DEBT DIAGNOSIS

HERE IS AN ARTICLE FROM THE BOOK TRUMP AND KIYOSAKI WROTE TOGETHER ON NETWORK MARKETING TRUMP / KIYOSAKI excerpt Sep­tem­ber 17, 2008 Net­work Mar­ket­ing is being taught at more than 200 col­leges, includ­ing Har­vard Busi­ness School. After exten­sive research into the net­work mar­ket­ing indus­try, Har­vard Busi­ness School devel­oped three cri­te­ria that a net­work mar­ket­ing com­pany must have in order to make it a most desir­able oppor­tu­nity. They are: 1. The com­pany must be at least 18 months old — 90% of all net­work mar­ket­ing com­pa­nies that fail, do so in the first 18 months. . 2. The com­pany must have a prod­uct that is both unique and highly con­sum­able. Being unique in this case means the com­pany has an exclu­sive prod­uct that can only be pur­chased from the company’s dis­trib­u­tors. Hav­ing a prod­uct that is highly con­sum­able means repeated sales, thereby guar­an­tee­ing cus­tomer loy­alty ver­sus a one-time sale and hav­ing to source new cus­tomers. . 3. It needs to be a ‘ground floor’ oppor­tu­nity. Har­vard Busi­ness School sug­gests that in order for the oppor­tu­nity to qual­ify as ‘ground floor’, the num­ber of exist­ing dis­trib­u­tor­ships should be less than of 1% of the pop­u­la­tion in the coun­try where the net­work com­pany is oper­at­ing. In the United States, this fig­ure is equal to 1.5 mil­lion peo­ple. Har­vard Busi­ness School also states that if there are less than 500,000 dis­trib­u­tors, this presents a cut­ting oppor­tu­nity. If the com­pany has less than 100,000 dis­trib­u­tors, Har­vard Busi­ness School con­sid­ers it to be a once-in-a-lifetime oppor­tu­nity. Har­vard Busi­ness School states there are four dis­tinct stages of growth in a net­work mar­ket­ing com­pany. They are: 1. Foun­da­tion — This usu­ally lasts approx­i­mately six months and is when a com­pany devel­ops its prod­ucts and mar­ket­ing plan. 2. Con­cen­tra­tion — This period lasts approx­i­mately 2 to 4 years from when the dis­trib­u­tor net­work is started. . 3. Momen­tum - This period lasts from 2 to 4 years also. This is when the com­pany expe­ri­ences phe­nom­e­nal growth and dis­trib­u­tor­ships’ busi­nesses explode. It is dur­ing this period that the com­pany vir­tu­ally sweeps the nation. When a company’s sales reach $50 mil­lion, it reaches what is called ‘crit­i­cal mass’ (sales go ver­ti­cally right off the graph). Also, approx­i­mately 2/3 of the company’s growth of new dis­trib­u­tors occurs dur­ing this period of time. For exam­ple, when Herbal­ife reached $50 mil­lion, sales jumped to $151 mil­lion in only 12 months and they added over 800,000 new dis­trib­u­tors to their orga­ni­za­tion. Say an orga­ni­za­tion is pro­duc­ing a bonus cheque of $1000 per month. When the com­pany reaches crit­i­cal mass, dis­trib­u­tors auto­mat­i­cally expe­ri­ence a ten-fold increase in their earn­ings. In other words, $1000 per month becomes $10,000 per month. This is the rea­son for get­ting involved on the ground floor, so you will expe­ri­ence the ben­e­fits of explo­sive growth. 4. Sta­bil­ity — This period lasts for the life of the com­pany. A net­work mar­ket­ing com­pany that is ded­i­cated to the suc­cess of its dis­trib­u­tors will expe­ri­ence longevity, thereby insur­ing that an active dis­trib­u­tor­ship will real­ize con­tin­ued earn­ings and growth. If you are look­ing for a once-in-a-lifetime oppor­tu­nity today, United First Finan­cial is that opportunity.

1. Doug says:

   April 24, 2009 at 1:29 am

   Good arti­cle. I agree whole­heart­edly. It seems to me there’s no dif­fer­ence between net­work (or rela­tion­ship) mar­ket­ing and things such as real estate sales, or finan­cial advi­sors. Most of those pro­fes­sion­als build there busi­nesses on refer­rals and word of mouth. I have just joined a net­work mar­ket­ing oppor­tu­nity for the first time with hopes to “diver­isfy” my income. I have a full time job in soft­ware sales but want to have an alter­na­tive income that I hope to build over time. Thanks, Doug.
2. Krügerrand says:

   April 13, 2009 at 8:11 pm

   Hi, Danke für Deinen Beitrag “Trump/Kiyosaki on Net­work Mar­ket­ing | Debt Diag­no­sis”! Schreib weiter so…! Gefällt mir sehr gut!
3. admin says:

   March 7, 2009 at 9:32 am

   Hey Grant

   Thanks so much for com­ment­ing on my blog post. I appre­ci­ate hav­ing an actual per­son write some­thing rather than all the spams I have had to sort through and delete.
   It was a plea­sure not only receiv­ing yours but also read­ing your juicy con­tent. Thanks again.
4. Grant Lawrence says:

   March 6, 2009 at 10:47 pm

   Good arti­cle, helps to val­i­date net­work mar­ket­ing. About 6 months ago I learned that War­ren Buffet’s firm has bought 9 net­work mar­ket­ing firms, even more val­i­da­tion. for this grow­ing model of con­duct­ing busi­ness.
   Com­ing from 20 years in the cor­po­rate soft­ware indus­try I can tell that the com­pa­nies I worked for were much like net­work mar­ket­ing in pay / com­mis­sion struc­ture. The sales per­son gets a com­mis­sion, and then his/her man­ager, the boss of the man­ager, the VP, and so on up the line to the World Wide VP of sales all got commission/paid on the sales person’s deals.

   Cheers,
   Grant
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6. easyhomebusinessgal says:

   December 29, 2008 at 11:30 am

   Great arti­cle which adds cre­dence to net­work mar­ket­ing as a real opportunity.
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