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Network Marketing FAQs

 
1. What is the Difference between Network Marketing and Multi Level Marketing (MLM) ? 

Though most people don’t agree this, there is a minute difference between Network Marketing and Multi Level Marketing.

In Network Marketing, the company pays the distributor a percentage of profits it made because of the turnover he helped the company to make. It is not dependent on the number of people recruited, but based on the turnover created. The best example is the most famous AMWAY. Recruiting is a way of gaining more distributors so that the turnover can be increased to get more ‘percentage of profits’.

In MLM  (Multi Level Marketing), the distributor gets paid on the number of people you recruit under you, each joins by buying a product/service. The company pays a ‘fixed comission’ for every distributor who joins under you. Again, depending on the levels you reach the commissions and benefits vary. In Network Marketing, the end product is more of product and less marketing. In MLM, the end product is more of marketing.

 

2. I don’t know lots of people. Can I become successful ? / Do I need to ‘convince’ a lot of people to join my team? 

Though we know hundreds of people, we actually do not realize it. Sit with your mentor and do a brain jogging exercise to list at least 250-400 people. DO NOT JUDGE whether they will join your team or not or what they will think about you and the business idea. You need only a few good people who are serious about improving their own lives and have a dream to succeed. Everyone in this world is eligible to join a network marketing business unlike a job which needs some educational degrees.
The highest qualification needed is a 5 letter word – DREAM. Do not worry about CROWD. Think about a TEAM with a DREAM.
 

3. If Network Marketing is that good and gives a lot of benefits at cheaper joining costs, why don’t every join this? Why are some people so negative about Network Marketing business? 

Doctor profession is a fantastic and most respectable position on this planet. Then how come every one is not becoming or at least willing to become doctors? Every one has their own interests, way of thinking. The most common answer people give for not doing a Network Marketing  business is – “I don’t think that this will work for me”. Not sure what they actually think !! 

Some people voice the same answer in different ways. Some people cannot take decision because his friend’s friend’s relative joined some network marketing company and failed. There can be many reasons for his failure, but as most humans do they blame it on a person or a company but not on themselves.  Millions of people were held back from achieving some truly remarkable things in their lives because of  so called ‘friends’ who told them not to do. Advises come free. Do your own research, take your own decisions, take advises only from industry experts and take a call. 2 major reasons of a failed person in any profession (especially businesses) – listening to everybody and listening to nobody.

4. Do I need to be a super salesperson to be successful in Network Marketing Business ? 

No, not necessarily. In fact, the traditional sales techniques don’t work in most of the Network Marketing businesses. Network Marketing business is about sharing what you feel good about. Its not just about moving the products, its mostly about creating a team and influencing their lives positively both economically and personally.
5. Do I have to quit my current job to do the Network Marketing Business?
 
No. Not Needed. Almost 90% of the people start their Network Marketing business as a part time opportunity. Depending on the business model you join and your capabilities you may need to spend 5-10 hours on a weekly basis. Its as simple as this – the more you want to earn, the better you have to work. Depending on your success and your team structure (for stability) you can quit your job. There are hundreds of people who did this.  Better read/listen to Bruno-Pablo (Bucket Carrying & pipe building) story to understand this more.

 

6. What is the Difference between Network Marketing and Pyramid Scheme? 

A pyramid scheme is basically a fraudulent money making scheme. A pyramid scheme looks like a Network Marketing or an MLM business if the structure is drawn on a paper. But the essential difference is a pyramid scheme is about creating a chain of people without any legitimate product/service.  It is a non-sustainable business model that involves money rotation. You will get paid only when you recruit people.

7. How to find a Pyramid Scheme?  
Two ways :
1. There is no legitimate product/service provided for your investment.
2. You do not get financial return unless you recruit new members and generally ignore the selling/marketing of products or services.
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