Why Network Marketing


** WEALTH is created either by PEOPLE or MONEY at work **

As an employee there's a limit to how much you can earn from your individual efforts. Business owners create wealth by leveraging 

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off the work done by their employees. However, building wealth TRUE & ETHICAL WEALTH can be generated with help from others, BUT it only occurs when everyone in the business has the same potential to benefit from their efforts. through employees can be very difficult, as a general rule employees will never work as hard as the business owner because they are not receiving the same level of rewards.

The fact that EVERYONE can benefit equally ... makes Network Marketing the Perfect Business!

Network marketing is an innovative way of achieving wealth by working smarter. While most people who do not pay close attention to market trends may sceptically dismiss the concept, during recent years, network marketing has become part of the marketing curriculum at major universities, and has been employed as a main marketing tool by the most successful companies in the world: Coca Cola, General Motors, AT&T, Microsoft, IBM and Toyota – to name just a few.

So why is Network Marketing such a great Business Opportunity?

To answer that question, let us start by explaining ...

How Wealth is Created

You can create wealth either by having money invested or by having people working for you. For example, $5,000,000 earning 10% interest yields approximately $500,000 per year in residual income. When you try to create wealth, your goal should be to have money at work for you. But how can you get the money in the first place?

Proven Money Making Strategies

There are three main ethical ways you can make money today:

1. Work for someone else,
2. Be a professional (e.g., doctor, attorney, accountant),
3. Own your own business.

Can you achieve wealth confining yourself to one of these strategies?

The first two require constant effort from your part, and generally do not help you get ahead. The challenge of the third is that, sooner or later, you run out of time or talent. That is why, to be successful in owning a business, you have to employ people and “Leverage” off their efforts.

True wealth is beyond our reach without the use of leverage!

The answer to the question above is … YES, but it’s not easy!

The best approach is to initially make money by having other “People at Work” for you and then have that “Money at Work” to build true wealth.

However, it can be very difficult achieving leverage through employees. Employees will never work as hard for your company as you do, because they don't own it. For you to have true leverage, you have to create a situation where everyone has the same amount of gain.

Classic Organizational Structure: The Problem

Here is an example borrowed from the Real Estate sector. When Real Estate brokers hire agents, they earn a percentage of the agent's sale, as a return for their investment and risk-taking. The more agents the broker trains and uses, the more money he or she will make. However, there is a problem: while the broker enjoys leveraging off the agents efforts, the agents do not have any leverage themselves.

Agents who want to earn a greater income need to branch-out and start their own money making business structure. This is not good for the broker, he or she not only loses an income source and the time and money spent in training the former agents. They now have an additional competitor, what’s worse this person has detailed knowledge of their way of doing business.

This scenario is common in practically every industry. Those who work temporarily at a certain place in order to earn “experience” are taking advantage of their employer’s hard-earned knowledge, and later use it for themselves.

This is not an intelligent way of expanding your business.

The Network Marketing Formula

There is an alternative. Back to our example, encouraging agents to have their own agents The business model that does just that is called Network Marketing.will keep them from breaking away. 

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As a plus, the more agents they hire, the more money the broker at the top makes. The only way that a businessman can retain true leaders is by empowering them with the same opportunities that he has.

Network marketing is a different formula than the one generally called a pyramid. People tend to view the latter as one where people at the top make all the money, while those at the bottom do all the work. In fact, every organizational structure in the world has this shape. A typical corporation has a CEO followed by a hierarchy of presidents, vice presidents, middle management, and stuff. The highest levels of hierarchy make more money than the lowest, while the CEO is leveraging off the productivity of all the employees of the corporation.

The unfairness is that the CEO is the only one with leverage. In network marketing, you, the individual are given the same opportunity as the CEO to have leverage.

Network Marketing: The Most Ethical Money-Making Structure

In most network marketing companies everyone can earn the same number of levels deep in the organization they build. Such a structure gives everyone the same tools, but rewards best the most productive people, as opposed to using as an impressive resume or years of seniority as the measuring stick for compensation. Therefore, at any given time, there will be people at lower levels gaining more money than the upper levels, only because of their largest productivity.

Warren Buffet, who created his wealth by investing in and buying the very best companies, recently bought a network marketing company. Companies such as Citibank, Xerox, AOL and Sun Microsystems are only a few among many who distribute some or all of their products and services through network marketing. They have found it to be a very efficient model because it allows them to spend money in marketing only when their products are sold. Their joining ventures with network marketing companies marks the “coming of age” for this growing industry.

Time / Productivity Connection

There are people who earn $10,000 a year, and people who earn $10,000,000 a year - all using the same 24 hours a day.

What is the difference between the two?

The latter understand the time / productivity connection.

Inability to understand this relationship is the main reason why people never reach their financial dream. How often do you hear people say? … “It's quicker to just do it myself than to try to get others to do it.”

These “busy” people lack an understanding of what a powerful investment it is, to train others. Network Marketing is structured in a way that rewards exponentially for your efforts in teaching those you introduce be successful. The reason is that, by educating others, you are actually multiply yourself – that is, you multiply your earning potential.

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