A Network Marketing Business Is Big Business

I’m always amazed at people, seniors included, who think network marketing is this small little business opportunity. I see this all the time both with people who are uneducated about network marketing as well as people who are in the business itself.

In this article what I want to do is show you why I think having a network marketing business is big business. We will talk about why seniors should be involved if they are looking for a real business opportunity!

Already in an MLM business? If you change the way you’re viewing this business model maybe, you will begin to have better results growing your business beyond where it currently is.

Network Marketing Business Model

Network marketing is a business model. It’s a relationship between a network marketing company and a network marketer.

In this business model products are distributed from the network marketing company either directly to a retail customer, or to a distributor. Often these products are stored in a regional distribution center and then distributed out into the marketplace from there.

This really is no different than any business model. I’ve seen major manufacturers such as Amana manufacture appliances in Amana, Iowa and get their products to the marketplace using this distribution process.

Distribution Process

1. Products manufactured at a factory.

2. They are shipped to a regional distribution center (RDC) from the factory.

3. Ship products to a local distributor.

4. Products are shipped to a retail outlet for sale to the public, or the distributor picks them up at the RDC.

When I mention Amana refrigeration you think of this is a big business. Yet it’s interesting to me that multibillion dollar network marketing companies use the exact same distribution model.

The big difference is how the products get out into the public. Most product the public buys today is done this way.

– Ordered on a website such as Amazon and shipped directly to them.
– The customer walks into a retail store and purchases them.

Network Marketing Retail Distribution

In network marketing customers can order directly from the network marketing company as well. When this is done, they’re ordered on the website of a distributor who then gets credit for the sale.

This is great for the network marketing distributor because they do not have to do any type of customer fulfillment. This is really great for baby boomers who are busy and do not want to deal directly with customers but want to earn more money.

Here is how customer fulfillment is done today!

1. The customer orders the product from a distributor replicated website. A replicated website means all distributors have the same website.

The difference is each distributor’s website is coded with an identification number that identifies who the distributor is. This way that distributor gets credit for the sale and is paid a commission for each sale.

2. Customer pays online on the distributor website.

3. The network marketing company ships the product directly to the customer and the distributor earns a commission on that sale.

4. Any type of customer service issues, refunds, and so on are handled by the network marketing company. This is another huge advantage to the network marketing distributor.

Products are not delivered directly to the customer much anymore. Even established companies such as Avon, who are identified by ding dong Avon calling, do not ship to their distributors first. They ship customer direct like every other NWM company.

Again, this is a huge benefit to baby boomers who want to be involved in the networking part of network marketing and not so much on the product fulfillment side of the business.

Wholesale Distribution

When you sponsor a new distributor, you earn money on their purchases. They will order products at a discounted price for personal use. You earn money on this wholesale purchase.

They will order products at the wholesale price and sell them at a retail markup. This price difference is their retail profit.

The wholesale purchase still creates sales volume for your business. The larger these wholesale purchases the more money you will earn.

Wholesale distribution is the largest way to create a big network marketing business. The great thing is you really do very little in the way of making these wholesale purchases. It is all handled by the network marketing company.

MLM Is Not A Pyramid Scheme

One misconception about multi-level marketing, also known as MLM, is the business model is a pyramid scheme. You can certainly see in the retail part of the business there is no pyramid scheme here.

Even if the distributor chooses to deliver products to the customer how the product makes it to the distributor is no different than most distribution methods. The confusion lies when a distributor attempts to develop a downline of their own.

This is done by sponsoring new distributors on your front line, and then working in depth to help those distributors develop their own business. As long as everybody is retailing products, which the federal trade commission says is very important, there is no pyramid scheme here.

Bypass Your Upline

Another key point in debunking the pyramid scheme misconception is the ability for downline distributors to bypass their upline and make more money than they do. In their compensation plan network marketing companies have various levels that can be achieved as you grow your business.

As you advance in these different levels you earn more money based on bonuses paid for achieving them. There have literally been millions of examples of people joining a network marketing company long after it was started.

They advance up the compensation plan to earn more than their sponsor, their upline. Some even make it to the top levels that can be achieved within the company.

This would be impossible in a pyramid scheme because the only people making money would be the people at the top. The older the company is the more there are people on the bottom of the pyramid.

I know seniors have been involved in MLM in the past and may feel like they were in a pyramid scheme. You can be confident that is not the case today.

Everyone Starts At The Bottom

Seniors joining a network marketing company all start in the same place. How they progress from there is totally up to them.

In the old days of network marketing the failure rate was very high. This was primarily due to the fact the business opportunity was hyped and oversold.

Also, the emphasis was put on the dream of building a large business, quitting your job, traveling the world, and using your money however you wanted to use it. The problem was the average person in network marketing only personally sponsored 2 people, and never had 10 customers at the retail level.

This is totally different today thanks to the Internet. Network marketing is a great business model for seniors because of how big your business can grow. Plus, you do it primarily online.

This is not to say that you won’t have interaction with your retail customers or people that you sponsor. The difference now is there is no door-to-door selling, and there are no in-home business meetings. You’re not doing circle meetings around a table or in front of a marker board.

The way your network marketing business is built today is really no different than how any business goes about using the Internet to grow.

How A Big Network Marketing Business Is Built Today

There are really network marketing businesses being built. Some are growing very quickly thanks to Internet marketing.

Internet marketing has evolved as a catch all phrase to mean many things. At its core Internet marketing is the process of promoting a business or brand and its products or services over the internet using tools that help drive traffic, leads, and sales.

Senior network marketers are doing a great job to do all of these things. The really good ones are building large MLM companies because of Internet marketing.

Here are some of the components of a BIG MLM business using the Internet!

1. Email marketing. Successful network marketers do email marketing by building a list and developing a relationship with their subscribers.

This is a long-term strategy for building a business asset that can result in new retail customers or new distributors for your business. An email list is always spitting out new prospects because people are ready to join you at different times.

Think of this as Top Of Mind Awareness (TOMA) marketing at its finest. You just want to be their when they need you either for your products or for your business opportunity.

2. Retail first, sponsor second. Successful network marketers put as much emphasis on retailing products as they do on sponsoring new distributors. One of the reasons this is so successful is because the downline is able to emulate the upline.

Big network marketing businesses have retail profits because they know how important it is to have customers buying at that level. Retail profits can then be used in a variety of ways including investing some profits back into marketing on the Internet.

Marketing Is Important

3. Promotion methods. Any big business using the Internet is going to use a combination of marketing methods. These include….

A. Paid advertising. Purchasing ads on high-volume sites such as Google, Facebook, and so on.

B. Social media. Include social media marketing and setting up business pages on the top social sites.

You want to be on one or more of social networks including Facebook, Twitter, LinkedIn, Instagram, and Pinterest. Baby boomers can capitalize on their relationships with other seniors to find new customers and members to sponsor.

C. YouTube. Top network marketing distributors also have a presence on YouTube. They learn how to create YouTube videos to brand themselves as an expert in the network marketing niche.

D. Blogging. Another successful strategy is setting up a blog and using it to educate retail customers and new distributors. A blog can also be a place to add your YouTube videos, so the distributor has another method for marketing online.

More On Network Marketing Blogging

Network marketing blogging is good for retail and wholesale distribution. Blogging is a way to find new customers and prospects.

The best network marketers use their blog to inform people. This could be a training message to your downline. It might be an update on a product for sale.

Do a Google search for best network marketing blogs? Here is one at the top of the list, but it is not an MLM blog, but rather a site ranking network marketing blogs: Top 100 Network Marketing Blogs & Websites | MLM Blog.

This is great because it will show you different network marketing blogs you can use to get ideas for your own blog.

Another strategy is to look for company related MLM blogs. For example, do a Google search for “Best (insert your company name) Distributor Blogs” and have a look. Let’s use Amway as an example.

Best Amway Distributor Blogs will bring up all kinds of blogs to look at. You may have to go through several pages to find the best blogs you can use as an example for your own new blog.

Blogging Basics

Blogging is fantastic because any senior can do it and can start a blog for under $20. All you need is….

1. Domain name. Cost $15 a year.
2. Hosting. As low as $5/month.
3. WordPress theme. Free.
4. Content. You write or hire a freelance blog writer.

Some network marketers write all of their content, some write part of their content and outsource the rest, and some outsource all of their blog content to a freelance writer.

However, you approach it blogging is a great way to establish your own online presence. We have just begun to see some really great MLM blogs from seniors and baby boomers in the future.

High Quality Makes You Look Big!

Here is the thing about having a big network marketing business for most people. They do not look that successful at first because they are not that successful.

If you have been around network marketing in the past, you know the story. I know this guy and he is making a million and we can too!

My upline has only been in for 6 months and she is earning $10,000 a month. We can do this.

After a while when it doesn’t happen for you then you become another network marketing casualty due to unreasonable expectations.

Here is a better approach when it comes to sponsoring new distributors.

– Let your blog do the talking.
– Let your email list establish credibility.
– Your YouTube channel can make you famous.

When you are online you seem bigger than you really are. You only have to use this to your advantage for a while.

Eventually you start writing about your own success. You make videos showing your checks.

You send out emails showing your list has over 1000 subscribers. And so on….

Do all of this in high quality and you will make a big impression. People will flock to you naturally.

This is what is known as attraction marketing, and it works. It even works for the little guy because the Internet makes them look big!

What Is A Big Network Marketing Business?

I am almost done with this article. Thanks for reading along so far.

Now it is time to wind things down answering the real question. What is a big network marketing business and how can baby boomers get involved?

Amway’s Yager Group

Dexter Yager of Amway fame recently passed away. He was the largest Amway Distributor in the world.

Business For Home has the Yager Group at the top of all lifetime earners with total earnings of $460,000,000. They still earn over $7.2 Million a year.

That is a big network marketing business.

Big Is Relevant To Your Needs

99.9% of all network marketers will never be that big. The thing is it’s not necessary to be a millionaire network marketer to be considered having a big MLM business.

What is important is how big do you need to be to feel successful. Is it having 20 retail customers earning you $200-$500 a month in retail profit?

Is it sponsoring 3 on your frontline and building a downline of 100 members earning you $1000 a month?

Many would not consider that big, but you would! This is why network marketing is a thriving and growing business model on the Internet today for boomers.

Seniors all over the world are establishing their own definition of BIG and successful. Nothing else really matters because this is doable for you.

Top Network Marketing Companies

Network marketing is exploding all over the world. Business for home has a list of the Top 500 Direct Sales Companies in 2018 on their website.

Amway continues to lead the way with annual revenue of $8.8 Billion which is up 2% over 2017. Following behind in second place is Avon at over $5.5 Billion, but they continue to slide down 3% from 2017.

All in all 7 of the Top 10 companies saw an increase in revenue and 10 out of the Top 15 were up in sales in 2018 over 2017. Most of the Top 500 directs sales companies are big network marketing businesses, so the opportunities are there to find one you are interested in.

Summary: Having A Network Marketing Business Is Big Business – Here’s Why!

I read on Quora annual sales in network marketing are estimated to be $170 Billion a year.

We are way beyond questioning whether network marketing is a viable business model. It is!

When you start your own network marketing business you are in a big industry. You can present yourself as being big almost immediately with a blog and YouTube Channel.

As you build your own email list your credibility will grow. As you get your own retail customers your income will begin growing. This can happen quickly too!

Showing your downline what you are doing can happen quickly thanks to the Internet. All of this is possible because having a network marketing business of your own is BIG business. This is really true for seniors who decide to get involved and build a real business of their own.

Related Video: How to GET RICH With Network MARKETING! | Robert Kiyosaki

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