does not happened they then decide that this is not for them or wonder why they are not making money. Most people join an MLM because it is portrayed to be a get rich quick business but fail to understand that to be successful that it will take “Time” and “Education”. Most people are not willing to be patient and educate themselves.

Uplines do not explain to new recruits the difficulties that they will face when trying to duplicate what they do to get to the top. Another thing that your upline will not disclose, is how much they really had to put up to get to get to the top. This is why the average person will not achieve MLM success and will only recruit 2.7% people and than quit.

2. Lack of Training & Support: The old school training is to call friends and family and spam people with the replicated business website does not work. As newbies in the industry we believe that this is training and this is what will get them to the top. Let it be known that this is not training. Remember, promoting your company’s replicated website will only attract the unqualified leads. People join you and not your business opportunity. This means people will only get involve with people who they trust, who have provided some form of value to improve their Journey to Success.

3. Confusing Strategy: Network marketing is a business of duplication and replication. In order to be successful at network marketing you will need to have a duplicable strategy. If your downline cannot duplicate what you do, then your business will become a one person business with no meaningful results. You will find yourself managing your downline, you do the presentations, you contact their list in addition to yours. This is not duplicable.

4. Sacrifice: Just like anything that we do in life, we must make sacrifices. If you want to be successful in this industry there will have to be sacrifices. Give up on old ways of doing things, step outside of your comfort zone, and try new things to improve yourself. Now, making these changes or sacrifices may cause you to loose a few hours of sleep, it may mean that you cannot party on Friday nights because you have training. But remember, these sacrifices will turn into rewards in the end. When majority of network marketers get started they figure that they can become successful with their old ways. This industry requires a 150% of You and that is when you will see MLM success.

5. Lack of Action: Now, being consistent with the real money making matter where you produce money on autopilot or while you are sleeping. When you are constantly on the run attending these regional events, weekly money making meetings, conference calls, please ask your self, are you really maximizing on time. There is purpose these meeting serve and is to break your bank account. These strategies are only setup to keep your momentum going. Let me give you an insider secret, having a website that you use to market yourself and to attract your “targets” and then converting them to qualified prospects is the way to make money while your asleep.

6. Daily To do List: To create Wealth! You must have a list (this is your work capital). This is your business and if you do not operate it like a business than you will fail in this industry. You need to have a daily list, and as you complete each task you check it off the list. For example, if your list is to complete an article, do a video, then make it your goal to complete your article and the video on that day. Do not stop until it is completed. If you practice pushing things off for the next day, then you are delaying your success each day.