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NET WORK MARKETING

INTRODUCTION
Network marketing is, in short, a "business in a box". For a nominal fee, you
can register with a certain company in order to build up an organization
based around their products or services. You are classed as an independent
business owner: registered with, but not employed by, the parent company.

Over our lives, we have all recommended goods or services to those we


know. Think back to the last time you went to see a film in the cinema (or, if
this doesn't help, think about the last time you ate out at a fine restaurant or
listened to some music.) If you saw a film that you really enjoyed, the
chances are you would have recommended it to people you know. Why?
Because you wanted them to be able to enjoy the same experience that you
had been fortunate enough to find. So let's say that you told six friends, and
all six of them went to see the same film on your recommendation.

They probably bought some popcorn with their film, and maybe a drink.
Perhaps they paid some money to park in the cinema car park. All told, they
might have spent at least forty pounds together. That's forty pounds that the
cinema got thanks to your efforts. But how much did you get paid for doing
them such a favour? Not a penny! The cinemas and the film-makers spend
all of their money on hugely expensive advertising campaigns and rely on
these to encourage people to see the movies. Except that there are two
problems: Firstly, millions of dollars are spent advertising to people who
have already seen the movie, or have no intention of ever doing so;
Secondly, have you ever been to see a movie because it looked good from
the commercials, but actually it was terrible?! So network marketing came
about to solve these problems.
Network marketing companies sell practically everything you could ever
think of, but very few of them ever advertise. They rely on 'referral
marketing' to spread the word about their products. That is to say, they make
sure that they have an exceptionally good product, and then rely on people to
spread the word for them. In thanks for doing this, they pay those people for
each sale made as a result of their efforts. This is much more efficient than
blanket advertising, because the company is only paying for sales made, so it
saves a huge amount of money which can be funneled into producing better,
cheaper products, and paying its distributors (that is, those who are doing the
'referring') very well indeed.

Wait - it gets better! Imagine the cinema situation again. Now imagine that
four of the friends whom you told about the film also really loved the
experience and each told half a dozen of their friends about it. That's another
24 people who will go to the cinema and probably spend well over a
hundred pounds between them. Now, those people only went because the
film was recommended by their friends. That's just like what you did in the
first instance - you told half a dozen people about the film and they all went
to see it, so you did the cinema a favour. If the cinema worked by network
marketing then you would get paid for telling your friends about the film,
just like your friends would get paid for telling their friends about it.
However, these 24 new people also only went to see the film because you
started the ball rolling by telling the people whom you knew. So in a sense,
you should get paid for them too. Not as much, as before, naturally, because
you didn't actually do the work in getting them there.

So let's expect that two thirds of those 24 people also told six friends. That's
another 96 people going to see the film, or 126 extra people in total who
have now seen the film because of you. Even if the cinema only gave you a
few pence for each one of those, you would still be able to earn a few
pounds just because you did a few people a favour. That's network
marketing. And because sales are now happening on recommendation, really
bad films wouldn't ever get any viewers because they wouldn't get
recommended - nobody wants to annoy their friends! So that would force the
cinema only to show the very best films and to guarantee the highest quality
services.

In a real network marketing business, every person joining the company


forms the head of their very own business. They usually do some personal
retailing, which may involve talking to their friends and relatives about a
particular product or service. Some organizations encourage the
development of a substantial retail base, which is always a good idea. As
you will be making a tidy sum of money on the side, you might now want to
recommend this business model to some of your friends. After all - they
probably want to earn some extra money too! They start at the head of their
own business, and they also build up a small retail turnover. They make
exactly the same money from that as you do from your own retail business.
However, because you introduced them, you also get a small bonus payment
from the company by way of a reward for spreading the word. After all,
because of your efforts, the company is now making more money.

This first person is a member of your downline. They are on your first level.
As time goes on, you will introduce other people to the organization, and
these people will in turn introduce a second level and so on. These are all
members of your downline, and you are their upline. Your own upline is the
person who introduced you to the business. Your upline will offer you help
and advice because they won't succeed until they help a number of their
downline also to succeed! The more money you make, the more money they
make. Clearly your organization will never be as large as theirs, because
yours is a part of theirs, but most network marketing companies reward
those who bring in most of the distributors. If you do very little work, but
just happen to register someone who works extremely hard, then it is only
fair that they should get far more money from their group than you do.

So network marketing is a fair and ethical way to do business. It avoids


waste, it rewards people for the work that they do, and does so on a
continual basis - as long as the company continues to make money from
your efforts, you will get paid. Even if those efforts were ten years ago!
Moreover, it encourages people to help you to succeed, which for many
people is a truly welcome break from the backstabbing and office politics
that accompany so many conventional jobs.

Many people worldwide have developed a very substantial residual income


from network marketing. A residual income is one that keeps coming in
month after month based on work you have already done. The more work
you do, the more your income increases. If you do no work then your
income will usually remain about the same but you still get paid! If your
organization is big enough then it might even continue to increase without
any further input for you - there are lots of people in your group making
money too, and they want to make even more!

Remember - to retire from a job you don't need a lottery win - you just need
to replace your income. If you could replace your current salary with a truly
residual income which came in every month and sometimes actually grew,
would you continue to work?

HISTORY OF NETWORK
MARKETING

Network marketing has been around for nearly fifty years. It started in
the US, and the first major modern network marketing business was
formed in 1959. This company was created by business partners Rich
DeVos and Jay VanAndel, originally with just one single product and a
new and unique business vision. They regarded conventional sales jobs
as unfair - being paid only once for the work that they did even when the
company continued to make a profit from their labours for many years
afterwards. They believed that they should be paid relative to the benefit
the company continued to get from their original work. The only problem
with this was that no company would sanction their model of business,
and the extra costs of paying the salesmen on an ongoing basis would
have pushed the price of the products far too high to be saleable.

So DeVos and VanAndel broke away and formed their own company,
returning a few years later with enough money to buy out their original
employers and incorporate the vitamin business into their growing
corporation. Their company is now a multi-billion dollar business
operating in virtually every developed country in the world. Within a few
short years, many more companies followed in their footsteps and now
network marketing is responsible for a turnover of tens of billions of
dollars in the US alone.
DIFFERENCE BETWEEN
CONVENTIONAL BUSINESS & NET
WORK MARKETING
Issue Conventional Business Network Marketing
Limited. Usually one or
two CEOs, presidents Unlimited. Anyone can
Leadership etc. Many at lower levels progress to any level
positions unable to promote until regardless of when they
somebody above them started or under whom.
leaves.
Unlimited. Decided by
each individual and
Limited availability.
dependent only on the
Promotion Decided by candidate's
value they bring to the
boss or supervisor.
organisation, i.e. purely on
merit.
It is in the upline's interest
to help and support their
Superiors don't want
downline as much as
their employees rising up
Support possible, even if that means
the ranks and taking
helping them to reach
their jobs!
higher levels than
themselves.
Most NM companies do
Advertising designed to
not advertise. Products are
be as manipulative as
sold based on
Advertising possible, e.g. appealing to
recommendations,
sexual instincts or desire
demonstrations or just low
for personal acceptance.
prices.
Commissions based on the
Most sales posts offer
ongoing sales volume of
one-off commissions.
your downline group. Lots
Rewards Often very little personal
of personal recognitions
recognition or
and encouragement from
encouragement.
the entire team.
Starting Generally dependent on Everyone starts at exactly
Position education levels and the same level regardless
occasionally on
favouritism. Often linked
to family background, of initial wealth,
with rich families able to background or education.
send their children to
prestigious schools.

HINDUSTAN UNI LEVER


MARKETING
HINDUSTAN UNI LEVER NET WORK OPPORTUNITY

Launched in 2003, Hindustan Unilever Network (HUN) is the direct


selling arm of Hindustan Unilever Limited. HUN is a multi-brand direct
selling business, with the objective to become the most preferred
business opportunity in the country.

A member of Indian Direct Selling Association (IDSA), Hindustan


Unilever Network's multi-level direct selling module lays specific
emphasis on training and support through HUN Centres and HUN
Academy. This unique module pioneered by Unilever is known as
Partnership Marketing. This is a tri-partite relationship between the
Consultants, their Sponsors and the Company.

Better prospects to take control of your life...

• Opportunity to be a part of the large Hindustan Unilever


family
• Flexi-work culture and opportunity to expand social circle
• Lowest investment for entry (Rs. 1,550/- only to register as a
Consultant)
• A richly rewarding Compensation (earning opportunity) Plan
that provides multiple types of earning backed by a powerful
business development system
• Widest reach amongst Direct Selling companies in India (over
250 servicing points)
• Widest range of top quality Home Care, Personal Care and
Food products

• Highly affordable prices. Focused training system and tools to


aid business as well as self development
Partnership Marketing
In a Partnership Marketing model, the Company provides a much
stronger element of support to the independent sales person. With
Hindustan Unilever Network Partnership Marketing, you get the benefit
in more ways than one:

Providing a comprehensive training programme for


business and product training, in addition
to personal development training, conducting training
for these courses and providing materials for self study,
and operating Hindustan Unilever Network Centres for
purchasing, networking, training and product
demonstrations and experience.

HUN also trains its Consultants in conducting Beauty


Parties for Aviance and Better Living Workshop for
Ayush. It has also developed a special training material
to guide Consultants in the best way to set up their own
Kiosks and Exhibitions. All training material is developed
by experts and Consultants receive a certificate at the
end of the training.

Once you become a partner in this business what you need to do is:

Start buying products and using it personally, so that


SELF-USE you yourself have the experience of the quality of the
product.

Once you experience the products, start sharing the


benefits of the products with your friends and relatives
SHARE &
and other contacts and regularly provide the product to
SELL
them. Encourage in selling of the product to more and
more people.

Get more people like you to join and start forming your own
SPONSOR business team, and watch your business grow.
UNIQUE FEATURES OF HINDUSTAN UNILEVER
Hindustan Unilever Limited (HUL) is India's No. 1 Fast Moving Consumer Goods
(FMCG) company, with a turnover of about Rs.10,000 crores. Like its parent Company,
Unilever, the mission that inspires the 40,000 employees of HUL and its group companies is
to add vitality to life. To meet the everyday needs for nutrition, hygiene and
personal care with brands that help people feel good, look good and get more out
of life.

Over 70 crore customers enjoy the diverse product range of HUL, manufactured in 100
factories and involve more than 2000 suppliers and associates. HUL products are
distributed through a network of over 7500 redistribution stockists to an astronomical
number of towns and villages in India.

The Unilever Heritage


Unilever, the parent company of Hindustan Lever, has remained
amongst the largest and the most respected consumer durable company
in the world, with a turnover of $59 billion and a presence in 160
countries.

Every day, an estimated 150 million people around the world reach for
Unilever products. These include global favourites such as Surf, Dove,
Sunsilk and Lipton, together with regional product variants like Knorr,
Annapurna, Fair and Lovely, and Sunlight, and more. The secret of
Unilever's success lies in its clear understanding of consumer needs. In fact, Unilever
spends around 2.6% of its turnover - over Euro 1,000 million per year - on R&D resulting in
a steady stream of innovations. Unilever is the only FMCG giant, that operates a
global direct-selling business - In South Africa, Thailand & India.

The HUN Start-up Kit (Success Kit) costs only Rs. 1,550. It contains a selection of HUN's

. A steady and growing source of income.

. Rewards like car, house and more!

. National and International travel. professional training and education


Discover7WaysoFEarning!

Immediate Profit: Buy at wholesale price and sell it at MRP. The difference in
your Immediate Profit.

Performance Bonus: Every product you and your group purchase earns you
Points, on which you earn

from 2-14% commission.

Network Bonus: This unique bonus rewards you for remaining a loyal consum
creating more consumers

in the group.

Leadership Bonus: Depending on the number of leaders you have in your grou
can earn up to 7 levels deep.

Car Award: When you achieve a paid-as-title of Vice President or above for a mi
of 7 months out of a rolling

period of 12 months, HUN rewards you with a New Maruti Esteem!

House Pool: When you become a President, you are eligible for a House pool wh
company shares a

percentage of profit to buy a house of your choice.

Special Incentives: This is the final topping. From time to time there are incentiv
awards that are announced, to give you one more treasure chest to reach out.

The 7 Levels of Earning!

One Rule for Success


HUN's break-through compensation plan doesn't just show you what you can achiev
also shows you how to achieve it. It's really simple! All you have to do, is dedicate y
efforts to meet the requirements below. and success will be yours!
. Buy products worth Rs.1000 - Rs.1500 for self use and selling every month
. Sponsor 1 person every month
. Train the sponsors to repeat the above 2 steps every month

Success in the First Year!


14 millionaires in the first year

7 Consultant Presidents

80 Consultants have travelled to Europe


Hindustan Unilever Network offers a wide range of high-quality, high-performanc
products, available exclusively through trained HUN Consultants and not to be so
retail market. These products reflect HUL's understanding of evolving customer n
and Unilever's huge investments in technology worldwide. Each product available
Hindustan Unilever Network is a symbol of global trust and assurance.
Lever Home - Home Care & Laundry Care
Aviance - Skin Care, Cosmetics & Hair Care Range
Denim Exclusive - Premium Personal Care Range for Men.
Ayush Spa Range - Health Care & Personal Care
Indus Valley - Tasty Masalas

Unlike with other Networking Companies, HUN's range includes products that
have been customised to Indian needs - Products that everyone needs, uses
and most importantly, can afford! No other Direct Selling company offers
such a wide range of value-for-money products.

In barely two years since inception, HUN has grown to a strength of over 2.5
lakh Consultants across 1,500 cities in India. Over 220 Service Centres
across the nation ensure that HUN products and
services are always within your reach. What's more,
HUN's on-line transaction system can help you track
your network performance every minute, every hour.
Joining the Network does not change just your professional
life -
it enriches your personal life as well. Better social contacts,
better lifestyle, quality time to devote to friends and family,
etc. HUN hones your confidence levels and leadership skills
to help you evolve into a finer personality.

Change your life in 7


Stages!

• Learning about the


business
• Learning by doing
• Building your sales team
• Stabilising sales
• Replication: Teaching
others how to build their
business
• Accelerating: Building
new leaders, coach

• Being a CEO

Fill up the Application Form, and get your Joining Kit

Discover HUN's Joining Options

»Joining options

»Registration + NSI = 1550

»Ist Product Invoice > = Rs. 900

»Bonus Points and Commissionable Value on purchase of atleast Rs. 900


worth products will be topped up to 100 BP and 1720 CV. Note for the
aspiringConsultant :
Every new joinee will need to submit any one of the several address and
identity proof listed in the application form .
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