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Monthly Archives: October 2009

Direct Sales or Network Marketing

There are basically two methods of distributing physical consumer products.  When the buyers go to the shop to make a purchase, this is Retailing. However, when the products are presented to the customer without the customers going to the shop, this is Direct Sales Marketing.

Direct sales distribution to the customer is differentiated by how the customer is being acquired. When a person acquires the customer, this is known as Direct Selling. Direct Marketing is when the customer is acquired through a media such as TV, Internet or mail order. A customer acquired by Direct Selling may then be sold to directly from the main company where the customer purchases online or through telephone ordering.

Direct Selling is divided into two sections; Single Level Marketing [SLM] and Multi-Level Marketing [MLM]. In both forms of marketing, the customer is ‘sold to’ by a person who is a ‘direct sellers’. Depending on the company rules and regulations, these direct sellers will sometimes be known with terms such as consultant, representative, associate, executive, partner, agent. A general term in MLM is Retailer – the person will basically employ the skill of retailing to sell to the customers where the income opportunity shall be purely based on commission earned through customer sales.

The difference between the two methods is based on how the sales force or prospect is recruited, trained and supported. In MLM, it is often referred to the ‘Leadership Programme’. This programme determines the growth of an organisation.

SLM is the traditional form of Direct Sales where the Leadership Programme is managed and controlled by the Direct Sales company. The direct sellers are known as “Directors” or “Managers” who are given some form of basic salary and are tasked to manage or handle certain regions, areas or sections.

In MLM, the responsibility to promote the products or expanding the sales development of the sales network is being offered to Network Marketers in the form of a Business Opportunity. The Network Marketer promoting the products earn a commission on the purchases made by other Networkers “hired” by them and everyone under the organization. The fact that the expansion opportunity is larger, Network Marketers are able to significantly earn larger incomes than in SLM. This is the reason as to why MLM is now the dominant form of Direct Sales in the world.

As such, a Network Marketing company generally offers two opportunities to a would-be business owner or the direct seller; a Retail income opportunity [Retailer] and a Network business opportunity [Networker].

Nowadays, you heard of many other marketing terms use such as referral marketing, group marketing, etc. These terms are used to the fact that the company actually want to distance themselves from the bad publicity of Network Marketing. However, whatever terms they used, if a company uses a commission based programme to earn from multiple levels of business owners, then the programme is still a Network Marketing business.

As far as many network marketing leaders are concerned, Network Marketing is the best term.

Talk soon,

Jailani

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The Benefits of Network Marketing Method of Distribution

Network Marketing has evolved in many ways. Companies that began as direct selling companies are now utilizing network marketing compensation plans. Today, you can see that many companies of different industries has in fact turned to Network Marketing to increase their sales. Traditional sales method companies have also created network marketing subsidiaries in order to utilize the network marketing method of products’ distribution. There are many reasons for the decline of direct selling.

One of the reasons is to allow for more informal methods of sales and greater compensation. In early 1970′s, the direct selling distributors making calls on their prospects found that no one was home. As time goes by, the women, who has been known as the customer or prospect backbone of direct sales, had entered the work force, thus leaving only few at home during the day. The entire industries have actually been pioneered by the Network Marketing companies.

What do you think is the main reason as to why so many companies turned to network marketing as their chosen method of marketing? You probably knows the reason if you have been in the industries for quite sometimes. So, do you know why? Its simply none other than efficient. It’s more efficient! Companies do not pay for the marketing, distribution or sales until after the sale is made and the product is delivered. In traditional marketing, companies have to spent millions of dollars on advertising, staffing, etc.

In todays trend, many people like to own their own business, manage their own time and the desire to work at home or from home. This is exactly what network marketing provides. This is how network marketing companies hire the so called “sales team” to market their products, These “sales team” are mostly an individuals who have dreams. These people are searching for ways to build a future that develops leadership and provides a balance in their lives for their families and each other, without sacrificing their sanity in the process.

One of the many reasons for the success of Network Marketing is that it is based on cooperation, not competition. Another is that a recommendation from a friend is the most powerful form of advertising; that is what Network Marketing is all about.

Talk to you soon,

Jailani

PS. Sam Walton (founder of Wal-Mart ) is quoted as saying that he’d rather run a profitable business in an unconventional industry than an unprofitable business in a conventional industry.

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Misconception of Network Marketing & the Beginning of an Era

Network Marketing is a growing industries throughout the world. However, when it first started, the trade industry was being misunderstood and it was finally revived in early 1980′s.

Abuses of exponential growth haunted network marketing for years and it is still misunderstood till today. One of the first abuses of the concept of exponential growth to generate income may have been the chain letter craze that swept the United States after World War 1. The letters promised great profit if you would send a dime or a dollar to the person at the bottom. The chain letters spread like wild fires as far as Europe. At one time, the US Postal Service estimated that 10 million letters were being mailed each day. Working together with the law enforcement agencies, the USPS battled the fraudulent schemes and the chain letter phenomenon began to subside in the early 1940s.

Unfortunately, this scam spawned schemes which came to be known as pyramids, where money was given for the right to involve others, as no valid product which was being purchased from the company. Again the law enforcement agencies acted quickly to clean up the abuses as it became the United States number one consumer fraud.

In mid 1970′s, with no clear understanding of what constituted a legitimate use of network marketing, the US Federal Trade Commission and state agencies across the nation turned their eyes to almost all network marketing companies. In 1975, the FTC filed suit against Amway, alleging that the company was an illegal pyramid and that its refusal to sell its products in retail stores constituted a restraint of trade. However, after spending 4 years and millions of dollars in legal fees to clear its name, in 1979, Amway was ruled out by FTC that the company was not a pyramid, and that its revenue was generated from the sale of its products.  After the incident, hence, the US Federal Trade Commission acknowledged network marketing as a legal and efficient distribution system. Network Marketing exploded in the next decade!

Today there are thousands of Network Marketing companies operating throughout the United States, Canada, Mexico, South America, the United Kingdom, Europe, Australia, New Zealand, Israel, Japan, Taiwan, Malaysia, etc. In Singapore alone, there are more than 100 companies dealing in direct selling and only a handful of them is an active members of the Direct Selling Association of Singapore.

Network Marketing is reported to be a billion dollars industry, internationally, made up of Fortune 500 and New York Stock Exchange (NYSE) listed companies.

Talk to you soon,

Jailani

The History and Truth of Network Marketing

I’ve read many books and articles about Network Marketing. Today, I will share with you the history and how it started.

The most fundamental fact of life in our world today is change. As a rule, people are reluctant to change. We resist it, we like to stay within our comfort zone of what is known and accepted by most. This is HUMAN NATURE. But it is true that what you resist will persist, especially when you resist a better method whose time has come. In almost every field of endeavor, the arts, sciences, medicine, and rejection at first. The more unique and revolutionary the idea, the louder and stronger the opposition to it.

People have always been afraid and even ignorant about ideas and methods that may result in change. Fear of change caused ridicule of Christopher Columbus, Louis Pasteur, Thomas Edition, and Albert Einstein. There are other examples of how fear of change had effects on progress. In the 1800′s, people bought what they needed at small, family owned shops. Then a man named W.T. Grant had an idea that created change.  What if we combined all these separate, little shops by making them individual departments under one roof, in one large store? A new and better way of doing things. Customers loved it. The individual merchants who owned the old-fashion retail stores saw their business decline. The shopkeepers fought back politically. There were thousands of them with thousand of votes, and they lobbied for their right to do things the same old way. They finally got the local and state governments to outlaw Grant’s department stores. Eventually, Grant’s department store worn out. If there is a better way it will persist.

In the early 1960′s, franchising was a revolutionary new technology in business, and it was also met with resistance. Newspapers and magazines wrote what a scam and rip-off franchising was. Stories of people who lost their life savings to some franchise were all over the media; in fact it was everywhere. There was a strong suggestion – void of no  confidence – to make franchising illegal. According to reliable source, franchising actually came within votes of being outlawed by the United States Congress.

Today, this so-called scam is responsible for over 40% of all retail sales in North America alone. Franchises sell nearly 900 billions dollars worth of goods and services today. Every industry goes through an evolution similar to this. Chiropractors were considered unknown in the 1970′s, the stock market was considered shady and a form of gambling, etc. Now, we almost can’t do without these industries.

Like all-powerful concepts, Network Marketing has also met resistance due to a lack of understanding. There is no mystery to Network Marketing. It’s just another form of sales and distribution. Network Marketing is 50 years young. In the early 1940′s, a company by the name of California Vitamins in USA, recognized that all their new sales representatives coming aboard were friends and family of their existing sales force, primarily because they wanted the products at wholesale cost. They also discovered that it was easier to create sales force of a lot of people who each sold a small amount of product than it was to find a few superstars who could sell a lot of products. So they combined those two ideas and designed a sales compensation structure or plan that encouraged their sales people to invite new representatives from satisfied customers, most of whom were family and friends, who each had the same right to offer the product and representative status to others, which allowed the sales force to grow exponentially. The company rewarded them for the sales produced by their entire group or network of sales representatives.

Network Marketing was born! A few years later, the company changed its name to Nutralite Food Supplement Corporations. In 1956, Nutralite was joined in Network Marketing by Dr. Forrest Shaklee to gain a broader distribution of the food supplements he had developed. Not long after, in 1959, a former Nutralite distributors Rich DeVoss and Jay Van Andel started the Amway company as the American Way of marketing products. Like many truly innovative breakthroughs, the development of true network marketing was an accident.

Every innovative ideas, could not escape with “innovative” abuses. Will talk about it on my next article.

Talk soon,

Jailani

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Secrets of Self-Made Millionaires

Everyday, we read or came-acrossed news about self-made millionaires. How do they achieved it? What are their secrets? Self-made millionaires are not smarter or better than many of us. The only difference is that they take action after they discovered the secrets and used them to become wealthy. We can do it too if we do the same as how they did. After compiling some facts, articles and books on becoming a millionaire, I realized that these group of people have the same secrets towards achieving their goals.

All successful people have big dreams. When they set their goals, they always dream big dreams. Thinking big will definitely change your life.

Self-made millionaires like to create specific picture of where they want to go or what they want to be. It has been studied and agreed by researchers that the more targeted or specific you are, the more likely you are to get there.

Always be responsible on what you are doing. Always think and act as though you are the owner of a business enterprise. Even if you work for someone else (an employee), you must have a positive attitude. This is very important as your attitude will plant seeds for your independent greatness to grow.

Always love whatever you are doing now. If you don’t love it, then leave it. By saying no or reject to doing work just for the sake of money, you are magnetizing to your work that you can love.

Form or create a mastermind group of like-minded people. Have a regular meeting with others who are committed to building great lives. Help and support each other and share with them your intentions.

Establish a healthy working ethic. The best example is to make taking action as your best friend! When you are able to take action, you shall be able to focus on your objectives. You must be able to prioritize your life by executing the important ones first.

Everyday, keep yourself updated with new things. Learn how you can learn more. In other words, you must commit to continue upgrading yourself – constant never ending improvement. You must know your business from top to bottom as this is your job!

Always prepare and open your mind to listen and search for opportunity. When opportunity knock you, will you be ready?

Stay physically fit! Leads a healthy lifestyle. Do remember that strong minds create strong bodies; Weak bodies are the result of weak minds. Your physical and mental health is the core of your success in life.

Discipline yourself by filling your life with activities and people that can make you grow in whatever you do. Stay away or discard those activities that have negative impact in your life. Go for greatness! Value the best and don’t settle for less!

Make time to be alone. This is for you to plan and listen to what’s inside your mind; review on what you’ve done. Sometimes, when you are alone, creativity and silence could actually speak to you.

One of the first rule of being wealthy is to pay yourself first. Put aside some savings before you pay your bills or spent others, and don’t touch it.

Make decisions quickly and wisely but be slow to change them. You must be able to adapt with changes even if you have to go slow with it. Even though speed is important, but if you do not plan well, it could be a disaster. However, do bear in mind that Failure is not an option. Your mindset should be focused on success. If you always think of it, you will have success.

Honesty is the best policy. Know who you are and what you want. Do it with integrity at all times. Always remember that in people is one of the reasons for our success too. Deliver more than your customer expects. This builds loyalty and repeat business. You will feel good too.

Determination is the key to attain your goals. Tenacious persistence builds confidence which leads to victory in achieving your dreams of becoming a successful self-made millionaire.

Talk soon,

Jailani

Managing Emails

As a network marketer, almost everyday, you will be “bombarded” with emails from other marketers introducing new products, programs, systems, etc. These emails could either comes within your expectation while some came uninvited. Getting emails are good and practical but sometimes they are not “your cup of coffee”. Nonetheless, sometimes most of the emails received are spam that will go straight to your junk folders. Too many unnecessary emails received could divert your attention on important ones that you are supposed to do. You will sometimes lose your focus because you tend to read all the emails even though it does not concern you.

As a network marketer, you must be able to manage your time spent on opening-up and reading emails. You must be able to identify emails with high priorities and squash away those that are not important at all.

I used to subscribe emails from most internet and network marketers after visiting and exploring their websites. However, after a while, I discovered that I was actually wasting my time reading and receiving some of these emails.

I began to unsubscribe from those that I felt not giving me openings, ideas, help on my current businesses and professions; I unsubscribed from those who always sent me emails with the intention of selling and up-selling new products, programs unless they are “worth” reading; I unsubscribed from those emails that does not concern to me at all; etc.

I’ve searched and read many articles on managing emails and started applying. Well, here are some points for you to consider.

Emails aren’t urgent! Don’t feel you have to read an act upon your email the second it hits your inbox. You don’t! It isn’t urgent. If there was a real emergency then your client/colleague/friend would have call you rather than email you.

Are all those newsletters you subscribe to really necessary? Probably not! If this the case spend some time going through them and unsubscribing the ones you don’t really want or read. It will really helps you!

Does your email play distracting alerts, i.e. a sound? If so, disable it. This is one of the distractions that can make you stop working as you are rushing to check your emails. It will then take you some time to get back on track again, not to mention the amount of time you’ve just lost stopping what you were doing, reading your emails, and actioning them.

Try to schedule or set times to check your emails daily. Once or twice a day is enough, in the morning and again later in the day. If you subscribe to various industry groups, save reading these emails until you take a break from your work – maybe at the end of the day when you’re winding down. You can easily get sidetracked reading all the different topics and replying to them, all of which is taking you away from your paid work.Spent some times to learn how to utilise email filtering tools. Set up folders and filters so that your email gets sent to the appropriate folder as soon as it arrives.

A Network Marketer should know how to manage emails so that you won’t waste your precious time doing unproductive work or task. You should be making money rather than spending money on the things that not concerning you. In other words, you should be executing email marketing but not “collecting emails”.

That’s all for now. Talk soon.

Jailani

PS. Get a system that hosts all your web pages, builds you a huge list & generates you a huge income using leverage? Limited time offer… get it free for life! Click here now!