How many of you have heard this while sharing your network marketing opportunity? I know I have! But fortunately for us we're in network marketing and not network selling! I'm going to share an example of why network marketing is all about the distribution and not the selling from Jordan Adler's book "Beach Money".
"Chapter 19 - Strategies for Creating Beach Money"
"Beach Money Strategy Number One - Focus on distribution versus sales"
In
this section Jordan talks about why sales isn't the key to living a
Beach Money lifestyle. The following is paraphrased from Jordan's book.
Sales perspective
You are offered the
chance to buy as many 2 liter bottles of soda as you'd like for $1 each
that retail for $2. The focus here is on sales...you need somebody to
buy all of your bottles of soda from you. A good salesperson would love
an offer like this, but the problem with it is that once you stop
selling you won't make any more money.
Distribution perspective
You can
purchase a vending machine for $1,000 that dispenses cans of soda for
$1.00 and you earn a 10 cent commission on each can. But is that really a
good value? You're out $1,000 up front and you'll have to sell 10 cans
to earn the same $1 profit as selling one 2 liter bottle.
But
suppose the rest of the offer was that the company you buy the machine
from will always keep it stocked for you at no cost to you, the company
will provide lifetime maintenance on the machine in case something ever
goes wrong or the machine needs to be upgraded, they will also collect
all the money from the machine, count it, tabulate an accounting report
and send you a check every month. Is it starting to sound better now?
Now suppose that other people around the world buy a machine for $1,000
and you now get a portion of the 10 cent commission on every can ever
sold by every machine in your distribution network...now you just need a
few sales from lots of machines. What would you think of this offer
now? Now, this is what leads to a Beach Money lifestyle. You can
continue to earn money without having to do any work at all. True, you
have to market your machine so that you can get a few people to buy from
your machine and to interest other people into investing in their own
machines. But once that's been done, you won't have to work anymore.
That's
how network marketing works...but instead of buying a vending machine,
you buy a distributorship, usually for $1,000 or less (SendOutCards
distributorships are $50). You then get a few people to buy your goods
or services and you earn a percentage on their purchases (SOC is 20%)
and if someone buys a distributorship through you, or someone below you,
you earn a commission on their sales (2 - 27% with SOC). Once your
distribution network is built, you can retire to the beach!
Today - Different Colored Eyes Day, Etch A Sketch Day, Simplicity Day, Pecan Pie Day and New Conversations Day
Next Thursday - Daiquiri Day and Ice Cream Day
August 12 - World Elephant Day, International Youth Day and Vinyl Record Day
Interesting days
Today - Different Colored Eyes Day, Etch A Sketch Day, Simplicity Day, Pecan Pie Day and New Conversations Day
Next Thursday - Daiquiri Day and Ice Cream Day
August 12 - World Elephant Day, International Youth Day and Vinyl Record Day
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