“Your network is your net worth”
‘Net work’ to network — introductory definitions and it’s essential principles.
Networking Business is an effective low-cost marketing method for developing sales opportunities and contacts, based on referrals and introductions — either face-to-face at meetings and gatherings, or by other contact methods such as phone, email, and increasingly social and business networking websites. It is the perfect way to help, take your business to the next level.
“Network Marketing allows anyone the opportunity, with little investment, to build their own residual income”
A networking business is also known as a multi-level marketing business, also known as an MLM. Basically, it involves you recruiting other business-minded people into your organization.
Let’s have a look over some of the prominent essential principles of multi-level marketing (MLM) businesses.
Eleven essential principles
- Elevator speech.Describe yourself concisely and impressively.
- Be different. Differentiate yourself with unique angle. Aim high. Be best at something.
- Help others. Help others and you will be helped.
- Personal integrity: Integrity, trust and reputation are vital for networking.
- Relevant targeting: Groups and contacts relevant to your aims and capabilities.
- Plans and aims. Plan your networking — and know what you want.
- Follow up. Following up meetings and referrals makes things happen.
- Be positive. Be a positive influence on everyone and everything.
- Sustained focused effort. Be focused — and ever-ready.
- Life balance. Being balanced and grounded builds assurance.
- Give to get. Focus on what you can do for others, not what they can do for you. Perhaps you know someone who could use your prospects services. If you do, make the referral.
Hence networking is not an activity that should be trivialized. It is a serious lead generation strategy that takes thought and planning in order to achieve success.
Networking is a process, not a one-off event. Take time to develop relationships with people who interest you. Be proactive and invite someone to a one-to-one meeting so you can get to know them.
Networking is not about just connecting people. It’s about connecting people with people, people with ideas, and people with opportunities.
Some of the successful businesses that have been involved in this concept for a long time are :-Avon- Amway- Herbalife-Oriflame- Mary Kay- Natura- Tupperware- Safe Shop, Vestige.
You must be very well versed with these names Right?
Some of these direct sales companies are companies you’ve grown up with and even companies your mother grew up with. You probably have some of their products in your own kitchen and bathroom — and if not, you certainly know someone who does.
So before we jump into it’s working and functionalities let’s learn about the various types of MLM businesses.
Let me tell you, basically there are five main types, and what works best depends on the business they’re in and the prospects they want to meet. Therefore, when selecting your business networking organizations, you need to understand which types are available so you can make an informed decision.
- Casual Contact: A gathering of people from many different professions, usually in a mixer environment
- Strong Contact: Usually only allows one person per profession, get together very regularly
- Community Service Clubs: An opportunity to rub elbows with other very successful people
- Professional Associations: Trade organizations that are very specific in purpose
- Online and Social media Network: Social Media such as Twitter, Facebook, and LinkedIn, where networking is constant
The industry you’re in, and your personal level of comfort with engaging with new people, will likely dictate which type of network (or networks) you choose to invest time and energy in.
Good business networking is part and parcel of success. Those who network well establish strong connections that can remain beneficial for years.
Now let’s understand how does the entire networking business work.
How does MLM Networking Businesses work:
Basically, the business operates on a network, just as the name suggests. To make it easier, we will start with the company at the top.
The company sells you its products either on a one-time basis or on a subscription basis, where you receive a package of products regularly, say, once a month or once every two months. You, in turn, should recruit others to purchasing the company’s products. If you recruit a person, they will buy the company’s products and you will receive a percentage of the price they pay for the products as a commission.
Obviously, the more people you recruit under you the higher your commissions. But it doesn’t end there; the people you recruit can also recruit in their turn. Their recruits will earn them a commission. But, and here’s where an MLM starts to get lucrative, you also earn from your recruits’ recruits. For every purchase made by a recruit of your recruit, you are entitled to a certain percentage of the purchase price as commission. That way, your residual earnings can grow astronomically, depending on how far your ‘down line’ goes.
It is based on “Word of Mouth” marketing, i.e., every time when you refer or share about this business with anyone, you convincing power and the words you speak should attract the listener’s faith in you, so that he thinks about joining this business. Best network marketing business sales promoters are required to create a down line which looks like a pyramid. So, every time when anyone joins the business, they are added to the down line and the levels above become more profitable, hence, producing more profit. In this, the sales promoters are not just rewarded for the sales generated by them but also for the sales generated by the promoters in their down line, in the hierarchy.
Remember the thumb rule “To be in, be a leader, a team member. Grow together”
Tips for Effective Business Networking
So here are the top 7 tips for successful business networking:
- Don’t go looking for people who can help you. Go looking to help others. Showing a genuine desire to help others, will make them be more open to trusting you, and being willing to do business with you. The very first thing you should do is provide something useful to the person you are looking to get referrals from. If you do, they will feel obligated to you and much more likely to give you referrals.
- Don’t just go and network. Have some goals and have a plan. An exercise that is goal directed will always be more productive than one that is not. Keep track of how you are progressing and adjust your efforts and technique accordingly.
- If you are planning to join or are a member of a networking group, make sure to choose your networking group carefully. You will be investing time and effort over a long period of time with your networking group. So check out different groups and make sure the one you choose has the right sort of contacts that you are looking to work with. Remember, the real objective in networking is to gain access to your network partner’s contacts and not necessarily the partner themselves. Make sure that the group’s members are a good fit before committing.
- Make use of the Law of Reciprocity. Good networkers understand that time has to be invested in getting to know one another before sufficient trust has been developed and a referral can be expected. So if you fail to invest time with them, don’t expect any referrals. From a different point of view, according to the law of reciprocity, you are far more likely to get a referral once you have given one, or at least made a sufficiently valuable gesture.
- Be super clear and concise in articulating the value you provide, and concentrate on making a good first impression. If you are not, you could find yourself being passed-by or not taken seriously.
- Make sure you practice proper referral etiquette, or you may risk losing out on future referrals. When you get a referral, act quickly and keep the referrer in the loop in relation to the progress you are making. After all, he is risking his reputation in referring you, and is looking for kudo’s if you do well.
- Build a network of trusted referral partners, so that when you meet someone new, you can be resourceful by introducing them to people you know and trust. This will make them trust you more and have more confidence in you, and help you greatly in gaining another new source of referrals.
Of all of these, I think point No 2 is the most important. Most of the people that I talk to that express frustration with the outcomes they get from networking, are guilty of just turning up. If you are already putting in the networking time, doesn’t it makes sense to use that time as part of a bigger picture plan?
Remember that most business owners and practitioners are looking for connections. Be bold and step forward into their world.
“The new form of networking is not about climbing a ladder to success; it’s about collaboration, co creation, partnerships, and long-term values-based relationships.”
How to earn 1 crore rupees:
Let’s understand through an example how to make 1 crore in little over 2 years.
Making 1 Crore sounds like a lot of money if you’ve never earned high figures before. You’ve all dreamed of becoming successful, of being so rich. Well… it’s all about positioning and how valuable you are to the marketplace. If the marketplace thinks you deserve 1 crore or more, it will, in turn, give you that amount.
How many customers do you need to make 1 Crore? Any idea?
Well I can only say “Money is a numbers game!”
This network marketing has a varied amount of products ranging from Apparels to beauty to home and kitchen category and the opportunity to grow is immense. They are also foraying into other products like air-conditioners & footwear (but the information is still crude)
One can join this opportunity at a small amount of 13000 (their are costlier products too). You can choose what product to buy to join it and accordingly focus on the number of targeted customer avatars to achieve your goal.
The System and its mechanism:
“Giving connects two people, the giver and the receiver, and this connection gives birth to a new sense of belonging.”
This is a BINARY system. This means a member can join only 2 members below him. And the ones below can join only 2 below them.
And hence earning increases exponentially. In a binary system, a person who joins an MLM can recruit only 2 people. One on the left and other on the right. These 2 can also repeat the binary chain. But since it is only about adding 2 people, the success ratio in binary is at times better than other systems. Moreover, after a few levels deep, things work on autopilot.
The INCOME Potential:
As soon as you recruit 1 pair i.e. 1 on left and other on right you will get Rs. 1000.
Once your level down people recruits 2, 2 under them, you will earn 2000 as there are 2 pairs now.
Once their recruits make 2 of their own, the earnings will be 4000. Similarly, when they recruit just 2 people each you will earn Rs. 8000 and so on.
This work in a compounded manner.
How to make crores in roughly 2.5 years?
It is easy for a person to recruit 2 people under him or her initially. This is done with what is known as hot leads. If someone still face an issue, let us assume s/he recruits just 2 people in ONE MONTH. Similarly, their down-lines also take one month to recruit 2 people and so on.
This cannot be deemed to be a very hard target and let us see the earnings when someone recruits just 2 people in 1 month and the same thing repeats with his or her down-line.
Below are the month number and earnings:
Month 1: Rs. 1,000
Month 2: Rs. 2,000
Month 3: Rs. 4,000
Month 4: Rs. 8,000
Month 5: Rs. 16,000
Month 6: Rs. 32,000
Month 7: Rs. 64,000
Month 8: Rs. 1,28,000
Month 9: Rs. 2,56,000
Month 10: Rs. 5,12,000
Month 11: Rs. 5,40,000 (The earnings do not go infinite. There is a cap of 1.35 Lac per week per account)
Month 12: Rs. 5,40,000
Month 13: Rs. 5,40,000
Month 14: Rs. 5,40,000
Month 15: Rs. 5,40,000
Month 16: Rs. 5,40,000
Month 17: Rs. 5,40,000
Month 18: Rs. 5,40,000
Month 19: Rs. 5,40,000
Month 20: Rs. 5,40,000
Month 21: Rs. 5,40,000
Month 22: Rs. 5,40,000
Month 23: Rs. 5,40,000
Month 24: Rs. 5,40,000
Month 25: Rs. 5,40,000
Month 26: Rs. 5,40,000
Month 27: Rs. 5,40,000
Month 28: Rs. 5,40,000
Month 29: Rs. 5,40,000
Month 30: Rs. 5,40,000
(This earnings are indicative BUT DEFINITELY NOT IMPOSSIBLE)
This will keep on increasing.
But since this is NOT a ponzi scheme the earnings are not infinite. As can be seen in the above calculation, there is a cap of 1.35 lac a week i,e, 5.4 lac a month. This is just a way to earn. There are other ways and incentives by with a person makes money
[P.S : In some organisations they also have a weekly pay-out plans.]
Need of the hour
“Come out of Your Comfort Zone” — and remember sky is the limit.
Is network marketing good or bad?
I think this is a very common question that comes to mind when we get started with a network marketing career. Even I had this same concern — Whether I should do Network Marketing business full time or part.
Well! Network marketing is a great industry to get some serious exposure!
This is the only industry which makes an ordinary person to an extra ordinary success with Financial Freedom, Time Freedom, Peace of mind, Positive new friends, etc. In other words it makes you complete successful person. Network Marketing is nothing but a LIFE STYLE, Incredible, and Unbelievable Lifestyle.
In-fact, it can be a good career to pursue. You can do quite well if you build a team of hard-working individuals. The passive income that can be produced is vast. It is certainly a vehicle to reach financial independence.
Good sides of Network Marketing
- It is Highly profitable for everyone who puts in an effort, if the company structure is worked out properly
- It is a highly organised structure — everyone gets his ‘Business kit’ — usually you get training, education, guides to facilitate your performance
- Freedom to work the hours you want from the places you wish
- Its commonly online based job
- There is no Boss — one must want to achieve
- There is a potential to grow your team (and income at the same time)
- Personal Growth is a Company goal, so personal development is guaranteed
- Massive earning potential for those who reach the top levels
- Model itself is desirable for any business and it is recommended and executed by high esteem entrepreneurs such as Robert Kiyosaki.
Network marketing could be a pretty profitable venture if done right.
So are all network marketing or MLM businesses good?
Short, emphatic answer here: NO!
Building a network is the real deal in any business, yet it is not easy at all. It takes a lot of money, time and persistence, so if you think you will use network marketing to get rich in a week, you will have to change that mindset right away. Some of them even leave their current occupation & take network marketing career for full time. Now, this is totally wrong, because:-
- People you see on stage are making that much money, not within a few days or weeks or months. It took them a few years to reach that level. There may be some exceptions who start making Huge income quickly, but I am sure that doesn’t happen for long for them.
- Secondly, in your current profession, you are able to make the income which you are making today, is because of the hard work & the industry knowledge & skill you gained after putting many years of dedication into it.
The same was Network Marketing is also like any other serious business. You need the knowledge & skill, obviously with the same dedication to getting success.
If you are thinking to jump into a network marketing career as Full Time & leave your current profession behind & expect to make Huge income within a few months, in 99% cases it won’t happen.
- When you close your Primary source of Income & expect you match that income with Network Marketing income (without much experience into Network Marketing), then you are doing injustice to yourself & your family.
In such situations, people who get into it full time, in most cases tend to leave the business in the next few months or maximum a year (if you have that much savings to survive).
The reason is- when you have made a Network Marketing career as your bread & butter, then you want regular weekly or monthly income to survive. This won’t happen unless you are experienced. The mistake you will make is- you will try to make every person join your team. And you will lose Posture
You will even force your teammates to build the business fast. You will get desperate for business. And this will clearly reflect your prospects & your team. As a result of it, people will start avoiding you.
Slowly, you will question yourself- Is network marketing a good career? You will feel the business is not working, prospects are not joining, your team is not working, and Network Marketing is bad. Better to leave it & get into your old profession.
Bad sides of Network Marketing
- One must work to become successful, it’s not a good option for not self-motivated individuals
- It can be difficult to make sales, this largely depends on the product itself
- Like in any industry there are also bad actors, and these companies are giving the industry a bad name, therefore potential great performers may be skeptical and hesitant to join. In such a case a company losses and an individual who could have a great career
- Trying to involve friends and family to buy products and become team members can have a negative impact on relationships
- Some people end up investing capital in starting a network marketing business, then it appears they don’t have the stamina and drive to work.. Of course, this strategy won’t be successful
- It can be difficult to grow in an already very crowded market. If there are a lot of referrers already and your target customer is the same, it can be a problem that will require some additional creativity. This will depend on the particular company and channels\ ways of reaching targeted audiences.
What is the future of network marketing in India?
In all good terms, it rightly has evolved over time. Beginning as a part-time job, direct selling has now a proper path in career building opportunities. In a spam of the last five years, it has emerged as a viable source of income and growth in business marketing. Network marketing growth in India has drastically spiked in recent times.
A Supplement Income is today’s major need globally, especially in India. Except for the 1% ones from the top brass, people realize they are not prepared enough as the retirement age approaches. They have little savings than expected. Such savings may exhaust while building a house or some other family or social commitments. Most don’t have any major investments to start a business, thereby relying on Social Security and pensions. So many liabilities, so many dreams are still left pending. People end up spending the post-retirement on pensions and the savings from the job. And at that stage, life is just a compromise with so many dreams left unfulfilled.
The Growth potential is incomparable, unique and unmatched. The company with a management like Glaze Trading India which follows ethics and guidelines set as per government and regulatory bodies, are the best companies to work with. Top that up with leaders who are duplicating and educating the same, you know where to start from. Talking about the potential of networking, we have some best examples of networking in different sectors. Networking structure is successfully proven globally. With time, we have seen lots of changes in the networking style.
In the current scenario, network selling companies is quite popular for generating a lot of money with flexible working. There is a great buzz about it in the market. Again, this business requires low startup cost, free training by the company, grasping advertising benefits etc. One can earn a lot by encouraging people to join and convincing them to buy a product. Currently, it is one of the fastest growing businesses among passionate, hardworking and dedicated people.
Network Marketing is on the verge of entering its golden phase and this is the best time than ever before to jump right into it, if you haven’t yet.
Network Marketing business is a key factor for digital India or Startup India mission. Direct Selling entities need for implementation of guidelines at the state level and also need relaxation under Foreign Direct Investment (‘FDI’) policy. To promote Network Marketing business and direct selling Indian Govt approved 100% FDI Policy. So we can say that the future of network marketing is very good in India and this sector will give lots of jobs opportunity. You can join any best direct marketing companies in India to start extra income.
Through some research it is estimated that the Network Marketing turnover in India will reach a pinnacle of INR 645 billion by 2025. It has also impacted various social and economic factors- Such as:
- Passive Income Opportunities: Network marketing business will offer opportunities for its massive customer base to earn passive income and micro-entrepreneurship is promoted. It is estimated that around 5 million distributors are engaged in the MLM business to earn passive income.
- Established Women Empowerment: Network Marketing business opens up the space for the women empowerment and established a strong future for the women to balance their time and work more effectively.
- Opportunities for SME’s: Direct selling companies come up with the launch of new products and depend on the SME’s to enhance the features of their products. This provides opportunities for SMEs. the companies invest in the right SMEs to promote their MLM business with the new products.
- Enhanced Employment Generation: As we have already seen that it provides passive income for the marketers, it also provides employment opportunities for a large number of people. Most of the time MLM companies interact with various vendors to accomplish operations like packaging and distribution.
- Initiated Social Responsibilities: Network marketing companies are outstanding in supporting social responsibilities. The projects carried out by some significant MLM companies play a crucial role in resolving the social impacts.For example, Amway’s Sunrise project and Avon’s Breast Cancer crusade.
- Contribution to the Government Sector: Since the MLM companies generate a huge tax to the government. It helps in improving the Indian economy with its huge revenue. It also contributes to direct and indirect tax.
Therefore, it is evident that the MLM industry has excellent potential to develop more success in the future of Network Marketing in India and we can conclude that growth of network marketing in India is very promising.
Business networking gives business people the ability to collaborate with other experts to help them grow their businesses or improve their professional lives. The benefits of business networking include:
- Opportunities to help other business owners
- Receiving assistance from other owners
- Additional knowledge and perspective
- Communication with like-minded individuals
(This business is just a numbers game, highly successful people know this and master that and they make a fortune from this industry)
- The best way to become a successful network marketer is to help others build their down line.
- Like your sponsor, be available for people you recruited into the business. People like to hear success stories.
- Share your experiences with other prospects. Helping others will build the depth of your business; this is how the number of people under you grows exponentially. Most MLM companies pay “infinity” bonuses, entitling you to commissions on all down line purchases.
- Do not quit your job to start a network marketing business. Build your network marketing with your current income until you are earning enough to support yourself.
- Be sure to check out how long your organization has been around. You chance of success greatly increases if your organization has been around 30 or 40 years — like some MLM companies.
With all the points mentioned above, you now know how much networking can do and how important it is for you and your business. So, what are you waiting for? Check out all the social and business events around you and make time to join those events to network and grow your brand and business.
“Network Marketing gives you the opportunity to face your Fears,Deal with them, Overcome them and bring out the winner that have living inside you and is an excellent second income opportunity”
If you feel this is your one of the desired/ hidden niche then go ahead and dive deep and generate your passive income.
“So, its time to wake up and smell the coffee”
You will not regret your journey to success within few years.
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