Network Marketing and the New Economy

It’s time to take another look at network marketing and the new economy.

“In times of change learners inherit the earth; while the learned find themselves beautifully equipped to deal with a world that no longer exists.” – Eric Hoffer

The economy has changed, folks. The traditional job is no longer sufficient. Retirement accounts are being drained dry. Savings is a complete and utter joke. If you had money in an IRA or 401(k), chances are you have already learned this the hard way. And Social Security? Does anyone actually believe that system is going to survive?

The days of “Go to school, get good grades so you can get in to college, get a degree, and land a career you can retire from in 40 years” are over! Most folks get out of college with massive student debt, regardless of the degree. They start out behind the 8 ball. Some stories are worse than others.

It’s time we learn and embrace network marketing and the new economy which comes down to creating cash flow. (Unless your goal is to rely on your family or the government for your retirement).

Network marketing has entered the main stream. Quite a few publicly traded companies are utilizing the network marketing model to get their products and services out to the market place.

Why? It just makes sense!

Imagine YOU are a business owner. You’ve got to make some decisions about how you are going to get your products out there for consumers.

One option would be to pay a popular celebrity (most likely costing you millions of dollars) to endorse and promote your products.

Another option is to launch incredibly expensive marketing campaigns utilizing TV, print, internet media and hope that you reach your market AND they want to buy from you.

Another option is to reach out to people with influence and have them simply ask their circle of influence to try the products for themselves.

That last option is faster, MUCH less expensive, more efficient, and quickly capitalizes on the power of social networking. (Friends who refer their friends).

So how do YOU create cash flow with the network marketing distribution model?

When you become a distributor for a network marketing company, you enter in to an agreement to refer customers to them. When those customers buy, the company pays you a commission based on the sales volume generated by your referrals. With many companies in the network marketing model, you can get paid every time those customers order. In many cases, this can go on for years. This is what we refer to as residual income.

Like a songwriter who writes a hit song, you can get paid over and over and over again for work you did once a long time ago.

And if you are a strong leader / communicator, you can also build a team of others like yourself that want to refer customers. Essentially, you can build a network of product distributors and customers that extends worldwide. When you do it right, you can build a strong business that continues to pay you month after month, year after year, even while you’re on vacation.

Common objections usually include accusation of network marketing being some sort of “pyramid”. Wake up! Find a business that doesn’t have a corporate structure shaped like a pyramid.

Naysayers will say, “But everybody at the bottom is working so that money flows to the people at the top!”

Doesn’t your traditional job work the same way? The CEO is getting paid based on the work being done by everyone below them in the organizational chart.

Doesn’t your church work the same way? All that money you donate every Sunday morning is flowing up the structure to cover salaries, missions work, etc…

Your bank works the same way. That money you deposit (the money YOU worked for) is being used to cover fees that go to pay the salaries of the bank tellers, managers, vice presidents, etc… AND the bank is loaning out YOUR money at a MUCH higher interest rate than they are paying you. Let that sink in. YOU work for your money. You deposit your money at the bank. They loan your money out and charge a LOT more than they are paying you for the privilege.

The word “pyramid” gets thrown around a lot like nobody had ever heard of it or used that structure before Amway. It happens in businesses, schools, churches, banks, governments, clubs, sports teams, etc… all over the world.

The learners are discovering that ignorance is very expensive.

They are learning that the wealthy have known that using leverage through what is shaped like a pyramid is a powerful tool for creating wealth.

They are learning that the wealthy may have actually been the ones telling them “pyramids are bad” while capitalizing on the power of the pyramid all along.

Meanwhile, the learned keep repeating the same old mantra AND getting the same old results.

The world has changed. Let go of the outdated ways of thinking. Take some time to learn and understand network marketing and the new economy.

The rich do keep getting richer.
The poor do keep getting poorer.

Why? They both keep doing the things that put them there!

Will you learn new ways of thinking and doing in order to change your situation or will you hold on to the ways you’ve already learned that aren’t getting it done?

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About The Author: Brian Rooney is a coach and professional in the Houston area.