Why Now Is the Best Time to Build a Network Marketing Business
December 16, 2008
10:00 PM
Network marketing News: If you have been paying attention to
the news as of late you realize that the economy is in a bad slump. The
government is bailing out major financial institutions. Home foreclosures are
at an all time high. Credit card companies are automatically lowering the
available credit balances of borrowers in fear that leaving them available could
result in a default.
With all of these concerns, many network marketing distributors are claiming
that this is a bad time to be in network marketing. However, if history is of
any indicator, this is actually one of the best times to be involved in the network marketing industry.
Network Marketing News: The Coming Network Marketing Boom?
Leonard Clements, founder of MarketWave Inc, a network marketing industry
analyst company authored an article entitled "The Coming Network Marketing
Boom."
What's interesting is the initial thought of Clements that prompted him to write
the report. Clements believed that network marketing distributors were
exaggerating claims of a big future boom to network marketing. He sought to
debunk these claims.
However, after doing his research the data was conclusive. It all pointed to a
big boom in network marketing!
This article was written in June of 2002 in Networking Times magazine. What
happened over the last 8 years? The industry exploded!
Robert Kiyosaki, international financial expert
also recommends network marketing.
According to Clements it took the industry over 50 years to reach 7.5 million.
He projects that by 2012 we will have an additional 4.7 million distributors
join the network marketing industry.
Based on the DSA numbers up until 2006, we are at approximately 10 million
distributors. The industry has already done in 6 years a third of what it took
the industry 50 years to do.
Look at all of the millionaires and big six figure income earners that were
created in the network marketing industry from the 50's to the late 90's. If
current growth trends continue, you are looking at more millionaires and big six
figure earners being created between 2000 and 2020 (a 20 year period) than what
was created over a 50 year period.
What's even more exciting is that the same trends that Clements pointed to in
his article that sparks the growth are even more apparent today.
2008 and Beyond Looks Really Great For The Network Marketing Industry!
For instance, Clements highlights that one of the biggest growths in the network
marketing industry occurred between the years 1990 and 1992. This is the same
period the last economic recession took place.
Most economic analysts are predicting that we are headed for a recession. If
this is true and during the last recession the industry experienced the most
growth it ever had, what do you suppose will happen if we enter another
recession?
Another trend that Clements identified is Wall Street. He noticed that on
average, network marketing companies were outperforming the overall stock market
by 30%.
What's going on today? Look at some of these numbers for some of the larger
publicly traded
network marketing companies just for
the last 5 years...
Herballife - Outperforming the S&P 500 by over 150%
Pre-Paid Legal - Outperforming the S&P 500 by over 50%
USANA - Outperforming the S&P 500 by over 60%
Avon - Outperfoming the S&P 500 by over 20%
NuSkin - About even with the S&P 500
If you are not taking your network marketing business seriously now is the
time. Those who work their network marketing businesses hard now will be able
to enjoy an incredible lifestyle because they took advantage of the trends and
rode the wave.
Those that sit back and watch will wish they took their businesses more
seriously when they see what is going to occur over the next 5 to 10 years.
Network Marketing News: YTB Your Travel Biz is Your Ship Sinking?
December 16, 2008
10:00 PM
Your Travel Biz.com is another network marketing company which
has been in the news lately; and the news isn't good. YTB, also known as
YourTravelBiz.com, was founded in 2001. The company is the largest network marketing company
that markets travel related services and travel marketing web sites.
There are two primary products that representatives offer through YTB.
The first is travel related products such as airlines, hotels and vacation
packages. The second product is a travel marketing website that people can
purchase and use to book their own travel and market to others.
YTB Travel - The Product
As an independent representative with YTB you are building your own home based
travel business. The company provides you with a website that you can use to
book travel. If you travel on your own, you can book all of your travel
arrangements on your site.
The commission that you would normally pay to another company, goes back to you
- 60% of it. The other 40% of it goes to YTB.
You can also tell all of your friends and family to book their travel on your
website. You earn a commission on any sale booked on your website.
YTB also allows you to offer a travel website to other people as well. If your
friends and family would rather have their own travel website and keep their own
commissions you can offer them the opportunity to purchase one like you did.
In addition, the travel website may appeal to individuals and companies that do
a lot of travel.
For example, suppose your employer has a lot of executives who travel. You can
sell a travel website to your employer and they can book their travel through
their own website and keep the commissions for themselves.
YTB Travel Business Compensation Plan
YTB offers a compensation plan that pays both on the booking of travel as well
as the marketing of travel websites. The company pays 60% of whatever
commission it receives from the travel parties on any travel booked on your
website.
So for example, if you sell a $1000 cruise and the cruise line pays 10%, the
total commission would be $100. 60% of that $100 would go to you, which means
you would earn $60 for booking that particular cruise.
YTB also pays commissions for marketing and selling travel websites. For each
website you personally sell, the company pays you $50. This commission
increases to $100 once you become "Power Team qualified."
Power Team qualified occurs when you personally sponsor 3 or more
representatives and between you and your representatives have marketed 6
websites. When this happens, the company also reimburses you the fee they
charged for your personal site.
YTB also pays you 50% of any commissions paid to members in your first team. So
if you recruit Ron and Ron markets a website, Ron makes $50. You would make 50%
of that, which equals $25.
Once you become Power Team qualified, you also earn $50 from the sales made by
the First team reps of your Power Team's members. You also earn bonuses each
time your Power team maintains 6 active website owners and 100 active web site
owners. There are also Dream Team bonuses you can earn when a member of your
Power Team starts their own Power Team.
Network Marketing News: YTB Business Disadvantages
There are several disadvantages to YTB that you need to be aware of. With the
exception of 2007, the company has lost money practically every year it has been
in business. In 2008 they reported losses in both the first and second
quarters.
The company has also experienced lots of negative press as of late. In August
of 2008, the attorney general of the state of California filed suit against YTB
for operating as an illegal pyramid scheme. An additional law suit was filed by
former representatives of the company. This, obviously, is not the kind of
network marketing news you want for your company.
The Better Business Bureau announced that the company has well over 100
complaints logged against it.
The company has also lost several key partnerships, including Royal Caribbean.
At face value when you look at the product and compensation plan, it looks like
an excellent network marketing business opportunity. However, when you look at
the financial challenges and the negative press it looks like an opportunity to
avoid. I will leave it to you to decide whether it is right for you or not.
Network Marketing News, ITV Ventures Not Accepting New Distributor
December 5, 2008
10:00 PM
News about ITV Ventures - October, 2008:
ITV Ventures is a direct sales company that employs network marketing as a
strategy to build its operation. The company offers a number of products in the
health and nutritional arenas.
ITV Ventures Product Portfolio
The company offers a number of natural products that you can to
market through its business opportunity.
One of its more popular products is the Almighty Cleanse
cleansing and detoxify product. This product allows you to perform a full colon
cleanse and clear your body of harmful toxins.
Although this is generally a
nutritional network marketing
company, there are some non health related products as well. For instance
there is a book that you can market that teaches you how to make money in real
estate.
ITV Ventures Compensation Plan
ITV offers a compensation plan that allows you to earn money
three different ways. You can earn money by acquiring new customers, marketing
to existing customers and recruiting new business partners. This last option is
not currently available as will be discussed below.
The first way you earn money is by making new retail customer
sales. The company uses infomercials to market its products and services. When
someone calls in, that person becomes a lead that is assigned to one of the
independent business owners of ITV.
Whenever a customer signs up, you earn the difference between
your wholesale price and the customer's retail price. So for instance, if the
product is priced at $49.99 and your wholesale price is $25, your profit is
$24.95
You can also market what is known as a Total Living membership.
This allows your customers to get wholesale pricing but allows you to still earn
commissions. You earn a $25 enrolling bonus each year the customer continues to
keep the membership.
In addition, you earn a 35% commission paid on half the wholesale
value of a member's order. So if the customer purchases a product at a $25
wholesale price, you earn 35% of $12.50, which works out to $4.38.
Finally, these orders also count towards your personal volume
requirements that are necessary for you to advance in the compensation plan.
Red Flags with ITV Ventures
There are some severe red flags when it comes down to getting
involved with ITV Ventures. As of October 3rd, 2008 the company is
no longer accepting any new distributor applications.
The company lost an FTC law suit where it was found liable for
deceptive claims and ordered to pay over 55 million dollars in fines.
This means if you are not already involved in the opportunity as
a distributor it's not even an option for you to get started with the company at
this time.
If you're currently a distributor with the company, you will not
be able to recruit any new distributors. Since we value the power of being able
to leverage your efforts by
building your network marketing
team, we cannot recommend any company where you cannot do this.
Network marketing News: If you have been paying attention to
the news as of late you realize that the economy is in a bad slump. The
government is bailing out major financial institutions. Home foreclosures are
at an all time high. Credit card companies are automatically lowering the
available credit balances of borrowers in fear that leaving them available could
result in a default.
Your Travel Biz.com is another network marketing company which
has been in the news lately; and the news isn't good. YTB, also known as
YourTravelBiz.com, was founded in 2001. The company is the largest 
