Internet Marketing Glossary and Terms

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Glossary | Build Your Customer List | Internet Marketing Path | Network Marketing Systems | Selecting Your Main Opportunity | Money Making News Release

Glossary

Internet Marketing Services Glossary and Terms for beginners defines the basic terms that you will come across in the Internet Marketing field:

Network Marketing and MLM (Multi Level Marketing)

MLM is similar to network marketing in that anyone you sponsor/sign-up to an opportunity becomes your 1st level member. Anyone your 1st level member sponsors becomes your 2nd level member, anyone your 2nd level member sponsors becomes your 3rd level member. And so on...

The difference between the two is that with MLM you only earn from enrolling new distributors/affiliates, with Network Marketing you can earn an income just from selling the products and earn from a combination of your sales and your downline's.

Downline

This is the network family tree of your sponsored members and their sponsored members and their sponsored members etc etc.

Upline

This is the family tree going backwards showing the person who sponsored you, then the person who sponsored them and so on...

Commission Plan or Pay Plan

The important factor with network marketing is the structure of commissions earned at each level of your downline. eg 10% of 1st level sales, 40% 2nd level sales and 10% 3rd level sales.

This will then be followed by various bonuses based on total sales volumes etc, eg 2% of total business sales divided amongst qualifying members.

BV

Bonus Value. A reference figure relating to the amount of sales made.

Commissions are paid based on BV. Think of BV as business volume where 1 BV point usually equates to just over $1 of sales.

Sometimes called PV or LP.

Autoship

An insurance policy with added benefits. Commissions are usually only paid if you meet minimum BV requirements.

So, if you don't sell enough product (or any at all) autoship automatically orders the minimum requirement for yourself.

The reason for minimum order requirements is for both business and legal reasons - if you are not an active representative, you are not entitled to commissions (stops people just promoting the opportunity and never selling/using any product!)

These are some of the many terms you will come across when reviewing any business opportunity.

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Internetwork Marketing Path

An Internetwork Marketing path is in fact the method used by a business opportunity, or its structure.

Depending on your current circumstances, skills, time constraints etc. you will choose the path most suited to your situation.

Here are summaries of the main methods/paths you will encounter:

1) Network Marketing or Direct Selling

This is the deep end of the business opportunity pool.

You must often invest a lot more time and money into these opportunities, receive training and work as a team.

Can be a lot harder to get sign-ups and even harder to teach your sign-ups to get sign-ups.

You will find commission plans paying most on 2nd and 3rd level sales for obvious reasons, it promotes growth.

Potential earnings are also far greater than any other method and is also the only method that has true 'residual income'.

However - it is not always as hard as it first seems with the right support systems and training in place (more on this later!)

2) MLM Cyclers

Usually your first steps into MLM. These are the ones to be very careful with.

Consider these as Network Marketing for beginners. You pay one initial sign-up fee which should actually buy you something (if it doesn't it may well be a scam).

When you have signed-up a fixed number of new people you get a payout, some more product and re-entry into the system (hence a cycle).

These are the cheapest way to get involved in an MLM Business Opportunity. The only flaw with these systems is that because nobody is buying a regular BV, commissions are only generated from new sign-ups.

And you will need more sign-ups every time you cycle. And don't expect most cycler programs to still be around in 5 years time! These are not recommended.

3) Associate & Affiliate Programs

The most basic of business opportunity methods. A simple system of selling other companies products by directing them to your associate website.

Straight commission per sale, sometimes 2 tier (2 level - earn from signing up other associates).

If you have a popular website this is the easiest way to generate short term income by selecting a related product of interest to your current website traffic. i.e. don't promote beachwear on an Eskimo website

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Network Marketing Systems

A network Marketing system provides all the information on the opportunity, answers your prospects questions, helps sign them up and duplicates to give them the same tools.

Better network marketing systems will also have member areas with training guides and numerous tips.

Some may also contain chat rooms, forums and downline viewers, totally free of charge!

A lot of existing network marketing systems get prospects to join to gain access to the Member Area before actually joining the core opportunity.

You will find that the best opportunities combine numbers 1 and 3 above using a front end system that handles everything for you, from sales to recruiting.

So whatever path you decide is right for you, the secret of the whole system is to join a network marketing system based on that path to handle your prospects, optimize commissions and introduce the opportunity.

Or, more importantly, a system that provides you and your future sign-ups a simple marketing plan, trains you on how to use it and therefore trains your sign-ups to do the same.

The secret to success in network marketing is a simple duplicable system that anyone can follow, not just experienced networkers.

Both online, offline and a combination of the two, for both part-time and full-time participants. PLUS a product you truly believe in.

No sensible networker will ever advise you to rely 100% on the systems, and with very good reason.

The systems assist you in every aspect of your business, but the power of network marketing only begins to multiply when you keep your downline growing too.

This can only be done by building relationships with your team, no computer can do that!

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Selecting Your Main Opportunity

Picking your main opportunity can be a very personal thing.

You may have had previous experience in a particular industry for example, but eventually it will come down to one key decision - what you are selling/promoting.

The tip here is to realize that every opportunity has three facets.

1) Retailing. This is just focusing on selling a product to a customer to earn a commission.

2) Customer Lead Marketing Plan. Although it is business builders that will make you the most money, every opportunity will have a marketing plan to follow up with your customers to convert them into business builders.

This is a very powerful marketing plan since customers make the best distributors of products, having a personal story to tell.

3) Business Lead Marketing Plan. This is the same for every opportunity although not many people realize it!

By learning basic network marketing techniques and perfecting them, they are then easy to share with your downline.

This is the key to a successful network marketing business. You are in the people business, your main opportunity is just the vehicle.

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Build Your Customer List

To increase your business, you have to get customers! When you've get your website up and running it's time to invest some thought into building your customer list.

You may already have a few customers or readers, but now you want to increase that number.

One way to get people to know about your website is to buy a registered prospect list.

The people that are registered on these lists have agreed to receive information about products or services they are interested in so this is no way spam.

Usually, they sign up for lists that are about their interests. These lists can be bought from online merchandisers who specialize in this area.

It's important to check their credentials - you want to make sure you're not spamming people and getting a bad online name.

Generally, you can expect 1 to 4 people to bite the bait out of every 100 emails you send.

This is a good start. Note that the people on this list are interested in the particular topic you're an expert on - so they're more likely to become consistent visitors to your site - a big plus!

Another great way to advertise your site and get more people to visit it is to advertise - in the right places of course.

You want to find a niche newsletter that pertains to your own expertise.

Ask the owners to place your add in their newsletter. Again, the readers of this newsletter are interested in the topic you're writing about, so they're more likely to click your add.

Moreover, they may be more ready to buy after receiving a great newsletter.

You can also ask to write a short blurb about the newsletter's topic - this will give you the expertise advantage.

When using this method, make sure you advertise in well-known newsletters that have already established themselves.

This may be more expensive than advertising in less popular newsletters, but it's definitely worth it in terms of number of people who'll click your add.

Make sure the newsletter is up to your standard before paying - subscribe to it first to see if you like the content.

Make yourself an expert! People love to hear more from others who are experienced and knowledgeable in their field.

Post on forums and include your website in the signature. Post free articles on sites like these!

Do everything you can to establish an online identity that people can remember and recognized.

The least expensive way to attract more customers and prospects is by word of mouth.

It's harder to control this way of information exchange, but you can work on improving the number of people who'll visit your site and become lasting visitors.

Make your site very user-friendly - that's an important but often overlooked key ingredient! Also, make the user want to stay - offer informative articles, great design and perhaps a community (think forum).

Of course, while you're doing all this, don't forget to build your list!

Ask visitors on your site to subscribe to a free newsletter. This will work very well if you've got really great content - people will want to get more.

Moreover, you can offer exclusive information in the newsletter that's not offered on the site.

Other great ideas to offer are special promotions and deals.

Make sure that you've got the right software to deal with a member's list and you're ready to go!

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Money Making News Release

No Better Time Than Now To Start Your Own Business Money Making News Release

David D’Arcangelo is an acclaimed author, speaker, and host of the weekly television show, Money Talk.

He speaks to tens of thousands of seminar attendees around the country. Mr. D’Arcangelo is a recognized authority on the small business movement, response marketing, and tax strategies for the independent business owner.

San Diego, CA- Probably the greatest business opportunity in the last
200 years exists right in our own back yards.

Home Base Businesses: they’re creating a quiet revolution all over the world.

Last year alone, almost three million people in the U.S. started home-based businesses. And those numbers are growing.

Government and university-based research show a 20% annual growth rate. By the year 2000, it’s estimated that 50 million Americans — one out of every five of us — will
have home-based businesses.
It’s a quiet revolution that doesn’t scream at consumers from billboards, magazine ads, or TV commercials.
It’s a return to individual effort generated by monumental changes in the way we work and the rewards we get for our work.

Why the revolution? Massive corporate downsizing and restructuring. An average decline of 12% in wages since 1979 compared with an average 24% increase in corporate profits.

Early retirement, job burnout, a desire to be the boss, a need for new challenges, no opportunities for advancement, a need for financial security, disabilities that preclude traditional jobs, child- or adultcare issues, an expanding work force and a contracting job market, multiplied responsibilities for fewer workers, longer work days, and insufficient retirement income.

The bond of trust connecting employer/employee has been broken, and it’s changing the whole work climate.

Add to that the shift in the economy from an industry to an information/service base; the waves of women entering the work force, the trend toward cocooning — staying at home for safety and convenience; health and environmental concerns; technology that makes a home office realistic;

the increasing number of dual earner and single-parent families with little time and specific needs;

and an entrepreneurial surge in Europe and Asia which looks to America for direction.

Forecasters predict startling changes by the year 2000.

In addition to the 50 million Americans working in home-based businesses, it’s anticipated that 10% of the entire Canadian population will be working from their homes.

The view that fairness has disappeared from the workplace is one reason that few college graduates are joining large companies after graduation.

Instead they’re establishing their own businesses because corporate America no longer seems attractive.

What does all this mean to you? It means that entrepreneurship is emerging as a legitimate career choice, that there’s no better time than now to start your own home-based business.

This Renaissance of American commerce is sharply focused on the advantages of working for yourself, whether you originate a business, buy a franchise, or build a network within a direct marketing company.

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