Network Marketing, also known as Multi-level marketing (MLM) or Direct Selling, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling. Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, brand partner etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).

1. Be a Winner in Network Marketing
By Nithin Peroor
“Keep your eyes on BIG pictures” ®
© Copyright 2012, All Rights Reserved
ISBN: 978-1-105-83406-6

2. Dedication
I dedicate this book to those people who struggling way too hard to make it in
network marketing. To Support and guide them to Think Right, Decide Right,
Grow Right and thus reach unlimited height in success.
Acknowledgement
Many People have helped me in completing this Book.
I want to thank my parents Shri K. Neelakanda Pillai and Mrs. Geetha.N Pillai for
their help and encouragement.
I want to thank all well wishers for their extensive help.
I also wish to thank all friends in Network marketing industry for their curiosity
and questions that helped improve this Book.

3. Be a winner In Network Marketing
Table Of Contents
What Network Marketing is or isn’t? .............................................................................. 5
History of Network Marketing ..........................................................................................10
Frequently Asked Questions about Network Marketing................................................ 13
How Network Marketing Works? .................................................................................... 21
Present Trends in Network Marketing ............................................................................ 30
Differences Between Network Marketing& Conventional Marketing............................ 36
How True Network Marketing Millionaires are Created..................................................40
How to become a good Leader............................................................................................. 45
Develop Interpersonal Relationship................................................................................... 50
Be an effective communicator.............................................................................................. 58
Team Building........................................................................................................................ 64
Be a Motivator........................................................................................................................ 70
Manage the Conflicts ……………………………………………....................................... 73
Manage Stresses...................................................................................................................... 79
24 Tips for MLM Business Plan Success.............................................................................. 87
Top 6 Lies about Network Marketing................................................................................... 90
Top 10 Things you must understand when you start Network Marketing Business….... 93
Why people fail in Network Marketing................................................................................. 95
A Lifetime Career with Network Marketing....................................................................... 104
© Copyright 2012

4. Introduction
Personal Welcome
Dear Friend,
Thank you for your wise purchase of this Book. This Book has been in the works
for a long time and I believe that for many people it will be a defining moment in
their business career.
In fact, I’m going to go as far as to say I believe that many people will begin
experiencing life-changing results in their business as soon as tomorrow as a result
of reading these informations.
I wrote this book because there are no more good books about Direct Selling or
Network Marketing. This book contains my studies about this Magical business.
Through this book I have one and only one goal: How to help you use more of
your knowledge for your success.
I recommend you purchase this e-book now and begin reading it immediately, if
that’s at all possible. You might end up rearranging the rest of today (or tonight’s
plans) once you get into it, because you will make some changes to your business
and what you do each day once you finish reading this.
I want to know how you are greatly benefiting from this book. Please be sure to visit
my blog and let me know what you think. And if it’s as good as I say it is, feel free
to send this report to anyone you know or show them where they can pick up a
copy of their own.
Enjoy!
Feel free to send your feedback to My e-mail address:
Nithinperoor@yahoo.in
Nithin Peroor

5. Be a winner In Network Marketing
5
Present Trends in Network Marketing:
There are always fads and fashions in any industry or profession where there’s intense
competition. Network Marketing is no exception – it’s just that that competition in MLM is less
about products and customers and more about attracting and keeping distributors.
Fads come and go constantly. Trends, on the other hand, develop over a period of time and are
linked to underlying causes that reflect the changing needs of human society as a whole.
There have been three major trends developing over recent years in MLM, each of which has had
a profound impact on the way we do business – and the results we get. Sometimes, those results
can turn out to be less than desirable.
Trend 1 – Technology:
Technological progress in two specific areas has transformed MLM over the past decade, and
will continue to do so in the foreseeable future.
 Computer technology
 Telecommunications technology
The impacts of computers – hardware, software and networking – have revolutionized the nature
and operation of network marketing. Automated record keeping, reward calculation and
processing (including electronic funds transfer), desktop publishing, database creation and
maintenance, mailing and more have made the four essential components of successful
networking more accessible, affordable and more effective. Those four components are…
 Communicating with your distributors
 Training your distributors
 Recognizing your distributors
 Supporting and encouraging your distributors.
Traditionally, there have been three serious obstacles to these…
 Time
 Distance
 Cost
© Copyright 2012

6. Computer and telecommunications technology have all but eliminated these three obstacles.
Nowhere has this been more evident than the Internet.
All the developments in telecommunications – voice mail, fax, fax on demand, conference calls,
e-mail, auto responders, etc – have changed the nature and speed of evolution of network
marketing, and the rate of change is accelerating.
Technology is neither good nor bad. It depends on what we do with it, and why and how we do
it. Just as there have been major benefits for us all from these technological changes, there are
major risks as well.
The main one, from the standpoint of network marketing, is that we risk losing the personal
touch so vital to creating and maintaining personal relationships. Automation is fine for
improving efficiency. But efficiency is not the same thing as effectiveness. We need to be aware
of this risk, and avoid the tendency that often develops in connection with technology…
impersonal “processing” rather than personal interaction. Like most tools, technology is a
brilliant servant, but a disastrous master.
Trend 2 – Appeasement:
This trend has been at the heart of most developments in reward plans over nearly two decades.
What it boils down to is this… companies (that is, the people who own and run MLM
companies) have figured that if they make rewards easier to obtain, they’ll attract more
distributors. There’s certain logic to this argument, but it overlooks some important realities of
human behavior
.
If you make it easier for people to do nothing, that’s precisely what they’ll tend to do.
If your main appeal is to greed, laziness, fear of loss or gullibility, that’s the kind of people
you’ll tend to attract. The results of this trend are easy to recognize.
Larger networks producing lower leverage results, Most people dislike the idea of “selling”. So
part of the trend has been to appease this dislike by telling people they don’t have to sell – just
buy. The result is huge networks of consumers – single customers who buy only for themselves
at wholesale prices.
This has led to confusion in the marketplace. Some companies claim they have bigger, faster-
growing networks than their competitors, yet those competitors who encourage retailing may
have a true customer base many times that of the consumption-based, wholesale buyer networks.
They just don’t have all their customers registered as distributors.
The illusion of progress through controlled group structure, Most network marketers find it
harder to get new distributors than new customers. So, having “solved” that problem by simply
recruiting customers, some companies add to the “smoke and mirrors” strategy by artificially
creating an illusion of achievement and progress through the use of contrived network structures.

7. Be a winner In Network Marketing
The auto matrix (or forced matrix) is such a device. By structuring the reward plan so that only a
limited number of people can fit onto each level, you create the illusion that rapid network
growth – and, therefore, income growth – is being achieved through features such as “spillover”.
This is what occurs when, say, the matrix limits you to only 3 people on your first level, 9 on
your second level, 27 on your third, 81 on your fourth and so on. If you sponsor six people, only
three will fit onto your first level – the others will “spill over” to places further down line.
This gives rise to claims that the system builds your downline for you. In a sense, it does. But
what many people fail to recognize is that the reward plan cuts out after so many levels. The
width and depth of your network are fixed – so your potential income is also fixed.
This has led to enhancements such as “infinity bonuses”, which are, in reality, nothing remotely
like infinite, and “re-entry certificates”, which allow you to sponsor yourself downline when
your matrix is full – a nice idea, provided that the products aren’t overpriced, so that you
compound your losses each time you re-enter your downline. This is precisely what happened
with many of the gold bullion, coin and jeweler companies that sprang up in the mid-1990s.
Trend 3 – Workplace Restructuring:
Fundamental changes in business, brought about largely by technological advances and, to a
lesser extent, by greed (on the part of stockholders and senior corporate managements), are
imposing serious changes on how we live. No longer is there any illusion of job security,
seniority or loyalty in the work place. Disillusionment is the true hallmark of all these changes.
Consequently, there is a growing groundswell of people — well-educated, skilled and
experienced — discarded by traditional, First and Second Generation business systems, who are
increasingly willing to consider network marketing as a viable option for them. Many, if not
most, of these professionals would rarely have contemplated involvement in MLM until now.
Once they adapt their existing expertise to the unique nature of the only Fourth Generation
business system yet to evolve — MLM — they generally build their business faster than ever.
They thrive in the dynamic, co-operative, synergistic, interdependent, relationship-based
environment of this most enlightened, egalitarian form of free enterprise. These are the people
now shaping the future of network marketing for the twenty-first century. Their most serious
threat lies in not understanding the essential differences between First, Second, Third and Fourth
Generation systems.
These are the major trends in recent times. Other so-called trends are usually nothing more than
manifestations of these two, or combinations of the two. Be sure to explore what we foresee for
the future of network marketing, especially as these trends continue to develop.
The Future of MLM:
Based on the three major trends currently influencing the shape and direction of network
marketing worldwide, we expect to see the following developments in the coming decade.
© Copyright 2012

8. This assumes there will be no other factors, such as global war or environmental catastrophe – an
assumption that can never be safely relied upon where human beings are involved.
Over the following decades, MLM has evolved and developed further into the wide array of
companies, product ranges, reward plans and cultures that exist today. This unique, powerful
system of free enterprise continues to grow, attracting more and more people to it.
As we prepare to enter the twenty-first century, MLM has never been so well-respected, so
healthy, so attractive or so rewarding. Most network marketers have very limited understanding
of its true power.
Two streams of MLM:
We foresee network marketing dividing into two distinct streams. This will be temporary.
Ultimately, only one stream will survive as network marketing. The other will be absorbed into
another trend currently taking shape in the world of conventional retailing.
This scenario will arise from a combination of all three of the present trends, and will be the
direct result of two different applications of technology…
 Technology used to acquire and service customers
 Technology used to recruit, train, communicate with, recognize and support productive,
pro-active retail sales networks.
“Here’s why and how it will happen”, This divergence is already beginning to occur. As Internet
access and e-commerce pick up speed (and they’re already outstripping all predictions), two
important things will happen:
Consumers will use the Internet for more and more of their shopping needs, for more of their
recreational and social activities, and for more of their work related activity (telecommuting).
The existing home theatre, home gym, home office, home entertainment centre, etc will be
augmented by home medical centers (connected directly to doctors and other health specialists),
home learning centers (instead of schools) and other in-home services so that consumers will
have fewer reasons to leave the comfort and amenities of their homes.
Supermarkets and other conventional stores will increasingly convert to automated warehouses
that pick, pack and deliver, without the expensive real estate (including car parks) required now
— or the staff. Shopping as we now know it will change dramatically. Fewer businesses will be
able to afford the luxury of expensive premises, car parks, etc, and competition from home-based
or mobile in-home services (run by displaced former-employees) will add to their costs.
Consumers will become increasingly isolated. Many will crave human contact. With the ageing
of the world population, this need will grow.
Those MLM companies moving in the direction of servicing customers on line will pursue this
direction more vigorously than ever. To fund their growth, many (if not all) will be forced to
seek listing on stock exchanges and go public. For their distributor networks, this may well be

9. Be a winner In Network Marketing
the beginning of the end. Before too much longer, most of these companies will cease to be
MLM companies.
Those companies who maintain retail focus in their distributor networks, and who opt for using
the Internet primarily to train and support their distributor networks, will go from strength to
strength. Many of the newer generation of network marketers — most of whom are displaced
former middle and senior managers and professionals — will take network marketing back to its
origins as a high-leverage retail sales and distribution system. There will be a return to the basics
as MLM rediscovers its roots in new, more powerful ways.
They’ll be the people forging long-term, loyal customer relationships with people starved of
face-to-face human contact. And, since income in MLM is unconnected to time, servicing those
customers will be seen as an essential — and enjoyable — part of running a successful network
marketing business once more. Those customers will become the primary pool of golden
prospects for new distributors, too.
“A very different target market”, Added to all this is the fact that the Baby Boomers will be the
prime market. The Baby Boomers are the best educated, most accomplished, most outspoken,
most politically active and most self-centered, consumption-oriented, demanding generation in
recorded history — and the first ever to limit the size, scope and opportunities of the next
generation.
Because of this, their loneliness in retirement will be pronounced. They will expect — demand
— regular service and human contact.
Ultimately, this stream will be the only one to survive as network marketing. The other will be
taken over by large, publicly-owned conglomerates focused on economies of scale and Return
On Investment to stockholders. While income streams will still exist, they’ll be more like current
on-line affiliate programs than traditional MLM, with limited scope and very limited returns.
How do we earn in MLM?
Each distributor has two basic jobs: (1) to recruit more distributors and (2) to sell the company's
products as an independent distributor. Every new distributor into the organization recruits his or
her own distributors. As a result the recruiter eventually develops a hierarchical substructure
known as a down line.
Each distributor gets commissions for his or her own direct recruits. Distributors also make a
commission on the indirect recruits done by their down line. They also get performance benefits
for reaching certain levels.
Since each distributor profits not only from direct recruits but also indirect recruits by down line,
it is to the advantage of the distributor to guide and help those below to succeed.
© Copyright 2012

10. A Complete Success guide for Network Marketers…!
Be a Winner in Network Marketing
This is the definitive book for helping you get
started in a network marketing business!
This new book will help you show distributors and prospects how network marketing:
 Offers a worldwide network and global reach
 Produces a duplicable, fully scalable business
 Develops strong, effective leaders
 Creates genuine wealth
Contact Elegant Global System at elegantglobalsystem@yahoo.in to
purchase your full copy of this e-book Be a Winner in Network Marketing.

11. Be a winner In Network Marketing
© Copyright 2012