What REALLY is Network Marketing or MLM


Let's take a look at .......
What REALLY is Network Marketing or MLM as some people called it?

Most people say yes, but when push comes to shove, they don't get the basics. I would like to share a real life experience about the 'basics' of Network Marketing.

I am from a little place called Lenggeng in Negeri Sembilan. In the late of 2005 I tied the knot with a beautiful lady from Kampung Temiang in the royal town of Kuala Kangsar. To say that was a change is an understatement. However,it was a great first hand experience of Network Marketing at work.

After moving in, my dearest wife began to recommend the following to me because she knew I would need them - Maybank where all my business transaction took place, Seri Kangsar the grocery store, Ballirr Enterprise where all of my notes got binded (they have a fast and cheapest service in town), Pusat Komputer AMS where I spent most of my time doing research with the computer (where Megat Hafiz thought me the science and arts of saving a printer ink and the place
I went after I received 'the look' from my mother-in-law for staring at the PC for hours), BP where I filled-up my Yamaha Z with petrol and other basic necessities. I have since become a faithful customer at all of these locations (and even more) based on those simple recommendations.

Two months later two of my friends come up to the same area to work. Much like me, they knew nobody or anything of the area. I promptly recommended to them the exact same places I was recommended to shop at, bank with, get petrol for their transportations, receive a good haircut, etc .......

They too have become long-term customers with the exact same places I recommended (and were recommended to me.)

What is amazing is the amount of free advertising these businesses are receiving and the sales it is generating from them. One day I asked my preety wife if she received a check from the owner of the Seri Kangsar (the grocery store she recommended)? She looked at me with the normal puzzled look people always displayed when asked this kind of question and said, "What are you talking round-about?"

I replied, "Well, I have spent hundreds of RM at Seri Kangsar (not to mention my bank account at Maybank, my monthly haircut, etc .......) and I figured they would want to compensate you for referring me to them. Plus, I told my two friends and they spend a lot of RM at those places too. You started it all so I figured they would want to reward you with a commission from all of our sales."

Of course, she thought the idea was not possible. But with the distribution system called Network Marketing it is happening everyday. By taking out all of the middle-men (such as national wholesalers, regional wholesalers, local distributors, retailers and the big amount of advertising) the manufacturers can pay us for doing what we do naturally everyday; tell people about great products we use and like.

In the above situation, here is what would happened in a Network Marketing distribution system .......

My angel wife referred me to a grocery store called Seri Kangsar. I got there two three times a week and purchase my groceries. At the end of the month the owner would have looked to see how much I bought and sent a percentage of those sales to my sweet wife as a way of compensating her for telling me to shop there. With the check would be a nice "Thank You" letter with a huge smiley face stamped on it.

I told both of my friends to shop at Seri Kangsar so in return I would receive a commission check each month from them as well. But, in addition, my dearest wife would have received a percentage of the sales from the people I referred to Seri Kangsar. Why? Simple, in Network Marketing you get paid for what you started, not on what you do right now. (That is how you can receive a lifelong stream of residual income)

Let me take you a little further and say my two friends both told four of their friends about Seri Kangsar. How big the sales are going to be, how much fresher their biscults is and what a great value their groceries are in comparison to their current grocery store. By doing this my two friends refer six of their friends to Seri Kangsar. Now not only are my friends receiving a commission, but so am I and my cute little wife - just for what we started and doing what we normally do.

If this seems somewhat unbelievable to you, well times are a-changing (as Bob Dylan says in a song). No longer can companies effectively cut the costs of making a product. However, the distribution of a product to the end consumer results in a 75% mark-up or more. This is where fortunes will be made in the next 10 years - cutting the cost of distribution through more effective business models. Even more, by applying this to leading trends in the market place today, fortunes will be made in the next 5 years for those of us that recognize and take advantage of this. As the wise man say, successful people are those who look and seek opportunities.

I encourage you to start getting paid for what you are already doing by becoming involved with a high-quality Network Marketing company. You owe it to yourself to find out the facts of the industry.

This article was inspired by an email sent to me by Mark Wittkowki of http://www.onlineautomation.com.

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2 Comments thus far...

razim said...

Nice website...

visit my web sa well at http://www.profit2us.com and http://www.myinfoguide.net

EddieMc said...

Just because we cant USE or DRINK, it doesn't mean we can't get RICH!! Check out this SIMPLE Network Marketing adventure.

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