What is Network Marketing?



  This post was inspired by communicating with over 700 network marketers

There are many opinions about what network marketing is and isn’t.  If you want that description of network marketing by vandruff.com  you can go here.  Everyone is entitled to their opinion.  There are many reasons people fail in network marketing and many reasons why they succeed.  You see this is a business.  98% of businesses fail and I am not just talking about network marketing. You fail in network marketing because you:

1) Blame the company

2) Blame your sponsor

3) Blame you products

4) Complain about how you are getting no results

5) Complain that you didn’t get in on the ground floor

6) are always jumping around from deal to deal

7) You do not establish a habit of how you run your business each day

8) You spend way too much money on getting leads

9) You bug your friends and family until they will no longer talk to you or they get so upset they try to put you in a mental hospital and you are no longer welcome at parties

10) You try to blame the company for taking away your downline

11) Your downline of 5 is not duplicating so this must be a scam.


Well maybe it is.  I do not know what company you are in and frankly I do not care. It is not the reasons above why you are failing.  It’s You

Take a good look in the mirror and ask yourself.  Do you really believe people are successful in network marketing both online and offline?

If you answered yes to that question, keep reading.  If no, or I am not sure stop reading this article and never buy anything from me until you can truthfully answer Yes to that question, because the rest of this article will not help you succeed.  You have to believe that no matter what you will and you will in whatever success looks like to you.

Do You write compelling content that people want to read solving their problems in your niche of network marketing?  You see people that buy things tend to buy more things of the same product type.  It is just the way it is.  So learn how to help network marketers and stop bugging others as it is too big a jump for others to make from I work 9-5 and get a paycheck to I work when I want to and a check is not guaranteed until I learn how to help enough of my target market.  Most people are not willing to do whatever it takes( legally of course)


That is why they fail.  They quit on themselves because it gets too hard and no one wants to talk to them.  It’s because you are being a “negative Nate or Nelly.” or maybe it is because your company is about to go out of business for a myriad of reasons I do not know.  There are many different companies in network marketing.

You do not attract the right people who are searching for your product and ready to buy

You do not learn how to capture leads, the right leads and welcome them to your team

You do not know how to do new member coachings( I’ll cover that later on in this post)

You do not know how to help your new members position themselves with the right level of training for success

You do not produce, produce, produce so you team hangs on your every word and is willing to be in your inner circle

You do not know how to keep your leaders around

You do not know how to paint a vision for your team

You do not know how to inspire others to take massive action

You do not know how to motivate people to move forward every day.


It is not the company, other people are succeeding

It is not the comp plan, other people are making money

It is not the products, other people are succeeding in your company, Right?

It’s not that you did not get in on the “ground floor” other people just came in and are doing very well

Done making excuses? Good look in that mirror and realize it’s You and your interpretation of your situation, take action be humble and ask for help learning how to

have a great mindset, produce sales, build teams, and have mass influence in your marketplace.   You can do it the second you realize that you are the problem.  Good news you are just a small tweak away from your success.  What difference does it make if you have to work as long and as hard as it takes until you have success?  You have found the holy grail and you are not most people who fail.  Are You?


You are a Super Star and You are about to become a legend!  Keep reading







What is Network Marketing?

As the Image below shows Network Marketing Is a way to earn leveraged income.

What Is Network Marketing

 Do I need to show you any more?

No?   Sign Up Here  Start by learning how to be a top producer in your company.

Yes? OK, Keep Reading.

You do not have to sign up you can still learn what you came for and that is what is network marketing. Right?

That is why I got involved in this Industry.  “It was a matter of dollars and cents.” Tracey Walker

It still is but I found along the way something I never thought about in the beginning.  I found good people from around the world that want to make a difference in other people’s lives.  I also found good business practices.  I found stellar marketers.


 Network Marketing Is A legitimate Business Model For A Business Owner To Follow


Just like any industry it has it’s options.  You can choose to be with a good company or you can choose to be with a not so good company(by mistake of course) I have been introduced to more than one in my history.  How about you?  Tell me in the comments down below how many network marketing companies you have joined and then quit, for whatever reason?

For me it started with an Away™ distributor  I was invited to his garage where he had a whiteboard up and was drawing circle.  Problem was at that time I did not have a garage so I thought there is no way I can do this network marketing business.  At that time Amway™ had not sweat blood and tears and a ton of capitol in the U.S. District Courts to legitimize the business model of network marketing.  If it is done the right way it is fine.  It is only when you do it the wrong way that you run into trouble.  Thank You Amway for making it possible for every network marketing company since you.  Thank You Rich Devos, Thank You Bill Britt!


Is Network Marketing A Pyramid Scheme?


This is the only pyramid scheme that I believe in



You may hear the term Pyramid Scheme. A pyramid scheme is where people all put in money and the future people are paid from that money.  There is no good or service sold that has a value of about 10xs what people pay for it(my opinion of what you need to provide a customer with in value to keep them with your company for life)


 In Network Marketing You Own The Rights Each Month To A Business


That is right you have a business when you are in network marketing.  You are a distributor and you sell products for the company and you get a percentage of between 2% to 70%.  You will see 100% commissions but that does not last.  They may start that way but the cost of running a network marketing company or any company for that matter is too high.  But think about it what professional sales person would not be ecstatic with 70% commissions that pay monthly for the life of the customer?  This is leveraged income.  The best company to be part of as an independent distributor is one that has a range of products to sell from the low end, front-end offer, or funded proposal, to the high-end, big ticket sale.


Network Marketing Can Lead To Big Business For Your Company


Some people in network marketing and Internet Marketing that get great results, over time, become consultants for Corporate America.. I’ve seen it done because these people have become experts as selling to consumers.  They have to, to get great results.  They can only truly do this by providing tremendous value to people or a little value to many or better, both.

Leveraged income is income you earn that comes from the fact that not all your efforts, but the efforts of others, kind of like in a corporation, earns you money.  The CEO of a company does not do all the work.  He has employees that do the production.  I see no difference between the two.  Network Marketing is a court tested, business model that has been around for since the 50’s as far as I am concerned.  Until that time, it was not done properly.  As long as your network marketing company is selling products that provide value to your customer it is a legitimate business model.


Run Your Business With Integrity

Character of A Leader


The basic core values of the network marketing leader(You the second you decide to start) determine how you run your business.  You can run it with integrity, meaning you do what you say you are going to do or you can run your business any way you want, it is your business.  You need to treat it like one.  I have talked to about 730 network marketers or people that want to be network marketers and from that experience of being a workout partner for Chad Ockstadt I have learned a great deal.

What is a workout partner?  It is a relationship that you make with another network marketer that they will call your leads and you will call theirs to ask them basic, background questions.  This then frees up the sponsor(You) to not have to go over background information when you do a new member coaching, when they first start.  You should always do a new member coaching, or you risk the chance of leaving money on the table or worse yet, having your new member quit, before they ever do anything. Here is what I have asked them:

1) Of all the ways to make money in the World why choose network marketing? 

This will sort out the people that do not like the idea of a network marketing business.  You do not have time to overcome this objection and why would you.  You are marketing to people that like network marketing.  They want a better life for themselves and their family.  They hate working for others.  They are entrepreneurs.  If they do not make it past this question.  Tell them how to get a refund( if your company has a policy make sure they understand the deadline so they do not have recurring monthly charges they do not want)



Short-term gain



People start out in network marketing for the money.  They stay because of the money, but also for many other reasons like what it can provide them.  Some people do it for a sense of belonging to a group as we as humans are creatures that like and need to be around others of the same mind. Some are looking for a business model they can do that they can be successful doing.



2) What do you do for a living currently?

This will tell you who you are dealing with, what kind of background they have, what kind of train9ing in sales and marketing they may have and also what kind of income they are used to making.  While it is true that anyone can make more money they do in their current job, it is not the market you want to target.  You do not want to try and convince a person that is in a union or likes working 9-5, or that is retiring on multiple pensions that network marketing is for them.

Remember you are talking to customers here, not prospects.

Sometimes your marketing will attract someone from the work force.  There are two types I have talked to:

The type that you should not try to convince.  In fact you should do the opposite.  You should try to ask them a question that makes them quit.  They more than likely will

The type that are ready to leave the work force.  They are done working for a boss.  These are the people that, although it will be a steep learning curve you can work with them if they are willing to be persistent and they want to succeed in business more than the air they breathe.

The type that already has a business and they want more success.  This is the best type to work with.  They are willing to spend enough money to succeed and it will be different for each person.  Every one starts where they start.

3) How much do you make each month?

You want to get an idea what they are used to.  You also want to listen more than you talk or type( if you are asking these questions in a facebook or other chat system)

4) What is the most you have ever made in a single month in your lifetime?

Again, this will sort out the many people your marketing will attract to find the few that are serious about success.  Business has expenses.  Everyone does that is successful in one way or the other.  If you do not have at least $300 extra a month( some say$100 but I prefer the later as a minimum) then you or they should get a refund.  That is why it ias important to ask these questions as soon as your customer has signed up.  If they need a refund they can get one.

Your goal or outcome is to run your business with enough integrity that you can look at yourself in the mirror and smile.  Being in a network marketing business will present you with many ethical options on how to run your business.  Always take the High Road.  Tell people the truth.  If they are the right people, people that will be easy to work with.  They will get it.  They will know that Network Marketing is a way that you can leverage your money to make more.  I have seen as high as for every $25 customer you can make up to $3000.  Some network marketing companies the money is bigger.

Remember:  The lifetime value of the customer is almost always greater than the earnings from the initial sale.


Your Business Must Provide Value To Your Market

5) How Much money do you want to make each month?

Your customer in network marketing must get very clear in their minds how much money they want to make.  If they do not they will not succeed.  If you know where you are going and you know where you are currently, all you have to do is bridge that gap with actions(working smart to leverage the power of the Internet) to get to where you want to go.

6) How much time each day will you build your business?

In the beginning I spent about two years some days working until 4 or 5 a.m. and starting around 10 a.m.  I do not recommend you spend more than 3-4 hours each day building your business.  Once you get your business bringing in 30 new leads a day and two new customers each day you will be set for life.  Your results and the results of your customers will vary.  To see average earnings go to http://yourlastjobever.com/income/ to see an average earnings example.

7) If your sponsor tells you exactly how to hit your goal of(whatever they said in #5) will you follow their instructions exactly or do you think you can already do it on your own?

You want to know if you should spend time with them or if they do not want your help.  When they say it they will be more likely to follow through with listening and doing what you instruct them to do to be successful in your coaching.  Do this one time for an hour.  Use a time scheduling calendar app.  That way you can control when you work.  The idea is to work each day to carry out 8 core commitments and no more.  When you are done with those, go have fun.  You are building a business while having a life.  That is why I got in and stayed in for life.  Eventually I will not have to do anything as my business will have enough assets, ranking high enough on the Internet, that the right people will find them and just buy.  That is when you have gained mass influence over the marketplace.  But that takes as long as it takes.

8) How Much do you think you need to spend in total, in products, tools and resources to hit your outcome of (answer to #5?)

This one could have it’s own post, but for sake of time I will say that there are three types of people in network marketing based on how much they spend.

a) the people who spend too little and get no results

b) the people that spend a medium amount and get no results

c) the people that spend way too much money and get no results.

It is possible that you will have a hard time making money in network marketing.  You may run into problems like this:

1) Mindset is bad.  This usually sounds like complaining.  This happens before people take responsibility for their own lives.  This happens before they realize that other people have the same comp plan, and company products that they do.  That, the problem is not with anyone but themselves.

2) Producing Sales In Their Business  This is a skill set you must learn. You are in network marketing to use your network to sell products. Period.  You are in business to make as much profit as the market will hold.  It is run by the law of supply and demand. Period.  The market will adjust when you run your business the wrong way.  You will know when you have no results that you can talk about.

3) Team Building.  Team building is part of your business.  You need to be able to use systems that will train your people before they become your team members.  I’ll share that with you at the end of this article.  You need to be able to have them produce and build teams.  Remember in network marketing there is a leveraged compensation plan that comes to you when other people make sales and they get the same.  Think of these as a bonus to your original sale.  I do not need to understand them to get paid.  All I need to do is focus on producing each day at least 30 leads each day and making two new sales of the front-end offer.  The system will do the rest.

4) Obtaining Mass Influence in The Marketplace.  This is when you really get to scale your business out and monetize. This is when you start to lead and inspire thousands of people to gain freedom in their life.  True freedom to think about what they want to do next in life because money is no longer a problem.  This is my vision for your business.

9) What is your monthly advertising and marketing budget?

You will be better off if you prime the pump each month by learning how to test, measure the results and then scale up your paid marketing and advertising.  Every business has marketing and advertising costs.  These do not have to be made public but they can.  That is a business decision you will need to make.  You can learn how to market your front-end offers or funded-proposals top attract people that are already trained how to produce before they get to you and are members of your team.  Use your monthly advertising and marketing budget to bring in customers each month as well as having your content working for you $365 days a year, 24 hours a day, 7 days a Week.

Advertising and Marketing results will follow the 80/20 rule and more like 90/10.   You will find through testing, and measuring and tracking, that 90% of the ads you put out there will fail.  Take the 10% that does not and scale it up.  Track everything you do in small initial amounts of money spent each month.

What is Network Marketing

10) When you hit your goal of (answer to number #5) what will it give you that you do not already have?

You want your new customers to really think hard about this.  This is the reason WHY they are in business in the first place.  How you do all the above is a learned skill.  Depending upon where you start your learning curve will be what it is, some steep and some not so steep.  “Everyone starts at zero at some point.” – Tracey Walker There WHY is the driving force they will need to keep moving forward and bust their head through a spiked wall when they make a mistake or run into a problem they need to figure out in network marketing.

The first income goal that has been established in the Industry as a benchmark is $10,000 per month.  Past that and you are no longer a grinder.  Being a grinder is essential to get strong enough to be a leader in the Industry.  Most people quit.  The average person builds a team of only 1.7 people.   But, when you look at society that no one has any issues with only 2% of business owners make it to success.  The rest quit eventually.  The good news is online about 6% make it to success of huge proportions


But how much do you really need to leave your current business or Job?  The average person wants somewhere between $3,000 and $10,000 per month.  If they get that they are happy.    I hope you now have a better idea of what network marketing is after reading this post.




In network marketing these will be your challenges:

1) Mindset 99.5% of being in business is the right mindset

2) Becoming a Top Producer -learning how to help people buy from you.

3) Team Building – Helping others using systems to help their customers buy from them

4) Mass Influence – Working with and inspiring thousands of Customers


If you want to see what I am using to help other people build their network marketing business click here or look down below and follow the instructions.


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