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Network Marketing and Direct Sales - A Powerful Combo for Serious Entrepreneurs

Aug 18, 2007
If you've done your research, you've probably found that many so-called "home based business opportunities" are in the network marketing industry and essentially involve some form of direct selling. There are, however, many businesses that revolve around multi-level marketing models, and those are quite different primarily due to the compensation structure (how you get paid). By finding a business that enables you to leverage the benefits of both network marketing AND direct sales, you will find that your ability to build substantial income streams from your home office in a relatively short period of time is much better.

So how is it that someone can leave the traditional business world, have the luxury of working from home, and earn a six or seven figure income, and not have to worry about the hustle and bustle of traffic, office politics and managing employees?

A Brief History On Network Marketing

For thousands of years, successful business people goods and services at the lowest price possible and sold them at the highest price for maximum profit. In the old days, haggling over price was expected in the negotiation process and the transaction culminated in a handshake deal which left both parties, give or take, mutually satisfied. This simple process of transferring goods and services was most lucrative for the small minority of entrepreneurs who knew the secret to success: network marketing!

Although the concept has been around from the very beginning of trade, the network marketing industry as a recognized industry has only been around for a few decades, and the explosive growth this industry has been experiencing has been phenomenal for both the companies and the entrepreneurs (distributors). So what is network marketing?

Network Marketing Defined

Very simply, network marketing leverages the concept of developing a network of like-minded individuals who, together, market various goods and services to others. The power of a network is actually scientifically proven to have a compounding effect on various factors of success. This is primarily due to the two primary components of any network: the node and the link.

For example, in a telecommunications network, the basic "network" is comprised of nodes and links that work together to transfer communication around the globe. The larger nodes tend to have more traffic, which is primarily due to the fact that they have more links connecting them to other nodes.

Another example: The human mind is an interrelationship of knowledge structures, which is essentially a network of nodes and links. When you think about money, perhaps the first thing that comes to mind is an image of a $100 bill and maybe the second thought is what that $100 can buy you, let's say a dinner for two. "Money" is one node, the image of that $100 bill is another node, the dinner for two is yet another node, and they are all interconnected by links (associations). If you know more about money than you do about dinners, then your "money" node is probably larger than your "dinner" node and therefore you're most likely going to have more associations with money than with dinner!

To bring this concept back to network marketing, if you create links with other like-minded people (ideally, other serious entrepreneurs who want to build successful million-dollar enterprises), then your income will grow in proportion to the number of links you have. Furthermore, your income will also be significantly impacted by the number and size of nodes that you're linked to (that is, the caliber of entrepreneurs you're working with). It is this very fundamental worldly and scientific concept that this industry is build on.

So how does direct sales fit into the picture?

Direct Sales Defined

The direct sales industry is a bit more direct (no pun intended). Quite simply, direct sales is the process of selling goods and services directly to the end consumer. Your favorite brand of soda is probably not distributed via direct sales because it is first sold by the manufacturer to the wholesaler, from the wholesaler to the retailer, and then from the retailer to the consumer. But if you were to come up with your own brand of soda and then use distributors to sell your product directly to consumers, then you'd be leveraging direct sales. You'll notice that many companies use this model all over the world.

"One-Two Punch!" A Powerful Combo

If you are a boxer, and your left hand is network marketing and your right hand is direct sales, which hand do you think your trainer would instruct you to use more often in the boxing ring? Whichever is your stronger hand? No, both! Why? Because it's the most efficient and productive combination for success.

You see, there are a few companies in North America that have built their organizations from the ground up on top-tier products and have embraced a distribution model that takes the best of network marketing and direct sales and blended the benefits of both into a win-win business opportunity for professional business owners.

Top-Tier Business Opportunities Blend

(1) Excellent products that have strong demand in their respective marketplaces

(2) A powerful compensation plan that rewards entrepreneurs very well for their efforts

(3) A duplicable system that helps the entrepreneur eliminate 90-95% of the variables that cause most startup businesses to fail

(4) Training and support via a community of other successful entrepreneurs who are willing to share their secrets to success in the business. I've underlined that last part for a very good reason: this is the critical variable that is hardest to find. But if you do find it, hold on because you are going to enjoy the ride!

To wrap up, network marketing is the basis for explosive growth in your business. Direct sales is the mechanism by which you will earn the most income, primarily due to the fact that there is no middle tier in the distribution chain to suck out a large chunk of the profit margins. Find a company that can provide you with the benefits of both models and you will find the most efficient vehicle for building up to a millionaire status within 2-5 years.

Final Thought

Do your due diligence before selecting a home business. You want to find a reputable company that has top-tier products that are standalone (can be placed for sale on a brick-and-mortar store shelf), has an excellent compensation plan, offers a supportive community to help you build your business, and has industry leaders building their businesses with this organization (this shows you that the best of the best are there, which means you probably are selecting a very good organization to work with).
About the Author
Copyright 2007 Frank Saffoori, MBA, award-winning marketing strategist, entrepreneur, author and speaker. Frank helps entrepreneurs, overworked and frustrated corporate executives, and struggling mom-and-pop outfits reach new levels of growth and profitability with their businesses by working smarter than the average person. Get a Full Disclosure Business Overview of Frank's most successful venture to date, visit Formula-4-Success.com.
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