New face of Sales Management in India

With the changing scenario of business around the globe, organizations have quickly and effectively synergies with the dynamics of the modern business. Their orientation, their focus, their processes, and above all, their ways of marketing & sales management- everything has evolved.

The days are gone when people had to depend upon a handful of sources to get access to branded offerings, products and services. Internet, E Commerce, Direct Selling, Mail Order System… and there's an in exhaustive list of innovative ways and media through which organizations sell to their customers.

http://debomita.nightmarez.hop.clickbank.net/

One cannot ignore the above-mentioned modes of marketing and selling, particularly in an environment, which is today driven by anything but the motto of "Customer Service, Satisfaction and Ease". To add to this, Internet & Information Technology has given marketers tools like never before- the tools of accessibility and wider reach. In fact marketers around the world have started emphasizing upon the significance of these new modern age tools that could be the very beginning of a new evolution in the field of marketing. And yes, to mention in the same context, I'd like to share the following lines of a famous leader-"Today's illiterate won't be the persons who aren't educated, but instead they'll be the ones who aren't adopting themselves to changes".

Getting back to the topic, I must talk of Network Marketing [also known as Direct Selling/ Multi Level Marketing (MLM) / Private Franchisee / Affiliate Marketing ]. Being a part of the most modern methods of making sales, it has already made its presence felt in India backed with established credentials of itself as an industry spread far and wide across most parts of the world and having annual global business volumes exceeding US $ 100 billion and enormous potentials to grow. A non-conventional way in channel of sales & distribution, direct selling or network marketing is all about going directly to the consumer, and most importantly- through a customer.

http://debomita.moneymagfy.hop.clickbank.net/
Definition & Explanation
Network or Multi Level Marketing may be defined as a distribution channel/ sales method wherein the manufacturer directly sells to the customer at a preferred rate and also gives the customer rights of selling the same product(s) for certain compensation/ incentive.
Thus, firms involved in selling through network marketing have a well developed system of functioning based on the concept of Network Marketing. According to the concept, the company does not employ full time salaried employees to sell and market its product offerings. Instead it goes the direct way to consumers by approaching them first to become customers of the company by purchasing products of the company at preferred rates, and then offering the same customers to re-
purchase those products at special preferred rates for future purchases. This way the company ensures that it has a system strong enough to attract people towards its products and offerings coupled with the advantages of lifetime re-purchase discounts. Now, besides the discount facility, the company also offers the customers to help the company market its offerings. The customers acting as independent agents/ distributors/ network marketers/ independent consultants on behalf of the company do this (very similarly like the life insurance companies have independent marketing agents to sell their insurance policies). It is worthwhile to note that the formalities for registration of the customers as agents of the company incurs no agency or distributorship charges except a nominal fee being charged by the company towards one time registration of the customer and his enrolment as a network marketer/ network customer.

http://debomita.trwatson46.hop.clickbank.net/

How Does the Model Work?
As per the model, the firm motivates the customers of the company to sell its products by way of Network Marketing (direct selling). This happens when the customer introduces other people to the system of MLM and sells to them his firm's products. Now, after purchasing, theses new customers will automatically have agency rights for marketing (as explained earlier) the same products to other people, thereby increasing sales and recruiting more marketers (consultants). Hence this system of network marketing boosts sales and also brings in new and more marketers by way of existing customers working on behalf of the company and marketing its offerings + the great business opportunity available with the customer ship.
Advantages of Network Marketing
The 45 per cent or more of the margin or markup, which was charged by the middlemen, is now given to the consumers. The consumer gets the product directly from the manufacturing firm, hence the material is always genuine.
The products will be of superior quality at affordable pries and in appropriate packings. These products will not be available at retail outlets, hence there is exclusivity of selling rights.
A detailed computerized monthly statement of accounts, along with the payment is sent to the consumer. This statement also gives the names, addresses and phone nos. of all the consumers in your group.
The beneficiary / consumer gets a chance to build own independent business without any imajor investment or liability.

http://debomita.baronmal.hop.clickbank.net/
The Business opportunity aspect of MLM- earnings potential
Multilevel marketing allows sellers to build a business through their own sales efforts and by inviting others to become sellers. Remuneration is based on a seller's personal sales AND on the combined sales of those people they have sponsored, trained and motivated.

Every human being on this earth has limitations, the biggest being time limitation. Nobody can afford more than twenty four hours of work a day (assuming that a person works for full of a day), since god has given us only twenty four. Thus it clearly implies that there are limitations for people to work, and hence for them to earn. This is called Linear Income or limited income.

Keeping the above factor in mind, it is but obvious that nobody can have unlimited earning or better and more practically, say exponential earning. It must be kept in mind that it is through only exponential earning that industrialists have been able to build wealth and make big industrial empires. This can be understood from the simple explanation – An industrialist has a factory, an office, etc where he employs people in large numbers to work for him and in turn pays them salaries and he himself earns huge profits and turnovers from their work. This becomes possible by the multiplication of time and work, i.e. the time put in by thousands and hundreds of employees is multiplied by virtue of so many employees working for say eight hours each, thus time worked totaling to eights of thousands of hours a day, and that too in the industrialist's favour. The best part of the whole story is that the people working as such are individually working only for eight hours a day, but collectively for thousands of hours. This is called time duplication and it forms the basis of what is called Leverage Income or Exponential Income.
http://debomita.steni.hop.clickbank.net/

The above illustration is directed towards the concept that network marketing is also based upon the system of leverage income and time duplication, and thus a network marketer can duplicate time and earn exponentially using the team of large no. of networkers with him. And, this is not true only for the top level consultants in the network, but for every consultant at each level of the network, since at every level, there's a network below it.

The major Network Marketing Companies in India

Amway India
Oriflame India
Direct Educational Technologies
Tupperware India
Hindustan Lever Network
Avon Beauty
Herbal Life
PS Press Service
AMC Cookware
Medicare
SFI Affiliate
Sunrider India

Statistics
Data state that the direct selling industry has grown over the last two decades by leaps and bounds. It has registered a growth of almost three times, taking sales volumes in 1988 from US$ 33.32b to US$ 100b (apprx.) as of now, which is clearly demonstrative of the exponential growth potential of the industry.
Also with the given potential of the industry, there are immense direct and indirect employment & business opportunities to come up and benefit millions of people worldwide.

In India, the direct selling industry is estimated to be around worth of Rs.12,000 crores. With the entry of Grand father of Direct Selling Company in the Globe, Amway India Enterprise (a company under Alticor Group of Companies, USA-www.alticor.com) and the like, the seriousness in the industry is getting more & more. Many companies now have MLM as an important sales tool option on their charts.
Present Scenario
The industry is looking forward towards the government of India and industry to come up with a proper legislation in form of a Direct Selling Act in the country, so as to properly organize and regularize business in this sector. Also such legislation would boost healthy competition and eliminate incompetent & fraudulent players and their pirated products to promote level playing field in the industry.

Be a Leader

www.smartbusinessprofits.net

Three Success Pillars

The Three Pillars of Success in Direct selling / Network Marketing / Affiliate marketing are:
1) Residual Income
2) Leverage (of Time and Money)
3) Duplicability or Geometric Growth
Network Marketing, 'MLM', Direct sellling and Multi Level Marketing are all terms that refer to the same type of business model. While many close-minded people outside the industry (and others who've tried it and failed), have biased or negative wrong impressions, and despite the fact that it is used and abused by many crooks and con-artists, this business model has exceptional performance potential.
There are bad apples in every bunch, and this industry has more than it's share. But it can produce outstanding results if you know how to find the right company. And to maximize your potential, there are a few simple concepts whose understanding is critical to your success.
Unlike franchises or conventional businesses, Network Marketing, MLM, and Multilevel Marketing are the only business models that take advantage of all three of the important, yet misunderstood principles of:
Passive Residual Income - Leverage - and Geometric Growth.
And the combination of all three of these elements is what gives the Network Marketing business model it's synergy and exceptional performance potential. In fact one outstanding company I'm aware of has actually built designed synergy into their business model.
Whether it's a franchise or conventional business, both require major investments of time and money, and special skills if you hope to be really successful. Even the relatively small percentage who achieve true success usually take years just to break even.
On the other hand, with the advent and popularity of the Internet and the rampant quest to "Get Rich Quick for Doing Nothing", many people have gotten all excited about affiliate, associate, referral, or co-op programs as they are sometimes called. But very few of the thousands of these being promoted have any real chance of making any significant money for the vast majority of people who get involved.
A perfect example is an email I recently received from one of these programs who claim to be 'the best'. They bragged that they were paying "over $400,000 in commissions each month!" and have "now grown to over 650,000 affiliates!"
Those are interesting statistics some might get excited about. Let's see... if they're true... They're paying an 'average' of $.61 per affiliate... That's sixty one cents ! Wow! How would you like to retire on that?!
They claim later in their letter that some are making $10,000 a month. If that's true, then to come up with an 'average' of sixty one cents each, the vast majority have to be making absolutely nothing.
There is a much better way to achieve your dreams!
But you have to:
1) Take the time to understand these three critical principles -
PASSIVE RESIDUAL INCOME - LEVERAGE - GEOMETRIC GROWTH
Then...
2) LEARN TO ASK THREE SIMPLE QUESTIONS! - so you can teach what you know to others.
If you're even moderately successful in networking, you undoubtedly understand and believe in the three principles above. If you haven't yet had the success you desire, you may not completely understand these principles, or how to get them across to others. Highly successful networkers have learned how to ask the right questions, then help others understand and take advantage of these important and powerful concepts.
Unfortunately these principles are not well understood by the majority of the population. And that's just one reason why so many fail at network marketing. There are lots of other reasons, and it would take a book to cover them all. But this is one of the more common ones. Because if you don't understand or believe in these principles, it's impossible to help others fully comprehend and appreciate them.
Let's face it, our educational system trains (or brainwashes) us to be conformists, to do what others tell us to do, and to prepare for a JOB, not an entrepreneurial business opportunity. So those of us who crave our independence and freedom, head in that direction in spite of our education, rarely because of it.
And even though many people claim they'd like to be their own boss or own their own business, only a small percentage of the population possess the necessary desire for success to risk stepping out of their 'comfort zones' to pursue their dreams.
Most people are afraid of failure, and for them it may be better and easier to live life in a rut. Others are satisfied or even happy with their jobs, incomes, or lifestyles, and that's great for them. But if you're one of millions who yearn for more freedom and control in your life, you must understand the following three principles to achieve True Success in Network Marketing.
1) RESIDUAL INCOME:
Residual income is recurring income that continues to come to you long after the work you've done to produce it has ended. There are lots of ways to produce residual income. But many people don't understand it. Others have never thought about or been exposed to it. And unfortunately, many ways of producing it are out of reach for 'average' people.
Successful authors, actors, musicians, and insurance agents are some of the more familiar avocations that produce residual income. Probably the simplest and best example of passive residual income is interest earned on money in the bank or other investments. It gets paid or credited to you without you having to invest any more time to produce it.

Using the "virtual millionaire" concept I will explain below, if you had a million dollars in the bank earning 6% interest, that would produce about $60,000 of annual income (before taxes). So if you have any source of passive residual income producing $60,000 or more a year, you are a "virtual millionaire".
And with the right business, that can be much easier to accomplish than trying to overcome all the roadblocks to accumulating a million dollars in the bank. Instead of Uncle Sam fighting you all the way (taxing all your income), he actually becomes an active partner by giving you all kinds of tax breaks and incentives to succeed.
There are only two sources of money:
(a) PEOPLE AT WORK, and (b) MONEY AT WORK...
THAT'S IT!
The simple goal of Retirement & Financial Planning is to make sure you accumulate enough money (or income producing assets), so that when you decide or are forced to retire, it will produce enough PASSIVE RESIDUAL INCOME for you to enjoy the lifestyle you choose for as long as you live.
The same concept holds true in Network Marketing. But Leverage, and Duplication or Geometric Progression, can help you build it much faster in the RIGHT Network Marketing program.
One of the first questions I often asks prospects is:
"If you had the choice of doing a job and earning $500 once, or getting paid $100/mo for the rest of your life, which would you choose?"
You'd be surprised at how many answer $500! These people either, i) are not good prospects or, ii) need some education. That question is one quick and simple way to pre-qualify people. Those who don't understand that principle may never achieve their true potential.
Obviously $100/mo. will surpass a 'one time' $500 relatively quickly. And if it lasts for a few years, or better yet - the rest of your life - it will really be a blessing. Producing enough passive residual income can make you a VIRTUAL MILLIONAIRE in a relatively short time, compared to working for someone else and scrimping and saving for 30 - 40 years.
A VIRTUAL MILLIONAIRE is someone who has enough money coming in every month, WHETHER THEY WORK OR NOT, to support the lifestyle THEY CHOOSE, for as long as they live. It's also nice to have something SIGNIFICANT to pass on to your heirs or favorite charity.
But like everything else in life, even residual income has a downside. The biggest one is, just like compound interest or geometric progression, it normally takes a little time for the magic to start working. The POWER and BEAUTY of residual income is on the back-end, not the front!

Many people have a hard time understanding this FACT and mistakenly chase false promises of quick or easy money. That's why there will always be crooks and con artists in the world pitching "get rich quick and easy". Successful people ignore them. Naive or greedy people usually get burned.
Residual income is NOT about "get rich quick", even though with the right opportunity it's possible to produce a small fortune in a relatively short time.
If you're especially talented or have the time and money to invest, you may have some success in less than a year. And many people do. But without a major investment of time or money it takes most 'typical' people a year or two of part time work to generate a decent income, and another year or two to really hit the big time. But achieving success with 3 - 5 years of part-time effort beats the widely accepted 'standard' plan of slaving 20 - 40 years working for someone else to make them wealthy!
Most people who fail at network marketing either choose the wrong company or just give up too soon and quit because they expect INSTANT results. But because the real beauty of residual income is on the back end, not the front, once you build it you have the financial security and time freedom to do anything you want the rest of your life!
The RIGHT network marketing opportunity allows anyone, with no prior experience, special skills, or large capital outlay, to build long term, passive residual income. If you don't know how to choose the right opportunity, I can help. ( Read "Rich Dad- Poor Dad “ by Robert T. Kiyosaki - http://www.richdad.com )
A critical component to building long-term residual income is offering high quality, high demand, value-priced, 'consumable' products or services that people use and re-order month after month.
Because of this simple fact, the top industry in Network Marketing by any measurable standard is Nutritional Supplements and Personal Care products. Some people refuse to consider this industry because they don't take supplements themselves or don't understand the 'Big Picture' and successful business model of this industry.
Do you think Burger King and McDonald franchise owners invest hundreds of thousands of dollars because they like to eat fast food burgers? Not hardly! They understand human nature and trends in society. We're a convenience oriented society, and a large part of the population would rather eat low cost convenience food, even if we know it's not good for us.
But there's also a booming trend toward improving your health, improving your life, and developing personal and time freedom. Many 'opportunity seekers' completely miss or ignore these trends in society. If your business is in front of multiple long-term trends, you dramatically increase your chances for success.
I'm not saying it's not important to believe in and use your own products, because it is! But for true success you have to recognize major trends in society, and your products or opportunity must meet ALL the highlighted criteria above - high quality, high demand, value-priced, and 'consumable'. (And in this case, 'consumable' does not necessarily mean just 'edible'. It means used and/or re-ordered on a regular basis.)


And with the right business the rewards can be much more than just financial! It's hard to put a price tag on the goose bumps you feel or tears that come to your eyes sometimes when someone thanks you profusely for introducing them to a product that has had a major impact on their health, their life, or their financial situation.
Unfortunately some people never grasp the importance of this additional benefit. Most good people want to feel they are doing something worthwhile with their life. And it's not just about making money, even though many narrow-minded or greedy people will try to convince you it is. It's also about helping others. And doing both can make the right business doubly rewarding!
But your business also has to have profit potential. Some 'price-based' products or services have lots of competition and limited profit potential. If you choose a business like that you have to do a lot more volume and it's hard to build loyalty, which is an important element in producing long-term passive residual income.
2) LEVERAGE:
Every successful person or business (in or out of Network Marketing) takes advantage of leverage. There's only 24 hours in a day! And no matter how talented you are or how much you get paid per hour, if you don't take advantage of leverage you're limited by the number of hours in a day. By learning to leverage your time, you can also benefit from a percentage of other people's efforts, and dramatically increase your income and freedom.
If you're reading this article on the Internet or in a magazine, that's one simple example of leverage. I don't have to be physically present to teach you something. I may be sleeping, or vacationing while you are learning or sharing this information.
Unfortunately in most traditional businesses, the only ones who benefit from leverage are the owners or stockholders. The loyal, hard-working employees do most of the work. The unique and wonderful thing about the Network Marketing business model, is that everyone has the same opportunity to become the 'owner' of their own business - with a fraction of the investment of time and money of a traditional business or franchise.
And instead of worrying about training people to become your competitors, in network marketing the people at the top have a vested interest in helping others on their team succeed.
Again, the question I ask prospects here is:
"If you had the choice to receive 100% of one person's efforts, or 5% of 100 peoples', which would you choose?"
And again, if they answer 100%, either: (a) they're not a good prospect or, (b) they need a remedial math class or additional education.
Many talented people would rather just depend on themselves, and have difficulty grasping the importance of this concept.
Obviously 100% of one is always only one. But 5% of 100 is five. That's a 500% increase and is significant! And with synergy, sometimes it can be even more!
Not only will the total result with leverage almost always be a lot more, but your income is not dependent on only one person. If it is, and that person gets sick or injured, disabled, dies, quits working, or decides to go on a long vacation, your income could stop!
But if your income is produced by the activities of many, it is much more dependable. Even if something unexpected or negative happens to one or more of those people, it only has a minor effect on the total production. That's what allows people who understand and take advantage of this to live the lifestyle they choose or get paid while on extended vacations.
It's great to get paid while you're on vacation or doing other things you love! That's one of the many advantages of leveraging your time, and is just one of many reasons so many high income professionals from all walks of life are flocking to get involved in Network Marketing.
Many professionals who make great incomes, get frustrated at the 'bottom line' after putting in long hours just to cover overhead and miscellaneous expenses. No matter how much you earn per hour, if you don't learn to leverage your time, your earnings will always be limited by the number of hours you can work in a day. And nobody wants to work 24 hours! But even with a small network marketing organization, you can produce equivalent results to working 24 hours a day, with a fraction of the individual effort.
Learning to leverage your time (and money) is an important step toward gaining Financial Independence and Time freedom.
3) GEOMETRIC GROWTH - DUPLICATION - POWER OF ONE:
The best illustration I've seen of geometric growth is the penny-a-day example. It's also frequently used to illustrate the benefits of tax free compound interest.
If you start with one penny, and double it every day 30 days, how much will you have at the end of 30 days?
If you haven't heard this before or don't remember, go ahead and take a guess. Day two you'd have 2 cents; day three you'd have 4 cents, then 8, 16, and so on. How much at the end of 30 days?
I've never had anyone who hadn't heard this before come close. So don't feel bad if you don't, and I promise not to laugh. Ready? Did you pick a number?
Would you believe over FIVE MILLION DOLLARS?! ($5,368,708 to be exact!) That's right! Most people don't believe it until they punch it out on a calculator. And even then it's sometimes hard to fathom. But it's true. Isn't that amazing?
That's a simple illustration of how networking can work. If I can teach you, I've doubled myself. If we each teach someone else, we've doubled again. And as this goes on and on it can produce amazing results in a relatively short period of time, just like the penny example.
The easier your program is to do and the lower the cost to get involved, the more people you can appeal to and the more potential for geometric progression to work. Programs that are too complicated or expensive for 'average' people to do will always hinder your growth.

Great salespeople can succeed at almost anything they apply themselves to. But not many people have the talents, skills, or desire to be great salespeople. IT'S NOT DUPLICATABLE!
The Network Marking business model is about a lot of average people doing a little, not a few talented people doing a lot.
While lower cost of entry can be an advantage, many programs that are 'free', don't offer any real potential for significant income, and often attract people who aren't willing to work to build their business. So REALISTIC INCOME PRODUCING POWER is an important area to consider.
Joining a 'downline club' or any other program that promises any variation of - "we'll do everything for you" - will never produce significant LONG TERM passive residual income, because the majority of people who join are looking for a free ride or are too lazy to build anything significant. None of these programs have ever worked long term and none ever will. It's a simple fact of life successful networkers accept early on.
The penny a day example is a great model for illustration, but in 'real life' it never works exactly like that. Some people never recruit anyone, and others find 10 - 20 - 30 or more. It helps to understand human nature, and an IMPORTANT, but little known reality called REVERSE GEOMETRIC GROWTH.
Despite the fact it rarely works in reality like it's illustrated on paper, the principle of GEOMETRIC GROWTH is still one of the THREE PILLARS TO SUCCESS with the RIGHT Network Marketing Business Opportunity. With the RIGHT business and these POWERFUL PRINCIPLES, even average people who are willing to work and to learn can achieve their dreams. And above average people may exceed their greatest expectations.
If you can UNDERSTAND and BELIEVE IN those three principles, and find the RIGHT company, you will succeed in Network Marketing. If you're willing to TEACH these THREE principles to a few others, the results might just amaze you!
The beauty of Network Marketing is that you can get started with very little investment of time or money, and no major changes in your present lifestyle. Eventually, passive residual income can give you the FREEDOM to live the lifestyle YOU CHOOSE, and pursue and enjoy your dreams - whatever they are!
I read somewhere that, "according to IRS statistics, in 1984 20% of NEW millionaires came from Network Marketing. By 1994 it was 50%. It's predicted that by 2004, 70 - 80% of NEW millionaires will come from the booming Network Marketing industry." I don't really believe those statistics. But no matter what the percentages are, certainly many new millionaires are created every year in the Network Marketing industry.
Many positive CHANGES have been made in the industry, and several simultaneous MEGA-TRENDS help make this the best time ever to get involved! The time to start is NOW! But it's important to pick the RIGHT company and industry!
IF YOU UNDERSTAND:
1) The IMPORTANCE of 'CONSUMABLE PRODUCTS' ... 2) The REASONS for the popularity of the Nutritional Supplement Industry... and 3) The importance of high quality, high demand, value-priced, products.
YOU'RE MUCH MORE LIKELY TO HAVE ABOVE AVERAGE SUCCESS!
Successful Network Marketing offers many benefits: Passive Residual Income - No Boss - No Commute - Income Tax Reduction - More TIME for kids, family, hobbies, or whatever is important to you - Above Average Income - and much more.
If I had to sum it up in one word it would be FREEDOM! - Freedom to work as much or as little as you want, to come and go as you please, and to spend more time doing whatever is important to you. Once you experience this FREEDOM, you'll wonder how you ever lived any other way!
There's no free lunch though. It's like riding a bike. If I asked, "Would you rather ride a bike uphill or downhill?" most normal people would say, "down." But in order to coast down the hill, you first have to ride your bike up. Once you start, you may find yourself enjoying the exercise and additional benefits of improving your strength, endurance, and health. The same is true in this business. You have to 'climb the hill' (learn the business) before you can 'coast'. Many people learn to enjoy the process of becoming better people, helping others, and improving much more than just the financial part of their lives.
There are many routes to the top of the hill. Some people choose to take a gradual incline and may take a little longer to get there. Others prefer the direct route, and choose to pedal directly up the steepest side. The beauty is, the choice is yours. We can show you the routes, and you decide what's best for you. We'll be there to encourage and guide you every inch of the way.
Best wishes for True Success and a HAPPY, HEALTHY, PRODUCTIVE LIFE!
"TRUE SUCCESS" IN THIS WORLD IS NOT DETERMINED BY HOW MUCH MONEY YOU MAKE, OR BY HOW MANY POSSESSIONS YOU HAVE, BUT BY THE POSITIVE IMPACT YOU HAVE ON OTHER PEOPLE AS YOU WORK TOWARD YOUR GOALS AND DREAMS IN LIFE !
If I can be of any help, feel free to visit directly my web page www.smartbusinessprofits.net .

Go beyond your limit

Debasish Dutta

Why Traditional Corporates are against Direct selling / Networking Industry

Traditional major corporations like Wal-Mart, Proctor and Gamble, and Johnson and Johnson are getting worried. They are finding that the hundreds of millions of dollars they are spending on advertising each year are not generating the returns that they once did.
The introduction of the DVR (which allows people to skip commercials) has dramatically reduced the impact of their advertising dollars. As people turn to non-traditional information channels like the internet, corporations are scrambling to catch up. Consumers, more informed than ever, are calling out the corporations for anti-consumer practices such as irresponsible products, price gouging, and monopolizing the marketplace.
Recently, some corporations have felt such pressure they have resorted to hiring Hollywood agents to connect them with stars and movies. This kind of desperation illustrates the panic companies are feeling while trying to keep up in the digital age
"Word-of-Mouth"
The power of word-of-mouth has always been the best form of advertising, but recently it has begun to overtake traditional advertising. Skeptical of the intentions of the major corporations, people are increasingly more likely to trust their friends and family for product recommendations than listen to traditional media.
Highly respected companies such as AT&T, Direct TV, Gap, Amazon.com, Google, Apple Computer, Macy's, Nordstrom, Travelocity, and tons more have started to recognize this trend and implemented a plan to reward their own consumers for recommending their products. One example is affiliate Marketing / Private franchisee programs.
How many times have you recommended a great restaurant or movie to someone? How many times have you told someone where you bought a great pair of jeans? Think about how much advertising you have done for other companies. Have they ever rewarded you for the referral? Besides a token gift like a coupon, have you ever been fairly compensated?
As more and more companies are realizing the power of word-of-mouth advertising, it's clear that the future of marketing will be centered around networking and rewarding the consumer. Is this a new concept?
The network marketing / direct selling industry has been operating on this idea for over last fifty years. The principle behind the industry is to give the average consumer a chance to get ahead by sharing in the revenue of the company for marketing its products. Although this principle has always been noble, its execution has been clumsy at best until recently.
What is Network Marketing?
Network marketing is a business model that replaces large marketing budgets with a compensation plan for entrepreneurial consumers who choose to assume the advertising role. By avoiding traditional complicated distribution chains, the company can ship directly to the consumer. Without an advertising budget, the company relies on its own customers to spread the word and increase the customer base. The money that is saved without advertising or distribution chains is redirected to the consumer in the form of commissions and bonuses.
This industry evokes a lot of emotion in people. Its reputation has been described by scams and bad business models. Many people have written off the entire industry. I was one of those people until I noticed that many of the popular wealth gurus were speaking favorably of it. Was there something that I was missing?
Robert Kiyosaki, the author of "Rich Dad Poor Dad," suggested that network marketing might be "the perfect business" in a CD interview. Robert Allen calls it "the ultimate money making machine" in his book, "Multiple Streams of Income." These guys carried enough weight to catch my ear.
"Wave Three"
After some investigation I realized that network marketing was making a huge comeback. Richard Poe, in his book, "Wave Three: The New Era in Network Marketing," describes new, more evolved companies without the hang-ups of the ones that gave the industry a bad name.
"Wave three" companies are making good on the original promise of the industry: to give the average consumer a chance to get ahead. While no business is a utopia, there are several good reasons to consider adding network marketing OR Direct selling to your streams of income.
1) Low Initial Investment
Most business models cost thousands of dollars to start. Even a franchise like Subway costs at least $100,000. It is almost shocking how inexpensive it is to start a network marketing business. The good companies cost less than $500 to start, but it gets better than that!
If you can find a company with products you are buying anyway and just switch your purchases, you can start a business virtually for free. This eliminates all the risk associated with business. If you are not spending more money than you were before you started the business, then the first dollar you make is profit. Now that's a nice business model.
2) No Inventory
"Wave three" companies have disposed of the broken model requiring marketers to inventory products. This eliminates the risk involved with not being able to get rid of inventory, and the hassle of continually bugging people to buy it.
In the new model, the company ships the products directly to the customer's door. This frees the marketer from buying more products than they need. Most people don't like to sell things. "Wave three" marketers don't sell anything, they just refer.
3) Creative Redistribution of Wealth
Think of the amount of money that accumulates at the top of traditional marketing models. Stockholders and corporate executives make a ridiculous amount of money from the purchases we make every day. While I believe in free enterprise, I have always wished for an enterprise that would offer a level playing ground for everyone. Network marketing might be the answer.
Whenever you purchase a product from a network marketing company, a portion of your product cost (sometimes as much as half) goes back to several other hard working customers just like you. I feel much better about helping out fellow customers than mindlessly giving my money to enormous corporations.
4) Passive Income
Since the sales and inventory has been taken out of network marketing, a passive income component has emerged. After you do the work of referring someone, you get a commission on their purchases for as long as they remain a customer. I like the idea of getting paid over and over for work done once, but it gets even better:
5) The Power of Leverage
Most companies will not only compensate you for your own referrals, but the referrals of your referrals, for several generations. This means that it is possible to get paid on referrals that you have never even met. This also means that your earnings are virtually unlimited. There are some people who are making millions of dollars a year in network marketing businesses.

6) You Don't Have to Bug your Friends
The part of network marketing that turns most people off is bugging their friends and family. Even if you have the greatest company in the world, some people will not want to listen to you. The products could be free and cure cancer, but for some reason these people will still remain skeptical.
I have a hard time understanding why people will blindly trust an enormous corporation with their health and checkbook, but at the same time ignore their own friends and family. Although this is changing, it still happens every day. Maybe it's leftover skepticism from the scams and bad business models of the past. May be people don't like to see their peers making money off of them.
Either way, until network marketing emerges as the premier marketing model there is one saving grace: the internet. The internet allows network marketers to connect with people who are actually looking to start a business from home. Equipped with an informative website and auto responders, it is possible to have people asking you to join your company instead of the other way around.
How to Pick a Network Marketing Company?
I think it's smart to diversify your streams of income, so that if one stream goes down, the others can make up for it. If this article has sparked your interest, you might consider adding network marketing as one of your income streams.
Remember that successful people think outside the box. It's a good time to explore this possibility while the industry is gaining momentum but has not yet saturated the market.
If you are trying to pay off debt, but your job doesn't pay you enough; you might consider keeping your job, but adding network marketing to your nights and weekends. You could then use the extra income you make to pay off your debt. If you are trying to get into real estate investing, maybe you could use your network marketing income to save up for down payments.
Be a leader . Be someone who is ahead of the curve even in the face of resistance. Don't wait until the trend has passed and the potential market has dried up.

http://debomita.htmlcss.hop.clickbank.net/
Before you choose, remember that even though the industry has evolved, there are still a lot of bad models and scams out there. Make sure the company you choose fits these criteria:
1) Reasonably Priced Products :
One of the major differences between the good and bad models is the price point of the products. If you have to pay more for the products than you would at your local store, then the model is fundamentally flawed.
To compensate for your overpriced products, you will have to recruit others to buy overpriced products to help you pay for them before you can make a profit. If the products were reasonably priced, it wouldn't matter if you were recruiting or not.
This takes the pressure off of everyone and makes it much more attractive to potential customers. It allows you to dabble in the company to test the products without committing to the business.
2) Free or Inexpensive Training:
Another sign of a bad model is overpriced training. In the earlier companies, selling training was one of the major sources of income for marketers. If a company has to overcharge for training then they must be compensating for poor quality products. Look for a product centered company with free or inexpensive training.
3) Wide Market Appeal:
Some companies focus on very narrow product categories like nutritional supplements or cosmetics. The problem with choosing these companies is that your potential market will be limited to consumers interested in those products.
While the company might argue that everyone in the world should be on their supplements, reality says that supplements are luxury items for most. Look for a company with a wide variety of products so that your market is as large as possible.
4) Low Monthly Minimum :
Most network marketing companies require you to make a purchase every month to remain a member. While this seems like a catch at first, it is actually a good thing. Consistent product orders are how you create steady, reliable, passive income.
Just make sure that your monthly requirement is low enough that you don't have to buy anything you don't want. This is also another reason to join a company with a wide range of products. The more products they offer, the less chance you will have to overload yourself on one particular item.
I would suggest looking for a company who's minimum order is less than $100 a month. Most people spend several hundred dollars a month on the types of things that network marketing companies offer, but this will make certain you can meet your requirement without going into debt.
5) Fair Compensation Plan :
A good compensation plan will have a nice balance between passive income and production income. While it doesn't seem fair to make someone else rich while they do nothing just because they recruited you, it also isn't fair to potentially loose a recruit because they out-perform you. Look for a plan that balances these issues.
6) High Retention :
It is important to find a company that has a high rate of customer retention. This will save you from having to continually recruit to maintain your status quo. While some attrition is inevitable, try to find the best rate you can find.

http://debomita.trwatson46.hop.clickbank.net/
What to Expect ?
It's a Business
The opportunity that network marketing provides is exciting, but it is important to understand that it is a business, and running a business isn't always easy. If it were, then everyone would be a business owner.
Just like in conventional business, a small percentage of network marketers make most of the money. This makes it even more important to find a company with reasonably priced products. You want to make sure your downside is protected.
Marketing
The thing that separates entrepreneurs from the rest of the world is that they are willing to do the things that other people aren't. One of those things is marketing. The reason most people are not successful in network marketing is that they don't want to market.
They either don't have the courage to ask someone else to take a look, or they don't want to expend the resources needed to market in other channels. Business owners have to either market or pay someone to market. The only place to avoid it is a job working for someone else.
Skepticism
The biggest resistance that you will face in this business is skepticism. Until this paradigm shifts, it will be an issue. People tend to make a bigger deal of network marketing than it is. For "third wave" companies, the business is really as simple as referring people to a product that you like. If there were no stigmas attached to this industry, the profit potential would be amazing. I think that it would give everyone a chance to make a decent living.
Until then, it is important to know that it's a numbers game. Only a percentage of the people you call will answer, only a percentage that answer will listen, only a percentage that listen will be interested, and only a percentage that are interested will sign up. If you can learn what these ratios are, you will know exactly how what you have to do to be successful. You will know how many calls you need to make a month to reach your goal.
Where to Look ?
Almost every ad that you see on the internet for a "home based business" is a network marketing company. The advertising is simply everywhere. Remember those ads stapled to phone poles on street corners that say "Make Money From Home?" You guessed it: network marketing. If you shop around a few of these ads, it shouldn't be hard to find something.
Exponential Growth
Your network marketing business will behave very much like any other investment. The greatest energy will be spent at the beginning. This means that you may not see much in terms of results right off the bat. It will take persistence and delayed gratification to make it through the slow times. Once you have overcome the initial gravity of the learning curve and creating a base to work from, things will start to move much faster. Because of this, I recommend that you don't rely on your network marketing income at first, at least until you have built it up.
http://www.tripleclicks.com/results.php?dept=8/10332877/
The Future
While network marketing is not for everyone, I do believe that it will be the advertising model of choice in the future. The fact that so many highly respected companies are already borrowing from network marketing tells me that we aren't far away from acceptance.
I wouldn't be surprised if major corporations start to see losses of market share to these kinds of companies. It might already be happening. It would be hard to know because the news is sponsored by big companies. Since network marketing companies don't advertise, it is much harder to know what is going on in the industry.
If you decide to look for a company, make sure you follow my suggestions closely for how to choose a good one. The wrong business model will spoil your view forever of this industry. Make sure that you join a company that has eliminated all possible downsides to the business.

http://debomita.htmlcss.hop.clickbank.net/

Be a Big Entrepreneur

www.smartbusinessprofits.net

Working Principle of Direct selling Business

Today there are millions of people around the world building this unseen industry called network marketing.
The DSA reports that there are over 30 million people across the world involved in direct selling.
You do not see them but they are everywhere, some probably right in your own neighborhood. It is a business in which common people can invest a small sum of money, and rise to staggering levels of financial reward and personal freedom.
Each day millions of people report to work, where your employer leverages your time to build his or her business and financial future. In Network Marketing, we help and assist others in building their business. We are also leveraging their time, while each of us is gathering customers along the way.
Hence, the name Network.
We are paid for this because we are assisting, coaching, and helping others to establish their business. We help them to reach their goals for their financial future. So, it’s only right that we also get paid for our time?
Just like your employer leverages your time, through network marketing, you can leverage the time of others. What does this mean?
Let’s take a look at a typical employer in a service industry with 100 or more employees that has a labor rate of 60 dollars per hour. The goal of our employer is to keep each employee active and busy for each hour paid.
Out of this, once all the costs of doing business are factored, such as wages, health insurance, unemployment insurance, federal taxes, state taxes, permits, maintenance, housekeeping, the list just goes on and on, the employer may get to keep 5 to 10 dollars per hour of that labor rate.
In Network Marketing, we have our initial start up costs, which are anywhere from just a few dollars to several hundred dollars. Where most Network Marketers fail is that they feel that they don't need a marketing budget for advertising and they don't seek out the education required to succeed.
One of the important most things to remember is, you are in a real business. You no longer have a boss holding you accountable. Your success or failure is dependent upon you and your actions.
Your primary task will be to gather customers for your products or services, to help and assist others to get started in their own business while being partnered with you. You are looking at a business model that will take 3 to 5 years to produce the kind of results you’re looking for.
So, don’t give up your day job just yet. It will require 10 to 20 hours of consistent time and effort each week to build a successful Network Marketing Business. It will require a marketing budget, most people do not even consider this. Once again, this is a real business! This is your business! It is not a get rich quick overnight program, although, it has been hyped by a great many naive Marketers and web sites.
Network Marketing is based on word of mouth advertising, which is the most effective form of advertising. Think about it. When you go out, watch a great movie, you will tell other people about it. When Sam’s Club or Costco moved to your area, you joined their buying club and started telling everyone how much you saved. This is the power of word of mouth advertising.
Major advertising agencies and companies count on this. This is one of the key things that we do as Network Marketers. The major difference is that we are paid for our word of mouth advertising.
One of the most often asked questions is, will I have to sell products and services? The answer is yes, of course. Think about it, no one likes to have a salesperson come to the door and sell them products, right? We hate to go to the automobile dealers, where we are swarmed with 5 different sales people all trying to get you to buy from them right! How are we, as a Network Marketer, different? We recommend products or services that we like and personally use. If we know it’s good, and personally use it, we recommend it to our friends and family is very easy.

Be a Business Owner

Debasish Dutta

www.smartbusinessprofits.net/pips.html

NETWORK MARKETING & DIRECT SELLING

Network Marketing is a relationship-based business; it is about people helping people to build a business or focusing on your customers for your products and services. Network Marketing really is an unseen business and it is all about sales. It is a business vehicle in which anyone can invest a small amount of money, and through sheer tenacity and determination, achieve staggering levels of financial reward and personal freedom.
But, for it to work successfully, it requires you to become educated on the principles and practices of the industry, and use a proven business marketing system.

Network Marketing is Direct Selling
Network Marketing does not have giant signs or large offices, yet according to the Direct Selling Association (DSA) over 30 million people across the world are working in the Network Marketing/Direct Selling Industry.
The Network Marketing/MLM Industry has a very shady reputation. Many of the people you will talk to feel it is a scam. Are they justified in this opinion? In many ways they are justified, but you can make a difference with the way you market your business.
In the 1950's when Franchise’s first emerged, they where labeled a scam, illegal etc. Fortunately, a franchise is not labeled as such anymore or quite possibly you would not be enjoying your favorite hamburger today if that concept hadn't changed. Have a look at the two different, yet similar, business types that you could be involved in or approached with to earn Residual Income.

Network Marketing / Multi-Level Marketing (MLM)
Network Marketing/MLM Businesses usually offer consumable, reasonably priced products and services that people use in a short time. Generally the commission structure is less up-front then the direct sales companies, but it has a benefit that most direct sales companies do not have and that is Residual Income.
- It costs much less to get involved with this form of business, a few hundred dollars or less.

- Allows more people to become involved.

- Builds Residual Income.

- Leverages the time of others.
Network marketing is all about sales and distribution, but a different kind of sales. It’s more of a soft sale or recommendation then the hard closing type that you’re accustomed to with the typical salesman or saleswoman in the direct sales. The best approach by far in Network Marketing is a consultative sales approach. This is used very successfully today and makes customers feel at ease.

Direct Sales / Affiliate Companies
These companies are known as seller-based, they market higher priced, usually one time sales items. The benefits of these programs are you make higher commissions but they have very little if any residual income. Essentially, if you stop working, so does your income. You are paid directly on what you personally sell, so you have to sell lots and lots of merchandise. This also limits you to the type of people you can bring into your business as the “salesperson” type.
Direct sales cost more to get involved with usually in the thousands of dollar range, again limiting you on the number of people that have or are willing to invest in a new venture!
If you are looking to get started in a Network Marketing Company, educate yourself and choose a responsible sponsor, before you take any action. Since this is a relationship based business, you need to feel comfortable with the person you choose to coach and mentor you.
It is vitally important to understand the different aspects of a Network Marketing company, compensation plans, training, products, services, before you actually pick a company that is right for you.
When you first get start looking at a network marketing business, you really need to have the mindset that you are starting your own Business. You need to tap into training from day one. There is so much you will have to learn that at times, you may feel completely overwhelmed.
If you stop to think of it as a giant puzzle with so many pieces that have to fit together properly, you will be on the road to success. Through out our life, business systems have taught each of us to be a good employee.
College systems teach us to be a good manager.
We have never really been taught how to successfully run our own business.
What you really need to do at this point, is unlearn everything that we’ve been taught. The typical employee mindset is to do as little work as possible, but to get richly compensated.
As a small business owner, if you’re not willing to go the extra mile in both time and money, then it is time you start thinking about doing something else in life.
Not everyone is cut out to own and run a small business, let alone a Network Marketing/MLM Venture.
Network Marketing, should be about gathering customers and business partners. Yet, most of the companies today only teach you to recruit and get everyone on the product.
You can build a very successful business with only a handful of representatives in your organization if they are taught to gather customers and other Opportunity Seekers who show a genuine interest in building a business.

Be a winner

www.smartbusinessprofits.net