Ways to Generate Income
Brainstorm some of the ways for creating extra income. You could
“What’s with
make a list with hundreds of ideas, but focus in on the ones that:
the alarm
clock? It’s
•
can be set on autopilot or has automated/residual earnings
characteristics (meaning free of your time as you have work, the
called an alarm
kids, responsibilities and everything else eating up 24+ hours of
clock. Is that
your every day)
how we’re sup-posed to
•
are low investment and low risk (I’m guessing you don’t have
wake? In
$250,000 sitting in the bank ready to invest into a business nor can
alarm?”
you afford to lose large sums of money)
•
provide high yield potential
“Cause it's a
A part-time job doesn’t qualify. Stock investing is out. Real Estate
bittersweet
isn’t an option. Neither is building the next big tech company. Even
symphony, this
franchising is time dependent and high investment.
life. Trying to
make ends
Marketing, however, is a whole different animal. That’s what we’re
meet, you're a
here to talk about.
slave to money
then you die.” –
The Verve, Bit-The Money of Marketing
tersweet Sym-Specifically we’re going to examine two marketing models
phony
•
network marketing (the act of building a network or organization of customers who, through effective word of mouth systems, create additional customers) and
•
internet marketing (we’ll look at direct response marketing
online and affiliate marketing).
How Can
YOU Make
Extra Money?
What is Network Marketing
The concept of network marketing is so smart, so simple, so hassle-Find Out On
free and potentially so lucrative that it would benefit every employee
Page 56
to quickly become familiar with it. The challenge is in not falling vic-tim to this same simplicity and turning it into a “sales job” which is
what many untrained network marketers tend to do.
What then, is network marketing? It’s the business of word of mouth
Dear Employee,
marketing. Giving an incentive (financial incentive in the forms of
Your Job Sucks
wholesale discounts and commission checks) to a satisfied cus-Author—Rob Toth
tomer in order to have them educate a friend, family member, coworker (etc) about a product/service. There are a few more techni-PAGE 8
calities but let’s keep things simple for the time being.
It may also be useful to better understand what word of mouth mar-
keting is and why it’s so effective in business.
Why Word Of Mouth?
"People act on
Even the world’s largest advertisers, Proctor and Gamble, have
only a tiny, tiny
their attention focused on word of mouth because, depending on
handful of the
the research you look at, consumers rank the recommendations
thousands of
they receive from friends and family as the 92% most influential in
ads, commer-their buying decisions (vs. traditional advertising).
cials, and sales
Large phone service providers offer the customer an opportunity to
calls they re-receive all their mobile calls free to the friends and family that join
ceive each
the network from word of mouth referrals. Web host companies of-week. But they
fer a free month service for every new customer referred.
act on many, if
not most, of the
Even McDonald’s used a word of mouth strategy in launching their
recommenda-Red Box DVD rental machines. They launched a contest that asked
tions from
a person to sign-up for a password and then tell all of their friends
friends and
to go to McDonald’s and rent a DVD from the Red Box machine.
trusted advi-When friends entered this same password as a coupon code, they
sors." - George
received their first night’s DVD rental for free, while the original re-Silverman, The
ferrer was entered into a contest to win $1000.
Secrets of
Instead of putting up billboards, running television advertisements
WOM Marketing
and hiring celebrities to promote these new Red Box DVD rental
machines, McDonald’s recognized the intelligence of word of mouth
marketing and simply created an incentive to encourage customers
to refer and create more customers.
While the majority of businesses ignore the growing strength of
word of mouth in this sea of too much information where consumers
How Can
are becoming desensitized to advertising messages that bombard
them everywhere they turn… some of the smarter firms (including
YOU Make
the majority of the Fortune 500 companies and other new emerging
Extra Money?
fast growth innovative leaders) are looking at how to create a word
of mouth (how to create a network marketing) structure.
Find Out On
Page 56
And typically, the best of these companies are the ones that are on
the forefront of a lot of other "new ways of thinking" and "new technologies". They aren't the me-too product developers. Some of
these companies take an approach to completely devote their entire
advertising/marketing efforts to effective word of mouth. They de-Dear Employee,
velop strategies to get their customers talking (to create more cus-Your Job Sucks
tomers). These are the “network marketing” companies. This simply
Author—Rob Toth
means they have a referral-incentive program and a compensation
plan based on standard network marketing compensation models.
PAGE 9
What are some of the ways a company could get their customers
"The way
talking faster and more frequently? Give them incentives. Yes, dis-women try new
count coupons and free products might do the trick. But how about
products is a
a part of the profits from the referral of these new sales? Again, this
refers to satisfied customers simply referring new customers
girlfriend puts
through conversations. Nothing new here. We do it all the time.
an arm around
her and says,
There’s a little catch phrase among network marketing profession-
"This stuff is
als:
fantastic. You
ought to try it."
“There are two types of people in this world. Those who receive a
It's word of
commission check for their referrals and those who don’t.”
mouth."
- Michael
Each one of us, as a consumer, networks on a regular basis. We
Silverstein, au-share our opinions on what product/service we like and what we
thor of
don’t like. But the majority still let the companies keep all the profits,
"Treasure Hunt:
while a small percent of the crowd are now also gaining tax advantages and earning increasingly larger checks for these same en-Inside the Mind
dorsements.
of the New Consumer"
(Why tax advantages? Because as a network marketer, you are an
independent contractor and in business for yourself. That business
entitles you to tax deductions for a variety of activities. Check with
your local tax professional, but the meal you have with a friend (if
you mention the product/service which you are contracted with) becomes tax deductible, the ink for your printer, percent of your internet usage, percent of your phone bills, and much more can become
tax deductions. Yet you aren’t doing much that’s different. You are
still basically just saying “Here, check this out. This is what I’m using and this is what I like about it”… meaning you are still recommending products and services as you always have been, but now
have a business and new income stream based around this.)
Take a friend who is a realtor here locally. He knows that I would
How Can
(and do) send him referrals as they come up in conversation. If I
YOU Make
know someone is in the market to buy a home or looking to sell and
needs a realtor, I refer them to him. Yet he passed on a financial
Extra Money?
incentive that if one of the customers I refer buys, he will hand over
Find Out On
$500 as a thank you. Again, he’s setting up an environment that
Page 56
really fosters word of mouth by providing this financial incentive.
Now, if I refer someone it won’t be because of the $500, it will be
because he’s a friend but also a professional at what he does and I
know that my colleagues would be in good hands working with him.
But having this extra “thank you” and incentive allows me to make
Dear Employee,
sure that I have his contact information and business cards on
Your Job Sucks
hand.
Author—Rob Toth
Network marketing does the same but with more structure and often
PAGE 10
very advanced tracking systems and compensation programs that
"... as consum-allow customers and “associates” to gain as much of the profit for
ers increasingly
their direct and even indirect referrals as possible.
feel barraged
What's involved in word of mouth recommendations that you're
by marketing
likely used to?
messages,
•
A product or service manufactured by the company.
they're blocking
•
A consumer who had a positive experience on that product/
out traditional
service.
advertisements
•
Communication of this positive experience to another individ-and looking
ual.
more to other
people for ad-Think about that. Pick anything you've told a friend or associate
vice on what to
about. It can even be how the HP printer is better than a Lexmark
buy." - Mary Jo
for their home office. What was involved there?
Feldstein, St.
•
The manufacturer (in this case HP) created a printer that in
your opinion is superior.
Louis Post-
•
You had a great experience with this printer for some reason
Dispatch
or another.
•
And now you had a conversation on the phone when your
friend told you he's looking to buy a Lexmark printer.
Imagine that for your legitimate word of mouth recommendation (in
this case for that HP printer), it's not just the manufacturer that gets
paid (through their profits from the sale)... but so do you if your
friend now buys one of their printers. Why do you get paid for a simple recommendation? Because you were a temporary marketer for
their product. You were the one who took the time and explained
what you liked about the HP printer vs. the Lexmark printer and
educated your friend on what to look for. Although you weren’t selling (as you genuinely wanted to help and were simply providing
your experience), you did a better job in assisting to create that sale
than a salesrep likely could have (since your friend trusts your opinion) and you certainly did more than an advertisement could have
How Can
done. Meaning, it wasn’t Hewlett-Packard’s sales reps or expensive
YOU Make
print advertising that created this new customer, it was you. You
were a "word of mouth marketer" or "network marketer" for that
Extra Money?
product.
Find Out On
Page 56
Take it a bit further though (to now really see how network marketing organizations get built).
You established a long term customer for HP, so now every time
your friend buys HP products (including ink for his printer), you earn
Dear Employee,
10% of that sale, yet you don’t do the selling, the delivering or the
Your Job Sucks
customer service. You do nothing in the equation. You simply
Author—Rob Toth
brought a customer to the manufacturer. And you did this because
you genuinely felt that your friend (and others) would benefit more
PAGE 11
through using this manufacturer’s products.
“I’ve owned restaurants, cloth-Now, here’s where I’ll really cook your noodle…
ing stores, a
chocolate fac-If your friend later in life has a conversation with somebody else
about printers and that person too buys a HP brand printer... you
tory, apartment
earn a portion of that sale too. Why? Because it was your indirect
buildings, com-referral that brought this business to HP. Had you not told your own
mercial build-friend about this printer line, he would certainly not have told his
ings, seminar
friend, etc.
companies,
newsletter busi-Below is a diagram of one common referral-genealogy structure
nesses, direct-called “The Binary” because of how the tracking and payments are
mail multimedia,
setup on two (hence binary) teams or “legs”. You’ll notice how from
and software
the original person, a few direct referrals occur, but from those new
businesses. I’ve
customers more referrals occur and so forth. When any of these
invested in
customers makes a purchase, the original referrer earns a commission (based on the compensation plan’s payout structure).
Broadway plays.
I’ve even owned
a piece of a professional bas-ketball team, the
Utah Jazz. Networking marketing beats them
all.”
- Robert Allen,
NY Times Bestselling Author
How Can
YOU Make
Extra Money?
Find Out On
Page 56
Think As the Business Owner
If you have a company that sells musical instruments, would you
Dear Employee,
rather spend money and time on creating ads, hiring sales reps, hir-Your Job Sucks
ing and training customer service reps to handle purchases or
Author—Rob Toth
would you rather look for an independent marketer (which can be
an experienced network marketer) and offer them the opportunity to
PAGE 12
walk with 40% commissions from the profits for their direct sale ef-
"The typical
forts and 2% for all future re-orders from these customers as well as
network mar-any sales made by the independent contractors (distributors) that
keter’s benefit
they find and train?
statement—
The network marketing model is saving companies millions yet cre-
‘You work when
ating more loyal customers. With the recent launch of the Word Of
you want, how
Mouth Association, there is more and more attention in leveraging
you want, and
the power of a "satisfied customer". Network marketing is quickly
with whom you
growing.
want’—…
I see a more
Below is a brief video of a quick search through the online book-seamless weav-store giant, Amazon.com’s database for the keyword “network mar-ing together of
keting”… let’s see what we uncover. Click the image to play the
work and family
in network marketing than in
any other sec-tor of the economy."
- Professor Paul
Zane Pilzer
(Economist, Entrepreneur, Author)
How Can
YOU Make
Extra Money?
Find Out On
Page 56
The following video presents the Direct Selling Association’s website. There are a couple of key points that are highlighted. Click the
Dear Employee,
Your Job Sucks
Author—Rob Toth
PAGE 13
It’s A Pyramid Scam
It’s about time you realized and admitted to it too!
The person at the top makes all the money. And the people below
do all the work. Eventually the people below start to quit and get replaced by new people who do all the work. The person at the top
still makes all the money.
And so many are falling for this scam every day. They are putting
in their time, energy, sacrificing time with the family, sacrificing their
dreams of travel, and everything else for these scams.
How Can
YOU Make
I know one person (a friend from high school) involved with a scam
Extra Money?
like this and he’s talking about how “after 10-12 years, I can proba-bly make $140,000 per year”. Maybe, but who is he kidding? And
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even if does make that much, it’s because the people above him
Page 56
are making even more.
That’s why I will never understand…