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Network Marketing
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This is two more of my video's on the Network Marketing Profession !

These two video's are part of a youtube video series to help in the learning process. Keep in mind that I was not trying to make fancy video's. My primary goal is to give people a proper introduction to the Network Marketing profession.



The mathematical formula and mathematical theories!

Once you understand that Network Marketing is just a simple referral business where we are referring people to a company’s products and services with the home based business opportunity being one of the services that the company offer the next step is to gain the understanding of the mathematical formula and mathematical theories. The commission we earn is designed into the price of the products and services the company has for sale and is the money that regular companies spend on traditional marketing advertising like television commercials, newspaper ads and all the different types of advertising we see every day of our lives.

When I started looking at Network Marketing I wanted to know exactly how many customers I would need to find for the company and what responsibility’s I would have before and after finding a customer for the company.  I was taught that the first responsibility I have as a business owner is to teach people how the multilevel business model and compensation plan works. Each company designs their own version of the multilevel commission pay out structure. Some are very complicated and some companies design theirs to be very easy to understand. GDI has designed their compensation plan to be very simple to understand. It will only require about a sixth grade math education for a person to understand the whole mathematical formula and mathematical theories it is based on.

When teaching people how to understand the compensation plan it is important to also teach all the terminology that goes along with it. For example GDI is an Affiliate membership program. The word affiliate simply means to be a member of something. When a person signs up they become a member of the GDI Affiliate program. Some other terminology we teach is what the words upline and downline mean. The term upline refers to the people who earn the commission from a monthly purchase. For example the people who earn commission from my monthly purchase of the basic membership package are called my upline. The term downline refers to the people who a member of the program is earning commission from their monthly purchase. For example all of the commission I earn is from my downline members. In this type of commission based income we always describe and illustrate income as going up. It has been that way for over sixty years and will always be that way and it works just fine.

GDI has two membership packages, the basic package and the premium package. The basic membership package is where everybody starts. The basic membership package cost ten dollars a month. Five dollars of that is paid out in the form of commission to your upline network members. GDI divides the five dollars equally into five network levels. What this means is each member has five upline network members who each get paid one dollar of their ten dollar monthly membership payment. The reason they each earn their share of your monthly payment is because they are working the GDI affiliate program and sponsoring new people into the program and teaching them how it works.

Upline 5: joined the program and then sponsored my upline 4

Earns 1 dollar

Upline 4: joined the program and then sponsored my upline 3

Earns 1 dollar

Upline 3: joined the program and then sponsored my upline 2

Earns 1 dollar

Upline 2: joined the program and then sponsored my upline 1

Earns 1 dollar

Upline 1: joined the program and then sponsored me

Earns 1 dollar

Me: My sponsor taught me about the Income For Life program




 

Network Marketing is a simple referral business.

The person that is my upline 5 is William who was sponsored into the program by someone who is working the business to develop a life time monthly income. William liked the program after being introduced to it and joined. William introduced Shawn to the program and Shawn liked the program and joined. Shawn introduced Liam to the program and Liam liked the program and joined. Liam introduced Marilyn to the program and Marilyn liked the program and joined. Marilyn introduced Justin to the program and Justin liked the program and joined. Justin introduced me to the program and I like the program and joined. Network Marketing is simply just introducing people to the concept and the life time monthly income program. I did not know any of these people before I met Justin and he introduced me to the program. They each earn one dollar of my monthly payment to GDI because they are the upline of the referral process. Introducing people to the Network Marketing concept and the mathematical formula and theories is what we call marketing and advertising. Our marketing and advertising is educating people about life time monthly commission and how it works. By dividing the commission into five network levels the company has given us the ability to develop a nice monthly commission income by just referring a few more people to the program.

 

Illustrating the 5 level commission pay out structure!

Sponsoring flow chart and diagram of the commission payout structure.

William    5  >
Shawn     4  >
Liam       3  >
Marilyn   2  >
Justin      1  >

You earn commission by developing a downline network!

You start earning commission by introducing people to the Network Marketing concept and to GDI and showing them how the Income For Life program works. This is where the theory that everyone knows or at least can find 3 people who need to earn more monthly income comes into play. The people you introduce to the program that decide to join become your level 1 networking group.

In the diagram above William joined the program and started his downline by introducing Shawn to the Income For Life program. When Shawn joined the program he became a member of Williams first level of earned commission because he will earn 1 dollar of Shawn's monthly membership payment.

When Shawn introduced Liam and he joined he became part of Williams second level of earned commission. Because William put in the time and effort to teach Shawn about the program he now has the right to earn commission on every new member that Shawn and Liam sponsor into the program.

When Liam sponsors Marilyn into the program she becomes Williams third level of earned commission and he will earn commission from everyone she sponsors into the program. When Marilyn sponsors Justin he becomes Williams fourth level of earned commission and he has the right to earn commission from every new member that Justin sponsors into the program. When Justin sponsored me into the program I became Williams fifth level of earned commission.

What I'm trying to show you here is that when William put in the time and effort to teach Shawn about the Income For Life program he started a process that gives him the right to earn commissions from the memberships of each new member that joins the program down to his fifth network level. Network level 1 is where the process starts for everyone.

Do you know or can you find 3 people who need to earn more monthly income?

The Network Marketing concept is pretty easy to understand and the GDI Income For Life program is designed to make it simple to work. All you would need to do to make the GDI program work for you is take the time and put in the effort to teach 3 people about the program and sponsor them into the program to start the process of developing an Income For Life.

This is where it is important to understand the business networking group part of the business. When you sponsor someone into a business opportunity like GDI it is your responsibility to make sure they understand how the system works and be a good partner to work with. When you sponsor someone into a business opportunity like GDI you are not just finding a customer for GDI, you are forming a partnership with that person and need to help that person as they introduce the GDI opportunity to the people they want to invite to learn about the program.

Networking is people working together to achieve a shared goal. In GDI we want everyone to have the ability to develop a life time monthly commission based income. It is very important to find ways to support each and every new member of the program as they join and start the process of introducing people to the program.

Networking is a lot like joining a club, a lot of people use the term team work to describe the process of working with in a business networking group. Networking is a type of team work where we help people see how the Network Marketing concept is a systematic approach to developing a life time monthly income with each person only having to do their share of the work.

The multilevel business model and compensation plan is what I call a shared work load, combined effort business system where each person only has to do their share of the work. Our goal is to introduce people to the program and get them to where they completely understand the system before deciding if they want to join or not join.

Where did Network Marketing come from?

The Network Marketing industry has a long history here in America. It was created here in America around 1945. A man had created a vitamin type product and started selling it to family and friends. As they found new customers to buy the product the need for a business model became inevitable. The business model they created is what we call the multilevel marketing business model today. Over the years and decades since the creation of the business model lot's of company's have modified it to work for them in the selling and distribution of their own products and services. To work in the Network Marketing industry you don't need to know a lot about the history or evolution of the business model. You only have to learn how the companies you chose to work for have designed the business model to work for their company.

The business model has evolved into a very simple concept!

Over the last 50 years the business model has been getting better and better. The whole Network Marketing industry has evolved over the last few decades to where no one has to ever sell a product if they don't want to. Buying products and then having to find someone to buy the products from you has been completely eliminated from the process of owning a Network Marketing home based business for the people who do not want to sell products. I personally do not like the thought of selling products so that is why I chose to work for companies where I will never have to sell products. In my research of the industry I have learned that this is one of the reasons that people who have heard of Network Marketing before have only heard about the companies that require their people to sell the products. One of my main goals is to teach people how to start and run a Network Marketing home based business with out ever having to sell and products.

A different type of career option that starts in your spare time!

When Network Marketing was created back in 1945 it was normal for people to start a career and stay with that career for 30 to 40 plus years. That has been the normal way of thinking for many decades here in America. You go out and find a good job and keep going to work day after day and week after week to earn a paycheck that is based on your own time and effort. The goal is to find a good paying job with a good benefits package and retirement plan. Over the years and decades this type of thinking has been the normal way to earn a living for average working class America's. The problem now is there are very few good jobs and very few companies who have a decent benefits package or retirement plan. On top of that the cost of living is growing higher and higher and is growing faster than the hourly wages we earn at the jobs we do have. That is why it is time for us working class America's to take matters into our own hands and create our own career options. Network Marketing is the perfect opportunity for us working class America's to take back the control of how mech income we earn because we can start a career is Network Marketing in our spare time.

The two fundamental business practices are Networking and Partnering!

The mathematical formula and mathematical theories depend on each person learning how to practice the two fundamental activity's of the business model and business plan. Business networking and partnering have been normal business activity's for hundreds of years. The people who created the multilevel business model designed it around these two fundamental practices. Networking and partnering is what makes Network Marketing a systematic approach to developing a life time monthly income. The process of practicing is how we develop a large customer base to earn enough monthly commission to achieve our own personal financial goals. Networking and partnering are the hardest part of the concept to teach to average working class people. This is because people who have never owned a business or been part of a networking community have a hard time grasping this part of the Network Marketing concept. I have owned several businesses before and I had trouble grasping this part of the Network Marketing concept. Networking and partnering is not part of working a regular job where you work as an employee for a company. This part of the Network Marketing concept is one of the major differences between working as an employee or working as an independent contractor for a company. The good thing is that anyone with the desire to learn the two fundamental business practices can easily do so.

What is Networking and Partnering?

The first step to understanding networking and partnering is to understand what makes a business successful and profitable. Happy loyal customers are what make a business successful and profitable. Everyone that starts a company or business wants to have customers that are happy with the products and services and that become loyal customers. Another important factor is business growth, all companies and businesses have to keep growing by finding new people to become happy loyal customers. In the Network Marketing industry the companies are designed with the business opportunity that gives the customer the ability to earn a monthly commission based income for going out and finding people to become new customers. The multilevel business model is designed in a way that makes it possible for each new customer to just have to find a few people to become happy loyal customers. When we find a person who decides to become a customer they also become our business partner.

Most working class American's don't know how to start and run a business so this is where the networking and partnering process comes in. Networking is best done face to face and person to person where people sit and talk about how the business concept works. Networking is how people develop a mental connection and build a business partnership that will give them the ability to develop a life time monthly commission based income. When we find a new customer it is our responsibility to teach them how the business model and compensation plan works by networking with them.

Learning how to trust the system!

The good thing about Network Marketing is it is easy to learn and there is no risk involved in starting a Network Marketing home based business.

Becoming an independent contractor and working as a Network Marketer is easy to do. Here in America we have the freedom to start and run our own business. All we have to do is make the decision and then pick some good companies that have the right type of products and services that we want to promote. We can start earning commission immediately by finding people who have the desire to earn more monthly income and teaching these people how the system works. I choose GDI because I believe GDI offers the best business opportunity in the market today.

In the Network Marketing profession it is our goal to find people who want to earn more monthly income and then teach these people how to work as an independent contractor as our partner to promote the business opportunity that our companies have to offer. We call this process sponsoring in the GDI Income For Life program. In the GDI program each new member will need to sponsor at least three more independent contractors.

Each new person we sponsor into the program not only becomes a customer for GDI, they also become our business partner. Three new networking business partners is all you will need to make the GDI program work for you.

Your Network Level 1 people are your business networking group members and partners!

To work as an independent contractor for a company like GDI you have to first be a happy loyal customer of GDI. I am a loyal customer and I am very happy with all the marketing tools and the web site hosting package called the basic membership package. The way we earn commission with the Income For Life program is to become a sponsor and teacher of the program. Sponsoring people into the program does not mean just signing people up, as a sponsor we have the responsibility of helping our people and being a support network to them. It is a sponsors responsibility to make sure our people know how the business model and compensation plan works. We do this by building a web site with all the right information they will need to get started right. A good sponsor will always be committed to networking with their people and being a good partner.

I believe Network Marketing is a business that should be started in your spare time and worked as a hobby business for the first few years.

If you have read every thing on the first two pages and this page you should have a pretty good ideal of how the network marketing concept and all the mathematical formulas and theories work together to form a working business model. Having a complete understanding of the business model and the way it works is just the first step to using the business model to develop a life time monthly income. To run a business effectively you also have to have a business plan and marketing strategy. In the Network Marketing profession we are not looking for people to just become a customer of the companies we work for, we want these people to become our life time business partners and develop a life time monthly income of their own. It is very important that the people we are introducing to the network marketing concept know this right up front so if they decide to join they understand they will have to do their share of the work. In network marketing we are only looking for one type of customer, people who have a desire to develop a large monthly commission based income. The only way to find people who have a desire to develop a large monthly commission based income is to introduce people to the network marketing concept and illustrate to them how it all works so they can decide if it is something they want to do.

While doing my research I found that as of December 31, 2013 only about 14 percent of the American population are working in the Network Marketing industry.

According to the statistics about the industry, here in America there is only 14 percent of the population that are working to develop a life time monthly income in the industry. One of the main reasons there are so few American's working in the industry is because of the lack of understanding of how it works. Other reasons are bad marketing and poor customer service by the people who are working in the industry. I do believe the statistics do prove that there is a lot of opportunity for people who want to learn how to do the right type of marketing and provide the best possible customer service.

 

 

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