Network Marketing

PBR

Introduce the model of regular marketing versus network marketing.
[draw a line going down with the producer at the top and the user/customer at the bottom]

- 10% goes to the producer; 90% is lost along the way in: wholesalers, distribution, agents, franchises, and the majority: advertisement.

(Mention the brainwashing done by advertising agencies, of the huge budget of the media, and that all of the money in producing a product goes to the media and advertisement.)

Network Marketing is the incredible invention that benefits both producer and customer alike. Win-win situation.

[Draw line and show that 50% goes to the producer; 50% goes to the distributor.
In Network Marketing, the customer = the distributor. They are the same.]

In Network Marketing, the money is divided between the producer of the product and the person who recommends the product/promoter.

Note- The benefit of the producer getting 50% is increased quality of products. Moreover, the producer creates a more competitive product in its market: the best possible product of its kind. Customer benefits for better products, producer benefits from better profits. Win-win situation.

We engage in Network Marketing our whole lives but simply do not call it its proper name.
Example: when we recommend that our friends go to a certain restaurant, that is Network Marketing. The only difference is that we do not get paid for it.

In a formal setting, 30% of the businesses in the USA operate by Network Marketing. This is a legitimate method of marketing used by: Premerica (Citibank)—sell bank services ^ $2 billion/ year, IBM, AT&T, Toyota, etc. It has existed for 50 years and is taught in business schools.

The bottom line:
The promoter for a Network Marketing organization achieves a passive income.