Network Marketing 101 – Basic Concepts

There are two kinds of people in the world:

  1. Those that do network marketing for free
  2. Those who get paid to do network marketing

Another word for network marketing is word of mouth advertising.  Have you ever recommended a book, restaurant, movie, resort or television show to a friend?  What was the result?  Let’s take the first example: you recommended a book.  Here’s what happened:

  1. Some were put off by you trying to “push” something on them.
  2. Some people are just not readers, so they ignored your advice.
  3. Some thanked you but never bought the book or checked it out from the library.
  4. Some thanked you for the advice, obtained a copy, but never read it.
  5. Some actually read the book, liked it, but never said anything to you.
  6. Some read the book, liked it, and thanked you for recommending it.
  7. Some liked the book, thanked you for recommending it and recommended it to their other friends.  That would be an indirect referral from you, because you initiated the chain.
  8. The process continued for each of those that recommended the book to their friends.

Think with me how you would feel in each of those cases.  You would probably try not to be offended by the first group, would not be affected one way or the other by groups 2-5, would probably feel good about response #6, and would feel great about response #7.  Take a moment and review your feelings in each case.  That is one example of network marketing for free.  The same sort of process would apply to any of the other examples.

Have you ever been offered a discount for recommending a friend to book a resort, use a certain electrician or plumber, eat at a certain restaurant?  That’s network marketing with an incentive.  If your friend responds by actually using the service, you get a reward.

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