Network Marketing: Extended Definition

Entrepreneurial spirit is sweeping the Nation's interest at a phenomenal rate; people everywhere are exploring startup opportunities for a new home or internet-based business. Network marketing is the powerful engine turbo-driving this skyward trend. Most home (or internet) based companies share a common, sales-approach trait: they utilize network marketing techniques and skills to achieve business success.

This report provides a definition of what network marketing is. It also touches on some of the who, what, when, where, and whys associated with this often ambiguously interpreted phrase.

What is Network Marketing?

Network (v. intr.): To interact or engage in informal communication with others for mutual assistance or support.

Marketing (n.): The act or process of buying and selling in a market. (The American Heritage® Dictionary of the English Language)

Thus a laymen's term for network marketing could be: People helping people to prosper by the consumption of related products, information, and/or services, in a collaborative team-inspired effort of self-empowerment.

Network marketing is also referred to as Multilevel Marketing (MLM) or Cooperative Marketing. It is the process of selling products, services, information, or business opportunities through personal or individual relationships with family, friends, coworkers, and a variety of others. The main goal focuses not only on selling the particular commodity, but also encourages the purchasing party's involvement in selling the services or product themselves. In return, these people often receive discounted products or services as well as monetary compensation. Usually, the more people you get involved in this method of self-benefiting product distribution, the more benefits or rewards you yourself receive.

Network marketing is synonymously referred to as Multi-Level-Marketing or MLM.

MLM companies usually thrive on some form of tier structured compensation plan. Simply put, the more prospects [people] you get involved in your business, the more residual income you make. Residual income can be thought of as "money earned from your prospects' efforts". This type of income is called residual income and is often coined an intangible asset.

Over the years many different types of MLM companies have come and gone. Lack of standard business policies and procedures, accountability, and other reputable reference availability often drove these businesses to inevitable failure. Many were even dubbed illegal due to unethical practices. One fundraising source states: "Many MLMs were viewed as get rich quick scams and disregarded by the general population. These scams were often referred to as Pyramid schemes and were well planned scams". (Profit Quests Fundraising; The MLM File).

Who participates in Network Marketing?

Common people, such as you and I! We often share our excitement of a newly discovered product or service with our friends or relatives. This may have influence on their future purchase or use of that particular commodity. They in turn tell a neighbor, friend, or coworker, and BOOM!: we're participating in word of mouth referral, a common method of network marketing.

Entrepreneurs! Self-motivated people involved in a successful home-based or internet-based businesses use network marketing strategies to successfully thrive in the marketplace. These people connect with network marketing concepts and practices on a more advanced level, often as their sole source of livelihood.

Network marketing at it's peak or apex level of performance, boasts millionaires around the world. Successful network marketing companies include USANA, SFI Marketing, Mellaleuca, Mary Kay Cosmetics, Avon, and many others. (Susan Ward)

Why do people get involved?

There are many reasons why people get involved in network marketing. Some do it unknowingly for the self-satisfaction of helping others. Some stumble into the business by accident, getting 'hooked' on a particular brand or product. Others seek out the unlimited opportunities this type of self-sufficient livelihood can provide.

People working in this industry reap substantial tax benefits! According to USANA's marketing material, people can legally save thousands of dollars with home-based business deductions. (Usana Health Sciences).

"Every North-American Taxpayer who works a full-time job and does not have a side business is probably overpaying taxes to the tune of $3,000 to $9,000 a year!" (Sandy Botkin)

According to one popular newsletter, over 20 million people worldwide, are involved in cooperative marketing and their sales are in excess of one billion dollars. People turn to this type of livelihood for many factors, including current unfavorable economic conditions. (The MLM Watchdog).

When will it happen?

We subconsciously exchange information, ideas, and suggestions, to those around us every day. It probably hasn't been that long since you had a positive or negative impact on someone else's decision making. Maybe you revealed to your neighbor how much $$ you saved since you started shopping at the discount food store. Or how about last night's phone conversation with a friend relaying the HOT SALE he or she just stumbled upon at a particular salon. Without methodically thinking of it, you were sharing information that was self-rewarding and of mutual benefit. These are examples of network marketing occurring at it's simplest level.

"Either we take hold of the future or the future will take hold of us", Dr Patrick Dixon Chairman Global Change Ltd, (http://www.globalchange.com/captur.html).

How To Network Market

An in-depth view of the how to principles of network marketing is beyond the scope of this article. However, the internet has a growing stream of information: One simple Google search for 'network marketing' returns 83,900,000 entries on the topic. Today's technological advancements in sharing electronic information has made it easier than ever to explore network marketing, particularly through affiliated programs and sponsors.

Additional Resources

Carol Lynn Pearson.

"Dictionary." The American Heritage® Dictionary of the English Language, Fourth Edition

The MLM File, http://www.mlmwatchdog.com/Archives2004_3.html, date accessed 9/14/04

The MLM Watchdog Archives. "Discover Cooperative Marketing" http://www.discoveryourbusiness.com/index.php?13509, date accessed 9/15/04

"A New Trend In Fundraising ? Part 1", Profits Quest Fundraising http://www.profitquests.com/ArticleNewTrend.html, date accessed 9/15/04

Susan Ward. http://sbinfocanada.about.com/cs/marketing/g/mlm.htm>

Sandy Botkin. Usana Health Sciences, http://www.usana.com/opportunity/pres/index.shtml

Usana Health Sciences, http://www.usana.com

T.L. McMullen
Equity Zip Financial
"No More Fret - I'm Out of Debt!"
888-300-EZIP (3947)
http://www.equityzip.com - Brixdale Inverse Mortgage
http://www.equityzipfinancial.com - GUARANTEED Consumer Credit Repair

---

MLM Network Marketing - Why Failure Rate Is so High?

In recent years people are increasingly looking for extra source... Read More

How To Separate Work From Private Life With A Work From Home Business

Combining your home life with your work when you have... Read More

25 Proven Strategies For Improving Your Telephone Results To Build Your MLM Dowline

1. Reap what you sow! What does that mean? It's... Read More

Are You A Network Marketing Professional? Or, Are You An Amateur?

Do you look like a professional Network Marketer? Do You... Read More

MLM Training- The Secret of the Daily Success Actions of the MLM Millionaire

Millionaire.Has a nice ring to it, doesn't it? We interviewed... Read More

Network Marketing Success- The Top 3 Secrets of Network Marketing Success

What stops most people in MLM and Network Marketing? After... Read More

Relationships Are The Key To A Network Marketing Business

While it is true that heavily branded websites like amazon.com... Read More

Network Marketing Success - The ULTIMATE Success Understanding in MLM

There is a question that determines probably 80% of your... Read More

MLM Network Marketing Recruiting Training - The 5 Magnetic Phrases that Paint Word Pictures

One of the most powerful secrets to recruiting in network... Read More

One A Month In Your Network Marketing Business!

Hi All,This could be the most important email you'l ever... Read More

Targeted MLM Leads: You Best Chance At New Prospects

Targeted MLM leads go directly to the heart for your... Read More

MLM Training - The Network Marketing Success Secrets of Striking Gold in Your Memory Jogger

The question all new Network Marketing Distributors ask when they... Read More

How To Do Effective Keyword Research To Find Good Niches

It is true that with online business, the entire world... Read More

MLM Leadership ? How They Fail You

The success in your MLM career depends to a great... Read More

MLM Leads for Network Marketing

Finding mlm leads for network market can be a real... Read More

Network Marketing Tips - Same Number of Years In The Business, So Why Different Results?

The first time i went for my network marketing business... Read More

Keep Getting Paid Over And Over For Every Sale You Make!

If we could all have one wish granted chances are... Read More

Finding The Right Business For You: The Right Product

Okay - you've decided to take the plunge and get... Read More

Effective Use of Traffic Exchanges

Like them or love them, traffic exchanges always seem to... Read More

Invest In The Top MLM Companies

When considering starting a home-based business, the top MLM companies... Read More

A Simple Step by Step Approach to Fail Your Way to a Financially Successful Home Based Business

He (or she) who is the first to fail a... Read More

How to Choose a Network Marketing Winner

The idea of using a network-marketing program to generate extra... Read More

Starting Your Internet Business: Making The One Thing You Absolutely Must Do as Painless as Possible

Here's the bottom line: you can't learn to swim sitting... Read More

MLM Success ? Action is the Key

Action is the Key!It is true of all business. But... Read More

MLM Local Leads

In multi-level marketing (MLM), one of the goals of the... Read More

MLM Success Secrets- The Two Unchanging Laws in Network Marketing

There are two unchanging laws in Network Marketing that most... Read More

EXPLODE Your Network Marketing Team Into An INCREDIBLE Recruiting Machine!

Let's face it! Most people who join a Network Marketing... Read More

MLM Success - KNOW The SEEDS of Change in MLM and Network Marketing?

The MLM Business you are REALLY In.In network marketing, you... Read More

Building Large Volume of Potentiel Customers is Critical

How many opportunities to expose people to your business do... Read More

MLM Frauds ? How to Avoid Them

Abraham Lincoln said "You can fool all of the people... Read More

MLM Success- The MLM Leadership Secret of Heart Touched Leadership

There are three Rules of Network Marketing Leadership for MLM... Read More

No Romance, No MLM Downline

NO ROMANCENo DownlineNo Downline, why bother?If you were romancing a... Read More

Lead Generation: An Overview

Multi level marketing is a type of business where a... Read More