This proven and relatively simple model seems to “baffle” people IN and OUT of our profession…

We’ve all heard some form of the following statement:

In 2010 the Direct Sales Association reported over $125 Billion dollars in sales (proven model; that’s a huge number) and this was done by over 75 million men and women around the world (global and tons of people earning part-time and full-time income).

Therefore, the point isn’t whether or not it works but rather HOW do YOU learn to succeed in Network Marketing.

Network Marketing, MLM, Multi Level, Referral Marekting, Home Based Business (you choose your favorite term), is a business where you’re offered a product(s) and the chance to earn income by selling (or sharing for you sensitive types) that product and by building a “network” of people that do the same as customers and business builders.

The amount of money you make will be based on the amount of product volume that “flows” on a monthly basis through your team.

I use to own 3 mortgage offices with about 40 loan officers and a real estate franchise with another 50 or so agents, so let me use this traditional model in real estate and business to explain the foundation of network marketing.

Let’s say you could hire 100 full-time and professional salespeople to work for you, giving them each a geographic sales territory and a sales quota of $10,000 in sales per month in commissionable income to reach one million in gross commissions. (100 people X $10,000 = 1 million).

Of course, this is gross and before splits, overhead and other expenses but a good illustration; let’s keep going.

Network Marketing is a form of direct selling (like Real Estate) but there are some key differences. As a Network Marketer, you would shift your thinking and strategy in order to achieve that same 1 million dollars in sales.

Instead of full-time, professional salespeople with high sales quotas (that many agents and loan officers rarely hit month in and month out), Network Marketing is based on satisfied customers, many of whom do not like to sell at all, but they are happy to tell others about the above-average products they use on a regular basis.

These customers (and/or Brand Partners) are not full-time or part-time employees. They are some-time, spare-time, part-time (some are full-time) independent army of volunteers with no sales quotas and no geographic sales territories.

They “work” with whom they want to and when they want to…

Network Marketing is not really about personally selling a bunch of product but some Brand Partners do. It’s more about about using, recommending and selling the product and finding a lot of others to do the same.

Hmmm…could it be this simple? Yes….!

The key to generating income is to refer and recommend others to your company (and products), who then do the same and then they refer it to people you may not even know but they basically follow the same pattern over and over again.

So, Network Marketing is a lot of people each doing a little bit each and “connected” through this network that creates volume through product consumption and sales for the creation of a business and income.

Remember my Real Estate example?

100 Real Estate agents/Loan Officers (Professional salespeople) each sell $10,000 in sales (commissionable income)

OR

5,000 Independent people that choose to use and refer products of $200 each as an example (use a $100 and sell $100)

In both case, you generate $1,000,000.00 dollars (one million) in monthly volume.

In the Real Estate business model you may pay out about 80%+ in commissions and benefits to the sales force and then have TONS of fixed and floating expenses and although this gross sales number may seem huge; it is probably closer to an adjusted income of $50,000 a month. Not too shabby; right?

In fact, pretty good as long as you have large resources with great start-up and ongoing capital, can deal with 100 salespeople, the corresponding staff and that you are fine with the ongoing overhead, legal and financial liability as well as the responsibility this model requires. I’m not being critical here as I did this for 20 years and we’ll save economic downturn, plunging real estate prices and more for another post.

That same Network Marketing example is for someone that would take the business serious enough to equate to having a successful “traditional business”. One million dollars in monthly sales in this model may be $50,000 to $100,000+ per month in income BUT with no huge start up capital (come guys and gals….$200 to $1,000 to get into a business is peanuts in comparison), no employees, no rent, no major liability, huge overhead, etc.

…BUT it would require effort, perserverance and learning the skills and leadership to reach these levels.

This is why an effective marketing system, a training platform, support, a super stable company and good coaching is vital to your success…

Let’s conclude….

If you’re capable of committing, learning and growing a traditional business as I mentioned above, then you can most certainly build a huge check in Network Marketing and many have…(you define huge; not me as $3-5-10k a month can change the lives of many and we haven’t even discussed the freedom this model affords. My wife, twins and I lived 2+ months on the coast of Mexico in 2011…try that with a job!)

Learn the foundation of the business model, then simply pick and choose your level of participation.

Ahhhh. Free Enterprise!

In other words, start wherever you are today.

That could mean choosing a stable and long term company that has been around at least 5 years (sorry, start-ups and pre-launches are too risky in my opinion and I don’t care about the ground floor deal that pays 210% commission with a triple binary forced worldwide matrix and double payout on Tuesdays…Forget about it!).

The company you select should be long term and not the flavor or idea of the month (you don’t want to re-build…trust me). Ideally they manufacture their own products (less than 20% of companies in Network Marketing do..) and the products should be something that you like, that makes sense AND…AND that has mainstream and broad appeal, (men, women, young and old…the masses).

There ARE differences in compensation plans, so get the details as the difference can be huge if you miss this part and finally “ask” the person that may be your enroller about their system, team buiding, support, training and can they actually help you? If it makes sense go for it; it it doesn’t, find one that does…

Do you want generic training to build ANY Network marketing business?

Click HERE for: How to “DO” Network Marketing (online/offline, lead generations, tips, resources, strategies and more)

Al Rodriguez or Coach Al Rod was a traditional entreprenuer that spent 20 years as a successful mortgage banker, real estate franchise owner and fee coach for those professions while having a PLAN B income in network marketing dating back to the Mid-1990′s (he looks so young though!) and when the economy took a major downturn and Coach Al Rod experienced one too many burnouts, he then turned his PLAN B into his PLAN A strategy and for several years now has dedicated his professional, full-time effort to team building and showing others how to “do” the business of Network Marketing.

He’s currently featured as only one of two leaders in his company’s training and leadership platform and actively growing a team in English and in Spanish with team members in several countries. He makes his home in coastal, Carlsbad, California with his wife and young twins and although he’s a serious entreprenuer; he takes plenty of time for the beach, the park, mid-week outings and more in order to have fun, enjoy life and the Rodriguez family loves to travel often.

You can connect with Coach Al Rod on http://Facebook.com/CoachAlRod (FanPage offering Q and A coming soon) or send inquiries, questions or request for information to: CoachAlRod@gmail.com (See posts below for more insight as well)

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