"We live in complex times where it is hard to know what to do. Good intentions are not enough.Yet, people around the world are making a difference where they live and work through methods that tap into everyone's intelligence. “- Nexus for Change II
To be successful in Network Marketing you must have the following ingredients;
1. Must have Big Dreams; i.e. a Dying desire. (Your first dream is to change yourself in your paradigm).
2. Must Think. (Seriously think about what is success meant to you and what you really want in life).
3. Must be a Storyteller. (Educate and inspired yourself and be storyteller to inspired others).
4. Must be a Leader (be an example for others to follows).
Now that after reading my first article;
It’s only a sensible thing to do now is to take charge of your life and start building your Plan B.
As explained, the Conventional Business Model only helps you to earn an income whereas the Network Marketing Business Model creates a system at work for you by helping you to build a passive income.
Let’s look at the characteristic of Network Marketing;
1 It’s a distribution business of your own.
2 The business structure is to develop people.
The potential of its business structure is to develop a net work of entrepreneurs for
exponential growth.
3 It must be base on consumables products with value.
4 It take care the Market/Sale only.
5 It needs a Partner, to manufacture and supplies the requisite products and a compensation/marketing plan to reward its partner distributors who put in the works appropriately.
6 The distributor need, first to build a net work of consumers to make money and shows it to their followers how it can be done and build those who are interested to develop the business as a leader/entrepreneurs in your organization.
7 By building these entrepreneurs you are actually leveraging on human resources and building a system at work in your organization. Thus creating the schedule desired passive income to give you the time freedom.
Now let’s look at some network marketing business objectives;
1 To make money.
2 Must have Sale Volume. The higher the Volume, the higher is the potential Profit.
a. It depends on two factors;
i. Its market size and
ii. The numbers of products for Sale.
3 Must have customers’ retention.
4 Must build net work customers first, and then show those who also want a business of their own to follow your footsteps. By developing these entrepreneurs will give an exponential growth and system at work in your organization.
A business need time to build. In this business you have two things to sell.
1 Products;
i. use it,
ii. good; share it,
iii. Not good; return it.
2 Business;
a. What is it? Distribution Business.
b. Who’s Amway? A Partner Supplier.
c. Why Amway? Proven track record in products, integrity to pay and commitment as a Business partner to their distributors.
Since you only take care of one of the 5 business pillars i.e. marketing, then you must learn about Marketing and its sale cycle for both the products and business itself;
1 preparation of pre approach,
2 approach,
3 presentation,
4 answering enquiries and
5 Closing.
Always remember the first law of marketing is to know your products well then you can promote with conviction and passion.
Why Amway?
1 It pioneers in network marketing since 1932, started with Nutrilite 75 years ago.
2 It’s a 7.1Billion Company worldwide.
3 In Malaysia Amway is listed on the first board with 164million paid up, with the following major shareholding and its last 5 years financial audited reports;
a. Amway Global Develop B.V. 51.70%
b. Skim Amanah Saham Bumiputera 16.47%
c. EPF 05.71%
d. Valuecap Sdn Bhd 04.23%
e. Lembaga Tabung Haji 03.83%
f. Amanah Saham Malaysia 02,98%
g. Amanah Saham Didik 01.79%
4 Last 5 Years Financial Performance Results 2003 2004 2005 2006 2007
a. Sale Revenue(RM Million) 0422 0456 0507 0724 0584
b. Profit BT (RM Million) 0074 0072 0073 0112 0120
c. Net Profit (RM Million) 0052 0054 0052 0081 0088
d. Net Earnings Per Share (Sen) 31.7 32.6 31.6 49.0 53.5
e. Core Distributor Force (Thousand) 0158 0161 0165 0177* 0188
2003-2005 - Results for financial years ended 31st August
2006 – Results for the 16-month period from 01/09/2005 to 31/12/2006
2007 – Results for financial year ended 31/12/2007
5 Proven track records in its products, compensation/marketing plan and its integrity through;
a. Diamond Chan Poh Yoke is factory clerk earns a meager salary become a direct distributor in 1980 and a Diamond in February 1993; a level where she have developed six entrepreneurs in her net work organization, but die in May 1993 and that whole year income from her net work is RM167,564.01. In 1994 person already dead but income from her net work is RM200, 009.42pa. With a total sum of RM367,573.43, Amway Malaysia went looking for her next of kin, found that she’s not married, so no husband and children, next parents, both demised, next found a brother and a sister, both said don’t want the business but want the money, so Amway said fine and give them both the money equally i.e. RM183,786.76 each in 1994. Amway have been paying them a combined bonus of approximately at an average sum of about RM300, 000.00pa for the last 12 years which come to be approximately RM3, 600,000.00. The last annual payment in 2007 was approximately RM500, 000.00. As of today Amway still continue to pay the next of kin a monthly income from the net work. Amway have been paying for the last 14 years and it will continue to pay for the next 14 years there onward. So my friend can you name me a insurance policy that can pay like this or if you selling insurance policy then check and see if your company have such a policy that can pay like Ms. Chan Poh Yoke case? If yes I’ll definitely want to buy. If no, why not consider building this business then.
b. Next case is my good friend Mr. Alferd Hendroff a divisional manager with a life insurance company become a direct distributor in September 1976 and a Diamond Direct in 1981 then stop doing the business until today 2008, migrated to Perth Australia, just ask him how much is his 2007 bonus, not much he said just over a million. Have permission to reveal this three years income and sale volume only;
i. 2002 income RM502,155.99 Sale Vol. Local&Int’l RM1,180,593,943.15
ii. 2003 income RM615,182.89 Sale Vol. Local&Int’l RM1,424,979,762.75
iii. 2004 income RM770,814.37 Sale Vol. Local&Int’l RM1,866,071,312.88
People like these still don’t have an office or a manufacturing plant but can have sale volume bigger than any small medium enterprise and some of the multinational companies.
Hey my friend heard of people saying Amway is chicken feed business and not my cup of tea or coffee. How sad for these people they have missed the biggest opportunity in the world.
This is how I felt now sad and stupid after being introduce to Amway in 1978 and give up without really working on it and understanding it, just like many people outside who have join in to obliged a friend who have just join in and very excited or just to keep MLM people away from disrupting their paradigm and many other excuses.
Seriously look at the above two cases of people who have make it and many others, isn’t these are what we want in life that call success. Have time and money freedom, which can be inherited through our generation to come. All it takes is to take charge of our life and think seriously what we actually want in life. Go back to basic about money, money may not be everything but everything we touch need money;
1 Money; a medium of exchange.
2 Generally two things to exchange;
a. Time (Working)
b. Products (Business)
3 Need to develop Plan B (i.e. business alternative to Working)
4 Understand the basic Chronicle of business;
a. Exchange of Products
b. Manufacturer or Distributor
c. Marketing techniques
i. Waiting for customers
ii. Going after customers
d. Business objectives
i. Make money
ii. Volume game
1. Market size
2. Number of products available for sale
iii. Retain customers base
e. Basically business is about Marketing
i. What to market?
1. Products with value
2. Network Marketing business itself
ii. How?
1. Educated yourself first about the products and its business
a. Products-use it yourself
b. Business-understand it
2. Educated yourself on the Sale Cycle
a. Pre-approach
b. Approach
c. Presentation
d. Answering Enquiries
e. Closing
5. Objective is to develop a business to build a passive income with as much leveraging as possible, low capital outlay, high return on investment (ROI) and nominal risk.
Hope you can understand why Amway and why we need to build a parallel source of income by choosing the network marketing business model.
Wednesday, December 24, 2008
Tuesday, December 2, 2008
A Tool for everybody with Big Dreams towards better lifestyle, time and financial freedom without Risk and High Cost.
With the current economic outlook I think it’s a prudent thing for us as employee to get ready a backup plan that will continue to provide us an income should anything happen in the coming expected recession that’ll definitely affect our current source of income to a certain extend through no fault of ours. Nevertheless it is imperative that we must be prepared for any eventuality.
Question is what can you do as a second source of income?
Do we need to get another addition job after our main job or get another way of earning an income? As an employee we exchange our time for money, so if we choose not to exchange time for money than the other alternative is to exchange products for money that means we are getting into a business.
Question is after being an employee for all our life, what do we really know about business?
So what is business?
Generally in business we either make products and sell (as manufacturer), or sell other people product (as distributors). In business as a Distributor, first you must choose a business model, product and marketing technique (i.e. either to wait or go after customers.)
First how to choose a business model will depends on whether you want to earn or build an income. There’ll be no income if you stop earning but if you build an income than there’ll be continuous flow of income even if you decided to stop building. So decide carefully, once decision is made than you must be willing do whatever it takes to achieve it.
Question is, are you currently earning or building an income?
Next how to choose a product will depend on whether you want money once a while or every month. If you want money once a while then sell products once a while but if you want money every month then you must sell every month because money is a medium of exchange, you need to exchange something for money it’s either your time (Working) or products (Business).
Hence, if you need money every month then there must be sale every month, so think hard what is it that everybody needs to buy every month; it is none other than their necessity and basic consumables. There are so many consumable products in the market to suit the whole population of a country which also reflects the size of our market.
In business the objective is to made money, how much will depends on the volume of sale we can generated from the size of the market and also the numbers of products we can sell.
So question is what products to focus?
As a businessman, you need to know about the macro economy in order to position your company direction or otherwise you will die in this volatile economy without knowing why, and also micro economy in order to control and monitor your administration, marketing and distribution cost. Macro economy is things beyond your control such as politics and economy trend. In order to position your company direction, you must know what the current economy trend is. Every decade something big really comes along, in the 70’s it’s Microwave, in 80’s it’s VCR’s, in 90’s it’s PC’s and Internet and the current 21st century it’s Wellness Industry. One can participate as a Practitioner such Doctors, Manufacturer, Retailers and Distributors of wellness products.
The product to focus on is the wellness and beauty products, next we need to choose a marketing technique, if you choose to wait for customers to come to you, then you’ll need to use a lot of expenses for promotion and advertisement to lured the customers come to you such as the conventional business models like Manufacturer, Regional Agency, Sole Agency, Whole Seller, Retailer and Hypermarkets. These business models have a survivor structure and nobody will teach you the business as nobody want to have competitors. If you choose any one of these model then you have to learn how to do business yourself. After all these model only helps you to earn an income.
The alternative marketing technique is to go after the customer, since you go after the customers then you don’t need to use a lot of expenses to operate. Usually this business model is calls Net Work Marketing; it involved direct selling using Multi Level Marketing (MLM) technique to distribute the products. The structure of this business model is designed to develop people into an entrepreneurs and consumer of the products they distributed. Therefore, a detail training programs are in place by the Company and its Business Partners who are usually its Distributors to train those people who have big dreams to achieve, by being a businessman to develop a network of consumers and entrepreneurs among their network of friends and relatives. This model only takes care of one of the five business pillars which are Capital/Cash Flow, Manufacturing Process/Trading Methodology, Material/Products Suppliers, Human Resource/Workers and finally Market/Sale; that is the Market/Sale only and leverage the other four on the chosen Partner who will provides all the requisite products and a proven Marketing/Compensation Plan that’ll provide a continuous flow of income eternally. Hence this model builds income.
Our business objectives is to retained the consumers and increase their products consumptions by building on them one by one, imaging with the products knowledge acquired after consuming it yourself and through all the training provided to you, and let said you just spend 1-2 hours a day after work and talk to somebody and get them to use the products only, 1 year is 365 day say you managed to get 300 customers in the first year to spend only RM110.00 (Double X) every month than on the 2nd year onwards your monthly sale volume is 300 X RM110.00 = RM33,000.00 at 21% bonus = RM6,930.00 every month onward from there on even if you stop building, this income of RM6,930.00 will continue to come whether you like it or not. Add a Protein = RM190.00 X 300 = RM57, 000.00 at 23% bonus = RM13, 110.00 every month onwards, add another Omega 3 = RM249.00 X 300 = RM74, 700.00 at 23% bonus = RM17, 181.00 every month onwards and lastly add Coenzyme Q10 = RM412.00 X 300 = RM123, 600.00 at 23% = RM28, 428.00 every month onwards. Can you see how the income build over time with just 1-2 hours work a day.
Question is can this be done?
Let’s look at our current paradigm; the 1st paradigm,
Age 1-18 under parents’ control you need to grow and study only,
After age 18, for those who are unlucky will have to come out to face the reality of the world, in order to be independent you will need money to survive, so first thing that comes to your mind is to find a job.
For those who are aggressive, they usually work for a couple of years after getting the experience and know how they’ll get in a business similar to their job and be a competitor to their bosses because they want to earn more money.
For those who are not aggressive they’ll continue to works and climb the corporate ladder until they reach the retirement age of 58 and hope to be rich by then. How they do it, through earning, saving, investing (taking all the investment Risk) from age 18 – 58 approximately 40 years and hopefully become rich. Hence some 5% will make it but majority 95% won’t make it as proven through statistic. Why do they want to be rich? Most common answer is don’t need to work also have money to spend that mean Passive Income. How much to be rich?, 1million, 2million, 10million or over 20million most can’t give exact amount but most agreed if they can have their desired income every month without fail is good enough, meaning to said a monthly desired passive income will do just fine.
I have been working and having income from 2 types of businesses for the last 32 years, suddenly realized if I stop what I’m doing now, my income will also stop immediately meaning that up till today I still have not build an income. What I have been doing is actually earning an income instead of building an income. Today I’m 50 now, I still can’t see the passive income I’m suppose to have to maintain the lifestyle I’ve build for my retirement in the next 8 years, if in the last 32 years doing what I’m doing now and still can’t have the passive income I desired than what made me think I can achieve it in the next 8 years.
"Insanity is continuing to do the same thing and expecting different results." -- Gerhard Plenert
Therefore I definitely need to change my business model of earning an income into building an income.
Now let look at the 2nd paradigm,
Age 1-18 under parents control you need to grows and study,
After 18, straight get into a business and build a monthly desired passive income in the next 5 years than retire young and rich.
Isn’t this a better paradigm?
Question is can this be done?
Majority said impossible, how you can get into a business without knowledge, experience and money, further more you don’t learn about business in school and nobody will teach you about their business as nobody like to have competitors in their business. This is so true that why we have to get a job 1st and secretly learn about the business and after gaining the knowledge, experience and saving than only we can get into a business on what we have learn and experience with the knowhow. Well this is absolutely true for the convention business model we have learn from the above but then we also learn from the above that there is another business model where its business structure are designed to teach you all you need to be a successful entrepreneur and this business actually helps you to build an income instead of earning an income call Net work Marketing.
Thus with Net Work Marketing business model the 2nd paradigm can now become a reality. So why spend 40 years of uncertainty of hopefully to be rich when you can actually achieve it with certainty in 5 years time, than you can have the time and money to do whatever your heart desire to do and live life to the fullest.
Now even though I’m 50, I still have an opportunity to catch up on time again, and I’m extending this opportunity to you to made the required changes in your life if you can just stop and check on the things you really wants in life that is yet to be fulfill (i.e. your dreams)
"We live in complex times where it is hard to know what to do. Good intentions are not enough.Yet, people around the world are making a difference where they live and work through methods that tap into everyone's intelligence. “- Nexus for Change II
If you understand and want to make the changes in your life than please don’t be hesitate to email me at lesliewong38@gmail.com or call me at 0163346680 mention this article to make an appointment to meet if you are around Klang valley. We can always meet up to share and exchange knowledge and information over a cup of good tea or coffee.
Cheers from Leslie Wong.
Question is what can you do as a second source of income?
Do we need to get another addition job after our main job or get another way of earning an income? As an employee we exchange our time for money, so if we choose not to exchange time for money than the other alternative is to exchange products for money that means we are getting into a business.
Question is after being an employee for all our life, what do we really know about business?
So what is business?
Generally in business we either make products and sell (as manufacturer), or sell other people product (as distributors). In business as a Distributor, first you must choose a business model, product and marketing technique (i.e. either to wait or go after customers.)
First how to choose a business model will depends on whether you want to earn or build an income. There’ll be no income if you stop earning but if you build an income than there’ll be continuous flow of income even if you decided to stop building. So decide carefully, once decision is made than you must be willing do whatever it takes to achieve it.
Question is, are you currently earning or building an income?
Next how to choose a product will depend on whether you want money once a while or every month. If you want money once a while then sell products once a while but if you want money every month then you must sell every month because money is a medium of exchange, you need to exchange something for money it’s either your time (Working) or products (Business).
Hence, if you need money every month then there must be sale every month, so think hard what is it that everybody needs to buy every month; it is none other than their necessity and basic consumables. There are so many consumable products in the market to suit the whole population of a country which also reflects the size of our market.
In business the objective is to made money, how much will depends on the volume of sale we can generated from the size of the market and also the numbers of products we can sell.
So question is what products to focus?
As a businessman, you need to know about the macro economy in order to position your company direction or otherwise you will die in this volatile economy without knowing why, and also micro economy in order to control and monitor your administration, marketing and distribution cost. Macro economy is things beyond your control such as politics and economy trend. In order to position your company direction, you must know what the current economy trend is. Every decade something big really comes along, in the 70’s it’s Microwave, in 80’s it’s VCR’s, in 90’s it’s PC’s and Internet and the current 21st century it’s Wellness Industry. One can participate as a Practitioner such Doctors, Manufacturer, Retailers and Distributors of wellness products.
The product to focus on is the wellness and beauty products, next we need to choose a marketing technique, if you choose to wait for customers to come to you, then you’ll need to use a lot of expenses for promotion and advertisement to lured the customers come to you such as the conventional business models like Manufacturer, Regional Agency, Sole Agency, Whole Seller, Retailer and Hypermarkets. These business models have a survivor structure and nobody will teach you the business as nobody want to have competitors. If you choose any one of these model then you have to learn how to do business yourself. After all these model only helps you to earn an income.
The alternative marketing technique is to go after the customer, since you go after the customers then you don’t need to use a lot of expenses to operate. Usually this business model is calls Net Work Marketing; it involved direct selling using Multi Level Marketing (MLM) technique to distribute the products. The structure of this business model is designed to develop people into an entrepreneurs and consumer of the products they distributed. Therefore, a detail training programs are in place by the Company and its Business Partners who are usually its Distributors to train those people who have big dreams to achieve, by being a businessman to develop a network of consumers and entrepreneurs among their network of friends and relatives. This model only takes care of one of the five business pillars which are Capital/Cash Flow, Manufacturing Process/Trading Methodology, Material/Products Suppliers, Human Resource/Workers and finally Market/Sale; that is the Market/Sale only and leverage the other four on the chosen Partner who will provides all the requisite products and a proven Marketing/Compensation Plan that’ll provide a continuous flow of income eternally. Hence this model builds income.
Our business objectives is to retained the consumers and increase their products consumptions by building on them one by one, imaging with the products knowledge acquired after consuming it yourself and through all the training provided to you, and let said you just spend 1-2 hours a day after work and talk to somebody and get them to use the products only, 1 year is 365 day say you managed to get 300 customers in the first year to spend only RM110.00 (Double X) every month than on the 2nd year onwards your monthly sale volume is 300 X RM110.00 = RM33,000.00 at 21% bonus = RM6,930.00 every month onward from there on even if you stop building, this income of RM6,930.00 will continue to come whether you like it or not. Add a Protein = RM190.00 X 300 = RM57, 000.00 at 23% bonus = RM13, 110.00 every month onwards, add another Omega 3 = RM249.00 X 300 = RM74, 700.00 at 23% bonus = RM17, 181.00 every month onwards and lastly add Coenzyme Q10 = RM412.00 X 300 = RM123, 600.00 at 23% = RM28, 428.00 every month onwards. Can you see how the income build over time with just 1-2 hours work a day.
Question is can this be done?
Let’s look at our current paradigm; the 1st paradigm,
Age 1-18 under parents’ control you need to grow and study only,
After age 18, for those who are unlucky will have to come out to face the reality of the world, in order to be independent you will need money to survive, so first thing that comes to your mind is to find a job.
For those who are aggressive, they usually work for a couple of years after getting the experience and know how they’ll get in a business similar to their job and be a competitor to their bosses because they want to earn more money.
For those who are not aggressive they’ll continue to works and climb the corporate ladder until they reach the retirement age of 58 and hope to be rich by then. How they do it, through earning, saving, investing (taking all the investment Risk) from age 18 – 58 approximately 40 years and hopefully become rich. Hence some 5% will make it but majority 95% won’t make it as proven through statistic. Why do they want to be rich? Most common answer is don’t need to work also have money to spend that mean Passive Income. How much to be rich?, 1million, 2million, 10million or over 20million most can’t give exact amount but most agreed if they can have their desired income every month without fail is good enough, meaning to said a monthly desired passive income will do just fine.
I have been working and having income from 2 types of businesses for the last 32 years, suddenly realized if I stop what I’m doing now, my income will also stop immediately meaning that up till today I still have not build an income. What I have been doing is actually earning an income instead of building an income. Today I’m 50 now, I still can’t see the passive income I’m suppose to have to maintain the lifestyle I’ve build for my retirement in the next 8 years, if in the last 32 years doing what I’m doing now and still can’t have the passive income I desired than what made me think I can achieve it in the next 8 years.
"Insanity is continuing to do the same thing and expecting different results." -- Gerhard Plenert
Therefore I definitely need to change my business model of earning an income into building an income.
Now let look at the 2nd paradigm,
Age 1-18 under parents control you need to grows and study,
After 18, straight get into a business and build a monthly desired passive income in the next 5 years than retire young and rich.
Isn’t this a better paradigm?
Question is can this be done?
Majority said impossible, how you can get into a business without knowledge, experience and money, further more you don’t learn about business in school and nobody will teach you about their business as nobody like to have competitors in their business. This is so true that why we have to get a job 1st and secretly learn about the business and after gaining the knowledge, experience and saving than only we can get into a business on what we have learn and experience with the knowhow. Well this is absolutely true for the convention business model we have learn from the above but then we also learn from the above that there is another business model where its business structure are designed to teach you all you need to be a successful entrepreneur and this business actually helps you to build an income instead of earning an income call Net work Marketing.
Thus with Net Work Marketing business model the 2nd paradigm can now become a reality. So why spend 40 years of uncertainty of hopefully to be rich when you can actually achieve it with certainty in 5 years time, than you can have the time and money to do whatever your heart desire to do and live life to the fullest.
Now even though I’m 50, I still have an opportunity to catch up on time again, and I’m extending this opportunity to you to made the required changes in your life if you can just stop and check on the things you really wants in life that is yet to be fulfill (i.e. your dreams)
"We live in complex times where it is hard to know what to do. Good intentions are not enough.Yet, people around the world are making a difference where they live and work through methods that tap into everyone's intelligence. “- Nexus for Change II
If you understand and want to make the changes in your life than please don’t be hesitate to email me at lesliewong38@gmail.com or call me at 0163346680 mention this article to make an appointment to meet if you are around Klang valley. We can always meet up to share and exchange knowledge and information over a cup of good tea or coffee.
Cheers from Leslie Wong.
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