What are MLM Marketing Networks? – Everything You Should Know About Them

Test your knowledge…Do you know what Robert Kiyosaki, Steven Covey, Donald Trump, and Tom Peters have in common?

That, in addition to being millionaire authors of best sellers, they are promoters for entrepreneurs in marketing networks.

And what do Citigroup, L’Oreal, Mars, Remington, Jockey, and Unilever have in common? All are conglomerates that have interests in marketing networks.

What about Warren Buffett, perhaps the most notable investor on Wall Street, and Richard Branson, owner of Virgin Airlines? Three things in common: they’re multimillionaires, they’re efficient, and they both own network marketing companies.

Tom Peters, the author of the business classic In Search of Excellence, described network marketing as “the first truly revolutionary change in commerce since the advent of ‘modern’ marketing at Procter and Gamble and Harvard Business School more than fifty years ago.

Network Marketing – The Best Kept Secret

Fortune magazine described it as “An investor’s dream…the best-kept secret in the business world…an industry with steady annual growth, liquid cash flows, high returns on invested capital, and prospects for long-term global expansion.

Don Failla, a network marketing guru, argues that 100% of people don’t know how marketing networks work, and 90% of those in networks don’t know them either.

Objective Is To Build A Network

The most important thing about marketing networks is not product sales or earning income. Sales and revenues stop when you sell at the end of the day. Networks’ objective is not to sell a product but to build a network. Therefore, you want an army of people who represent and share the same product with others, i.e., their followers.

MLM

Marketing networks, also known as MLM, have existed for a long time, and have been criticized many times by 100% (people who do not know the business. One of the most common mistakes is confusing them with illegal pyramid schemes, and the well-known Ponzi scheme.

Remember Bernie Madoff? With many unlawful schemes, there is no physical product, only money passing from hand to hand. These pyramids are held for a while with the support of investors who hope to make money quickly, and in the end, the last ones to arrive lose their investment. The Ponzi scheme is punishable by law in many countries.

The Securities & Exchange Commission, known by the acronym SEC, regulates marketing networks in the United States. It also regulates one of the largest industries, such as insurance companies.

Looking objectively at business reveals that almost all organizations are a type of pyramid or Ponzi scheme. Governments, the Vatican, corporations, foundations, associations, and trusts are organized as pyramids with different functions at different levels. Therefore, not all pyramid models are wrong. Network marketing is in this niche, and today, you can apply the technique to most products. Here is an interesting jewellery-based MLM review that delves into this topic of what’s real and what may be seen as a scam.

Starting A Business

This blog has many articles about various startup models. The most common approach to getting a startup is to have the business exist with the owner’s initial investment and the money earned from sales. The company attracts customers using success stories; therefore, its organic growth is usually slow on the uptake, and many startups survive the first five years.

Startups have “angel” investors who invest in the industry to grow it faster, reach optimum sales, and attract offers to buy the company. These angels invest with conditions, so the entrepreneur or startup will pay the investors when the company eventually starts. For these angels, the transaction is similar to investing in the stock market with variable risks.

Generally, these two models are beyond the reach of ordinary people because, in addition to the money needed to start a business, there is a lack of education in this subject and the necessary skills, such as goal setting, agenda planning, and time management.

On the other hand, many professionals with successful careers lack the knowledge to build a business.

MLM Business Knowledge Base

Marketing networks are exceptional here, as they open the doors to all types of people regardless of education, business experience, ethnicity, nationality, or age. It is an opportunity to achieve the financial freedom available to all.

Dr Charles W. King, a Harvard Business Administration graduate and marketing professor at the University of Illinois, Chicago (UIC), teaches the first graduate-level courses in Network Marketing. He is also the author of The New Professionals, “The emergence of network marketing as the new profession of relevance.”

Dr King has compiled an assortment of facts that demonstrate beyond any doubt that in the 21st century, MLM will be an essential vehicle for those seeking to self-employ, own a business, and be financially independent.

But building a business, as Kiyosaki explains in his book The Business of the 21st Century, is not easy because many people do not have the necessary skills, and there is no choice but to develop them. These skills are acquired in the real world through marketing networks, such as developing a successful attitude, managing time, setting goals, managing money, and overcoming the fear of rejection, among others.

One thing, indeed, says this author: You can design the plan you want, study as much as you like, and learn, but the only people who succeed in marketing networks are those who act: today, tomorrow, and every day.

At the end of the book, chapter 21, he tells us that network marketing systems are established to allow anyone to do so. It is open to anyone with energy, determination, and perseverance.” And he adds, “It is time for people worldwide to have equal opportunities to enjoy a rich and abundant life, instead of spending their lives working hard to enrich those who already have too much. It’s time for you to have that opportunity. Welcome to the 21st century.