You know, last year around this time of the year, I would not have liked to talk about network marketing.
A long time ago there was a pyramid project on my island, Curacao. A lot of people participated in this project. They invested a lot of money, life savings, all they had. They talked to people convincing them to participate. Those other people joined the pyramid. All the time there were new people joining the pyramid project. Giving, well investing, money every month.
However, within no time they lost everything. You can imagine how they felt and how the feeling about pyramids, network marketing, and trust in others became.
In my environment, this pyramid project became the synonym for network marketing. It happened a long time ago but the feeling is still there.
What is Network Marketing?
Network marketing is a way to earn an income by selling a product or service to people. You can recruit people who will sell the same product or service to other people. When they do, you will earn again. How much you will earn depends on the compensation plan of the company you are working with. This is something completely legal and normal.
When you join a network marketing company you can buy a starter kit sometimes for as little $200. Those starter kits contain most of the time, training, and advertising materials. A question that may pop up is ‘Why so cheap?’. This is possible because of the low overhead involved. Through the internet, but especially by word of mouth the marketing is conducted. This way the costs can be lower than with traditional retailing business systems.
Network Marketing is also called MLM, Multi-Level Marketing. You are creating levels. Your customers are your first level in your network. The customers of your customers are your second level in your network. And so on.
Is a pyramid something else?
A pyramid is a form used in Math. In network marketing, they call the forming of levels a pyramid, because when you make a drawing of the levels it looks a lot of like a pyramid. Look at an example here.
Is a Scheme good or wrong?
A scheme is a word that can be used as a noun and as a verb. Surprisingly with very different meanings. Let us see what the dictionary tell us about this word.
As a noun
“a large-scale systematic plan or arrangement for attaining some particular object or putting a particular idea into effect”
For example a building scheme for a house. When will we build the foundation, who will we hire, when this, when that. It is like a plan of action.
As a verb
“make plans, especially in a devious way or with intent to do something illegal or wrong”
There are network marketing companies that are not for real, that are not obeying the rules about network marketing. Sometimes there is not even a product or service. The company makes promises that are not real, not possible. They exist for less than a year and then disappear. In everything in life, there are the good ones and the bad ones. Education, information, and experience will help us to distinguish which is which.
Is Network Marketing a pyramid?
Network marketing is a way to get your products or services to your customers by asking other people to do the same as you are doing. This is a very good way to build a business in the way that Robert Kiyosaki (AudiobooksNow.com) defines a business. He defines it as a system that generates an income for you without having to do all the work yourself. Building a business is not easy and statistics say that at least 80% of all new business fail in the first year they start and another 80% closes before reaching 5 years of existence. In 2018 Robert Kiyosaki published a book called Business for the 21st Century. This book is all about network marketing.
Building a network marketing system can be done at a very low cost compared to a lot of other types of business. Another benefit is the comprehensive training you get from the company. With IML there are so much training, calls, conventions, and other forms of training being offered, that it is very overwhelming at no extra cost (conventions excluded). The best thing about Network Marketing is that it can be done part-time and it can be done from home. By recruiting downline distributors you are making passive income. Along the way, you will learn communication and sales skills as well as leadership and business skills.
Drawing the levels of a distributor in Network Marketing you will get a pyramid form as we talked before. Is that something bad? No, of course not. There are so many pyramids around us. Most of the time we participate in them without knowing and we do not fight it. In fact, we are honored and glad that we are part of it.
For example, the organizational chart of the university where I work has also the form of a pyramid. The bad thing with my university pyramid is that I will never earn more than the head of the university how hard I work or how good I am. In a network company, I can earn more than my upline, depending on my input, my effort, and abilities.
Before joining a network marketing company there some things to look at and evaluate before joining. Let me know if I can help you with this.
I am not afraid anymore to join a network marketing company. Information and education are crucial to making decisions that is why I can make better decisions now than a year ago. I hope that the info shared here will help you to get a better understanding of network marketing and to look if this is something for you.
IML is offering Forex Trading education but it offers you also the possibility to build your own network and earn a passive income. A passive income will give you more financial room, make things possible and bring you closer to your financial dreams.
Realize too that by building a network for you, you are helping other people too to earn a passive income, to bring them too, closer to their dreams. There is no greater satisfaction than helping others.
Watch the video about building your network with iMarkets Live!