What is Network Marketing

There are many perceptions about Network Marketing. To some it is a SCAM, while to others, it is the way out of the rat race to achieve time and financial freedom. In this chapter, I would like to reveal to you the truth about Network Marketing.
There is nothing wrong with the word ‘Network Marketing’. It depends on one’s experience and knowledge of the industry. To those who have negative experience, it is a SCAM and a quick get rich scheme. While to those who have positive experience, it is the best thing since slice bread.
So what actually is Network marketing? Network marketing is merely a way of distribution of products and services. It is just like distribution through retailing, warehousing, franchising and others. It is one of the best ways of marketing as it uses the power of ‘word of mouth’ and leveraging.
Marketing through ‘word of mouth’ is one of the most effective mean of advertising. It is spread from one person to another. Just imagine when you are satisfied with a product, you will naturally tell others about it. Since these are the people who trust you, it is more likely that they will be convinced. If you see a great movie that you like, you will naturally share with others? This is word of mouth advertising. It is free and very effective. This is the reason why when a product is promoted through Network marketing, it cuts the time by 7 years compared to marketing in a retail store.
If a great health product is displayed in the pharmacy, the promoter in the pharmacy will not have much knowledge about the product as there are thousands of similar products in the pharmacy. It depends on customers knowing about the product and asking for it! In Network marketing, the distributors are well trained about the product and moreover have a financial interest in promoting the product. I hope you are beginning to see the power of ‘word of mouth’ marketing. In fact it can go ‘viral’.
Another powerful ingredient of Network marketing is the power of leveraging and exponential growth. Let me give you a simple example here. In one day you have a maximum of 24 hours. Even if you do not sleep you can only work 24 hours a day. In Network marketing if you have a team of say 1000 people and each one of them only work 1 hour a day, you’ll have a total of 1000 working hours a day. So can you see the potential?
Now, let’s take a look at exponential growth. Which would you choose?

1. $100,000 one-time payment or

2. One cent now but doubles it every day for 31 days?

Well, I am sure most will choose the first option and receive $100,000, right? Let’s take look at the second option…
Day 1 – 1 cent                               Day 6 – 32 cents
Day 2 – 2 cents                             Day 7 – 64 cents
Day 3 – 4 cents
Day 4 – 8 cents
Day 5 – 16 cents

After a week you only have 64 cents – no big deal!
But wait for 31 days and you’ll have in excess of $10,000,000
Wow, this is mind boggling. That’s why Albert Einstein calls exponential growth and compounding, the 8th Wonder of the World!

The Pipeline Builder

Network marketing allows anyone to generate passive income provided they do it the right way. Have you heard of the story of the Pipeline Builder? There once lived 2 good friends Pablo and Bruno. They live in a small village where there is lack of water. They got the opportunity to go to the mountain top across the village to carry buckets of water back to sell to the villagers.
They work hard and carry buckets of water every day. They made money doing this. One day Pablo got an idea. He thought of building a pipeline from the mountain top to his house. He shared the idea with Bruno and the villagers. They laughed at him and said it was impossible.

Pablo continued carrying buckets of water but during his free time he began building the pipeline. Meanwhile Bruno wanted more money and started carrying bigger buckets of water. As time goes on Bruno grew older and could not carry that much water as before. One day he got sick and is not able to carry any more buckets of water and so his income stopped immediately. Meanwhile Pablo managed to complete the pipeline after lots of hard work. Now Pablo does not have to carry buckets of water any more. He has water all the time for his family and can sell the extra water to the villagers. You know what? His children and grandchildren can also enjoy the water.
So my friend, are you a pipeline builder or a bucket carrier? If you are a bucket carrier, isn’t it time for you to build your own pipeline? It is still not too late! In Network marketing when you build the pipeline properly you’ll have passive income and can inherit it to your children.
I like what Warren Buffet quoted. If you cannot find a way to earn income while you sleep, you have to work for the rest of your life.

In this short chapter, I am giving you my opinion of what is Network marketing. It is indeed one of the best business models out there. It is for ordinary people with BIG dreams and willing to work hard to make their dreams come true. It is not a quick get rich scheme and you need to work hard for a short period of time. Many have achieved time and financial freedom through the Network marketing business.
Is it right for you? It depends on what you are looking for? Also what other choices are there out there that do not require a huge sum of money to get started? I am telling you from the bottom of my heart that this business can change your life. I have the right to tell you because I have been immensely blessed with Network marketing. Stay tuned as I will reveal to you my story in the next chapter.
So I hope that you now have a better perception of the Network marketing business!

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