Friday, August 28, 2009

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!

1 comment:

  1. Simply because they have Millionare's Mind.

    ReplyDelete