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Understanding
How it all works !
 

The first step is to understand how the Industry work's !


When I first heard the term Network Marketing my first thought was that it involved selling products. I thought it sounded a lot like becoming a door to door salesman. After taking a look at the Network Marketing Industry I realized my first thoughts were wrong.  I figure that most people who hear the term Network Marketing for the first time have the same thoughts I did. It is normal for people to make mental assumptions about something they hear about for the first time.

In the English language we use the same words to describe so many different subjects. Marketing is one of those words that we use as a catch all word for every type of advertising used today. If you were to ask ten people what the word marketing means you might get ten different answers and it is possible that they would all be right. That is why it is natural for us to think of sales when we hear the word marketing. Network Marketing does not involve selling products if you learn how to do it the right way.

What is a Network Marketing company?

The Network Marketing Industry is made up of companies who have been designed to operate differently than a regular or what I call a main stream company. The difference is in the way they find new customers and who is paid to do the marketing and advertising for the products and services the company sells.

Regular or what I call main stream companies use traditional marketing and advertising to find new customers to buy their products and services. Traditional or main stream marketing and advertising is things like television commercials, newspaper ads and all the different forms of marketing and advertising we all see every day of our lives.

Regular or what I call main stream companies spend millions of dollars on main stream marketing and advertising every day. The money they spend on marketing and advertising is designed into the price of the products and services they sell to their customers. Every time you buy any type of product or service you are paying for the marketing and advertising the company does because it is designed into the price of the products and services.

How Network Marketing companies are designed different!

The way a Network Marketing company is different from the regular or main stream companies is they do not use traditional marketing and advertising to find new customers to buy their products and services. You will never see any television commercials, newspaper ads or any type of traditional marketing and advertising for the products and services a Network Marketing company has for sale.

The difference is that all of the marketing and advertising for the products and services a Network Marketing company has for sell is done by people who are already a customer of the company. Network Marketing companies pay their existing customers to find new customers to buy the products and services the company has for sale. As a customer we do not buy the products and then resale the products. Network Marketing companies are what we call direct sales companies. As a customer we buy the products and services they sell directly from the company and we only buy the products and services that we are going to use for our own personal use.

All Network Marketing companies have a business opportunity!

All Network Marketing companies offer a home based business opportunity for their customers to participate in if they want to earn a monthly commission based income for referring new customers to the company. The home based business opportunity eliminates the need for the company to use traditional marketing and advertising like television commercials and newspaper ads.

As you can see the main differences between regular companies who use traditional marketing and Network Marketing companies is who gets paid for finding new customers to buy the products and services.

The right way to look at the home based business opportunities that Network Marketing companies offer is to look at it as an additional service that these companies have for their customers.

You need to see the home based business opportunity as a type of customer loyalty program. In my opinion a home based business is the best type of customer loyalty program.

The Home Based Business Opportunity eliminates the need for the Network Marketing company to use traditional marketing!

As you can see the concept of Network Marketing is pretty simple to understand. By becoming a customer of a Network Marketing company you can earn a commission based income by helping the company find new loyal customers.

When I first learned about this concept called Network Marketing I became very interested in it because I like the ideal of owning my own business. I saw it as a way to earn some extra income and help other people learn how to earn some extra income.

I started out by doing some research on the companies in the Network Marketing industry and found a couple of companies that I liked. I wanted to find good companies that have great products and services and a home based business opportunity that is easy to understand and easy to work. The products and services have to be priced right and the customer should never have to buy more than they will use for their own personal use and the home based business should include everything needed to work the business.

I like the concept of Network Marketing so much I decided I want to become a teacher of the Network Marketing concept so I picked a company that had the right tools to make that possible. The name of the company is Global Domains International also known as GDI. GDI has great products and services and a very easy to understand home based business opportunity.

There are two parts to every Network Marketing company!

The first part is the products and services and the second part is the home based business opportunity. I realized that a big part of working a home based business is teaching people how to start and run a home based business. I realized that most of the people who need more monthly income have never owned or operated their own business before.  All businesses are based on a business model and a business plan. The business model describes how the business is designed and how the business works. The business model is the mathematical formula and the business plan is the system that makes it all work.

The mathematical formula is based on mathematical theories. One of the main mathematical theories we use in a Network Marketing home based business is that everybody knows or can at least find 3 people who needs to earn more monthly income. This theory that everyone knows or can find at least 3 people who needs to earn more monthly income is the foundation that we build a home based business on. When looking for new people to become customers of the companies we choose to work for we are not looking for people who want to buy or sale products and services, we are looking for people who need to learn how to earn more monthly income.

One of the main parts of the business model is what we call the compensation plan. The compensation plan describes how the commission is paid out to the people who are working the home based business. The compensation plan used by the companies I will introduce you to here at my web site use a multilevel commission pay out structure. What this means is the monthly commission paid out on each purchase is divided up into levels. GDI has given their compensation plan a name; it is called the Income For Life program. I will be using the GDI compensation plan to illustrate how life time monthly commission based income works.

We work as self-employed independent contractors!

The reality is that by working a home based business opportunity we become an independent contractor who works for the company. As an independent contractor we have chosen to take on the task of finding new customers and then teaching them to become independent contractors for the company. The multilevel business model gives us the ability to not only find new customers for the company, it gives us the ability to find new people who want to partner up with us and develop a life time monthly income with us.

The word network as used in Network Marketing is meant to describe this process. Networking is a process of people working together to achieve a shared goal. In this type of business partnership we all work as self-employed independent contractors but we work together in a business networking group. The purpose of forming a business networking group is to develop a life time monthly income for everyone involved in the networking group.

When the owners of a company like GDI decide to design their company around the Network Marketing concept and the multilevel business model they want smart people to become customers and use the home based business opportunity to build a business networking group. They know that happy customers are the best people to do the marketing and advertising for their company. They know that smart people who have the desire to start a business and work as a self-employed independent contractor is the best way to grow their own business. They know that the Network Marketing concept and multilevel business model have been proven to be one of the must ethical and efficient ways to grow a customer base for their company.

How is Network Marketing different from our regular jobs?

When I first started looking at the Network Marketing industry I did some comparing between my regular job and what it would be like to work as a self-employed independent contractor. At our regular jobs we work as an employee and the company determines how much money per hour we get paid. We have no control over how much our regular jobs pay and I don’t know anyone who gets paid by the hour that feels like they get paid what they are worth. On top of that the cost of living is growing faster than our pay is growing. At our regular jobs the company is always in control of when and how much we work. When you work as a self-employed independent contractor you are in control of when and how much you work and if you start and run a Network Marketing business the right way you can end up with a monthly income that is unlimited and will continue to grow for the rest of your life. At our regular jobs we have to work day after day with the co-works that the company has hired. In the Network Marketing concept our goal is to find our own co-works that want to work with us and want to build their own business and work as a self-employed independent contractor. When we work as a self-employed independent contractor we have no bosses or managers because we are our own boss. Network Marketing is a true equal opportunity for everyone involved because we are in control of every part of our own business.

What are the benefits of Network Marketing?

One of the main benefits of Network Marketing is it is a simple concept that anyone can learn. You don’t need any special skills or knowledge to start and run a Network Marketing business.

It does not cost anything to start a Network Marketing business. In Network Marketing the only cost involved is the monthly purchase of the products and services from the company that you plan to represent.

One of the benefits I like the most is it gives me the ability to help other people who are in need of earning some extra monthly income. If you learn to do Network Marketing the right way you can help your family and friends earn some extra monthly income.

If you learn how to work a Network Marketing home based business the right way you can start and run your business in your spare time because a Network Marketing business makes a great hobby business.

Illustrating how Network Marketing companies sell their products and services directly to their customers.

 

I like the concept of being able to earn commission for referring people to a company’s products and services. I think this concept we call Network Marketing is pretty easy to understand for people of average intelligence. The way Network Marketing companies have been designed is what gives us the ability to earn a life time monthly income for promoting their products and services. All Network Marketing companies offer a home based business opportunity to their customers. The business opportunity is one of the services that the company has to offer. I personally think a business opportunity is the best type of loyalty program any company could offer to their customers. Instead of spending millions of dollars on television commercials and newspaper ads all Network Marketing companies pay that money back to the customers who decide to work the home the home based business opportunity.

A life time source of monthly commission based income!

My first thoughts when I heard the term home based business opportunity were that I would never get involved in one of those things. I thought it would involve selling products and I even thought it might be some type of pyramid scheme. I did some real easy research by just typing the question "what is a pyramid scheme" into the Google search field of my computer and there was the definition of what a pyramid scheme really is. If you are thinking that Network Marketing might be a pyramid scheme I suggest you do the same thing. Network Marketing companies have real products and services for sell to customers and when a customer buys the products and services they pay out commission to the people who deserve it.

The compensation plan is the part of the business model that describes how the commission is paid out to the people who are working the business. The best way to learn and understand the business model and compensation plan is to look at one and have it explained to you. I’m going to use the GDI compensation plan to illustrate how life time monthly commission is paid out to the people who are working the GDI home based business opportunity. We call the GDI compensation plan the Income For Life program. To completely understand the business model and compensation plan you will need to learn how the math works and all the terminology that goes along with it means.

Who is GDI and what are their products and services?

GDI was founded in 1999 by Michael Starr and Alan Ezeir. GDI is a domain name registry and web site hosting company. I want you to watch the video that is below because it will introduce you to the products and services and the business opportunity.

               Direct purchase from supplier to customer.                  

When customers buy products and services directly from the manufacturer it is commonly called factory direct or buying wholesale. That is how we buy products and services from our Network Marketing companies. You cannot buy a Network Marketing companies products and services at a store or at the mall. The only way to learn about the company and the products and services they sell is by talking to an existing loyal customer. We are the only people who have the right to invite people to try the products and services.

Starting with the right motivation and purpose!

When I first started looking at the Network Marketing industry I learned that the industry has some very bad parts to it. One of the bad parts to this industry is it has thousands of people who sell books and DVD's that say you can get rich quick. There are all kinds of so called training programs out there that say if you write down all the names of your family and everyone you have ever meet in your whole life and then try to get them to sign up with your company you will be rich really fast. I talked to lots of people who are in the industry and they all said this has been part of the industry for decades. They all said that Network Marketing is not a get rich quick business. All the people I talk to that work in the industry and like what they do say they are in it because of the life time income potential. They say the right motivation and purpose is to develop a life time monthly commission based income. In Network Marketing there is no need to get rich anyway, all you need is enough monthly income to pay all your bills and then some to go live your dreams.

When I made the decision to start a Network Marketing business it was because I can see how the Network Marketing concept can help people who are in need of earning some extra monthly income to live a better life. I want to show people how the Network Marketing concept and mathematical formula and the business model theory work together and is a systematic approach to developing a life time monthly income. Once you have a complete understanding of how it all works you will see what it's all about.

This short video was made by GDI and is a great example of what we are all about.

Picking the right companies to work for as an independent contractor!

I spent a lot of time looking at the companies in the Network Marketing industry. I wanted to find the right companies for me and that would work for average working class people like me. I picked GDI because I think they have the best home based business opportunity for average working class Americans. One of the most important parts of working a home based business is building a support network for the people who are working the business. A web site is the perfect tool to use to support the people you are working with in a home based business. In Network Marketing we are teaching people how to use the knowledge of how the concept and mathematical formula are used to develop a life time monthly commission based income. Building a support network is the most important part of the network marketing concept. Network Marketing is a systematic approach to developing a monthly income where people work together as partners. Partners in this type of business have to provide support to the new people who are joining the program. A web site is the perfect tool to provide the support and training needed for the new people as they join the program.

Illustrating and demonstrating how a monthly commission based income works is what we do as a marketing strategy in the Network Marketing profession. Our goal is to show people how to develop a life time monthly income that is based on monthly commission. Our goal is to illustrate how we earn commission by working as an independent contractor for the companies we chose to work for. GDI is the right company for this because the compensation plan is based on math we have learned back in elementary school. The math used in the GDI compensation plan is sixth grade math so it is easy to understand for any one with a working knowledge of sixth grade math. Our profession is teaching people how to develop a life time monthly income by becoming a teacher of the Income For Life program.

A web site gives us the ability to have a fully automated business that works for us 24 hours a day, 7 days a week, 365 days of the year!

One of the best things you can do as a business owner is make your business as automated as possible. A web site is a tool that if used right can automate every part of a Network Marketing home based business. When you invite someone to learn about your business you have all the information at your web site where they can visit at their own convenience and from the comfort of their own home. Your web site is where all the information about the companies you represent and their products and services is so all you have to do is have people visit the web site. Every thing we teach people about the Network Marketing concept and how life time monthly commission based income works can all be taught from a web site. With the GDI tools it is very easy to build a web site that will work for you 24 hours a day, 7 days a week, it's completely logical.

 

 

Video's to help with the learning process!

I made a series of youtube video's to help with the learning process. These two video's are part of that series, they are a little long and keep in mind that I was not trying to make fancy video's, providing a proper introduction to the Network Marketing profession and the right type of education is my primary goal.