By Erika Widen
Doha: Network marketing provides every member, whether at the top or bottom, the same opportunity and everyone is rewarded equally, say experts. Network marketing is a promoting strategy where the sales force is compensated not only through sales they personally generate, but also from the sales of the other salespeople recruited.
Carlos Widén, a successful network-marketing executive based in Europe, said everyone purchases directly from the company at a fix price, and sells directly to end customers at a retail price. In addition, the company offers a buyback to each distributor. In other words, pays commission to distributors and not sales via the members themselves. “The most productive distributors make money regardless if you are on the top or the bottom. Everyone has the same opportunity and it is rewarded equally,” says Widén.
Nowadays, adds Widén, the evolution of network marketing has dramatically advanced as anyone can sign up online, pay instantly via credit cards, have a complete back office with tracking systems and customer support via the Internet. “Using Skype also creates a flat playing ground for anyone to communicate worldwide with his or her entire team,” highlights Widén.
Pursuing this further, network marketing is a business model that sells billions of goods and services today and is an established profession, endorsed by the Direct Selling Associations. On the other hand, most people believe network marketing is related to the pyramid scheme, which is not so. “Most people think that the pyramid shape makes the business model a pyramid. The problem with the pyramid schemes is that they are created for short-term growth, they will always claps and only the people at the top makes all the money,” he said.
Generally speaking, a full time job is when someone pays you for your time and specific qualification. According to Widén, the big boss has leverage on his or her employee, this is why the boss always is the highest paid, whereas in network marketing, you are your own boss.
Don Failla, author of the book ‘The 45 Second Presentation’ and an international network-marketing trainer for nearly five decades, says that he started with a company 19 years ago and sponsored four people in Sweden, Norway, Italy and Germany. “We have had 800,000 people come into the organisation and 95 per cent are from those first four countries. We now spend around 30 minutes a month on our business and we are doing around $3.5m (QR13 m) per month in volume. Yes, I would say residual income works, he said.”
There are more than 60 per cent of women worldwide involved in network marketing in comparison to men. Nancy Failla who is married to Don Failla since 48 years and is in the business since 46 years, says that women are more involved because the business is about teaching and nurturing; and women are better in that than men. “Being married or single does not make any difference. In many cases a woman gets started first and when she starts making more money than the husband they can free up their husband from his job and they can own their own life. Having time, money and health,” she said.
Don Failla explained how for ten years before writing the book, he would sit down with a new person and teach them the business, which became known as the napkin presentation. “We would be in a restaurant and sketch things out on a napkin. This would take about three to four hours depending on all the interruptions. When we were finished they understood network marketing and then we coined the phrase. ‘Now they know how to drive’. We were very successful doing the business this way.”
He adds how after doing this for ten consecutive years, he eventually got burned out. “I did a presentation in front of 14 people that was taped. The tape got out into a lot of companies because I did not mention the name of the company we were with. In three months the tape sold more than 10,000 copies and from the tape the book was written.”
His renowned book has sold more than seven million copies globally and is available in all the major languages, including four different dialects spoken in India.