Chapter 3

Excerpts from "Vested Interest"


 
How Does Network Marketing Really Work?

Understanding Vested Interest In my experience in business, one of the keys to success has always been having an understanding of how the business works in concept, so I can see it in my mind. What I want you to understand is, how it works and what it means and looks like to you, so you can focus your attention on the right things, in the right place. If you don’t know how something works in concept, it’s very difficult to make it work in practice.
So, how does network marketing work?
For a long time I thought I knew. But after taking a really long, hard look, I realized for the first 15 years of my experience in this industry, I obviously didn’t know how it worked. I had a general idea, but not a really firm grasp of the specifics.
Then one day it all came crystal clear. It was in the Spring of 1999 and I was at a distributor conference in San Francisco. I was invited to be the guest speaker because of my reputation and status as one of the top income-earners in the company.
During a lull in the weekend’s activities a man approached me and asked, “How does network marketing really work?”
I paused briefly then said, “Well, it’s based on the idea of creating Vested Interest, which means, you have created an organization that is productive and the money you will earn (the reward for your effort, so to speak) from your

organization is greater than the effort to produce the amount of money required (qualifying volume) to get paid on that production.
The “producing to qualify to get paid” is dependent upon two things. One is your potential customer base; the number of people that you are willing to approach about your product and opportunity. If that is a never-ending supply, and you are out communicating, then producing to qualify is usually not a problem.
Two is the activity that you establish below you. This is the most critical, as it is this activity, distributors producing volume (sales) under you, in your Downline organization, which is the attractive part of networking.
So if one creates productive activity underneath that becomes substantially greater than any requirements to qualify to get paid, then one has created Vested Interest and this alone can cause anyone to go out and produce to qualify.

Testimonials
The most important area for me was coming to a clearer understanding of production, and knowing where you need to work. The great mystery of width vs. depth has been answered once and for all. To see Network Marketing in the clearer context of traditional business as you have spelled it out is simply brilliant.
Dennis Estes

 
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