network of people

What I am about to say may cause offense to some people. However, it is important for me to tell the truth about network marketing. I do not believe in sugar coating anything because not telling the truth means that you could end up losing tons of money. I am here to help you to make money in network marketing. You must take the information seriously if you are serious about making money. Not to do so could cause you to go broke. You have been warned…

Because you are reading this post, you will benefit from years I spent gathering this information and learning through experience and pain, the real truth about successful network marketing. The truth is that corporate downsizing means that, in this day and age, there is no such thing as job security. The truth is that if you do not accept the truth about network marketing, you may as well go get cozy with your boss in your office and pray that you are not left in the unemployment line with the way that the economy is going. Let us look at a few of these “Principles.”

 

Principle #1: Network Marketing Is A Mentoring And Teaching Business

The prevailing belief, unsurprisingly so, is that network marketing is simply about direct sales. Selling products to people.

No….. The truth is, SUCCESSFUL network marketing is about teaching and mentoring people toward THEIR success. NOT your SUCCESS, THEIRS!

The bottom line is that you need to find a good business with a good product. Once you have those under your belt, and you know and understand the business, it is all about mentoring and coaching your team members.

Hearing of THEIR success should be like music to your ears! Help them to achieve their dreams and your success is inevitable. Do you know what active listening is? It is the ability to listen empathetically. To really engage with a person and understand where they are coming from by repeating, paraphrasing and gaining clarity on what they are saying. Network marketing is about listening and understanding in this way, so that you can help people to achieve their lifetime dreams and ambitions.

The secret to my success is mentoring! Coaching other people to success adds meaning and substance to my life. Aside from the fact that I am genuinely helping people to achieve their goals and ambitions, in helping them, ultimately, I help myself.

By ensuring the success of others, my success takes care of itself. Network marketing is probably the only truly spiritual business in the world because of this fact. In network marketing, you do not have to compete with others in order to succeed. The business world is a dog-eat-dog world and competition are what drives it. In network marketing, this need to outsmart the other is neutralized by the fact that you succeed by helping the other, by helping your teammates, they succeed and so do you.

There are a few other home truths to ponder. People who insist on doing everything themselves rarely become wealthy. Those who have the patience to coach others are more likely to become wealthy.

Why is it that some people become wealthy doing network marketing while others do not? The answer is really quite simple. Successful people in any field, really take the time to figure out what makes other people tick. They take the time to work out what motivates other people to do things and why people make the choices that they ultimately make.

Before you go on, you must understand some things about yourself. Before you can mentor others, you must mentor yourself. YOU must take the time to sit down and figure out what exactly motivates YOU to be in this business? Why are you interested in network marketing? It is only by understanding your own motivations that you can truly understand, appreciate and empathize with the motivations of others. Once you are in this state, you can truly mentor others.

Take some time and sit down with a pen and paper. Write down the first thing that comes to your head when you ask yourself WHY. Sit and contemplate it and write down another two reasons. Contemplate those and expand them further until you really get to the heart of the matter and truly understand your own motivations for entering this business.

If you cannot take the time out to do this, you might as well quit now. I may sound harsh, but I can tell you with complete certainty that if you do not understand your own motivations, if you do not know your very personal reasoning behind doing network marketing, you will quit at the very first hurdle that comes along and trust me, there will be many.

Your reason ‘why’ is what will keep you going when times are tough. You will refer to it over and over again. It is not about money, your why will be something about who you are fundamentally, as a person… When you know and understand your own why, it will make it much easier for you to understand the why of the next person you are trying to convince to join you in your business, as one of your team members.

If you understand and empathize with their why, you will be much more likely to be able to sell to them than any of the hundreds of other home businesses trying to get them on board.

Going back to the money and how the hell does he know that it isn’t? Look, when you really break down the motivation for doing anything with regard to making money, money is not really the WHY, it is not the driving factor.

The driving factor is always something bigger than money. Money is simply the tool which is used to get to the WHY. Let me give you some examples, these will help you to pinpoint your own why. Try and add to the list yourself.

• You want to live in a bigger, more comfortable house.
• You want to drive a sports car.
• You want to spend more time with your spouse.
• You want to spend more time with your kids.
• You want to learn a new hobby or craft.
• You want to travel more.
• You want to help others to change their lives.
• You want more adventure.
• What would you most like to give to those whom you love the most?
• What things make you get emotional?
• What things make you tick?

Learning to mentor is first about discovering the dreams of those you are mentoring. Discover what motivates a person to get up and do something and you are really onto a serious winner. Discover what people dream about and you can help them create hope and goals. Goals cause people to become more focused in life and focus helps to push people into action.

Dreams create hope. Goals create focus. And focus creates fuel that propels us to action.

You teach people in this business to rediscover their dreams. The difference between their perceived past failures and their future success is this moment. Teach them to work toward their desired future without fears and doubts and there is no limit to their earning potential. They must never compromise on the lifestyle that they wish to create for themselves and their family. It is their birthright to live an abundant life. It is the power of your mentoring that will help you succeed in this business.

Principle #2: Network Is A “Relationship-Driven” Business

People join people. They don’t join companies. They don’t care about who the president of the company is or how well the company is being run. You will be surprised to learn that initially, they don’t even care about the product. The only thing they care about is you because they can relate to you. They can trust you. No matter how good the products or services, no matter how well-managed the company, you will struggle and go broke if you do not know how to build relationships.

You build relationships when you genuinely care about people. Relationships are developed when you help others to grow physically, mentally, spiritually and financially. You may forget big names in history and politics, you always remember the names of your teachers who helped you through school, friends who gave a helping hand when your chips were down or people who made you feel appreciated and special.

You have to have empathy, and you have to be yourself. You will fail if you try to be someone else other than yourself. The three things that destroy relationships are when you try and gain control over others, be self-righteous and judgmental. Help others with all you have got and the universe will conspire to help you succeed. Practice abundance. It is the essence of relationships. Learn to listen and you will learn more about yourself and foster lifelong relationships.

There is only ONE way to build your network that will last you a lifetime…… It is to build relationships. To achieve that, you need to become a mentor with a servant’s heart. When you do, people will ask you to, PLEASE sponsor them into your business. If you build your relationships right then, your network will last forever. If you treat your business like just another income source or like a salesperson then you will be trading long-term stability for short-term profit. Your network will collapse.

Direct marketers sell products to the consumer directly. Direct marketers measure their productivity in numbers. Their philosophy is “buy or get out of the way”. To Direct Marketers, “relationship-marketing” has a bottom-line VALUE. If they can help they will like to automate relationship-building. Looks 100% real, but it’s plastic. If you think like a direct marketer you will fail in this business. If you build relationships and become a mentor with a servant’s heart you will succeed.

It is simple. If you and I work together, we will create an effect much greater than the sum of the parts. Network marketing (MLM) is not a numbers game, it is a relationship game. Relationship building is the process. It is network marketing.

Principle #3: Network Marketing Is A Recommendation Business And Not A Sales Business

Network marketing means sharing and transference of your enthusiasm for a product or service. It is a business that works on the recommendation of a product that you use and are excited about. When you see a good movie and have enjoyed watching it, you speak about it to all your friends. You transfer your enthusiasm to your friends. They go and watch the movie because of their trust in your judgment.

If they enjoy the movie, then they will further spread the word to other friends and the viewership of the movie grows. Unfortunately, you don’t get paid for spreading the word. Network marketing works in a similar fashion. The only difference is that you get paid for spreading the word.

The fact is you have done word-of-mouth advertising, everyday, since you were a child. You told your mom & dad what you loved and wanted, your favorite ice cream, jeans, baseball bat, books, movies, restaurants, all kinds of things. You’ve been promoting products since about age 5. But you’ve never got paid for it. The only difference is that, with network marketing, you get paid every time you recommend someone the product that you love to use. The best part of this business is that you will get checks from this business 25 years from now for a product you

recommend to someone today! Isn’t that Isn’t that incredible?

More enthusiastic you are about your product or service and more you share it with others joyously, the greater will be the size of your PAYCHECK.

Principle #4: You Must Have Belief In The Product To Transfer Your Enthusiasm

In order to transfer your enthusiasm, you must have a BELIEF in the product or service. If you do not have a belief in your product it will show in your body language, in your eyes and behavior pattern. Your heart and mind have to flow in one direction if you are to succeed in this business. If you are artificial you will be found out.

The business will not work for you if your head and heart pull in different directions. If you wish to sponsor someone into the business, then you must believe that network marketing works. Believe that it is one of the best business models to make large amounts of passive income within a remarkably short period of time without financial risks associated with traditional businesses.

How does one build the belief system to succeed? The most important thing is to find a great company, with a strong management and a unique product. Can you recommend ten movies to a friend? Your friend will be confused and will not watch a single movie recommended by you.

You must believe that the product you are promoting is genuinely beneficial to people who use it. To build the belief, you must use the product and find out the benefit for yourself. This is not a selling business. This is a recommendation business based on faith people have in you. You cannot fake this faith by not using the product yourself and try selling it to others.

There are people who believe that the product is just a vehicle to build their network marketing business. Any product will do as long as it brings in money. Such thinking will result in selling a product rather than building a network marketing business that is built on good faith and belief.

Another important thing about belief is that initially when you join a network marketing company your belief system is weak. You have not used the products sufficiently. You know very little about the company you are promoting, and you do not fully understand the business model. Most importantly, you are not making any money so you don’t have the confidence. Initially, you have to make considerable effort to learn everything about the business, products, and company. In other words, to build your belief system you have to train yourself extremely hard.

The easiest way to build your belief system is to find a mentor. This is someone who has achieved success in the business. You must be mentored to become a mentor. What you need is to be a part of a mastermind group who wants YOU to succeed. You want up-line leadership support available when you need it.

There is a saying that if you want to make million dollars then mastermind with millionaires. If you want to make $100,000 a year, then be in the company of people who make $100,000 a year. For most people, their yearly income is the average of their 5 people with whom they spend their time. If your 5 closest friends do not have the desired income or goals you aspire for then do not EVER listen to their opinions on business!

If you want to succeed then change your circle of influence. Mastermind with people who are rich and successful and your life will change. This does not mean that you have to dump your friends, just change your circle of influence. Spend more time with your mentor and mastermind group.

Let us say you want to invest in real estate. Would you ask the person who rents one home or a person who owns 25 homes, 14 townhouses, 2 farms and 8 commercial properties? To build a real estate investment business, why would you listen to people who had never invested in their lives? You have to find the right people from whom you can take advice.

In order to build your belief system, you have to be in the company of those who believe in themselves and have succeeded in the business. If you cannot meet your mentor in flesh andblood then watch videos and listen to tapes of people who have achieved impressive results from the business and whom you admire.

Your business will grow in the same proportion as the strength of your belief system. If you are not finding success in your network marketing business then, please check your belief system first. Are you convinced about the product you are using? Are you convinced about the company you are promoting? Are you receiving the right kind of training and support? Are you working with the right kind of mastermind group?

If your belief system is not strong then build your belief system in the product, the compensation plan and company you are promoting. In case you are not happy then find something you can believe in with your heart and soul. Without strong belief in what you are doing, you are doomed to fail at the very start. If you wish to succeed, then build your belief system first. Let your mind and heart speak as one unit.

Once you have belief in your business then sponsoring will be a fun-filled experience. Your belief will take you from being an exceedingly shy, who is afraid of speaking to strangers, to a market leader who is ready to “share” his product, service and business opportunity with confidence!

Once you have the BELIEF, you will never be defensive about your company or business opportunity. You will create a positive and an emotionally surcharged atmosphere where people will want to be members of your team. You will attract people like a magnet to your business. This electrifying atmosphere is only possible once you learn to speak from your heart that is backed by a strong belief system.

The emotional impact that you produce arises from your inner relationship with your product and program. It does not come from some kind of formula. Emotional power is – thoughtlessness. It bypasses your thinking process, for it has become you. It is your belief system and not something you consciously do or think about, at the moment.

People who succeed in this business is due to their deep belief in the product, the business plan, the company and the people behind the company. They cannot reach the height of success if their hearts and mind did not speak the same language. People converted to their cause because they are emotionally and intellectually honest.

The power of emotional commitment comes from an inner conviction and prospects sinse the sincerity even before they speak of committing them to their cause. Once you are convinced regarding the integrity and uniqueness of your product, you will love to share it with others. You can’t pretend that something is good when it isn’t. When you share your beliefs, you will succeed. Your emotional integrity plays a vital part in your power of personal persuasion. When you have that quality, your prospects will listen with more than just their ears. Your emotions will bypass the prospect’s defenses and get to his heart.

Jacob Boehme said it well about 350 years ago. His words still ring true today.

“For realness, the exterior of our life needs to be the signature of the interior.”

Your internal belief system will be strong when you sincerely believe that it’s right to help people become financially secure. It’s right to help people discover a way to better health, personal growth and increased happiness. No wonder, the right kind of network marketing companies can build up loyalty and emotional attachment as few other businesses can! If you don’t feel that kind of inner power, then you need to ask yourself if the product line you’re marketing is helping you build that emotional power and belief within you.

You cannot sell anything effectively unless you are sold on it yourself. Once you’re sold on the products, believe me; you will never have to sell anyone. The key is to become a user of a great product. Once you start using the product that shows results, you will start sharing the benefits of your experience.

These benefits will fire your inner emotional power. You will then communicate facts. You will share values through emotions. If your listener concludes that your product has great value, it will be because you’ve shared your emotions and supported them with essential facts. That’s a powerful combination, one that lies at the source of the marketing power that you wish to acquire. You can have it. You will have it.

It is important that your emotional power be the servant of intelligence. The closer you are to the unity of truth, the more power you will generate. It is only when knowledge and emotions combine and when heart and mind are one, then great success is achieved. Once you develop the belief system, you won’t need any artificial means to find prospects. You will attract prospective associates to you with your warmth, conviction and natural enthusiasm, all of which flow from the center of your being. None of this has to be artificially produced. That is fun!

To achieve this type of belief system, you must have a product or services you really believe in, a compensation plan that generously rewards you and an upline and company leadership that is dedicated to your success. If you have these, then you will have SUCCESS THROUGH POSITIVE EMOTIONAL POWER.

Principle #5: People Fail Because They Do Not Apply Leverage In Their Network Marketing Business Correctly

Every network marketing company boasts of a compensation plan that creates passive income through leverage. Yet, majority of people who join the business fail because they do not understand how leveraging works.

Most people fail because their focus is on Recruit, Recruit, Recruit, Numbers, Numbers, Numbers! It is a race against time and others to recruit before someone else does. Now you have hundreds of recruits who don’t know where they are going. You don’t have time to either build relationships or train so many of them. They are left helpless on their own. They start dropping out in hoards. You are back again Recruit, Recruit, Recruit……… This is certainly not leveraging your time or effort.

There are marketers who can recruit dozens, even hundreds, of people through the motivation of greed. When it comes to something sensible and worthwhile, they shy away from becoming involved. This is because they think network market is just a numbers game. They tell their new recruits that they will have spillovers in their downline. That there is no work involved. Lies, Lies, Lies and more Lies……..With this kind of thinking, they will attract recruiters who think the same way. No wonder, a culture of ‘no work’ sets into the organization and the network collapses. They are now back to Recruit, Recruit, Recruit through more greed and lies.

If you have to leverage then, you have to Sponsor, Sponsor, Sponsor……. and …. Retain, Retain, Retain…….. There is a BIG difference between a recruiter and a person who sponsors. A recruiter is interested only in numbers. The sponsor, on the other hand, takes upon himself the responsibility for the growth and the welfare of the person he has sponsored.

PEOPLE WHO TREAT THEIR NETWORK AS NUMBERS NEVER SUCCEED IN THIS BUSINESS. TO SUCCEED YOU HAVE TO REMEMBER YOUR NETWORK CONSISTS OF HUMAN BEINGS WHO HAVE HOPES, DREAMS AND DESIRES. THEY HAVE INADEQUACIES, PROBLEMS AND FINANCIAL NEEDS. THEY NEED YOUR HELP TO SUCCEED. IF YOU ARE WILLING TO COACH AND HELP THEM WITH A SERVANT’S HEART, THEY WILL DELIVER RESULTS BEYOND YOUR WILDEST DREAMS!

What is the best way to develop a solid marketing force that never leaves your network? Sponsor a few key people at a time. Give them your full time and support. Build relationships. Help them to succeed in the business and train them to do the same. You have to build your network market on the right principles to succeed. There are no shortcuts. Are you willing to take the responsibility to become a sponsor? If so then, please read on.

There are people who will tell you “Just recruit a lot of distributors. You’ll get at least a few good ones that way”. Few leaders will emerge along the way, and your work is done. You can then have all the passive income you need. Leaders don’t emerge in business. You have to find talent and develop them. Once in a while, you can get lucky, but that does not happen very often. You can’t leave your business to chances if you wish to succeed.

The bottom line: Leverage is mandatory for wealth creation, and you will NOT become wealthy without it. You are either exercising the power of leverage for yourself, or you are serving as leverage for someone else, and building their wealth for them.

To apply leverage, you have to find a network marketing company that has an exceptionally strong training and personal development program. Please look also at the credentials of the person who wishes to sponsor you. Is he committed to your success? Does your upline have requisite support systems for your training and success?

Avoid companies that boast of an automated recruiting system to increase numbers. You never build a network by merely having a recruiting system. Your network will collapse. To increase retention, you have to have a proper support organization and training that builds relationships. Do not join a company that focuses on recruiting and numbers.

Next important thing is that people must see a value in the product. Many network marketing companies fail because they do not have a product that can sustain the business. You can’t fool people at all times. Network marketing is a relationship business that is built on good faith and recommendation. You just cannot build a strong belief system based on a weak product. Leverage can work only when retention rates are high.

Lastly and most importantly, people want a fair compensation for their effort in the business. There are network marketing companies that distribute only 10% to 30% of the total revenue to the distributors. There are companies that distribute over 50% of the Group Volume (GV) to their distributors. No wonder people stay in the business because they make money.

Some compensation plans are heavily loaded in favor of the ‘heavy hitters’ or the people who reach higher levels in the business. These plans do not adequately compensate the new distributors for their effort in the business. This results in new distributors getting disillusioned and dropping out. This is particularly bad for business.

For leveraging to work, retention is the golden key. To succeed in network marketing the business model or the compensation plan has to work correctly. The initial cost of joining the business, risk involved, return on investment (ROI), and the breakeven point has to be properly balanced out. The new distributors will stay in business if they can recoup their initial investment in the shortest possible time and start making a profit from the business.

Leveraging, which is the basic principle behind network marketing, can work only if the network you create has the power not only to sustain itself through high retention rate but also to expand itself exponentially once it is created and set up correctly. This can happen if there is the right kind of training and support systems, belief in the quality of the product and a fair, equitable and generous compensation plan in which new distributors can start earning money in the shortest possible time.

Principles # 6: You Will Be Required To Spend Some Money In Order To Generate Money In Your Business. This Is Regardless Of What You May Have Been Told. Ethical, Real And Legal Business Is Not Free.

The majority of people out there will tell you that the only money you need is to enroll yourself, buy the products, use them and recommend them to others. Nothing can be further from the truth. If you want to succeed in network marketing, some money will be required to cover your traveling, communication and promotional costs. These like any other successful business need to be budgeted and recovered at the least possible time.

I agree that the startup cost for a network business is extremely low when compared to a traditional business because you work from home. You don’t need to buy and keep stock. There is no need for warehousing or retail space. In most instances, the parent company gives you a back office to look at all the accounting details and order the products you need to sustain your business. However, you will need to promote your business if you are to succeed.

There are network marketing companies and affiliates who make millions of dollars selling promotional material to you at exorbitant costs. Their focus is on selling distributor kits and advertisement materials such as audio tapes, books, DVDs and brochures to their distributors. Many distributors fall prey to this and buy hundreds or even thousands of tapes at a time to use in mailings. Even in quantity, some of these companies charge reps $3 or $5 each for DVDs that cost 30¢ to duplicate! Such companies are driven by greed and ego. They make a killing on the backs of their reps!

You have to be extremely careful in not joining these companies. In most cases, such companies do not have a worthwhile product to sustain the sales. They then start generating money through the sale of promotional materials.

They will continually ask you to throw your hard-earned money to them. Please be warned of such companies. Legitimate expenses are OK if promotional materials are sold at a low cost or extremely low profit. The aim is to make money through the primary product and not the ancillary promotional materials. When the focus shifts to make money from the promotional products then the company, and you as their business partner are bound to fail.

Promotion is crucial to the success of your business. It is critical how much money you spend towards promoting your business. Each dollar spent in promotion must have a tangible outcome for your business or you will go bust.

Principle #7: Creating A Successful Income Producing Network Marketing Business Is Not Anywhere Close To As “EASY OR EFFORTLESS” As It Appears

There are people who will tell you “WE’LL BUILD YOUR DOWNLINE FOR YOU!” or “WE HAVE AN AUTOMATED SYSTEM THAT WILL RECRUIT WITHOUT ANY EFFORT FROM YOU”

You may have come across programs promising an easy way to recruit associates. These programs suggest ways that guarantee success for yourself and the people you recruit. When you’ve read their material, you perhaps would have thought it was virtually impossible for anyone to fail. If you have been in any of these programs, please see your commission check. It will never lie.

There is no recruiting system that can do the entire job by itself. On a legitimate program, there is no money in just recruiting people. No matter how clever the computer program or how exciting the compensation plan looks, there is work to be done if you have to succeed.

NO BUSINESS CAN EVER BUILD AUTOMATICALLY WITHOUT ANY EFFORT FROM YOU. IF SOMEONE IS SUGGESTING THAT THEY HAVE AN INCOME OPPORTUNITY THAT CAN “DO IT ALL” FOR YOU THEN RUN AWAY AS FAST AND AS FAR AS YOU CAN BEFORE YOU LOSE YOUR MONEY.

There is no such thing as a ‘Millionaires Free party’. Nobody is going to FILL UP your bank account out of goodwill! There were people who came to me and offer me opportunities which I don’t have to do anything at all … not even advertise. “We will do it all FOR you…” they said. This is like running a car without gas. Ask yourself this question, and answer it honestly: “Can anyone make you rich without you doing anything at all?” If you are struggling with the answer to that question, I can help you. The answer is a BIG NO.

There are MLM companies especially on the internet who make such preposterous claims. They appeal to your greediness and lazy human nature. Try to go back after one year and find these companies. They’ve vanished with your money into thin air without a trace. So, please beware.

If creating a network marketing business from scratch is anywhere near as easy, effortless or inexpensive as many “gurus” attempt to make it appear, we would be earning million dollar of passive income every year. So get real! Roll up your sleeves and get to work. There is BIG money to be made but you have to work for it. The BIG difference is that, the money you will generate is a PASSIVE income for life. You will just work once and get paid over and over. Your effort will be rewarded for a lifetime. This is an intelligent work.

People spend a fortune and years getting trained to become doctors and engineers. They then get into jobs that pay them by the hour with little or no long term security. Even if you just put a quarter of that time and effort, you can still build an unimaginable amount of passive income. This will give you and your family a lifetime of financial security.

Please read correctly: NETWORK MARKETING and you will never go wrong.

Principle# 8: It Takes Time In Network Marketing Business To Make BIG MONEY.

There is no chance of making any money in the network marketing business if you throw the towel after just a few weeks or maybe months of not receiving favorable results. It takes time to master any sort of techniques that will bring you income. People who go “opportunity hopping” rather than to commit to learn on how to market one opportunity correctly will remain broke.
I met many “network marketers” who gave up opportunities when they met the slightest amount of problems. They want to make easy money. They jump from one opportunity to another hoping that they will hit a gold mine. They continue to sing the same song and dance the same dance, each time with a NEW company name behind their act? The truth is– such people have ZERO INTEGRITY.

By ‘opportunity hopping’, these people sabotage their OWN ability to make money regardless of what business opportunity they join. They also confuse the people whom they sponsor with their uncertain state of mind. Either you have to be consistent or learn to accept being broke.

NETWORK MARKETING WORKS ON COMPOUNDING PRINCIPLE

UNFORTUNATELY, MOST PEOPLE DO NOT COMPREHEND HOW THE POWER OF COMPOUNDING ACTUALLY WORKS.

Albert Einstein, one of the finest minds in the history of mankind, once remarked, “One of the most amazing phenomenon of our universe is the power of compounding”. It is equally remarkable that so few fully understand either its power or application.

For easier understanding let us take an example. Suppose you start your network marketing business by sponsoring one person in the first month. Imagine too that you teach/help this person to sponsor another person. Let us say this teaching and sponsoring process takes one month. In a month or two, if you personally sponsor one more person and the person whom you sponsored in the first month also sponsors another person then you will have 4 people in your team. In the 3^rd month, you will have 8 persons in your team through sponsoring and training. If the same process is repeated month after month, your organization will grow in the following manner:

Month 1: You + 1 = 2

Month2: 2 +2 = 4

Month3: 4+4 = 8

Month 4: 8+8 = 16

Month 5: 16+16 = 32

Month 6: 32+32 = 64

Month 7: 64+64 = 128

Month8: 128+128 = 256

Month9: 256+256 = 512

Month10: 512+512 =1024

Month 11: 1024+1024 = 2048

Month12: 2048+2048 = 4096

If you observe the table you will find that, after three months, your team has only 8 members. Nothing exciting. You might be subsiding your purchases. But wait…..in sixth months, your organization will grow to 64. You will be earning a little money to sustain your interests but, NO BIG DEAL. Your life and financial future have not changed.

On completion of 9 months, your team has now grown to 512. Now for the first time, you are seeing the fruits of your labor. There is a renewed understanding that the business actually works. And the fun continues …… in the 12^th month your organization is taking a life of its own. It has now grown to 4096. Each member of your team is trying to secure his/her financial future.

Your organization is not only big but growing at a faster rate without much effort from you. Your passive income is flowing in ever greater amounts each month. You feel rich for the first time in your life. The essential fact is that, during the 12 month period, you have only sponsored 12 people into the business and trained them to conduct the business properly. The remainder of your network has been created through the power of leverage.

In the first month, your organization had just two people in it. In the twelfth month, it grew by 2048 people for the same effort on your part. This is the phenomenal power of compounding in network marketing.

If compounding and growing a network is so easy then why don’t most people succeed? The reason is exceedingly straightforward, but most people don’t get it ………. The power of networking and compounding takes time to take effect. 

The Tunneling Effect

In network marketing, when you are starting out, all the hard work takes place upfront. You have nothing to show for your effort. This is called the ‘Tunneling Effect’. There is darkness all around and a little hope. This is where most people give up because they do not see any results for their sacrifice, hard work and effort.

Most people who joined the network marketing came from jobs where they are paid by the hour. They are accustomed seeing a direct correlation between the hours they work and the compensation they receive. If they work 5 hours, then they expect 5 hours pay.

In a network marketing business, one has to think like an entrepreneur. When an entrepreneur starts a business, there is a gestation period. He knows that profits will flow in due course of time if the business is set up correctly.

An entrepreneur works one hundred hours and gets no payment. Once the business is set up, he can work five hours and gets paid for a thousand hours.

For employed people who enter network marketing have to go through a shift in mental attitude. Initially, network marketing does not pay you by the hour. If one is full of patience and perseverance at this stage, then there is not only light at the end of the tunnel but full glory of the sun. Anyone who became rich has passed through this dark tunnel. There is no escaping it.

In network marketing, you have to learn and teach people to take a long-time approach to the growth of their business. It takes time to grow organizations. It takes time to create depth and ongoing duplication. It takes time to develop a team and create serious residual income. Those who can develop and maintain a mindset of an entrepreneur understand this and succeed. Those who fail to grasp this simple truth fail in this business.

IN NETWORK MARKETING YOU ARE LIKE A ROCKET THAT BURNS 90% OF ITS FUEL AT THE TAKE OFF STAGE. ONCE YOU ARE IN ORBIT IT IS A CRUISE CONTROL. IT WILL TAKE TIME AND EFFORT ON YOUR PART TO SUSTAIN AND GROW YOUR BUSINESS IN THE INITIAL STAGES.

Warren Buffet, one of the richest men in the world, remarked about his wife when he was building his wealth “Susie didn’t get very excited when I told her we were going to get rich. She either didn’t care or didn’t believe me – probably both, in fact.” You can read the biography of any wealth creator, and you will find in it the universal truth of the ‘tunneling effect’ and how they wanted to quit but didn’t. In network marketing, you will never make it if you quit before you reach the critical mass. That’s where the real fun starts.

Critical Mass

If you persist and as time goes by– the critical mass kicks in and things get better. Your network becomes self-perpetuating. It starts growing under its own steam. The challenge at this stage is not to change course. The problem with the human mind is that, it loses focus remarkably quickly. It gets attracted to other thought and ideas and will start looking at other options. The key here is to maintain focus.

Compounding is boring — b-o-r-i-n-g. It is boring until the money starts to pour in. Then, believe me, compounding becomes very interesting. In fact, it becomes downright fascinating! Compounding if allowed to continue will take your wealth to unlimited levels.

Ninety percent of the people dropped out from network marketing because they do not fully appreciate the power of compounding. They get discouraged when they faced the tunneling effect and quit. They don’t understand that light is just around the corner. Dogged persistence is a great quality to have if you want to succeed.

Compounding Only Works through Time

The great thing about network compounding is that anyone can do it. Compounding is the royal road to building your network. To compound successfully, you need the following: perseverance in order to keep you firmly on the path of creating a successful network. You need time, time to allow the power of compounding network to work for you. Remember, compounding only works through time. Time, in fact, is the most powerful element in the process of compounding. Nothing comes close to it.

It takes time, effort, practice and patience to become skilled at network marketing and build a business. Don’t quit when the success is around the corner. Above all, stay FOCUSED.

Principle# 9: Ninety Percent Of The Time When People Fail In Network Marketing The Fault Is With The Network Marketer Rather Than The Product Or The Company

The wind of fortune blows evenly on everyone. It is the same wind that strikes the sail of each one of us. People who are skilled and know how to trim their sail reach their destination safely and in the shortest possible time. On the other hand, people who lack the basic skills do not how to make use of the winds of fortune, will get lost in the wilderness and never reach their destination.

This is the reason why some people succeed in network marketing whilst others fail with the same product, company, support system and the compensation plan. The reason is simple……..it is not the opportunity that is the problem; it is the lack of skills to make use of the opportunity.

A bad workman always complains about his tools. This is very true about network marketing. People who fail in network marketing always complain about the company, the product, their upline support……… THE PROBLEM IS ALWAYS THE NETWORK MARKETOR.

BLAME, BLAME, BLAME………………EXCUSES, EXCUSES, EXCUSES……… They live below the line……. they never look at themselves as the cause of failure. If they look closer at their own attitude then they will understand why they failed.

Network Marketing is a great concept. Hundreds of thousands of people are making a fortune out of this opportunity. Robert Kyosaki calls it the perfect business because it allows people to shift from employee/ self-employed mind set to the business quadrant mindset. This is the first crucial step towards financial success. In network marketing, the startup costs and risks are extremely low as compared to a traditional business. The returns, on the other hand, can be as high as a big business. So it is not the business concept or opportunity that is a failure. In most cases, it is the network marketer who is the real problem.

Majority of the people fail in this business because of lack of belief in the network marketing model. They fail because they lack the belief that they can succeed. They fail because they are unable to make a shift from the mentality of an employee or self-employed to that of running a business.

They take advice from their friends, brother-in-law or Uncle Tom about the business opportunity. They do not speak with the people who are successful in the business. They keep company of those who are failures in life. They are not teachable and not willing to learn or be mentored by successful people in the business.

Such people will hop from one opportunity to another-they are chasing the rainbows. They want easy and quick money without any effort on their part. They can have the best product or opportunity in the world yet remain broke if they don’t take the effort to educate themselves in the art of network marketing and believe that they can succeed.

You succeed in network marketing when you are willing to take responsibility for your business. If you keep waiting for your upline to build your business, it will never happen. If you look at your tree in the network, you will find your position is at the very top. You are the CEO of your business. You have to be a leader to lead your team. The moment you assume the mantle of responsibility, your business will succeed.

The problem with network marketing is that there is loss of knowledge as it filters down the organization. Person A sponsors person B into the organization. A has 100% knowledge regarding the product, company and network marketing business. He mentors B who manages to absorb only 75% of the knowledge. Now B sponsors C and mentors him. C absorbs only 50% of the information. When it comes to D, there is a huge problem because he gets to know only 25% of the knowledge.

To overcome this problem, each person in the organization has to take responsibility for upgrading his or her knowledge by getting information from more than one source. Later in the book I will show you how we can overcome this problem so that the best quality training can be imparted without any loss of knowledge.

Most people who join the network marketing industry literally have no clue on how to do marketing. I am dead serious. Please don’t take that personally because I’m not trying to offend anyone. It’s just the truth. (Most of the time it’s just that people are unaware of what they’re doing and what they’re teaching others to do).

Why is this? It’s because network marketing is a business that’s designed for the “average person”. 95% of people who get involved in network marketing have no real foundation in effective sales and marketing. The stuff they pass on to their equally unknowing team members can only be described as pure garbage.

To succeed, you have to take some time, effort, patience and practice. You have to learn. You have to make a mental shift. You have to be mentored. Above all, you have to ACT. If you do all this you will start having small successes along the way.

In time, you will have more success. This will start building your belief system and your business will explode. It is always the first step to succeed that is very crucial. The first step has to in the right direction. These are small building blocks that have the power to change your destiny. This is not a miracle business. On the other hand, it is a very simple business. It is so simple that anyone can do it. The only hitch is that it starts with you………..Are you willing to take the challenge?

Principle# 10: To Succeed In Network Marketing You Have To Learn The Art Of Selling

This appears to be something different from what I said earlier wherein network marketing is not a direct sales business but a mentoring and relationship business. I hold the statement to be true, but it is in relation to the emphasis on direct sales in network marketing. Selling, when seen in a larger context is a very important ingredient to succeed in life. There is a thin line that you need to understand.

People lie to you when they say that there is no selling involved in network marketing. So at the time of sponsoring, they will put a smoke screen and deceive you that there is no selling involved. This is because most people hate to sell. They fear rejection that is associated with selling. They would run away if they have to sell anything. They don’t want to hear the truth and, therefore, they are told lies.

The truth is,  ‘Selling’ is the most important life skill you need if you want to be rich and successful’. Money is only when you sell an idea, product, or service in the market place. Without selling, there is no money or success. In fact, selling and promoting is required in every aspect of your life if you want to succeed.

When you go to a job interview, you have to sell your job skills and personality. You have to continuously promote yourself and your ideas to get recognition and promotion in life. Even in attracting a member of the opposite sex, you need to sell your beauty, charm and virtues. Most people do these things subconsciously, but the smart ones understand the importance of mastering the art of selling and promotion to get ahead in life.

“What makes people rich is skills. And the number one skill of an entrepreneur is the ability to sell.”

ROBERT KIYOSAKI

This is a blunt truth that you have to understand if you want to succeed in network marketing. You have to master the art of selling, the concept of network marketing and also to promote your company and products.

Building relationship and mentoring are important parts of your promotion. People should believe that you can support them in their effort to succeed. You have to sell and promote yourself to be a leader.

SELL! Sell, sell, sell, sell is a four-letter word. That’s the word everybody’s afraid of! But? Sales = Income.

99% of the time people fail in network marketing because they have been told at the onset that no selling is involved. This is partly true because no direct sales are required to succeed in network marketing. They still need to sell the concept, the strength of their company and product. Above all, they have to sell themselves so that others have the confidence to join the team. Most people become a victim of the lie that no selling is required, and they teach the same lies unknowingly to the people they sponsor. Without SELLING, there is NO BUSINESS and no wonder they do not succeed in the network marketing effort.

To succeed you have to be honest to the people you sponsor. Even if you teach them some basic marketing and selling skills, their chances of success will improve a hundred fold. If they go around with the belief that no selling is involved, they will surely fail.

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