The Industry and Business Model

Tim Sales, an industry expert, retired professional network marketer and now industry trainer, has researched and studied this industry for many years. He sums up the basics of what the model is and why people would choose it.  Tim states "Most businesses, churches, politicians, schools, etc. know that direct selling and word-of-mouth (aka network marketing) advertising is the most effective and efficient form of advertising. It's effective because the advertising is coming from a trusted source - a friend, a family member, an acquaintance; it's efficient because the company does not have to pay for advertising that doesn't reach the customer." 

Corporations love doing business with direct/network marketing companies because they only pay for results. They pay no advertising expense until the product is sold.  In direct/ network marketing, the company pays a commission or advertising expense as it could be called, when a product is actually sold and it does not pay until that result has been reached.  They do not pay the hundreds of millions of dollars for television and print media advertising. They are not paying a celebrity multi-millions of dollars to represent their product because they realize the low return of investing this amount.

Paul Zane Pilzer, Robert Kiyosaki, Warren Buffet, Donald Trump and many others see a bright future for the direct/network marketing industry and have invested their time and resources into many of these types of businesses already. Our society has become too savvy  to ignore this form of marketing and distribution when looking for a business to start. In today's global and mobile society, it makes the most sense.

In this first video, take a moment to learn from the answers to to these questions:  Have you ever wondered why the rich get richer? Why do the poor stay poor? What about the middle class? Is the middle class shrinking? Why is the middle class having such a difficult time in past years? Does it feel like it gets harder and harder to keep up? As you watch the video, picture where you fit you in. What are you happy with financially? What are you unhappy with financially? How is your financial situation affecting non-financial aspects of your life?  

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(11 minutes)

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Why choose this business model?

People start businesses in the network marketing industry for many reasons.  With today's economic cycles, the primary reasons people are starting their own business in this industry are:

• Create more income or to create wealth
• Transition to business ownership with low start up costs
• To be paid for what they produce –for results
• As a retirement alternative or to add to retirement due to losses in the economy
• To help others make more money or make their life better
• And to pursue their real dream

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