UNDERSTANDING NETWORK MARKETING
Just about everyone has been financially challenged at tinatawag ng madami ngayon na "The Great Recession." Pero merong GOOD NEWS sa mga taong kinu-consider ang Network Marketing sa panahon ngayon. According sa Direct Selling Association, when the U.S. economy was growing at an annual rate of just 4 percent, the direct sales industry was booming along at 5.9 percent — nearly 48 percent better than the entire economy. You’ll find similar patterns of growth throughout the world.
Kung naghahanap tayo ng paraan para madagdagan ang ating kinikita, pagkakataon na magkaroon ng kalayaan sa pinansyal and the ability to take real control of your life, that’s a very encouraging — and important — statistic. To move forward kailangan nating matutunang maigi ang tungkol sa ganitong industriya, at para sa real success, you need to know how to explain it to others.
NETWORK MARKETING is one of the fastest growing yet most misunderstood methods sa pagpapagalaw ng produkto na ginagamit sa panahon ngayon. Noong pumasok ang year 2012, nearly $167 billion worth of products and services were moving annually through Network Marketing and direct sales companies. As we progress through the 21st century, ABANGAN NATIN!
Ang purpose ng article na ito is to convey to you the reader, through illustrations and examples, kung ANO ang Network Marketing at kung ANO ANG HINDI. We will also show you how you can effectively, I repeat EFFECTIVELY, explain Network Marketing to others. Let me emphasize that. When you go through this article, you will learn the essentials of Network Marketing for yourself and how to explain it to others.
Himay-himayin nating maigi. Marketing simply means moving a product or service from the manufacturer or provider to the consumer. Multi-Level refers to the system of compensation provided to those persons who are causing the product to move or the service to be provided. “Multi” na ang ibig sabihin ay “more than one.” Ang “Level” naman refers to what may better be termed as, “generation.” maari din itong tawaging “Multi-Generation Marketing.” However, we shall stay with "Network Marketing", dahil sa ang kadalasang ginagamit na terminology ngayon.
Kadalasan, at sa katunayan, maraming illegal pyramids at chain distribution schemes o chain letters na pinapakilala ang kanilang sarili na network program. Ito ang dahilan kung bakit nagkakaroon ng lamat at mantsa ang industriya ng network marketing, dahil sa ganitong pangyayari, madami sa Network Marketing companies are using other names for their type of marketing. Some of the names you will hear are "Uni-Level Marketing" and "Co-op Mass Marketing."
Four Types of Commerce
Talakayin muna natin ang basics na dapat na matutunan for your success and for the success of those you bring into your network. Pagaralan nating maigi itong information so you can easily teach it to others.
There are really only five basic methods of moving products or services:
1) RETAILING — Sigurado akong pamilyar ang karamihan sa retailing. The grocery store, the drug store, the department store. Pagpumasok ka sa mga ito at bumili ka ng kinakailangan mo, is retail.
2) DIRECT SALES — Kadalasan, (but not always) include insurance, cookware, encyclopedias, personal care and beauty products etc. ay ilan sa halimbawa ng Direct Sales efforts.
3) MULTI-LEVEL MARKETING — MLM ito ang tatalakayin natin sa page na ito. Hindi tayo dapat maguluhan sa dalawa, lalong lalo na pag dating sa Direct Sales method na kung saan MLM commonly is confused.
4) DIRECT MARKETING — Mail order, telemarketing and infomercials ay pumapaloob sa kategoryang ito.
5) ONLINE MARKETING — This term covers a wide variety of "methods of moving products or services" over the Internet. Websites gaya ng Lazada, Zalora, Kim Store ay ilan sa kilalang online retail stores dito sa Pilipinas. Other models use Google AdWords, email at social media gaya ng facebook ay ilan sa ginagamit na paraan para naman sa pag-advertise.
Ang ilan naman ay kadalasan nagtatanong tungkol sa "pang-anim na klase" kadalasan mas kilala sa tawag na "PYRAMID SALES." We mentioned this earlier and pointed out that pyramids are ILLEGAL. Isa sa pangunahing rason, they are illegal dahl sa they fail to move a product or to provide a valid service. Kadalasang ginagamit ang Pyramid schemes bilang tool to circulate money, pag puro pera ang pinakita at kikita ang isa dahil sa nakapag recruit ito ng taong nag pasok din ng pera, biktima sya ng "PYRAMIDING SCHEMES." If a product or service doesn’t move, how can you even call it "marketing," let alone "Network Marketing"? Networking they may be, but MARKETING THEY ARE NOT!
Kadalasang nagiging katanungan ng madami sa tao about getting into Network Marketing are due to their not realizing ang pagkakaiba between Network Marketing and the direct sales methods of marketing. Madami ang nalilito dito at understandable naman dahil sa ang karamihan sa kinikilala at marangal na Network Marketing companies belong to the Direct Selling Association (DSA) o sa Association of Network Marketing Professionals (ANMP).
Karamihan sa atin ay nakundisyon ang ating isipan, perhaps, to think of them as door-to-door direct sales programs dahil sa ang first encounter with them ng karamihan sa atin was when a distributor knocked on your door to sell you something.
Merong ilang features that differentiate Network Marketing from retail and direct sales companies. One very significant difference is that in Network Marketing you are in business for yourself BUT NOT BY YOURSELF.
By being in business for yourself, it’s likely that you are entitled to some substantial tax breaks, especially if you are operating out of your home. We won’t get into tax advantages in this article. Most people can get that information from their accountant or from the many books that have been written on the subject.
Being in business for yourself, you are buying the products wholesale from the company you are representing. This means that you can (and should) use these items for your own consumption. Many people get involved in a company at first for this reason alone, to buy wholesale. And many of these people will get "serious."
Building the Organization
Dahil sa nabibili mo ang produkto ng WHOLESALE, maari mo ito, kung gusto mo, ibenta ang products ng RETAIL and make a PROFIT. Gayunpaman, ang kadalasang misunderstanding about Network Marketing ay ang paniniwala na ang tagmupay ay nababatay sa galing ng isa sa pagbibenta ng products at makagawa ng retail sales. Sales are the ultimate purpose, pera sales within the Network Marketing model should not be confused with traditional retail sales.
In Network Marketing, sales success ay resulta ng building a good organization and informally sharing products sa kanilang kapamilya, kamaganak, kaibigan at kakilala. This is why Network Marketing Companies devote so much time to teach every distributors how to build their organization. That’s why we say you are not in business "by yourself" — hindi ka nagiisa. Far from it. The whole point is to build a growing team.
IMPORTANT POINT: Let your sales come as the natural result of building the organization. Madami sa taong na involve sa Network Marketing ay nag fail than succeed by trying to do it the other way around; they try to build the organization by emphasizing selling.
The word "selling" triggers negative thoughts in the minds of about 95 percent of the people. In Network Marketing, hindi natin kailangang "magbenta" ng produkto sa tradisyonal na pamamaraan. I define selling as "calling on strangers trying to sell them something they may neither need nor want." Gayunpaman, ang products o services DO HAVE TO MOVE or nobody, but nobody, gets paid.
Muling paalala, PRODUCT or SERVICES HAVE TO MOVE OR NOBODY GETS PAID!
When you build an organization, you are actually building a network through which to channel the company’s services or products. Retailing is the foundation of Network Marketing. Sales in Network Marketing ay galing sa mga distributors SHARING products sa kanilang kapamilya, kamaganak, kaibigan at kakilala. They never have to talk to strangers! To build a LARGE SUCCESSFUL BUSINESS you need a BALANCE.
You need to sponsor and teach Network Marketing and in the process of doing this na nag simula sa pag share ng product you can build a customer base sa pamamagitan ng pagbili ng iyong mga kapamilya, kamaganak, kaibigan at kakilala.
Don’t try to sell the world on your program yourself. Lagi nating alalahanin na ang Network Marketing is building an organization in which a lot of distributors all retail a little. This is far better than a few trying to do it all.
Small Ad Budgets Lead to Superior Products
Mula noon, hanggang sa panahon ngayon, karamihan sa Network Marketing companies, ay hindi na gumagamit ng malaking halagang pera para sa kanilang advertising. Advertising is done almost exclusively by word-of-mouth. Sa ganitong kadahilanan these companies have more money to put into product or service development.
As a result, they usually have a higher quality product or service than their counterparts na makikita sa mga retail stores. Maaring i-SHARE sa mga kaibigan ang high quality product or service of a type that they are already using. In that case, you’re simply replacing their old brand with something that you have discovered through your own experience to be better. Or you may introduce them to something that is completely bago sa kanila.
Kung mapapansin natin, it’s not going door-to-door every day calling on strangers. All network programs that I know of teach that if you simply SHARE the quality of their products or services with friends that is all the "selling" that is involved. (We prefer to call it "sharing," because that’s what it is!)
The Importance of Sponsorship
Another thing that differentiates Network Marketing from Direct Sales is the SPONSORING of other distributors. In direct sales, and even in some Network Marketing companies, ang tawag dito ay RECRUITING. However, “sponsoring” and “recruiting” are definitely not the same thing. You SPONSOR someone at turuan sila kung paano ginagawa ang ginagawa mo, so they are able to develop a BUSINESS OF THEIR OWN.
"Recruiting," on the other hand, is merely the process of adding people to the organization. Wala itong commitment sa kanilang success. Kahit sino man ang na-recruit without providing the necessary training and support will ultimately fail. Ang ratings ng paninisi ng unsupported "recruits" dahil sa nabiktima ng maling pangako ng mga nagrecruit sa kanila ay sobrang taas.
When you SPONSOR people, you are making a COMMITMENT to them. If you are not willing to make that commitment, then you are doing them a disservice by signing them up. At this point, all you need to be is WILLING to help them to build a business of their own. Itong article na ito ay walang kasinghalaga at maaring maging tool in showing you kung ano at paano ito ginagawa.
It is a RESPONSIBILITY of a sponsor na turuan ang mga taong nadala nila sa kanilang negosyo at maibahagi sa kanila ang lahat ng nalalaman tungkol sa negosyong pinasok nila. Things such as ordering products, keeping records, how to get started, how to build and train their organization, etc. Itong kabuoang website ay makakasama mo sa mahabang panahon sa pag support sa bawat taong pumapasok sa ating negosyo and making you ABLE to meet that responsibility.
SPONSORING is what makes a Network Marketing business grow. As your organization grows, you are building toward becoming an INDEPENDENT, SUCCESSFUL businessperson. Ikaw ang BOSS dito!
Sa direct selling companies naman, you work for the company. If you decide to quit that company and move to another area, you end up having to start all over again, balik nanaman ulit sa umpisa. In almost all of the Network Marketing programs that I am aware of, you can move to another region—or to another continent!—and sponsor people without losing the volume generated by the group na iniwan mo.
Making a Living vs. Making a Fortune
Sa Multi-Level Marketing programs maari kang kumita ng malaking halaga na higit pa sa inaasahan mo. It takes a little longer with some companies than it does with others, but making a lot of money comes from building an organization, not by just selling the product. To be sure, you can make a good living in some programs by just selling the product–but you can make a FORTUNE by building an organization as your primary function.
People will get started in a network business with the idea of making ₱5,000.00, ₱10,000.00, or even ₱20,000.00 per month and suddenly they will realize that if they want to get serious about the business, they could be making ₱50,000 or ₱100,000 per month, or more — much more. Again, tandaan natin na a person doesn’t make that kind of money by just selling the products; they make that kind of money by building an organization.
THAT IS THE PURPOSE OF THIS ARTICLE: It will teach you the things you need to know to be able to build an organization and to build it FAST to develop certain and proper attitudes about Network Marketing.
Kung ang isang tao, iniisipo nya na ang Network Marketing is illegal, or has a connotation of it being like a pyramid selling organization (and they do make that connotation), magkakaproblema ka lang sa kanila kung ipipilit mo silang maging part ng grupo mo. You must teach them the facts to eliminate their mistaking a true Network Marketing organization for a pyramid selling organization. Ang pyramid selling organization is built from the top, pababa at kung sino lang ang malapit sa itaas can ever benefit financially.
In the Network Marketing triangle, everybody starts sa baba and has the opportunity to build a large organization. Maari kang maka build ng organization many times larger than your sponsor’s organization kung gugustuhin mo.
Putting It All together
Ngayong naunawaan na natin ang fundamentals of Network Marketing, let’s take a look at the bigger picture. The other main objective of what we’ve learned so far is to give you the ability to get your prospect into a general discussion about Network Marketing, at maipaliwanag sa kanila ang pagkakaiba between retailing, direct sales, and Network Marketing. Then you should have a good start at sponsoring them into your particular Network Marketing organization.
Network Marketing is one of the viable ways for inventors or manufacturers to put new products on the market without having a large amount of money and without having to totally give up their products to someone else.
Even better, Network Marketing gives you the opportunity to share the extraordinary financial benefits that come with this economic model.
Ang Team WELLNEX ng Santé International ay binuo para magbigay ng pagkakataon sa mga tao na makapagsimula ng kanilang negosyo, para sa mga taong matagal ng naghahangad ng pagbabago sa kanilang buhay, kahit na ano pa ang kanilang estado sa buhay, edad na kinabibilangan, educational background, maari nating simulan ito. Investors na gustong sumabak sa global market ng walang mataas na panganib, Entrepreneurs, na nangangarap na makapagsimula ng negosyo, pero walang sapat na capital na pangsimula o ma-maintain ang traditional business, Professionals, na naghahanap ng karagdagang pagkakakitaan habang ginagawa nila ang kanilang propesyon, mga Magulang na naghahangad ng magandang buhay na hindi na kailangang i-sakripisyo ang prayoridad sa kanilang pamilya, Associations and Organizations looking for ways and means to support their programs, Unemployed and Students na handang sumubok at maglakbay kasabay ng Team Wellnex patungo sa masaganang buhay sa kinabukasan.
HOW MLM WORKS?
Ang limang step na makikita sa website na ito ay naglalarawan kung paano ginagawa ng tama ng isang Independent Distributor ng bawat Network Marketing companies ang pagapapatakbo ng kanilang negosyo.
HOW COMPENSATION PLAN WORK?
Compensation plans, also called commission plans, paraan kung paano ang Network Marketing companies ay nagbibigay ng reward base sa production ng kanilang mga distributors.
Diagram of Upline
Diagram of Downline
Diagram of Crossline
The History of MLM
Ang kamangha-manghang pagsisimula at pagpapalaki ng industriya ng MLM (Network Marketing).
Linalarawan ng page na ito ay kung papaanong nagawa ng bawat kumpanya na maibigay ang mga pangangailangan ng kanilang customers at mga independent distributors.
A company that creates a product must make that product widely known nang sa ganun makapag-create sila ng mas malaking sales at mas lalo pa nilang mapatibay ang pundasyon ng kumpanya. The organizations made up of individual (salespeople / independent distributors) were (and still are) the backbone of business, itong mga independent distributors ang lalong magpapatibay at magiging daan sa mabilis na pagpapakilala ng produkto sa mas madami pang tao.
The number of salespeople in the United States began to grow rapidly starting in the late 1800's.
Ang mga Traveling salesmen o kilala noon sa tawag na canvassers, peddlers, hawkers and drummers. Ang ilan noon sa kanila ay gumawa at bumuo ng trained sales organizations. Had it not been for their influence, many of the corporate names we’re all familiar with today might never have been.
-Henry Heinz, a former peddler, ay bumuo ng organization of 400 salesmen na mag-bibenta ng ibat-ibang vegetable products, katulad ng ketchup and pickles, to people who didn’t grow their own.
-Asa Candler, another former peddler, ay bumuo ng sales force na magebibenta ng Coca-Cola syrup sa mga restaurants pagkatapos nyang bilhin ang formula from pharmacist John Pemberton for $2300 in 1886.
Out of these organizations came companies that allowed their salespeople to have their “own” business.
J.R. Watkins founded the J.R. Watkins Medical Company, one of America’s first natural-remedies companies where associates marketed directly to consumers.
Si David McConnel ay sinimulan ang pagtayo ng kumpanyang California Perfume Company, based out of New York. Nuong 1906 nagkaroon sya ng 10,000 sales representatives na nagbibenta ng 117 different products. Hanggang sa ang The California Perfume Company ay nagpalit ng pangalan at inirehistro ito bilang Avon Products noong 1937.
Alfred C. Fuller was another former peddler who greatly influenced future sales organizations. Sinimulan ni Fuller ang Fuller Brush Company at nag hire sya ng 270 dealers sa buong U.S. na susunod sa kanyang business plan on commission only. By 1919, the Fuller Brush Company had made $1 million in sales; by 1960, $109 million.
Frank Stanley Beveridge was the former vice president of sales for Fuller Brush Company. Sya at si Catherine L. O’Brien ay sinimulan ang pagpapatayo ng Stanley Home Products. Influenced by the economic hardships of the Great Depression, Frank and Catherine envisioned an opportunity for people na makapagsimula ng kanya-kanyang negosyo sa maliit na panimulang kapital. Ang bibenta nila, mga products na ginagamit ng mga tao sa pang-araw-araw. This vision was obviously taken from the Fuller Brush Company.
Stanley Home Products sold household cleaners, brushes, and mops. Ilan sa Stanley dealers ay nagsimulang magbigay ng demonstrations sa mga clubs and organizations rather than for individuals to increase sales volume. Ilan sa Stanley dealers ay mabilis na tinanggap ang idea bilang isa sa mabilis na paraan para ma-maximize nila ang selling presentation.
These dealers took the “clubs and organizations” concept into homes by having the home owner invite friends and family at dito nagsimula ang konsepto ng house party.
Stanley Home Products became the training ground for many well-known company leaders. Katulad nila Mary Kay Ash, founder of Mary Kay Cosmetics; Brownie Wise ng Tupperware; Jan and Frank Day, founders ng Jafra Cosmetics; and Mary Crowley, founder ng Home Interiors, lahat sila ay nakatanggap ng training as Stanley Home Products dealers - katulad din ng nakapag-udyok sa pagsisimula ng the Fuller Brush company.
Si Carl Rehnborg ay sinimulan ang California Vitamin Corporation na nagbibenta sa kilalang tawag ngayon na vitamin supplements. Noong 1939 the company changed its name at nirehistro ito bilang Nutrilite Products Company, Inc.
Nutrilite contracted with Mytinger & Casselberry to become the exclusive American distributor of Nutrilite products. Mytinger & Casselberry created the first documented MLM compensation plan. It worked like this: Ang isang Nutrilite distributor ay bibili ng kanyang supplies at a 35% discount. (Ex: A distributor bought a box of vitamins for $13 and then sold them for $20 = $7.00 profit.)
Para mas lalo pang ma-encourage ang distributor na makapagbenta pa ng mas madami, Nutrilite paid an extra monthly bonus of 25% on the total sales. 20 customers x $13.00 (wholesale value) = $260 x 25% =$65.00 profit.
Sa oras na napatunayan ng isang distributor na kaya nyang makakuha ng 25 customers he was allowed to become a DIRECT distributor - ang ibig sabihin nito, maghahanap sya ng iba pa nyang kakilala na gusto din magbenta ng products and then they would buy their products from him.
In essence, once he proved that he could get customers he was “promoted” and allowed to find other distributors and to train them to get customers. Bilang incentive sa pagbibigay ng maayos at tamang training sa kanyang mga distributors, once he and his distributors amassed 150 customers, he received an additional 2% of the total sales volume.
HINDI ITO PYRAMIDING - Ang tawag dito ay QUOTA-BASED SYSTEM OF MANAGEMENT. Itong mga distributors na nakapagbenta ng mas madaming boxes ng vitamins got a higher reward kumpara duon sa mga distributors na mas konti ang nabenta. The MLM compensation plan was simply an extension of the Fuller Brush Company rewarding production. With MLM (Network Marketing) , the company could motivate a sales person hindi lang sa pagbibenta ng mas madaming produkto, kundi sa pag suporta nito sa pagbibigay ng training sa iba pa nyang distributors na makapagbenta din ng mas madami pang produkto.
Earl Tupper created a line of flexible, lightweight plastic containers with tight-sealing lids. Sinimulan nyang ibenta ang kanyang mga produkto through conventional retail outlets, pero na realize nya na ang mga products nya ay kailangan ng demonstration. Earl Tupper then teamed up with Brownie Wise (formerly with Stanley Home Products) and launched Tupperware Party Plan, NOW a world-wide billion-dollar company operating in 40 countries.
Rich DeVos and Jay Van Andel (high school buddies and business partners) returned from military service and became distributors for Nutrilite vitamin supplements in 1950. After a brief dilemma with Nutrilite in 1959, the two abandoned ship and formed the Amway Corporation. In 1972 Amway Corporation acquired Nutrilite.
Dr. Forrest Shaklee developed a method of extracting minerals from vegetables and used MLM (Network Marketing) to distribute his products.
Mary Kay Ash creates Mary Kay Cosmetics. By 1996, company sales were in excess of 2 billion dollars.
The FTC (Federal Trade Commission) filed suit against Amway corporation for operating a pyramid scheme.
An administrative law judge ruled that Amway’s multi-level-marketing program was a legitimate business opportunity, as opposed to a pyramid scheme.