What Is Network Marketing?

Assalamualaikum …

 

 

Network marketing is becoming very popular among many people around the world. Here is a simple guide to understand what network marketing is. Network marketing is a simple business model in which a network marketing company distributes its service or product through the individual contractors. Network marketing is also popularly known as multi-level marketing business, tiered marketing, and affiliate marketing. There are many popular companies out there in the market that are into this business, in Malaysia, most commonly heard of is Zhulian, Uptrend, Amway and Kenshido International.

 

The working of network marketing can be best understood by the franchise model. In franchising, the business owners are given the rights to sell product or service with the parent company’s name and brand. Along with this, the business owners get training, support, and other necessary things required to run the business. While network marketing is not totally like the franchising, it is similar to franchise model. In the network marketing business model, the individual contractors are hired by the companies to sell the product or service and distributer make profit by selling the products to their own customers.

 

The key factor and most attractive offer in this business is that the individual distributer cannot only make profit by selling products, but can also expand their sales team and build a long list of downline members. This way the marketers not only make profit from the sales made by them, but also make profit from the sales made by their downline members. This business has the ability to generate revenue from multiple sources and therefore this is what makes the business so popular.

 

However, there are certain things that should be considered when joining the network marketing business. The first thing is the legitimacy of the company. Next is the length of period the company has been in business. Most network companies require some initial investment from the distributer set up the business so the distributer  should be ready to spend some amount on the business. Next important thing to consider is the company’s return policy and the products popularity. Finally, the distributer should analyze the compensation plan offered by the company. Other than this, the distributer can look for training and support from the company.

Network Marketing, HARAM ke?

As-salamu `alaykum wa rahmatullah…… Bismillahir Rahmanir Rahim…

Tulisan Ustaz Zaharuddin Abdul Rahman, “Mudahnya MLM menjadi haram!”menimbulkan sedikit salah faham, seolah-olah semua skim Multi Level Marketingcenderung kepada haram. Sedangkan Ustaz Zaharuddin sebenarnya turut menggariskan asas minima syariah yang perlu dipatuhi bagi membersihkan urusniagaMLM itu :

1.     Produk MLM ini mestilah dibeli dengan tujuan yang sebenarnya (seperti produk yang bermanfaat dan dibangunkan dengan serius seperti ubat-ubatan berkualiti). Produk MLM yang kabur kualiti dan kegunaannya tidaklah dibenarkan kerana ia hanya bertujuan mengabui undang-undang dan syariah. Jesteru, kekuatan MLM itu ialah kepada produknya yang bermutu dan bukan kepada objektif jangka pendek mengumpul dana (modal).

2.     Produknya bukan emas dan perak yang boleh dijual beli secara tangguh. Ini kerana penjualan barangan emas secara tangguh adalah riba jenis Nasiah.

3.     Komisyen yang diberikan kepada ahli untuk setiap penjual dan ahli bawahannya mestilah jelas. Tiada komisyen tanpa usaha, ini bermakna orang atas hanya berhak mendapat komisyen dari ahli bawahan yang dibantunya sahaja.

4.     Keuntungan dan komisyen bukan berdasarkan ‘kepala’ atau ahli yang ditaja, tetapi berdasarkan nilai produk yang berjaya dijual. Ini bagi membuktikan ia menumpukan kepada perniagaan penjualan produk dan perkhidmatan, bukannya permainan wang (money game).

5.     Tidak diwajibkan bagi si ahli menjual jumlah tertentu bagi memperolehi komisyen dari orang bawahnya.

6.     Setiap ‘upline’ atau orang di sebelah atas mestilah menaruh usaha atas jualan orang bawahannya, seperti mengadakan taklimat, motivasi dan teknik berkempen secara terancang seperti sebuah syarikat yang pelbagai ahlinya. Ia perlu bagi melayakkannya menerima komisyen itu dari sudut syariah. Jika tidak, dibimbangi ia terjerumus kepada keraguan ’syubhah’. Konsep niaga dalam Islam tidak membenarkan keuntungan yang di perolehi tanpa usaha. Sedikit usaha perlu dicurahkan bagi menjadi sebab haknya ke atas komisyen. Perlu diingat, kebanyakkan ahli di kaki yang 10 ke bawah, mungkin tidak mengenalinya lantaran ia dilantik orang bawahnya yang kesembilan. Jika tidak, apakah haknya untuk mendapat komisyen yang demikian berangkai dan begitu jauh?

7.     Tidak menggunakan skim piramid iaitu skim siapa masuk dahulu akan untung selamanya. Manakala hak mereka yang masuk kemudian akan berkurangan. Jesteru, plan pemasaran mestilah memberikan hak kepada semua, malah orang bawahan mampu mendapat keuntungan lebih dari orang atasannya, apabila ia mampu menjual dengan lebih hebat.

8.     Mempersembahkan sistem komisyen dan bonus yang telus dan boleh difahami dan dipantau oleh ahli dengan jelas. Ia bagi mengelakkan segala jenis penipuan.

9.     Menstruktur plan pemasaran di antara ahli dan orang bawahannya secara musyarakah iaitu perkongsian untung dan rugi berdasarkan modal masing-masing dengan nisbah pembahagian keuntungan yang ditetapkan diperingkat awal.

Petikan ini dipetik dari sumber akhbar Harakah keluaran 1-15 April 2007

” Carilah ILMU dan MEMBACAlah…!”

Memang Tabiat Manusia Membenci sesuatu yg tidak mereka ketahui…

Network Marketing-It’s an Asset, Not a Job

As-salamu `alaykum wa rahmatullah…… Bismillahir Rahmanir Rahim…

By Robert Kiyosaki

I am sometimes asked, “Why do so few people make it to the top of their network marketing system?”

The truth is, the top of the network marketing system is open to everyone-unlike traditional corporate systems, which allow only one person to reach the top of the company. The reason most people do not reach the top is simply because they quit too soon. So why would someone quit short of the top?

Most people join only to make money. If they don’t make money in the first few months or years, they become discouraged and quit (and then often bad-mouth the industry!). Others quit and go looking for a company with a better compensation plan. But joining to make a few quick dollars is not the reason to get into the business.

The Two Essential Reasons to Join a Network Marketing Business

Reason number one is to help yourself. Reason number two is to help others. If you join for only one of these two reasons, then the system will not work for you.

Reason number one, means that you come to the business primarily to change quadrants-to change from the E (Employee) or the S (Self-employed) quadrant to the B (Business owner) or I (Investor) quadrant.

This change is normally very difficult for most people-because of money. The true E or S quadrant person will not work unless it is for money. This is also what causes people to not reach the top of the network marketing system: they want money more than they want to change quadrants.

A B quadrant or I quadrant person will also work for money, but in a different way. The B quadrant person works to build or create an asset-in this case, a business system. The I quadrant person invests in the asset or the system.

The beauty of most network marketing systems is that you do not really make much money unless you help others leave the E and S quadrants and succeed in the B and I quadrants. If you focus on helping others make this shift, then you will be successful in the business.

As a B or an I, sometimes you don’t get paid for years; this, a true E quadrant or S quadrant person will not do. It’s not part of their core values. Risk and delayed gratification disturb them emotionally.

Delayed Gratification and Emotional Intelligence

One of the beauties of network marketing is that it focuses on developing your emotional intelligence as well as your business skills.

Emotional intelligence is an entirely different matter from academic intelligence. In general, someone with high emotional intelligence will often do better than someone with high academic intelligence but low emotional intelligence. That explains, in part, why some people do well in school but not so well in the real world.

The ability to delay gratification is a sign of higher emotional intelligence. In a recent study of emotional intelligence, it was found that people who could delay gratification often led more successful lives than those who could not.

This is why the educational system inherent in a good network marketing opportunity is so important. It’s the emotional education or emotional intelligence aspect of their programs that I find so valuable for people.

Many people write me and tell me they loved my book, Rich Dad, Poor Dad, but I fear that many of them don’t get the most important point of the book: Lesson #1, “The rich don’t work for money.”

Once I have built or bought an asset, that asset works hard to make money for me. But I will not work for money-I will work only to build or buy assets. Those assets make me richer and richer, while I work less and less. That is what the rich do. The poor and middle class work hard for money, and then buy liabilities instead of investing in assets.

What Kind of Asset is a Network Marketing Business?

Remember, there are two reasons required to be successful in network marketing: to help yourself, and to help others. Reason number one means helping yourself get to the B side of the quadrant. What about reason number two

The beauty of most network marketing systems is that you don’t really make much money unless you help others leave the E and S

quadrants and succeed in the B and I quadrants. If you focus on helping others make this shift, then you will be successful in the business

If you only want to teach yourself to be a B quadrant and I quadrant person, then a true network marketing system won’t work for you. You may as well go to a traditional business school, which focuses only on your becoming a B quadrant person.

The beauty of a network marketing business is that your goal is to create assets, which are other B’s working under you-and their job is to create other B’s working under them. In traditional business, the focus is for the B to have only E’s and S’s working for them.

The type of business I was taught to build is a business with me at the top and E’s and S’s at the base. I really don’t have room at the top for many other B’s, which is why in my businesses, I strongly recommend that all my employees look into network marketing as their own part-time businesses.

The traditional corporate system really is a pyramid, because there are a few B’s and I’s near the top, and more E’s and S’s at the base. A network marketing system is a reverse pyramid: its primary focus is to bring up more and more B’s to the top.

One type of pyramid, the traditional type, has its base on the ground; the other type has its base in the air. It’s a pyramid that pulls you up instead of pushing you down. A network marketing business gives everyone access to what used to be the domain only of the rich.

This passage is excerpted by permission from The Business School for People Who Like Helping People, by Robert T. Kiyosaki, with Sharon Lechter, CPA, authors of Rich Dad, Poor Dad.”