Sunday, March 8, 2009

What is Network Marketing

Also known as Multi-level marketing (MLM or Direct Marketing


• A business in which a distributor network is needed to build the business. Usually such businesses are also MLM in nature in that payouts also

• Direct Selling Generates $110 billion worldwide

• Over 300,000 people worldwide joining the direct-selling industry each month

• 61 million people worldwide in the industry doing business in more than 170 countries.


This Industry gives people the chance to make the most of their lives…”
— Bill Clinton



“…The best investment I ever made.”
— Warren Buffet


“Be in the right place, at the right time, and do something about it.”
— Ray Kroc
Founder of McDonald’s


Three criteria that a network marketing company must meet to make it a most desirable opportunity: They are:

1. Stability: 90% of all network marketing companies fail in the first 18 months. Financial stability is crucial.

2. Ground Floor: Harvard Business School stated that if there were less than 500,000 people involved, you would be on the cutting edge of a great opportunity. If the company has less than 100,000 distributors, Harvard Business School considers it to be a once in a lifetime opportunity.

3. Momentum: This period usually lasts 2 to 4 years also. This is when the company experiences phenomenal growth. Distributorship explodes ....in terms of expanding growth, and during this period a company virtually …..sweeps across the nation. When a company reaches $50 million annually, they reach “critical mass”, Also approximately 2/3 of the company’s growth of new distributors occurs during this period. Let’s assume you have an organization which is producing an override bonus check to you of $1,000 per month. When the company reaches “critical mass”, distributors automatically experience a ten fold increase in their earnings. In other words, $1,000 per month becomes $10,000 per month. This is the reason for getting involved on the ground floor, or as early as possible so you will experience the benefits of explosion growth.


4. Stabilization: This period lasts for the life of the company.

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