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[Allen Gregory Contribution Level: 2]

Guys, I'm confused about all this.

I'm not a newbie but this whole thing seems kinda weird. I'm starting to think that network marketers are just another "market" for internet marketers to market to.

Internet marketers can market anything: Dog training, language products, clothing, sneakers, shoes, basically anything on CJ or Clickbank is fair game to be marketed by internet marketers. And those are niches that I'm sure a lot of people in this forum market to.

But when it comes to network marketers we really are a special breed. Because we buy "Information Products". Products that teach us this and teach us that and so on and so forth. And you know what, these products have the highest margin of any other product out there. For those unsure of "margin" it's a basic formula whereby sales price minus cost divided by sales price gives you a percentage. So for example, a product that sells at $40 minus the cost to produce it of $20 gives you a $20 profit. You take that $20 profit and divide it by the $40 sales price and you have a 50 point margin.

So let's apply this to information products where the margin is really an infinite number when you take out what your time may actually cost. If it takes you 12 hours to create a video training course and you do all the work yourself which is completely possible if you've streamlined your process...hell, it's only video capture and editing software that you need anyway. If you can get that for FREE (there are plenty of ways to do this) then you literally have zero cost going into this.

Now you take that product that cost you NOTHING and sell it for $27, $47, or $97. Whatever you get is ALL profit. You can distribute this stuff all by yourself and keep all the money OR you can leverage it and give affiliates a cut so you can sell even more and not really have to do any distribution.

So in essence you end up getting half of the price of any product you create by simply allowing affiliates to sell your product for you. And all you do is sit back and collect a check.

And you know what happens to most of these products? People buy them and DON'T EVEN USE THEM. That's why training is such a big business in network marketing. Because the customers can buy the training and not use it and the product creator can still get PAID.

I don't think that all the training is junk. I just think that the "market" has matured in network marketing. Because now you have everyone creating products and affiliate programs to sell their information products.

Then the next level of the affiliate programs is the multi-tiered programs where one affiliate gets paid off the efforts of another affiliate. I think that THIS is what internet network marketing REALLY is. It's just multi-tiered affiliate programs selling information products. And to take it one step further there's membership sites where there's a recurring monthly residual income from all this stuff.

This is probably the most profitable business model on the internet. I can't think of anything that would be more profitable.

So after going through all this explanation I want to know what you think about all this and where you stand. Are you an IMer marketing to network marketers? Or are you a NMer who uses the internet to build your NM business?

Is there even a difference?

[Richard Bravo Company: Life Force International Contribution Level: 8]

Great question Allen...
For me it's a simple answer.... I'm a business owner/developer and entrepreneur.
All of which are a means to fund my lifestyle as a dad, artist and philanthropist.

I use both business models, internet marketing and network marketing and in fact I combine them into a unified, hybrid business model.

I've been mulling this over a lot for the last year or so. And it's something of great focus for me right now. Finding a way to teach people that business is business and that there are many vehicles available to choose from to travel the road to success and wealth.

Internet marketing and network marketing are simply different vehicles, with different features and intended uses. It's like owning a Range Rover and Lamborghini. Both will get you where you want to go, in style mind you, but you may use one over the other at various junctures of the trip.

Hope that made sense....
~RB

[Landon Stewart Company: Numis Network Contribution Level: 3]

That is some good stuff there because you are right network marketing has really changed since the idea of the funded proposal.

I am sure people have been using this concept for years, but Mike Dillard has really found a way for the masses to hear about it.

Network marketing really is not the same as it use to be.

The perception of a network marketer use to be like the perception of a used car salesman before the internet (and maybe some people are giving us a bad name while using the internet. Shame on them!)

But you look at used car salesman and they are hard to trust. You know that they are willing to say anything to make that extra buck from you. They just want to get their hands in your pockets. What they are selling you is not even the best stuff around. The list goes on and on about what used car salesman are like.

But here's the thing:

Many used car salesman do not have one single one of these traits. Many are great guys just trying to make a living. But that perception of a used carsalesman is stuck.

And that's exactly how people use to think of network marketers.

People would try to watch their back because here comes another guy with some opportunity that you just "have" to try. They just want to come in take your money, and leave you. They don't car about you whatsoever. They only care about what you have, not who you are.

That is how people thought of network marketers. And many probably were'nt like that one bit (maybe some that gave the rest a bad name). The perception of a common network marketer was just plain horrific, and that made this industry that much harder.

But now thanks to the internet we have a wonderful opportunity.

You see we no longer have to change our friends and family anymore. There are thousands upon thousands of people that type in home based business opportunity into google every single day, and they are looking for exactly what we are selling.

We might not have completely erased our bad image YET, but now it almost doesn't even matter. We don't have to try and convince any one of anything anymore.

If someone doesn't want to join our business, that's fine, we have new leads tomorrow. They need us more than we need them.

But let's back it up here just a bit..

You see people got scammed. They got ripped off and lost their money.

At first the headline "make thousands of dollars from home in as little as an hour per day" would get hundreds of leads. I mean they were completely new to this whole internet thing. They were use to believing everything that they saw on TV. What made the internet any different?

But then all of a sudden, people realized that hey these people are lying to us.

This MLM didn't make me a dime more than my last MLM and they both promised me riches.

This vitamin juice was not any easier to sell than that last vitamin juice, and it sure as hell did not sell itself.

Yeah, this corporate landing page is pretty nice, except uh... I never learned how to get people to come to it.

And people just smartened up. They stopped buying into all of the hype.

So we adapted. We figured out that just saying our opportunity is the best opportunity just won't cut it anymore. We realized that success is not figured by the type of product, but by the person selling/marketing the product.

And bam affiliate marketing and network marketing combined.

Creating the funded proposal that changed everything.

We know that people would rather learn how to do something than actually do it. And we give them what they want: Informational products. We educate the industry, and bam the BN is born

Now it does not matter if someone joins our opportunity or not because we are still bringing home a nice fat paycheck, and still have that nice feeling in our gut that we are helping people.

It is a win win situation.

So to answer your question, I think affiliate/internet marketing plays a big role in our success in network marketing.

I am sure that people have made advertising some product, but that's just not for me.

To your success,

Landon Stewart

[Allen Gregory Contribution Level: 2]

Thanks Richard. I completely understand what you mean.

The Range Rover - Lamborghini analogy is right on. And I particularly like the part about the hybrid business model because I think that's where we're headed. And a lot of us are catching on. We have to use both in order to build our businesses. And the great thing is that in a few years it will be easier to build an internet networking business than it is now. It really will be plug and play. We're all innovating right now. And it's such a great thing.

And you know what? I've been watching the type of stuff you put up here for a long time and you always provide a fresh perspective to every conversation. I really appreciate that. And although I've never met you I really look up to you. And that's what I mean about high-tech and high-touch. You really can touch people through the internet. It happens to me every day.

Landon,

You're absolutely right. There are people looking for us every single day and they will make their decision based on how we "touch" them through high-tech. If we show a genuine interest and send a personal email to them on Facebook or even here on BN then we are that much more "real". The internet used to be a fad. And it's far from that now.

Like I said the market is maturing. People can spot scams quickly now. And WE have a lot to do with that. It's really difficult to be a scammer nowadays. Are they out there? Sure. But we're getting rid of them slowly but surely.

Thanks for the comments guys. I appreciate it.

[Jan Shimano Company: ASEA, LLC Contribution Level: 3]

I believe that I am a network marketer that utilizing the internet to increase my business. I use PPC and social networking. I am also willing to talk to my warm market about my product, because I truly believe that it can help them improve their health.

So personally I am a conglomerate of everything. I am a business person that takes my business wherever I can find it. I see no point in pigeon-holing myself. For me, it's all about versatility.

However, I will say that the majority of my business is done via the internet. I am literally amazed at the response I am getting from my leads via PPC. I am part of a coop that does a fantastic job of targeting the right people. Every lead that I have spoken to has been hungry for information and is definitely classified as a 'hot' prospect. I cannot say that about my warm market.

It's really all about getting in front of the people that actually want what you are offering....and the internet is where it's at right now.

[Jeff Mitchell Contribution Level: 4]

I feel that you have to be a network market before you can be an internet marketer. You have to understand the concepts of "networking" and marketing before you can become an internet marketer.

There are so many facets of the the internet world that are just an extension of the offline world. If you don't have the skills to network in the offline world, how can you ever expect to network in the online world.

Yes, the online world gives you access to systems and training that give you the ability to never have to actually speak to a prospect to make those "front end" sales that we are all so happy to promote, but if you ever want to be a 5-6 figure earner, you will have to develop the networking and speach skill to talk to a prospect and sign them up as a new distributor.

The training and systems that are gladly promoted are just a piece of the puzzle when it comes to creating a real business.

Jeff Mitchell

[Reynaldo Perales Contribution Level: 3]

Personally...

..that's a good post Jeff..

The foundation started offline and ran into the internet..it's like a business being the
expansion of education..

Success is a process and whatever process we take and master it no denying will exist..
that's just the way it is..

Colleges education and even a school education have always had people succeeded in
finding a good paying job..

However, as for the rest..millions have succeeded without such education..like the 1%
of the wealthy..most of them didn't even know how to read, write, etc..

rey

[Melvin Goodrum Company: AdvoCare International, L.P. Contribution Level: 4]

Neither, Business Owner & Marketing Advisor.

[Nicholas Wind Company: SISEL International, LLC Contribution Level: 3]

That's a thoughtful post Allen

I come from "old School" as of 2 years ago until Mike's book kicked me in the yarbles and told me I'm I'm not going to make it the old school way.

I have come far since then but what I've seen is definite over lapping of all the different models Network Marketing,Direct response,Affiliate marketing, and what you are talking about is I think information marketing.
You made me realize I use information marketing in everything I do including blogging.

I started to follow Dan kennedy and Bill Glazer and these guys both say "everyone should be involved in information marketing in some way in the future".

I'm not going to argue with the success of these guys.I'm not qualified to do so.

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