Marketing Magic
Millionaires ……Are Made Of Exit The Rat Race Forever………….. WHERE ARE THE JOBS? A great managerial clean-out is sweeping across North America. More than nine million Americans and Canadians were laid off last year that is more than 24,600 jobs lost EVERY SINGLE DAY! The lives of these families will never be the same. In fact, most people with two incomes aren’t living as well as their parents did on one. According to an article in Fortune magazine (January 27, 1992) “the epidemic isn’t going to end any time soon.” In fact, it is predicted that over 50 percent of the executives who now hold middle to upper level managerial positions will be looking for a new job by the end of this decade. This is not the result of just a bad economy. According to management consulting firm of Kepner Tregoe, “downsizing has become a kind of management addiction.” Unfortunately, being well educated or well off won’t necessarily protect you from this growing epidemic. In both America and Canada, due to the ongoing massive restructuring of corporations, this bloodletting is likely to continue. Even affluent people who once flourished in the past are now facing severe economic challenges. Today, Americans and Canadians feel betrayed by their employers. They fear that their financial future may get worse before it gets better. Usually jobs have come back strong after previous recessions, but this time unemployment seems to remain incredibly high. As a result, an ever-increasing number of men and women are now seeking alternative ways to earn or supplement their incomes.
A NEW ECONOMIC REALITY If you grew up during the 1950s, 1960s, or even the 1970s, you, like most people, probably took prosperity for granted. You came to believe prosperity was your inalienable right the American Dream! Weren’t we all taught that, with good education, we would find a good job and our financial future would be secure for life? The 1990s, however, have presented us with a different picture a new economic reality. Most people are imprisoned in jobs they don’t like. But they remain due to their addictions to that paycheck, and believe they need it to survive (working for someone else), even though they don’t have the kind of freedom they would really love. For many, living paycheck to paycheck is existing just one-half inch above, or below, the financial disaster line. According to the American Census Bureau, 14.2% of Americans live below the poverty line defined as someone making less than $13,924 per year. Americans and Canadians are no longer striding across the economic landscape like Titans. People on both sides of the border are being forced out of their jobs. Our governments are out of control, and health care costs are out of this world! Today, more and more people are working longer hours to make ends meet. And the tensions over job loss have contributed to a large number of separations in families. In fact, the divorce rate in the U. S. is the fourth highest in the world. So what can you do? Ignoring the financial tremors beneath your country’s economic surface could prove disastrous. “To restore the American Dream, we need to take responsibility for our personal and financial lives.” (Newsweek “How Our American Dream Unraveled” March 2, 1992) The sad truth is, most people are not getting what they want out of life today. Financial experts state it now takes about $100,000 per year to come even close to being financially secure today, and that only one half of one percent of North Americans make this amount. For many, the American Dream has become “the American Nightmare.” Corporations can no longer fulfill our expectations. Many are too busy trying to survive themselves. There is no loyalty or security in the corporate world anymore. In the March 8, 1993 issue of Fortune Magazine (The New Unemployed,) Senior writer Kenneth Labich wrote, “There’s a real problem out there. The jobs people are finding are low paying and often only temporary.” Even major corporations are laying off people by the tens of thousands. When Fortune 500 companies like General Motors, Citicorp, and AT&T start whacking away at jobs laying off record numbers Sears 50,000; IBM 75,000; Boeing 20,000; United Technologies 49,500; GM 70,000+), everyone begins to worry about job security. The reality is “there is no such thing as job security anymore.” Just ask the former employees of Pan Am, Eastern, Midway, or Braniff Airlines. People who think they have job security, regardless of what kind of job they have, are only kidding themselves. There’s no such thing as job security anymore! In recent years, we’ve witnessed a collapse of the stock market, the collapse of the savings and loan industry while personal bankruptcies are at an all-time high. Local, state, and federal agencies are almost all financially broke or insolvent.
The rising cost of health care is also making it virtually impossible for people to afford even basic health insurance. Statistics show that in 1990, over 35 million people under the age of 65 had no way of taking care of themselves in the event of an accident or illness! This is sad, real sad. Without proper planning, each of us is at the mercy of an economy that has gone completely out of control and will create even more hardships for people in the future. Never before since the Great Depression has it become more apparent the time to seriously consider thinking about one’s financial future is now! We live today in unconventional times, which calls for unconventional ways of doing things. Those who don’t see what’s happening will be left behind miles behind. Tomorrow is happening today! According to author and leading world economist, Paul Zane Pilzer, “We’re headed for as much as twenty percent unemployment by the year 2000.”
THE TRUTH OF THE SITUATION It has been stated that the mind, like a parachute, works best when it’s opened, and “the truth will set you free.” What is it going to take for people to “wake up” and see the truth of what’s happening in the country today? The vast majority of people aren’t living their dreams. For many of the newly unemployed, the loss of a job also means a diminished sense of self worth, not to mention the loss of support from colleagues. Today, employment experts expect people to have more than 10 different “careers” during their lives. The number of men and women changing jobs today is staggering! What kind of security is that? It used to be that once you had a career (something you invested your life in), you stayed there until you retired. Even the military is offering cash payments to their officers to take early retirement. How would you like to be in the defense industry today? Wherever you turn job security is no longer available in North America. The free enterprise system is no longer free. Most people are being forced to take whatever they can get just to pay the bills. There’s no freedom in being forced to take a job there’s no security either!
We can no longer depend on colleges, the government, or even big business to provide us with the kind of financial security we need. We need to take personal responsibility for our financial lives. Instead of remaining financially dependent on your job, begin moving in the direction of financial independence. As financial experts have all agreed, one of the most direct ways of taking control of your own financial future is through the development of a successful business enterprise. And although most people have expressed a desire to be in business for themselves, limited resources, lack of support and expertise, along with fear of failure, usually prevent the vast majority from ever beginning what would in many cases be a better economic plan than a nine-to-five job.
NETWORK DISTRIBUTION AN OVERVIEW In the 1950s, FRANCHISING was a relatively new concept. Boy did people hate it. Newspapers and magazines wrote about what a scam and a rip-off franchising was a scheme! Some publications wouldn’t even accept advertising from franchising companies. Today, franchising is responsible for over one-third of all retail sales in the United States, according to the Department of Commerce. Total sales receipts from franchising in 1990 amounted to more than $615 billion (Entrepreneur, April 1992.) That’s over $1.6 billion per day! Network marketing, or “network distribution” as it is more commonly known, is currently moving along a similar line of acceptance as franchising did in the 1950s, in the U. S., Canada, and abroad. State, local, and federal regulatory agencies today support legitimate network distribution companies and are making it even more difficult for non-legitimate companies to operate. Network distribution is very big business! With approximately two million distributors worldwide, the Amway Corporation posts sales of over $5 billion annually. The A.L. Williams Company, founded in 1984, shocked the insurance industry by applying the principles of network distribution to become the largest insurance company in North America writing an astounding $96 billion worth of term insurance in just four years (later sold to Primerica Financial services for ONE BILLION DOLLARS!) According to Dr. Srikumar Rao, chairman of the marketing department at Long Island University and student of network marketing companies for nearly two decades, “Network distribution has enormous power to create wealth.” Network distribution success stories are becoming more and more commonplace in the business world today. One of the most celebrated is the story of Lane Nemeth of Discovery Toys. “Nemeth’s career began managing a day care facility where she discovered that parents and teachers were interested in the educational toys she brought back from Europe. Enlisting their support as distributors, Nemeth created “Discovery Toys” which today has sales in the $100 million per year range,” states Jeffrey Babener, leading legal counsel and authority for the industry. “Multi-level marketing or network distribution is the wave of the future,” states a former McCann-Erickson advertising executive, Wayne McIlvaine. “It will revolutionize the way we live and work.” Some of the largest Fortune 500 companies are now involved in network distribution (MCI, Sprint, Gillette’s subsidiary, Jafra, Rexall Drugs, and many more.) And Avon, a multi-billion dollar, 100 year old company, is also into network distribution. “Anyone who ignores the power of this method of marketing,” explains McIlvaine, “is certainly missing the future.”
THE TRUTH ABOUT NETWORK DISTRIBUTION Unless you already have all the money you’ll ever need, having all the time in the world to enjoy it, you owe it to yourself (and your family) to learn the truth about network distribution. The bottom line is, you’ve got everything to gain and nothing to lose. Find the facts. If you take a good look, with an open mind, you may discover how network distribution can provide you with the security and kind of freedom you need to realize your own financial dreams. You’ve got nothing to lose…
WHAT IS NETWORK DISTRIBUTION? Many people still believe network marketing/distribution is a “pyramid scheme.” This is not true. This is all a paradigm. A paradigm is a prevailing thought of commonly held belief which is not necessarily true but accepted as truth. For example, at one time there was a prevailing paradigm, which stated “The world is flat” and “Man is not meant to fly.” Today, many people’s paradigm is “The most secure, acceptable way to make a living is to have a job, and almost everything else is not to be trusted.” However, all our evidence does not support this. In the 1950s franchising was believed to be “a scheme.” Remember? Today, we know the truth. The truth is, network distribution companies, like every other legitimate business enterprise in the world, are only shaped like a pyramid. Dr. Karl Dean Black, noted author and educator, states: “All successful business, because they distribute goods and services, end up shaped like a multi-level pyramid. Value flows down the pyramid as power flows up. If value stops flowing down to the people, power in the form of dollars or votes stops flowing up, and the system collapses.” IBM, GE, General Motors, and even the U. S. Government are all pyramids in this sense. Essentially, there is nothing wrong with any pyramid, so long as “value continues to flow down.” It is only when “value stops flowing” that a pyramid becomes a “scheme.” One of the biggest pyramid schemes in the world is legal! It’s called Social Security. Not a single person under the age of 50 should expect to collect Social Security. Why? Because by the time the “baby boomers” are old enough to qualify for Social Security, there won’t be enough people paying money into it, for the people to get their money out. Now that’s a scheme! The truth about Social Security is that there hasn’t been, nor will there (probably) ever be, the numbers of people born in America since the baby boom. Subsequently, there’s going to be a whole lot fewer people paying taxes into Social Security in the future, than people taking money out. And, what do you think will happen when the first of the baby boomers begin depleting these funds? Will they raise taxes? Or will they cut the amount of your entitlement to insure there’ll be enough money to go around?
Doesn’t seem like value flowing here. Isn’t this a pyramid scheme? What about our elected officials? Would you ever give anyone a “raise,” who has lost nearly a half-trillion dollars of your money in the four years they’ve been in office? Sound Crazy? It should. Our government officials have given themselves raises while our economy, national debt, and balance of trade are all in serious trouble. What’s going on? A scam? Pyramid scheme? Sounds like one to me. Do you see any value flowing here? It’s time for people to begin searching for the truth. If more people truly understood exactly what a pyramid scheme was, and realized that network distribution is a powerful form of business misunderstood by most yet utilized by some of the largest corporations in the world - you would see why so many executives (who now know the truth about network distribution) are now choosing it as a career. Plain and simple, the network marketing system of distribution is putting the freedom back into the free enterprise system. No other independent marketing system so completely honors the individual giving them so much freedom. Freedom to choose whom you wish to work with, when, and where, and which company, products or services you choose to represent. At a time where the work values of corporate America have become so twisted that the quantity of hours worked is more important than their quality, network distribution provides an intelligent alternative for those seeking freedom from the madness of today’s corporate grind. Those committed to the system of network distribution believe it is the only work worth working for. If you are seriously interested in creating a more secure financial future for yourself and your family, take the time to seriously consider all the benefits network distribution can offer you.
The financial rewards and personal freedom available through network distribution can provide you with the ability to create the kind of lifestyle you want, by leveraging your time and talents. Network distribution can give you more time and more money to enjoy more of the things you want in your live.
THE NATURE OF NETWORKING To better understand network distribution, we must first look at networking. “Simply stated, networks are people talking to each other sharing ideas, information and resources. It is a process of communication that creates linkages between people and clusters of people.” (John Naisbitt, Megatrends) Traditionally, network marketing or network distribution has always been viewed as a process where an individual builds and organization through development of a ‘downline,’ where products and services are ‘sold’ through a network of independent distributors.
Networking rewards you for recommending products or services to others. The more you recommend, the greater your rewards. This form of advertising, consumer advocacy, is one of the most powerful and compelling forms of advertising sharing ideas, information, and resources. Word of mouth testimonials are more believable than any other form of advertising. “Eighty percent of the costs of getting products to consumers,” states Charles Givens, financial expert and author of the best-selling Wealth Without Risk, “are the marketing and distribution expenses.” Network distribution companies pay independent representatives royalties for marketing their products and services to others by recommending them and distributing them to interested buyers. Period. In most cases, the network distribution company or provider carries all the inventory and simply drop ships the product to the customer or independent representative. In network distribution, suppliers and manufacturers essentially go into partnership with a network of independent representatives. Network distribution companies have basically reduced their huge overhead expense of marketing and distribution. No longer do they need to pay for large sales staffs, sales offices, sales managers, cars, phones, travel, and entertainment. They how have an independent network of representatives who are producing sales, and they are all paid a commission or royalty income. No longer do they have to advertise to get “the word” out. Their network of independent representatives are now doing it using one of the most powerful forms of advertising word of mouth! Subsequently, the money saved by cutting costs in overhead, advertising, and distribution is passed on to independent representatives who are now moving the product. Network distribution is simply another, better form of marketing. It’s that simple.
THE NETWORKING STRUCTURE Individuals need structure. Any life lacking in comprehensive structure, is usually an aimless wreck. Absence of structure leads to breakdown. Structure provides the relatively fixed points of reference we need. The old “pyramid” or “hierarchial” structures of business and government fail to respond quickly and effectively to solve people’s problems, due to the multi-level bureaucracy information must pass through. The “new” networking structures, however, place people at the center rather than in a hierarchial format, providing an easier way for information, products and services to be given and received. Unlike the old pyramid structures, a true networking structure supports the interests of everyone involved in the network. Rewards come by empowering others, rather than climbing over them. Each member treats the others as peers, because what’s most important is the sharing of information. Instead of influencing people to constantly struggle to move up or get ahead - producing stress, tension, and anxiety networking companies, with people at the center, tend to empower the individual and nurture all in the network. Many large corporations are now moving away from the traditional pyramid structure, questioning whether their multi-level managerial structures are really effective. Network distribution is one of America’s fastest growing, most proven methods of distribution. It is providing thousands of corporate Americans with an alternative career opportunity to working a traditional nine-to-five job. It is, according to John Fogg, editor of the newsletter Upline, “the next logical step in the evolution of the free enterprise system.”
Are you truly happy with your job? Are you making all the money you want? Are you living the lifestyle you deserve? Do you have the time to really enjoy your family and friends? Can you take time off for a month and not be concerned about your income or money? Are you really financially secure? If you answered “no” to any of these questions you owe it to yourself to seriously consider the benefits of network distribution. Find for yourself why so many people, just like you, are discovering why “networking” is an intelligent and profitable way to protect oneself financially for the future.
THE BENEFITS 1. Increased Income The first and foremost reason people become involved in network distribution, from a business perspective, is due to its proven ability to increase one’s income. Many people have developed six, and even seven-figure incomes.
2. Profits vs. Wages In networking distribution, an individual is developing more than just a “paycheck.” By being part of a networking organization, the network becomes the person’s business, and as a result, you develop an equity value you own. Small business income increased about 17% vs. only a 6% increase for salary and wages. Businesses owned by women are growing at an all time rate 44% are expected by the year 2000. “There are now 24 million successful home-based businesses in America. And while workers are being laid off by the thousands every day, home-based businesses are generating $382.5 billion in revenues every single day, and are creating 8,219 jobs per day.” (Sandra Franks, Home Incorporated) The profits generated by your network are shared with you by your network. 3. Tax Advantages One of the advantages of working at home is that you can save a bundle on taxes, provided you plan carefully and meet all of the IRS’s requirements. Let Uncle Sam pay for most of your business expenses. With a home-based business, you can legally deduct health insurance, travel expenses, auto payments and insurance, “entertainment meals”, telephone, fax, car phone, and lots more. CPAs agree that the best area for serious tax benefits is by owning your own business. Although this is not a treatise on Network Distribution & Your Taxes, there are some extremely good benefits in converting certain personal expenses into legitimate, tax-deductible business expenses. Consult your tax attorney or CPA for specific information. 4. Improved Lifestyle Profits are always better than wages. In network marketing, the royalty override income generated is unique in that once it is developed through the creation of a successful network, it continues with or without your direct involvement in your business. While most people today have either too much month at the end of their money, or not enough time to enjoy their money, network marketing provides you with both time and money. Today, more than ever people are realizing that they will never get rich working for someone else. Much of today’s industrial manufacturing has moved overseas where labor is cheaper. In the past, you could assume that the “company job” would provide for you and your family a decent lifestyle. However, as the middle class continued to slip away, people are beginning to wake up to the realization that a prosperous future lies in their own hands. Today, over 30 million people work from their homes in both Canada and the U. S.. These “work at home” entrepreneurs are improving the quality of their lives; many experiencing wealth for the first time. Economic experts predict that in the future, most new jobs will be services related involved with creating, storing, and distributing products, services, or information to the public. These kinds of fields are tailor made for anyone wishing to work at home. As more and more people continue to discover all the financial and personal benefits of working at home, many are discovering that when it comes to doing business, there’s no place like home.
THE POWER OF DUPLICATION It’s truly amazing to see how fast a network distribution organization can grow. By simply sharing your product or service with other people and teaching them how to do the same, you can develop a residual income that can literally pay you royalties for life.
To illustrate this point, let’s say you got started in a network distribution company sharing your product and opportunity with just one person. The next month, you sponsored another person into your organization and helped your first person to sponsor someone into his or her organization. You would have three people in your business. The following month, you sponsor another new person into your business, and you also help your three people to build their businesses by teaching them how to sponsor someone into each one of their networks. You would now have seven people in your organization, and, if you taught these people how to sponsor just one more person into each one of their organizations, and you did the same, you would have a total of fifteen people in your organization in just four months! If you continued this on a regular and consistent basis, in twelve months you would have over four thousand people in your network, each working for you and themselves.
To better understand the income potential of network distribution, let’s see how one million dollars worth of product could move through your organization. For example, let’s say all of your four thousand people committed themselves to building a solid network distribution business by moving $1,000 worth of merchandise. You would have a business that grossed over four million dollars! (Not bad.)
Of course, not every one is going to commit themselves to building and sustaining a business this size. Some people may decide to just be consumers instead of building a business for themselves. That’s fine. Even if seventy five percent of your people did absolutely nothing with the opportunity, you would still have one thousand people moving $1,000 worth of product giving you a business that grossed one million dollars! (Not too bad.) Now you understand the incredible “financial power” of Network Distribution! To understand the time-leveraging power of duplication, imagine your 1,000 people working only two hours per day at their businesses. That would be two thousand hours per day being worked for you. Hours you could never possibly work alone! Imagine all these people talking to other people about your product and opportunity while you’re talking to other people about the same thing, or lying on the beach somewhere. Now you understand the “time-leveraging power” of Network Distribution! To put it simply, time leveraging is about having other people work with you to accomplish what you could never do alone. In other words, maximizing your time for money. Until you really understand and embrace this incredibly powerful financial principle of time leveraging, you may never be able to build the kind of solid financial future for yourself, with a residual income that could provide you with more money for your hours worked, instead of trading your time for money. Finally, here are a few things you should remember when choosing a network distribution company to represent. First, look for a company with a product line with: 1) “real world” appeal; 2) consumable products; 3) competitive prices; 4) products at wholesale prices or discounted from prices found in retail stores; 5) strong emotional appeal and a strong growing demand; 6) a consumer satisfaction guarantee. In other words, look for products people want. In addition, look for a company that has a good compensation plan a plan that will enable you to make money on a permanent basis. Watch out for plans where the emphasis is placed on recruiting people into the business, rather than focusing on the sale of the product.
HERE'S WHAT IT BOILS DOWN TO Insurance companies tell us:
Of the 1% that are wealthy:
I realized that if I continued to do what I had always done, I would continue getting what I’ve been getting – I wanted to change my life. I came to realize that nothing I could do for the next 3-5 years could ever compensate me in money and plenty of free time like network marketing. Today I enjoy a seven figure per year residual income, work at home in my blue jeans and will never go to an office again. I do what I want when I want and have all the money and time freedom to enjoy it! …Against Every Great & Might Endeavor Stands a Million Mediocre Minds…..The Question is…. Where do you stand?
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