Thursday, November 25, 2010

Some thoughs about network marketing

"Don't tell me you are about to join a pyramid!" - That was a first reaction of my good friend, when I shared the exciting news about my new business. And since I've heard it so many times, I thought I need to explain a little bit the difference between pyramids and network marketing. It's actually pretty easy. I found the best explanation in a great book by Don Failla, "The 45-second presentation that will change your life". Why this book is so good? Because it's short - just 82 pages with lots of illustrations. Go to a nearest library and grab the book, if you didn't read it yet. Or, if you have no idea where your nearest library is, go to http://www.worldcat.org/, find this book, add your zipcode and you'll see the nearest library where this book is available.
Anyway, here is the difference between legal network marketing and illegal pyramids: if it includes moving a product or service from the manufacturer or provider to the customer, it is network marketing; if a product or service doesn't move, it's not "marketing", it's a pyramid. It's easy so far, isn't it?
The second question I hear all the time is "If this product is so good, why it's not available at retail stores?" The answer is: "It is so good just because it's not available at the stores!" What does it mean? The manufacturer didn't spent any money for advertising or promoting the products, but invested all the resources into creating the great product. You figure out the math.
Network marketing becomes successful if a product or service is highly consumable, and a customer wants to use it again and again. Think of Rodan + Fields products. Do you see now why I am so excited about my new business? But that is not the only reason. Stay tuned!

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