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Why
Network Marketing is so powerful
The basic model
Understanding
Network Marketing is made easier by first looking at
a basic model of organization. This basic model is
used very successfully by business's,
governments, the military, and many other
organizations to structure themselves.
Consider this, it would be impossible for one person
at the top of any medium to large organization to
efficiently train and manage all staff, so a system is needed that allows delegation of responsibility.
A simplified business structure shape would look
like a pyramid, as on each 'level' the number of
people increases.
'Level 1' might include a Chief Executive Officer,
who would delegate to the senior
managers on 'level 2'.
The senior managers on 'level 2' would delegate to the junior managers
on 'level 3'.
The junior managers on 'level 3' would delegate to the
supervisors on 'level 4', and this delegation would
continue throughout the whole organization
Even the military who have 100's of years of
experience deem it impossible for one person to
efficiently manage more than five people at a time.
The system described above is extremely efficient
for building a stable organization, but it has one
major flaw for anyone who is intent on 'getting to
the top', in that your way is blocked by those already in
position above you on 'the ladder of success'.
The Network
Marketing way to a fairer system
As can be seen from the 'basic model' explained
above, the structure is sound and efficient, but it
lacks a mechanism to allow anyone to 'climb the
ladder' quickly.
This is not the case with Network Marketing, people
can, and do, build an organization larger
than the person who introduced them to the company.
You also have the huge advantage of being an
independent distributor of the company you've
joined, giving you access to products, marketing
material, training, support, and many tax advantages.
Important - Although you are an independent
distributor, you are never alone because there is
always someone who can help you.
Crunching the
numbers
The undeniable strength of Networking is in the
NETWORK. A famous millionaire once stated that he would
rather have 1% of 100 peoples income, than 100% of
one persons income. It's called leveraging.
Leverage is what makes people like Richard Branson
of Virgin fame, and Bill Gates of Microsoft, and
many others, so financially advantaged. It works
likes this: -
Using Bill Gates of Microsoft as an example. The
company employs an estimated 25,000 employees.
Multiply that by 40 hours per week for each
employee, and you reach a total of 1 million hours.
So Bill Gates is being paid on the productivity of
25,000 employees, equalling 1 million hours - each
week!
Compare this to the hours that you work as an
employee - If you work full time you might manage
80,000 hours in your entire lifetime!
A quick
calculation shows that Bill Gates is being paid on
the efforts of 12.5 employee lifetimes - each
week!
The good news is that you can do the same,
albeit in a more moderate way,
and in a
very fair way that also gives everyone in your
organization the opportunity to do the same.
As an example let's assume that you have only 100
people in your organization, and they're each
averaging 10 hours a week in building their
business.
You would have a leverage of 1,000 hours each week,
plus your own hours.
I won't labour the point as I'm sure you can
see the awesome power of leveraging, and the key to
Network Marketing.
Exponential
Growth - What's that?
Maybe the explanation
'Crunching the numbers' above, leads you to
think that it will be necessary for you to go out
and find as many partners as possible, but that is
absolutely NOT the case.
Apart from the challenge in
'getting the whole world' to join you, it does not
fit the 'Basic model'
of an efficient business structure explained at the
top of this page.
To be highly successful you must understand the
simple concept of Network Marketing. Your success
will come from working with a small number of
serious people who also want the success that you
want.
A study of all the very
successful long term network marketers shows that
none of them have personally introduced more than a
handful of people into their own business.
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An
example of Exponential growth is the world
population which is increasing in leaps and
bounds, but to see how exponential growth is
so powerful for a Network Marketer look at
the figures to the right.
Let's assume you sponsor 2 people into your
business, and then with the help of your
sponsor and this training, they each sponsor
2. The result is that you now have 4 people
in your team.
Those 4 would become 8, and those 8 would
become 16, and finally those 16 would become
32. |
2
x2
4
x2
8
x2
16
x2
32 |
In this simple example above, your business now has
32
people, but you only needed to find 2.
See how this
figure explodes when you sponsor 1 more person (the
table on the left), and 2 more people (the table to
the right):
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2 +1 = 3
x2
x3
4
9
x2
x3
8
27
x2
x3
16
81
x2
x3
32
243
<+211+> |
<
<Notice
the huge difference, just by sponsoring 1
more person personally. Your next level
now increases to 9, the next level increases to
27, and the next level increases to 81, and
your next level increases to 243.
That's a staggering difference of 211 more
people in your business, just
for sponsoring 1 more person.
Next see the astonishing difference of
992
more people in your business,
for just personally sponsoring 2 more.
> > |
2 +2 = 4
x2
x4
4
16
x2
x4
8
64
x2
x4
16
256
x2
x4
32
1,024
<+992+> |
Reactions to the table above varies from "So what"
from people who don't 'get it', to "I'm not going to be
able to sleep tonight" from those that see the huge
potential of financial freedom, and quality of life
obtainable from building a Network Marketing
business.
True, the success won't come overnight, this is not
some kind of lottery, it's an incredible business
opportunity that will reward those who have the determination to
see it through without quitting.
Simplifying it
down to basics
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The secret to building a successful network,
is to use a simple formula of - Sponsor &
Teach - Sponsor & Teach - Sponsor & Teach.
The reason for this is that unless the
people that you sponsor are shown how to
build their network, 98% of them won't know
what to do, and your business will
fail.
Your network needs to self duplicate itself
automatically. The only way to achieve this
is to build at least 3 levels deep, only then
can you consider that your network is being
duplicated.
Referring to the diagram right - Duplication
is achieved Only by teaching David how to
teach Sarah, to sponsor Betty.
If anyone asks what they have to teach, just
tell them to follow the information in this
article.
Keep repeating this simple formula, and
everything else will fall into place
naturally
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As
was said
at the
beginning
of this
article,
this is
only a
broad
overview,
but it
still
contains
the core
essence
of how
this
system
works.
The next and final page will show you just how
simple this system really is, and how it works in
practice.
Click for - See how simple this system is to drive |
