Network Marketing MINDSET | Part 2

I the previous session, we discussed
“You and your mindset towards your business”
In this second session , we will focus on:
“Your mindset towards your business.”

Network Marketing MINDSET | Part 2

Your mindset towards Network Marketing:

Why Network Marketing? …you may ask.
Before we further fold our minds around the “WHY” of Network Marketing, we need to be clear in our minds on the terminology that we use to describe this distribution channel. Sometimes it gets very confusing when we try and explain what it is that we do. We need to cut through different terminology used like MLM, direct selling, affiliate marketing and all those terms used to describe what we do or don’t do. It gets so confusing that we sometimes can’t even define and describe to others what we really do.

What is Network Marketing?

The marketing / selling / distributing products can be done in three different way, namely:
1. Retail selling;
2. Franchising, and
3. Network Marketing.
These are all three channels of distribution through which products and services can be sold. Of the three, Network Marketing is the channel of distribution that we represent.
The way that Network Marketing works is as follows:
1. We are selling products / services to consumers.
2. We are also building a network of people who also sell the same product and services and who also expand their businesses by building on the network.
3. We work as leaders to improve the productivity and the efficiency of the network that we are building and growing.

A short definition of Network Marketing can thus be the following:
Network Marketing is a process of using a network of distributors for selling products and/or services.

Eric Worre described all this in a 12-minute video-clip that you can view in the link.

Network Marketing MINDSET | Part 2


More on the “WHY” of Network Marketing:

Here is a bit more on the the three distribution channels mentioned.

1. Retail selling outlets:
Retail selling from fixed premises forms undeniably a huge channel of distribution. Retail selling can vary from single owner operated shops to corporate chain retail outlets that have a presence in all the shopping malls, towns and villages. As with all three of these methods of distribution that is to be discussed, each has many pros, but also some cons. One of the benefits of retail distribution outlets is that the owner or directors has full control over the business. The downside of these businesses is that to expand and increase the businesses’ market penetration, more retail outlets will need to be established. This results in more capital that has to be invested and together with that, more business risk that is involved for the owners and/or shareholders.

2. Franchising:
Franchising has the benefit that it is possible to grow and expand a corporate brand, with the financial contribution of franchisees. Less capital is employed by the franchisor and combined with that, the bulk of the financial risk is fragmented and transferred to the franchisees. The franchisor establishes a business network and earn in two ways from it, being the sale of the business concept to franchisees and from royalties and fees. Franchisees has the benefit of becoming part of a corporate brand and established business concepts. It comes at a price though for the franchisees. Large upfront capital is to be invested with the expectation of earnings to follow. Though the franchisees have the benefit of being part of a brand and may share in benefits like advertising campaigns, they can’t share in the profits of the franchise group. It is only the franchisors that reap this benefit.

3. Network Marketing:
Network Marketing has some similarities to franchising in the sense that a distribution network is established for moving products and services. The major difference is however that each distributor can sell the business opportunity further on into his network and ultimately earn from the network as well as from direct sales.

When you compare the start-up cost of a franchise business, or for that matter any other retail business, with the start-up cost of a Network Marketing business, there is a major difference. The initial financial risk of Network Marketing is much smaller than the financial risk of any other business.

Key to Network Marketing is however to master the “What’ and How” skills.

“What’ and How”

Though these skills will be discussed in detail in future sections, here below are some useful information on the topic.
If one look at a few key principles in Network Marketing that makes it a bit more specialized or different from other marketing methods, it may be a practical and interesting exercise to fragment the phrase Network Marketing into:

Net | Work | Marketing.

1. NET:
The best fitting dictionary description that I could find for the term “Net” is as follows:
“A means of selecting or securing someone or something.”
Example: ‘he spread his net far and wide in his long search for success’

In Network marketing, the first thing that needs to be done, is to spread your net and build a list of followers. The actual first line of selling products and having the secondary benefit of residual income from your downline will never come to reality unless you have spread your net. The ABC of a network marketer is primarily to spread your net from which you grow your contacts and expand your circle of influence. ( ABC …always be canvassing)
Build your list.

2. WORK:
It will take work to build your net and expand your list. This really is key to success in this business.

Once you have added names to your list, it will even take more work to build relations with your list. You can’t fade away and leave your list orphan and then suddenly re-appear after some time and expect results from bunch of names of people whom you have lost contact with.
Reach out to others, assist and offer to help them without asking for something in return.

If you succeed in building positive relations with those on your list, trust will follow. This is the bottom line. TRUST will result in business.
Once you have conquered Network Marketing, always be aware of self-ego and the way you treat inexperienced new entrants in the industry. Trust, that is much needed in this industry,will never follow from negative relations.

These points needs to be stressed:
– Keep working on expanding your list (net).
– Keep working on positive relations with those on your list.
– Keep in mind that everything you do, must add to your relation of trust.

This is the easy part!!!
You believe me, once you have succeeded on spreading your net and you have build your list and you have put in the work to build positive relations and trust with the people on your list, selling is easy. You obviously need to have a genuine offer, but if you honour the trust position you have worked so hard on, you will not offer crappy and dodgy projects to your list in anyway.

So, bottom line:
– Stop being salesy.
– Be real and without any pretensions while constantly building your network.
– Work on establishing positive relations.
– When you sell, make sure you have a quality offer.

In closing:

The aim with this session was to help you to be very clear in your own mind on what Network Marketing is and to assist you to have the correct and positive mindset towards this lucrative and interesting way of doing business.

Was this post helpful? …If you found value from it, please comment below.

Tell me your story.

Ask the questions you may have on the subject.

Make use of the comment section below.

Cobus vdM /

10 thoughts on “Network Marketing MINDSET | Part 2

  • December 3, 2017 at 8:16 pm

    Great article, I was involved with network marketing for a few years with Unicity International. Unfortunately my upline wasn’t really around so I ended up trying to go at it alone rather unsuccessfully.

    You seem very knowledgeable and straight to the point, something this industry really need more of.


    • December 3, 2017 at 8:26 pm

      Thanks for your kind comment Michael.
      It is really bad when someones up-line leaves you orphan in Network Marketing.
      I had the very same experience in two different projects and then decided to learn from mentors who has a good reputation in the industry.
      The knowledge I gained is self taught and I made the decision to be long term successful in NM. …today I am.
      Cheers 🙂

  • December 3, 2017 at 8:20 pm

    Wow that was rather thorough! I saw a few areas where I definitely faltered thanks for clearing that up.

    • December 3, 2017 at 8:43 pm

      Thanks for your comment Al.
      I’m so glad that you found some clarity from this session already.

  • December 3, 2017 at 9:12 pm

    I mean, I totally agree with you, Cobus! It immensily helps your business or anything that you do for that matter, to really not want anything in return. And just try to help other people to the best of your ability. However, there are a whole lot of people struggling with giving in general. And they’re especially struggling with not asking for anything in return.

    Well, most of the time I wouldn’t count myself among them, but well… I have to admit that I do sometimes catch myself also having too many expectations towards other people.

    It’s one of those things that is easy to think about, but actually really, really hard to implement in real life. Even more so, you have to be genuinely interested in giving and not wanting anything in return, because if you’re not, other people can and usually will pick up on that. And if they do, you most probably will lose all your trust.

    Therefore, do you have any solid tips to help one to achieve/train oneself to truly become a giving person? So that it becomes a part of you?

    Best regards!

    • December 3, 2017 at 9:22 pm

      Thanks for your comment Matiss.
      You’re right one has to be real in offering assistance without expecting back.
      I found that assistance with actual business needs of others should be the focus, rather than personal involvement in broad general.
      In future sections when we delve deeper in the “What” and “How” sections, we will further discuss this topic.

  • December 3, 2017 at 10:31 pm

    I think you are right in what you say about stopping being “Salesy” and just being real – people can smell someone trying to sell something a mile off!!

    • December 3, 2017 at 11:06 pm

      Thanks for your comment Jo Morris,
      You’re right. People can smell the difference between real and trying to sell.

  • December 3, 2017 at 11:43 pm

    Good article. I agree that mindset and knowing your why is extremely important in business and personal success. Thanks for the information. I just finished another article with a similar theme. It was on Simon Sinek author the book Start with Why.

    • December 5, 2017 at 9:16 pm

      Thanks for your kind comment LaVerne.
      I like your appreciation of the teachings of Simon Sinek.
      I’m a keen follower of him.
      Cheers 🙂


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