Direct selling and network marketing a brief history

Direct selling had always been a part of mans history. An ancient tradition that originated in man’s basic need to exchange goods and to communicate, as early as 2000 B.C the Code of Hammurabi, a monument of Babylonian law, protected the general welfare and integrity of the Babylonian direct seller, who was then referred to as the “peddler.” The Code stated that“the peddler shall swear the oath of God” if any enemy caused him trouble as he travels shall be protected. It also said that the merchant who sells the goods must be fairly compensated.

What is Referral Marketing?

Referral marketing is also known as network marketing, and is by no means confined to the online world. In fact, it has its roots long before the World Wide Web. Some very large and successful companies were built, and continue to thrive, on a referral marketing model.
This is how it all works: a company sells products and services via a network of entrepreneurs instead of a traditional store. This means that the company is able to sell the products and services to customers at a reduced rate because of the lower overheads, as well as the ability for the company to grow at a rapid rate! The entrepreneur also has a much lower startup cost, with the benefit of the backing of an established company.
The company also encourages entrepreneurs to recruit other entrepreneurs, in order to increase the capacity of the company. The referring entrepreneur then also earns commissions on the products that the referred entrepreneur sells. If the new entrepreneur brings further entrepreneurs on board, the original entrepreneur also receives commissions on those sales – and so on. This is the multi-level or network component of the company

Distributor Bill of Rights

1.     Distributors have a right to own and operate their own independent contractor business.

 The company and the government should recognize that a distributorship is an independent small business with all of the rights and tax benefits of any independent small business. By entering into an agreement with any company, each Distributor is entitled to specific and undeniable rights to protect and preserve immediate and long-term residual income.

Key things to look for when selecting a company:

• ESTABLISHED COMPANY 5 YEARS OR MORE

If the company is less than five years old - it has not yet survived the start up challenges that operate in many business.

 Look for integrity at the top and a strong competent management.

• THE COMPANY MANUFACTURES ITS OWN PRODUCTS

This ensures a steady supply and allows for a greater percentage of the product price to go to the networker.

• A UNIQUE PATENTED AND EXCLUSIVE PRODUCT LINE

Everything hinges on your products. They need to be exceptional to create loyalty for you and your company.

 Notice also that there needs to be a good number of products.

 Generally, companies offering only one or two products cannot generate enough volume to be profitable.

THE UGLY TRUTH ABOUT BINARY PLANS

By John Counsel

Most “hot, new trends” in MLM compensation plans are nothing more than tweaked-up reincarnations — fancy new names with dazzling new packaging — of tired, discredited old barker’s eggs that companies trot out for another spin because they earn so much hidden, windfall profit from them.

Binary compensation plans are just re-hashed attempts to breathe fresh life into the notoriously-flawed 2 x 12 automatrix plans of the 1980s and early 1990s.

The 2 x 12 automatrix (or forced matrix) was the most unstable of all matrix systems. They were notorious for collapsing and taking thousands of people’s money with them.

MLM Products the first key to success in this business

Your MLM products are the core of your business and the foundation for long term residual income. Successful network marketing businesses are based around a solid product line that has lasting appeal in the marketplace. Without a foundation based on quality products, all you really have to offer in the long run is a money-making scheme. Opportunities built around mediocre products tied to highly-hyped compensation plans don't last, and should be avoided. Your products are the foundation of a strong network marketing business, and the compensation plan is the driving force that makes everything work.

Four Major Types of Plans

There are many different varieties of compensation plans out there. They often have exotic names. But they tend to be variations on four major types of plans….

It’s Not About Income— It’s About Assets That Generate Income by Robert T. Kiyosaki

It’s no wonder so many people don’t understand the value of network marketing:
Many of those who are actually involved with it themselves don’t fully grasp the value
of what they hold in their hands.

Embracing the Network marketing Industry

In order for you to build that strong confidence and that passion that is going to motivate you to action, you must be truly committed to build your faith in your network marketing business.
For if you doubt your involvement or embarrassed to admit that you are in to the network marketing business, it would be very difficult for you to build your business, because your faith and your belief in this industry is the fuel that would move you even in the most challenging times in your business.

Four types of networkers

Wholesale Buyers. These people are not interested in the business aspect but join simply in order to purchase unique and superior products at wholesale prices. They might make up between 5% -10% of the network.

Understanding the Compensation Plan

Principles of a Successful Compensation Plan
A compensation plan that fails to motivate distributors can stagnate a company as fast as any other factor. While there are many factors, which contribute to the success or failure of direct selling companies, the compensation plan is one of the biggest. There are many who ask what is the best compensation plan out there? Unfortunately, there is no answer to this question, but there are proven principles of success common to virtually all successful plans. What makes a compensation plan great?

How to succeed in Network Marketing

Most people are aware that there is a problem in the system in network marketing. Because we see that there is a big attrition in the industry, about 97% of those who join the business fails and quits. And only 3% make it to the Top. So why do so many people struggle to succeed in this industry? If we say that this is the best solution for financial freedom for those people of low-income to have a better life. Why that BIG ATTRITION?

Why Network Marketing?

There are millions of people in the network marketing industry and millions more are coming in every year. Network Marketing is BIG BUSINESS! Over 15 million US distributors , About 175,000 or more Join weekly, US sales near $30 billion per year, Network Marketing is offered in MORE THAN 140 countries, World wide sales is estimated to be approaching $100 billion, and there are 475,000 individuals world wide joining each week.
Why are so many people joining the Network Marketing Industry?

What is Network Marketing

Network Marketing, also called Multi-Level Marketing (MLM) is one of the fastest growing industries of our time, creating more millionaires today than the ‘dot-com’ industry did before the bubble burst and is now being endorsed by many business leaders as a proven business system for anyone who wishes to achieve financial success.