Why I Believe Network Marketing Will Be Huge in 2012
I believe that starting a network marketing business with the right company is one of the greatest business opportunities on the planet today.
Coming from an Internet Marketer who just two years ago thought that network marketing was a dead business model in a post-Internet world – that says a lot.
Let me explain why.
My History With Network Marketing in a Nutshell
My first experience with a network marketing (also known as multi-level marketing or MLM) company was in 1998.
At that time I was working a 9-5 job I hated at a company that sucked. I liked many of my co-workers there, but the company itself sucked.
So I started working with my first network marketing company part time.
The atmosphere at that company was amazing. Nothing but positive energy, support and enthusiasm. This was a huge contrast to my day job.
So shortly thereafter I quit my day job and decided to do network marketing full time.
This was also when I first started to get into personal development. Everyone I knew in the network marketing circles, was reading books.
I learned a lot of new skills, met a lot of people and developed my confidence as an entrepreneur.
However, after two years of trying to make the business work I found myself on the verge of bankruptcy and I had to quit.
Unfortunately at the time, this particular network marketing company did not offer the ability for a person to do the business part time, so there was no way for me to do it part time.
I decided to quit and get a “real” job so that I could pay my bills.
That was my first departure from the network marketing world back in 1999.
From the network marketing world I went into the corporate world and began working for and then eventually running several companies.
I always knew that the majority of my success in the corporate world came directly from all the skill and confidence I built as an entrepreneur while working for that first network marketing company.
By 2008/2009 I decided to leave the corporate world to pursue running my own Internet based business from home.
At the same time though, two other network marketing opportunities presented themselves to me.
One of them was with the very same company I used to work for back in 1999. I actually joined that company again and saw some very quick success almost immediately.
The second one was with another network marketing company promoting a health related product.
Although I liked the energy behind both companies, there was something HUGE that I found missing.
Network Marketing Without the Interwebz
Both of the companies that I was a part of in 2009 had one very important missing piece to them.
Both of them had absolutely no clue what they were doing in terms of having an Internet strategy.
They were both still trying to teach and use the exact same marketing strategies that have been around since the 1970′s and 1980′s.
You know what I’m referring to right?
Join the company, make a list of 25 friends and family members that you know and then go pounding on their doors to try to “convince” them to join your business.
Marketing scripts that say that this is an opportunity for everyone and that anyone can make a six-figure income simply by signing up.
If you’ve ever been in any network marketing company, you’ll know exactly what I’m talking about.
The challenge is that those types of marketing strategies don’t work!
They didn’t work in 1999 and they sure as hell weren’t going to work in 2009! (or 2011 for that matter)
I guess I shouldn’t say that. Maybe they DO work for some people. But they don’t work for me.
Trying to build a network marketing business ONLY from a “25 name list” is retarded.
I’m sorry, but it is.
The truth is that your friends and family are probably NOT interested in joining your network marketing business.
They may be interested in the product, if the product is good, but chances are that they are probably not interested in the business.
To build a successful network marketing company today in 2011, you need to go beyond your friends and family.
In order to build a successful network marketing company I believe you need to embrace and utilize the Internet to help you build it.
The challenge is that most network marketing companies today FORBID you from marketing your business online.
That is exactly why I quit the two network marketing companies I was a part of in 2009.
I found out that I wasn’t even allowed to MENTION their names on my Blog. I wasn’t allowed to share any testimonials or success stories of how the products or services have worked for me or my friends.
I wasn’t allowed to even put a banner on my site and link to the company’s website.
I wasn’t allowed to talk about the companies on Twitter or Facebook.
How stupid is that!?
The challenge is that a lot of the network marketing companies that are around today are ran by people who built massive MLM hierarchy’s back in the 1970′s and 1980′s – long before the Internet was around.
So most of them think that the best way to build a company is the same way they built it.
May of them still push and promote marketing strategies and scripts that they used in the 1980′s.
Strategies like making a list of your friends and family members, and then writing them a letter to tell them you’re excited about a new business opportunity and then mailing it to them.
A letter!? WTF?!
Who writes letters to their friends and family in 2011?! Seriously? A letter?
Ever heard of email? Twitter? Facebook? Text Messaging?
That is why I quit those two marketing companies back in 2009. Their marketing strategies were PREHISTORIC. There’s now way I could see myself building a business based on marketing strategies from the 1970′s or 1980′s.
My Search for an Enlightened Network Marketing Company
After quitting those two companies I went looking for another network marketing company to join that embraced the Internet and all the amazing communication methods we now have at our disposal, instead of BANNING any Internet based marketing efforts.
I searched and I searched but was disappointed.
All I could find was companies that either had crappy / scammy products that I would never promote, or companies with decent products but who once again had a very specific “No Internet Marketing Allowed” clause in their contracts.
That is when I realized and thought that network marketing was dead.
Any business model that doesn’t embrace the Internet in today’s market isn’t going to survive – no way.
I just don’t see how.
So I gave up looking. I thought to myself… “It’s a shame… network marketing has so many positive aspects to it. I’d love to be a part of a network marketing company again and to build a solid long-term residual income. However, I just don’t see how I could be a part of any company that treats the Internet like it’s ugly step-sister. Companies need to embrace the Internet, not ban it as a means of marketing. It’s not the 1980′s anymore… oh well.”
Enter GIN and Lifewave
More than two years later after I pretty much gave up on network marketing, two companies who DO embrace the Internet showed up in my life.
The first is the Global Information Network (GIN). Great company, awesome product and they fully embrace the Internet as a marketing platform.
One of the awesome things I really like about being a GIN Member is that you get to network and interact with other like-minded people.
As soon as I got involved with GIN I was approached by someone who is part of a network marketing company named Lifewave.
At first I felt very skeptical about the company and their product as it seemed way too good to be true, but then I found out that the products really work.
I shared my story of that in my previous Blog post.
So now I am a part of not one, but two network marketing companies who I believe offer amazing products. What’s even more exciting is that the products complement each other.
GIN’s product is access to exclusive success training, tools and resources to help you succeed in all areas of life.
Lifewave’s product is a set of natural, non-transdermal patches that stimulate the body’s acupressure points to provide benefits such as energy enhancement, pain relief, anti-aging, weight loss, stress relief and more.
Why Network Marketing
So why do I think Network Marketing with the right company is one of the greatest business opportunities on the planet today?
There are so many reasons.
Firstly, you can’t argue with the power of compound marketing.
Network marketing companies utilize a concept called compound marketing to distribute their products.
Compound marketing is very similar to viral marketing which most of us are familiar with in today’s Internet age.
The concept behind compound marketing is that you essentially just focus on building a core team of distributors that you work with in the company.
Let’s say that you recruit, train and develop just 5 leaders in your business.
If trained properly, those leaders will understand that the power in network marketing comes from duplication, so they will go out and train 5 leaders each themselves.
That is where the power of compounding starts to come into effect.
Imagine if you brought in 5 leaders, who then went out and got 5 leaders each themselves. That would mean that you would now have 30 leaders in your company – 5 who you brought in yourself, and 25 who were brought in by those leaders.
Now, imagine of those 25 new leaders also brought in 5 people each. That would now mean you would have an organization of 155 leaders.
5 at your first level.
25 at your second level.
125 at your third level.
Of course this is a very simplified model of how it works. Not every person you bring into a business is going to become a leader, and not all leaders will be able to bring in 5 leaders each. Some will bring in less, and some will bring in more.
However, the point is that compounding is a HUGE benefit to network marketing.
No other business model allows you to tap into this massive benefit of compounding.
Not all, but many network marketing companies make awesome products.
The reason for this is because network marketing companies have two characteristics:
- They invest a lot of money into product development, rather than on expensive marketing.
- They rely on word-of-mouth / network marketing to promote their product so their product has to be great.
In order to even have a chance of success, network marketing companies have to create products that aren’t just good – but great!
Good products that are just slightly better than another similar product get sold at major store retailers.
Network marketing companies must create AMAZING products in order for them to have a chance in succeeding through word of mouth / network marketing.
Think about it… there is no way that people will recommend and share a product with their family, friends and everyone else they know if the product SUCKS or if it’s just MEDIOCRE.
In order for people to want to share a product with someone, it has to be GREAT.
That is why many successful network marketing companies have amazing products behind them. If the product they developed was just mediocre, it would never spread through world-of-mouth / network marketing.
Awesome, Positive, Entrepreneurial Minded People and Support
Unlike most other business structures, network marketing companies typically attract positive, entrepreneurial minded people into their ranks.
Negative, employee mentality type people who walk through life feeling “owed” never succeed in network marketing companies.
Being a part of the right network marketing company can have a huge positive impact on your life.
You can get access to successful people, mentors and leaders who you would typically never get access to in a typical corporate structure.
Many network marketing companies have compensation structures setup in such a way where the people who came into the company before you, have a vested interest in seeing your succeed.
For example, the person who brought me into Lifewave would love nothing more than to see me succeed within the company because he has a very real and tangible financial interest in that happening.
He doesn’t care if I “take his job” or even blow past him. If I surpass his “level” in the company, he doesn’t care – because it helps him!
In a typical corporate structure you don’t have that. The people “above” you have a vested interest in keeping you “below” them.
The only time the guy “above” you in a corporation wants to see you move up, is AFTER he gets a promotion himself and in order to get promoted he first needs to train a replacement.
So in a typical corporate structure, your ambitions are always being stifled by the people above you. That’s just how the structure is set up.
In network marketing companies, the whole structure is setup backwards from that. The BETTER the people “below” you do, the better YOU DO. Not the other way around.
That means that the minute you join a network marketing company, EVERYONE “above” you in your “upline” wants to see you succeed!
If I was to sponsor you into my Lifewave business, for example, I would want nothing more than to help you succeed. Which is actually exactly what I’m doing with everyone I sponsor!
Connecting to a Mission
There are many other benefits to being a part of a network marketing company.
Too many to cover in this Blog post.
But the one that I’m most excited about is connecting to and being part of a mission.
If you can find a network marketing company with a product or service that you feel will change the world – it can be a very fulfilling and exciting part of your life!
For example, one of the reasons I’m so excited about Lifewave is because I understand that their products can change the world.
For example, I’ve seen people who have had long-term daily pain in their bodies have it disappear in a matter of minutes using the company’s IceWave product.
What’s even more exciting to me is that this was done without putting any drugs, or chemicals or pharmaceuticals into their bodies. In fact, nothing was put into their bodies. The patches are non-transdermal, which means that nothing goes into the body.
The patches work by communicating with and balancing the body’s natural energy / communication network.
I realize that when most people first hear this they will probably be thinking “what the heck does that even mean?”
That was my reaction when I first heard about these as well. However, after researching and trying these out myself – I know they work.
And one of my favorite things in life right now is sharing that same experience with other people.
There’s just something magical and amazing that happens to people when you place these patches on them, and they feel them working.
Also, every day as I do more and more research and read all the studies and watch all the training videos that the company has put together I’m growing more and more excited about this product.
I truly believe this product is going to change the world.
There’s nothing else like it on the market.
I also feel the same way about the Global Information Network. They have a great product and I think it’s going to change the world.
This is the type of thing you can connect to when being part of a network marketing company.
If you choose the right one, you can really get inspired and become part of something that is greater than yourself.
I’m excited about sharing the awesome products that Lifewave and GIN have to offer the world and I’m also super excited about helping other entrepreneurial minded people like myself to create success in their lives doing the same thing.
I have already started to work with a small, core team of entrepreneurial minded people and mentoring them on being successful within Lifewave.
That is why I do this.
It’s so much fun!
Paul’s Network Marketing Checklist
Not all network marketing companies are created equal.
You have to pick the right one for you.
Here’s my little checklist of what I believe to be very important things to consider when choosing a network marketing company to work with:
- Product Must Be Unique & Awesome – Probably the most important thing I look for is that the product has to be great. I won’t join an MLM/Network Marketing company if I don’t believe in their product. For example, there are quite a few nutritional supplement companies on the market right now which are producing what I would consider “sub-par” products. They are products that I would never use myself if I wasn’t a part of that company – therefore how can I possibly feel good about promoting the product. The product MUST be 100% awesome and it has to be unique. I won’t work with a network marketing company who has the same type of product as 20 other companies, and which tries to differentiate itself simply by saying “We have a better compensation structure” or “We have a better system”. The product must be awesome.
- Product Must Be Long Term Consumable – I always look for companies with a product that is consumable. If you are selling a consumable product, it means that there will always be residual income you can count on for a long time. If the product is something that a consumer just buys once, it’s going to be very difficult to build any residual income. Also if the product is “short term”, it won’t work either. What do I mean by “short term”? Well let’s say for example you were part of an MLM that sold a cream which helps people to get rid of eczema. They put on the cream, for a week, and the eczema goes away. Success. Guess what? Now you’ve got to go find another customer. Short term products don’t work in this structure.
- Company Must be Internet Friendly- Read your distributor agreement. Don’t assume just because all the other people in the company are promoting themselves on Facebook or on their website – that the company actually allows it. Most distributors in MLM’s don’t realize that the agreement they signed doesn’t allow them to market themselves online. They break the agreement without realizing it. The company might not enforce that policy today, while the distributor is small, but one day they might. Why would you want to waste all this time building a business with a company who’s agreement you’re breaking from day one!? It’s just a ticking time bomb.Read the distributor agreement and make sure you’re working with a company that is OK with Internet marketing. If they’re not, find one that is. You’re wasting your time if you’re working with a company that doesn’t allow Internet marketing. Incidentally a “replicated website” is NOT what I’m referring to when I say “Internet Friendly”. All MLM’s nowadays offer you a replicated website. Those are mostly useless. That is not what I’m referring to. Are you allowed to write Blog posts, make YouTube videos and promote your business online? Find out.
- Get in at the Ground Floor- I usually won’t join network marketing companies that have been around for over a decade or that are so successful that everyone has already heard of them. If you waited THAT long to join the company, chances are the opportunity is probably already tapped out. You want to find a company that is just starting to take off marketing wise. Notice I didn’t say a company that is just starting out product wise.You want to find a company that has an already established and tested product, with lots of endorsements and testimonials, but one that hasn’t yet hit critical mass with their marketing efforts.
- Solid Leadership – Find a company that has good leadership behind them. People who share the same values that you do. Is the company all just about money, or are they creating a product that will be truly beneficial for the world?
- Solid Sponsor / Upline- In a lot of ways, your sponsor / upline can be the difference between success and failure in network marketing. I have personally experienced the difference between being part of a team with a solid sponsor / upline, versus working being sponsored by someone who has no clue what they’re doing.It really makes a difference. It doesn’t matter if your sponsor / upline is brand new in the business. That in itself doesn’t mean that they are not a good sponsor. Other things matter. Are they positive? Are they successful people? Do they inspire and uplift people or are they “Negatrons”? Are they only in it for the money, or do they believe in the product they are promoting? Are they leaders? Can they help you become successful?
These are the main 6 things I look at when choosing a network marketing / MLM company to work with.
That is also why I’m super excited about GIN and Lifewave. They are both companies that fit in with all of the criteria I mentioned above.
I’m still looking for a few more positive, entrepreneurial minded people who would be interested in joining me and building a GIN and/or Lifewave business with me.
And no harassing of your friends and family is required!
If that sounds like something you might be interested in finding out more information about, please contact me today.