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.
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