Network Marketing Internet Business – The New Era Has Begun

Network marketing is also known as multi level marketing (MLM). The name itself suggests that marketing for a product or service is done at multiple levels. It is done by forming a huge network of business associates with their own web sites who promote the same product or service. The network is at multiple level hierarchies of associates or promoters. The business associates also market their own web site to attract more associates under them.

Any internet based business can profit immensely using network marketing or MLM. In a network marketing internet business, associates are salespeople who are independent and are not paid any salaries unlike the traditional sales people in the marketing and sales departments. They are called distributors and are representatives of the product or service provided by the business. When ever they make a sale through their ‘organization’ which is typically a web site, they are paid a commission.

Another major distinguishing factor between traditional marketing and multi level marketing is that in MLM, the sales people or associates develop their business by building up a client base for the product or service and/ or by attracting another layer of associates below them who in turn do the same. Thus, a multi level network falls into place and each associate in the network is attracting clients as well as more associates. The network constantly grows like this.

Each associate earns a commission for all the direct as well as indirect sales made by him. Direct sales would be selling of the product or service by the associate. Indirect sales refer to the sum of all the sales made by the multi level of associates who come under the first mentioned associate. The commission checks earned by some associates are quite huge. Once a proper network is established, generating income for an associate is almost automatic! Depending on a business’ compensation table, associates can take home big commissions.

Some of the MLMs that exist are illegal and they are referred to as pyramid or Ponzi schemes; these are unlawful in several countries across the world. It is sometimes difficult to distinguish true MLM schemes from illegal ones. MLM some times goes by the name of affiliate marketing or business franchising. Some businesses provide training and marketing materials to the associates; many businesses expect these costs to be borne by the associates themselves.

There are many compensation plan types that businesses follow to give their distributors. Some of them are Unilevel plan, matrix plan and binary plan. Unilevel plans are the simplest and are based on the associate’s level in the hierarchy with respect to the associate who actually got the product. A matrix plan is similar to Unilevel but there is a cap on number of associates in the first level. In the Binary plan, an associate has to get only two associates under him; he immediately qualifies for getting a commission. Hybrid plans combine more than one type of plan.

There is a lot to take in when choosing a network marketing internet business. A good idea to follow is to have a coach or someone that can point you in the right direction. Visit Adrian’s website for more helpful tips on choosing a network marketing internet business.

Selection Vs Direction

As I have said many times before in this column it really doesn’t make any difference what you buy – stocks, funds or indexes – it takes smarts to know when to sell. Direction of the general market is more important than selection of any equity.

Everyone from the multimillion dollar analyst on Wall Street to your broker to your barber thought he was a financial genius from 1982 to 2000. Anyone using the stock page from the Wall Street Journal as a target could have picked a winner even if his aim was terrible. Just hit the page anywhere and buy that stock. We were in a secular bull market. History shows these last about 16 to 18 years and , unfortunately, are followed by a secular bear market of about the same period of time.

During the up time the case for “the market always goes up” becomes crystallized in their brain so that any set back is viewed as a “correction” that will be soon be overcome and the market will be making new high prices again. Unless you are willing to limit the amount of loss from those high prices you will give back all your profits and many times even more.

The price of a stock will fluctuate for many reasons usually involving how much profit they are making or anticipate making in the near future. During the past 5 years we have seen tremendous ups and downs in many of the major issues. When a “good” company’s stock goes down it doesn’t mean it is a “bad” company, but it does mean you will be losing money if you hang on to it. The reason you bought the stock was to make money, not lose it, so you must be willing to sell when it goes against you.

Knowing the general direction of the overall market is the key to selling success. An excellent indicator is the S&P500 Index. In the last 5 years it has gone from 920 up to 1550, down to 800 and the recent price is 975. What a ride! I have written in previous articles how to determine market direction so you will be in cash with your profits in the bank while the market is going down.

Let’s compare what some of the “good” stocks have done during that same 5-year period. AT&T from 40 to 100 to 20; Merck from 60 to 95 to 40, now 60; General Electric from 25 to 60 to 22 and, 30; Coca Cola from 88 down to 38, now 45. And there are thousands more that fit this category of losing 50% or more.

These are all “good” companies, but you can lose your shirt, pants and underwear if you stick with the Buy and Hold philosophy. By placing a trailing stop loss order of 7 to 12% as your stock advances the stock itself will tell you when to sell. Whatever stock or fund you select remember to exit when the direction changes.

Business Growth Step Three: Marketing Your Business Effectively

Once you’ve carefully chosen your niche(s) and crafted the list of products and services, it’s time for the third step in the business growth process, you need to fertilize it to help it grow. The best way to fertilize a business is through marketing and public relations. If you don’t know the difference, marketing is all of the stuff you pay for, public relations is what you are able to get basically for free. I urge you to think about ways to get public relations, free air time, free ink, and ways to get people talking about you and your business.

Today, this is significantly easier through the medium of social media. Establishing a significant, powerful and positive presence in the online world means you’ll be getting talked about by lots of other people. This can be a very effective public relations tool.

Marketing is the thing that you pay for. That’s television ads, radio ads, Facebook ads, it’s sending out direct mail. Interestingly enough in today’s day and age with all of the attention placed on social media and the internet, more and more people are trying to market that way where there’s clutter. There are more than 239 million websites out there, so you are competing with a lot of people and you can compete effectively, but direct mail is now a great way to get your message across because there is less and less of it. This is why the postal service is having problems and thinking about eliminating Saturday delivery because there is not as much mail!

If you craft a nice looking piece, a piece of lumpy mail, put something in the envelope that makes it bulky so that your prospects want to open it, you’ll stand out from the crowd. Using effective direct mail tactics, in conjunction with online and other marketing media options you are able to drive prospects to your email lists to be able to market to them less expensively after that. These are a few ways to fertilize your business and really get it to grow.

Before you begin however, make sure that you have a unique selling proposition: why are you different? What’s special about you? What’s special about the way you offer your products and who you are. Tell your prospects why they should care about working with you and why they should care about your business.