Business

"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.