Q: Some
friends continue to try to recruit me into network marketing deals that seem
like some type of money game or pyramid. Other friends tell me they're illegal
and I'll get into trouble. How do I know what's legal and legitimate?
A: To help you understand what network
marketing is, I must first explain what it isn't. First, network marketing isn't a pyramid
scheme. Pyramids are programs similar to chain letters where people just invest
money based on the promise that other people will put in money that will
filtrate back to them and somehow, they'll get rich. A pyramid is strictly a
money game and has no basis in real commerce. Normally, there's no product
involved at all, just money changing hands. Modern-day pyramids may have a
product, but it's clearly there just to disguise the money game.
Network
marketing is a legitimate business. First, it's based on providing people with
real, legitimate products they need and want at a fair price. While some people
do make a lot of money through network marketing, their financial benefit is
always the result of their own dedicated efforts in building an organization
that sells real products and services.
Pyramids
are illegal and are based on taking advantage of people. For a person to
actually make money in a pyramid scheme, someone else has to lose money. But in
network marketing, each person can multiply his or her efforts, skills and
talents by helping others be successful. Network marketing has proved itself as
part of the new economy and a preferred way to do business here and around the
world.
Network
marketing isn't about taking advantage of your friends and relatives. Only a
few years ago, network marketing meant retailing to, and sponsoring people
from, your "warm list" of prospects. Although sharing the products or
services and the opportunity with people you know is still the basic foundation
of the business, today we see more people using sophisticated marketing
techniques such as the Internet, conference calling and other long-distance
sponsoring techniques to extend their network across the country.
Network marketing isn't a
get-rich-quick scheme. Of course some people do make large amounts of money
very quickly. Many would say those people are lucky. But success in networking
isn't based on luck. (Unfortunately, money won't sprout wings and fly into your
bank account no matter what someone has promised you.) Success in network
marketing is based on following some very basic yet dynamic principles.
Now
let's discuss what network marketing is. Network marketing is a serious
business for serious people. It's a proven system where the design, creation
and expense the corporate team has gone through becomes a road map for your own
success. Just follow the simple, proven and duplicable system that the good
companies provide.
The
real key is this: Network marketing is all about leverage. You can leverage
your time and increase the number of hours of work effort on which you can be
paid by sponsoring other people and earning a small income on their efforts. 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.
For
example, most successful people building a network marketing business do so in
an organized method. They work a few dedicated hours each week, with each hour
of effort serving as a building block for their long-term business growth. Then
they sponsor other people and teach those people how to sell the company
product and sponsor others who duplicate the process.
By
helping the people you personally sponsor to sponsor others, you duplicate
yourself. As this process continues, you create compound growth that can lead
to hundreds or even thousands of people coming into your business. You leverage
your time by helping others be successful and earn an income from all their
efforts.
With
network marketing, there are no big capital requirements, no geographical
limitations, no minimum quotas required and no special education or skills
needed. Network marketing is a low-overhead, homebased business that can
actually offer many of the tax advantages associated with owning your own
business. Network marketing is a people-to-people business that can
significantly expand your circle of friends. It's a business that enables you
to travel and have fun as well as enjoy the lifestyle that extra income can
provide.
