Types of Network Marketing Companies
I have been involved in network marketing companies on and off for over 15 years now. In my experience with different marketing companies, cutlery, finance, nutrition, etc. I have had so many questions that nobody has ever been able to answer. more times than not people have always referred me to a webpage or a book or they simply don't know the answer!
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Having been saturated in the industry full time now for over 6 months, I've learned more about network marketing than I ever have! It's been such an incredible learning experience: I know now that I was floating before... and I don't know how I even managed. In fact I didn't manage! I just hoped that this industry would do something for me. This industry has helped me tremendously in raising my confidence, energy levels, taking massive action, etc.
Now I realized that the Multi-Level Marketing (MLM) industry can't actually do anything for me unless I work for it... if I do the bidding of the market... and I work towards what the market expects of me. If I want to make money in this industry I have to understand the network marketing beast for myself first. So, I have assembled a summary of the question: What types of Network Marketing Companies exist out there?
There are 4 types of network marketing companies:
1. Scams: everybody has seen MLM companies that are scams, heard of MLM companies that are scams, or been involved in MLM companies that are scams. There are scams everywhere in every prominent industry. But that doesn't mean that every MLM company is a scam! that's ridiculous! In fact most of them are not! lol Amway was the first MLM company accused of being a pyramid scam. They are also the most prominent example of the pyramid scam because Amway IS the first MLM. Amway is the mother, the father, and the grandparents of all network companies that have every existed.
2. Party Plans: for these companies, you invite everybody over house and you market candles, avon, vitamins, etc.,... and even sex toys or passion parties someone once told me! These companies are great models if you want to make 00 to 00 per month. However, if you want leveraged residual income, the party plans will not cut it.
3. The Big Boys: now these MLMs are the one's that are well established companies like Herbalife, Amway, Melaleuca, ect. These companies have made a lot of money and are still making a killing... you are sure to make 00-00 per monthif you work really hard and you are consistent. The problem with the Big Boys is something we in this industry call MARKET SATURATION. They have been involved so long in the industry that their peak has passed and they have leveled off on the growth scale. Not much room for growth.
4.The Holy Grail: I call this last category of MLMs The Holy Grail. This can give you the most leveraged residual income possible. There are new opportunities coming out all the time. Each one innovating a new way of paying people. Each one! With these 3 elements: being in the right place--at the right time--with the right leadership, you can make a life changing financial experience. There are many companies involved in this category including herbal, vitamin, nutritional, cellular, travel, shopping, etc.
Let's focus on the largest parts of The Holy Grail companies: Nuritional --> The problem with the nutritional companies is that out of the 5000 network marketing companies out in the world today, 4800 are selling some kind of vitamin. that's 4800 out of 5000 MLM companies. That's over 95% of the total world of network marketing. There is too much competition.
Technology --> as time passes the value of technology decreases. A computer that I buy today that costs 00 I will be able to buy the same computer for 0 next year! The prices in technology become cheaper quickly over time. There is a price pressure that is always pushing down on the market and thus the company. The value of the product decreases as does the longevity of the company!
So what company should you go for? How about a company with great leadership, an almost endless amount of financial backing, an absolutely up and coming rock star! Which brings me to AMA.
Why is American Approved (AMA) Energy Direct Services such a great company to be with?
1) Great leadership and financial backing: You have to have rock solid leadership in a company to ensure a solid base from which to work. This comes even before a great product. You also must have great financial backing. Financial backing even comes before a great product to market. Why? A company with poor financial backing and poor leadership will not survive in today's world of network marketing. AMA has the top million dollar marketing leaders, and top CEO multi-million dollar backing.
2) A product that people will buy even if they don't build a business. People buy products and residual income comes from people that buy products. It does not come from distributors. What happens is that people begin as distributors and end up being loyal customers because the product is something they cannot do without!
3) There has to be a great compensation plan: What two things do you need to have a successful comp plan? You need an upfront residual income and a back-end residual income
In the history of MLM there have been 2 successful comp plans: 1. coded bonus network marketing plans, and 2. binary commission structures
Although the coded bonus network marketing plan has been successful in the the technology sector in the 90s, the binary commission structure has cut the biggest checks in the industry. We will focus on this structure.
The Binary Plan Network marketing is a business where you start small. You get 5 people who help get 5 people, those 5 people in turn help 5 people who help... you get the point. When do you do that 7 levels down you have 78000 people! That's a lot of people. That's how this industry grows and how it works.
Taking massive action is necessary! That is how binary works. You must enroll now in order to be successful. The earlier you get in, the more people you are able to enroll. The more people you and I can help reach success, the more success you and I get to enjoy. YOUR SUCCESS IS MY SUCCESS IN THIS INDUSTRY!
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