How to Discover the Love, Innovation and the Entrepreneurial Fitness Required in a Global Network Marketing Business
To everyone that is doubtful of hope – this is for you!
Let’s begin. A few short weeks ago, unbeknownst to me, I had the privilege of meeting someone on an airplane bound for Adelaide, Australia; who would lead me onto an exciting path of discovery. We momentarily chatted at the back of the aeroplane on my way back from Nadi, Fiji; in a chance meeting in which I would say ‘yes’, I would like to hear more about the business model that had established her recent financial freedom and success (more to come on this encounter with an interview in the later chapters).
Eager to progress my knowledge, I spent the next 4 weeks researching the industry, the organisation, the people behind it and the sequences and processes to their wealth. The learning curve was exponential – and this is my reflection. At this point in time, I was coincidentally completing my final MBA capstone research project in Adelaide, so I took the opportunity to research her discussion with me in depth and convey the message across to my followers from an Australian scholarly point of view. I had no idea about the industry, albeit little rumours here and there to complement my somewhat biased and disappointing initial online research. I found nothing positive but like an underworld that nobody truly knew about – it intrigued me because I felt that something was right.
The bastion for wealth had its scent in the air. This could be its last refuge – I thought. I had to form an immediate action drill to advance a pincer movement onto this burgeoning interest. It was now or never. I wasn’t sure if it was the timing or the opportunity – the right thing to do though was to jump first and ask questions later. This is the later part of that quick equation that transpired in my entrepreneurial mind. This educative curiosity from an Australian scholarly perspective is now alive in the words that you will feel and as we go through the journey together; towards health, wealth, a great life with grand relationships and most importantly learning about the chances to glow youthfully throughout the adventure. This enlightenment was my beginning into a new and evolving industry. A new road was carved and you may feel the moments morph around your own personal experiences or fantasies. I dived immediately into the books and into the school library; the search for the golden nugget had begun. Line by line, word for word, dissecting the information and honouring the objections with gratitude. My hope is that this communicated knowledge helps novice beginners similar to myself, take that intriguing next step towards calculated risk taking, growth and most importantly, self-discovery through the facts.
I hope that you gain some business value in my research and that this value inspires you to create your own decisions when the time comes for you to approach your own destiny!
In Gratitude and Thanks.
Introduction to Network Marketing
Network marketing, multi-level marketing, direct sales, referral marketing, pyramid selling etc, the names are endless. For the purpose of simplification we will adhere to this business model simply as network marketing for ease of navigation, and understanding throughout the book. All of these names; simply exemplifies a unique marketing strategy for the sale of products or services where the revenue of the network company is derived from a non-salaried workforce selling the company’s products or services. Pretty simple system – just made complicated to confuse the novice beginner like myself.
1.1 History – How Did It Start?
By accident to be honest. This is how the story goes and it all starts with an ingenuous idea conceptualised in 1930 by a man called Carl Rehnborg. Carl was an American businessman who lived in China between 1917 to 1927. Carl observed the benefits of using supplements in a diet that could be beneficial to a human beings health. According to Amway publications, Carl’s study became the ‘ample opportunity to observe at close range the effects of an inadequate diet’. With the knowledge he attained in the nutritional literature, he then started to envision a dietary supplement that would assist proper body functioning in any sort of diet. Carl then decided to go back to America to start his own company out of his learnings in China. He founded his company called The California Vitamin Company. In 1939, he renamed the company to Nutrilite. Carl utilised his friends to sell the vitamins but things initially looked disappointing. The vitamins were piling up on the shelves, unused and forgotten. It was heartbreaking for Carl. Until an idea lit up in his mind, to develop a kind of selling by informing people about the product. He shared the vitamins to more of his friends, to the friends of his friends and so on. You can see where this is going right? Alas – network marketing was born!
The business model grew further when Jay Van Andel and Rich DeVos became the distributors of Carl’s products. The three noticed a phenomenal increase in sales. KABOOM… !! Network marketing was unleashed into the world. They later set up a competing company (because competition is good in a capitalistic economy) called Amway and they also bought a controlling interest in Nutrilite in 1972. In 1994, Amway took over full ownership and is one of the largest network marketing companies in the world today.
1.2 How Do They Get Paid?
As the business world innovates and disrupts, network marketing compensation plans evolve to attract new recruits and customers. It is a very simple strategy for expansion to capitalise on the available market share. It is different for every network marketing company just as there are different salaries for different corporations. However the most common is the commission based on the two revenue streams. The first stream of compensation can be paid out from commissions of product sales. The second stream of compensation can be paid out from commissions based on recruiting similar minded distributors. The amount of compensation varies between network marketing companies. I would have to study every single company in the world to understand this – alternatively I can study the success stories because success always leaves hints – in the results.
Let’s look at some quick examples of the people who have seen the opportunity and taken the leap. Here we witness the amazing stories of different individuals who have tasted the recent fruit of success in network marketing – becoming phenomenally wealthy.
Sarah Robbins always dreamed to become a teacher. So she became one. She thought she could now have all that she wanted with a limitless appetite for continuous personal growth and development. However, the economy stumped in the US of A, challenging her thoughts on the economy.
She had heard of the Rodan & Fields products. She then decided to join so she could earn an extra income and expand her personal development at the same time. Unexpectedly, with her initial goal to earn just a bit of extra income, she earned more than she thought, even more as a teacher. Her career in network marketing grew and she decided to focus on it rather than her teaching career. She was earning six figures at a very young age. She joined the millionaires club and becoming the first distributor to be inducted into the Rodan & Fields Hall of Fame. Sarah continues to educate people on the benefits of network marketing and benefits of its wealth through her unique educational style.
Eric Worre, an ordinary writer spent 30 years working in network marketing once he saw the light. He spent most of his 30 years as a distributor and eventually became the president of his own networking company – The People’s Network. He then decided to retire as a distributor and continued his journey in network marketing as a coach and helped network marketing novices, organizing sales presentations. He then wrote ‘Go Pro – 7 Steps to Becoming a Network Marketing Professional’ in 2013, to reach and educate more network marketing aspirants. It has sold more than 1.5 million copies and has been on six best-sellers lists on Amazon.
2.3 Single Mother
Donna Johnson is an example of a network marketing miracle. A single mum who did not have anything before she started in network marketing. No college degree – just an ordinary swimming coach in a little American town. With her determination to succeed, she now earns more than $1 million per year and is the leader in one of the top network marketing companies, Arbonne. She is now one of the biggest earners in network marketing and has a bed and breakfast business in Jamaica amongst other entrepreneurial ventures.
2.4 Government Worker
Rebecca Simon is a modest mother who was brought up in one of Adelaide’s toughest suburbs. She recollects how she would travel to work every day and sit at an uninspiring desk job, knowing deep down inside that she was capable of more. Today she is building her own resort on an exotic south pacific Island – just three years after she started in network marketing. More on Rebecca’s inspirational story later on in the book.
The Feminine Revolution
40 years ago, when the empowerment of women took off, many loved their new found independence and the opportunity to dress in a suit and drive off to a esteemed corner office. Things have changed a lot since the 70s and 80s, today she is just as happy to pull on comfortable yoga pants and skip the travel to the office altogether. Instead of tolerating negative office stigma and glass ceilings, modern women are heading towards the unique opportunity to be their own CEO, have control with no limits on their annual income. Some other reasons why network marketing industry is proving to be amazing for the ladies are:
3.1 Work – Life Balance
Being burnt out today is no longer the exception, it is the norm. People have to put up with inflation, rising food prices, cost of living, raise families and commute sometimes for hours to get to, and back from work. The amount of work to be taken home is also increasing, teachers working to plan their workloads weeks in advance and project managers working extended hours to launch projects on time. You have heard it before and again, the balance has gone out of whack but some refuse to accept the truth.
Most career women have worked in team environments and enjoy the collaborative and interpersonal communication that goes with it. It is no surprise that the network marketing industry has exactly that and for most women joining the industry, it is this support and collaboration that they miss the most from a usual 9am to 5pm, sit in the corner and do your work routine.
3.3 Choice to Choose
Network marketing gives women the freedom to choose who they would like to work with as business partners. They choose who they recruit, who they work with and who they would rather not. This choice to choose is empowering and exciting at the same time for women in the industry.
3.4 Global Empire at Your Fingertips
You drive around cities and towns nowadays and still see the for lease sign up again at the shop that closed around the corner. You wonder why some businesses prefer the old way of doing businesses in a time where digital disruption is taking stores online. The brilliance of network marketing is that apart from an initial modest start-up fee, there are no overheads, no garages for stock keeping, accountants, legal advisers, etc, you get the idea. The brilliance with network marketing is that most if not all the work can be done from your mobile phone or laptop computer. Your store is online!
3.5 Cool Rewards and Incentives
There are hardly any places left in the world where a large corporation hosts large global events that also reward women for trips, cars, gifts, holidays etc, all whilst developing women business capabilities and personal development. Name a lady who doesn’t like to be pampered from time to time with absolute luxury?
3.6 Glass Ceiling
With 82 percent of the network marketing industry made up of women, more and more are rising to the top, claiming multi-six- and seven-figure annual incomes. The world is your oyster in this industry for women and those that grasp the opportunity are confirmed with a gift, and if utilised, become extremely wealthy. No glass ceiling in the industry. Effort equals reward!
3.7 Freedom of Time
Let’s face it, we all need more freedom, money and time. Where else can you get that? In the industry business partners are told to work at least 2 hours per day to grow their businesses. That’s an average of 8 hours from Monday to Friday. If done correctly this is all one needs to sustain a healthy and wealthy lifestyle from passive income brought in by the industry. Freedom has the allure to pull and no one will ever say no to an opportunity to get more!
And, finally, perhaps the most important reason of all…
The network marketing business model thrives on the values of femininity such as nurturing support, collaboration, and authenticity – all of which are inherently feminine traits that are easily transferrable into the business model. The more women show up as their natural caring selves, the more successful they become in developing long term substantial relationships in growing their teams and customer base.
The Meek Shall Inherit the Earth
The worlds middle class is becoming much larger, the worlds education system is being made more accessible and demographics from the poorest suburbs on the planet have made that extraordinary leap from third world country struggle – to developed world multi-millionaire. Let’s have a look at some examples.
4.1 The Gift of Adversity
Studies and research have proven time and time again that those from minority, ethnic or migrant backgrounds go that extra mile to achieve their goals in life; if given a small and fair chance to give an opportunity a ago. With that attitude and hunger in network marketing, most if not all, go on to become extraordinary wealthy, becoming multi-millionaires and leaders. There is just something magical, mystical, unknown and empowering about enduring as an underdog from one of those aforementioned backgrounds. Turning adversity and challenges on its head can be the source of generational wealth for years and years to come. Let’s research an example of a network marketing company that is capturing this driven demographic.
Kyani is a global network marketing giant who has successfully positioned itself for global dominance in developing countries to assist the worlds growing middle class. A new starter but safely past the initial 10 year start up survival phase, and rapidly expanding into some 60 plus different countries over the short space of time, Kyani doesn’t limit its sales in developed economies but has strategically given interest to the worlds developing nations such as Honduras, Guatemala, Kazakhstan and Slovakia to name a few. You only have to grab a copy of Kyanis annual network marketing magazine to see proof of the overflow of the minority demographics from countries such as Korea, Turkey, Hungary and the Philippines who are being inducted into the 7 figure salary clubs. Most had disadvantaged starts in life and were from the ordinary occupations such as soldiers, hairdressers and tradesman.
Let’s look at some life examples.
4.3 Les Brown
African American global inspirational speaker, Les Brown didn’t have the best start in life. In fact it was horrible. However, he turned that pain around and become an inspirational example of hope for the world. Les Brown often refers to another historic global icon Ralph Waldo Emerson in his speeches who coined today’s existence as the ‘age of self-reliance’. Les Brown champions unorthodox underdog mental motivation and entrepreneurship – qualities that are found in those that are from minority, migrant and ethnic backgrounds.
4.4 Robert Kiyosaki
From a military and Japanese Hawaiian background – Robert Kiyosaki, the award winning Rich Dad, Poor Dad writer; has proven that network marketing success and wealth is not reserved for any demographic. Success can be achieved by anyone, and from any background.
Global Icons in Network Marketing
Now, let’s look at some well-known global figures who have aligned their businesses with the network marketing industry.
5.1 Warren Buffett
The man needs no introduction as a philanthropist and investor and usually sits in the top 3 of the richest people on the planet. He is valued at nearly 70 billion USD and owns Berkshire Hathaway. Berkshire Hathaway owns three network marketing companies, Kirby, World Book and the Pampered Chef. To this day Warren Buffett calls purchasing these network marketing companies – the best purchase he has ever made!
5.2 Richard Branson
A man that also requires no introduction. One small branch of the Virgin Group that often goes unmentioned is Vie at Home, a network marketing company formerly known as Virgin Vie. Vie at Home made over $60 million of profit in its – first year maiden of existence! Ouch!
5.3 Donald Trump
Yes, no political affiliations here but when asked on the David Letterman show: What would you do if you lost everything and had to start over from scratch? Trump replied – “I would find a good network marketing company and get to work”.
5.4 Bill Clinton
In 1997, Bill Clinton endorsed network marketing in his remarks to the Direct Selling Association. President Clinton stated that ‘You strengthen our country and our economy not just by striving for your own success but by offering opportunity to others… Your industry gives people the chance, after all, to make the most of their own lives and to me that’s the heart of the American dream’.
5.5 Jim Rohn
One of the worlds pioneers in personal development and network marketing. Today remains one of the founding fathers of the personal and professional development movement and mentored motivational leaders like Tony Robbins. Jim Rohn found the light and opportunity within the network marketing industry and within 6 years – turned his fortunes around to become extraordinarily wealthy, by the age of 32.
With our brief history and introduction lesson complete, we will go from a beginner to more advanced network marketing challengers and the strategies that will equip the beginner early in the journey. We will unearth deep scholarly research to help structure your leadership for both, the local and the rising global markets.