Trump/Kiyosaki on Network Marketing

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.

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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.

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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.

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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.