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Network Marketing: What is It?



Network Marketing: What Is It? I have been involved with mlm for over six years. This is what some of my friends (so called experts said to me about it.) You are involved in one of those pyramide schemes where the person at the top makes you sell stuff so they can make all the money. You go around and recruit your friends so you can make money. The only way you can make money is if you are at the top. The people at the bottom don't make any money.

Is this correct? If so than maybe Network Marketing is not for you.

The Police Officer in me says. I need to investigate and find out for myself. I noticed that my so called friends were doom & gloom with no plan B in case things did'nt go well for them. You really need to spend a lot of time investigating to see what type of business model mlm is. You need to completely understand MLM MLM before you spend alot of time, energy and money.

What are the benifits?



Low start up cost and income potential

The main reason to get started for most people is income potential. Is there a current market shift going on in the industry. Can I get behind the product or services.

Unlike other businesses that require a large up front investment and time to make money, you can get started with most MLM companies for under $500.00, be trained and start making a good partime and even full time income in a short period of time.

The compensation program is the key because most companies offers several ways to make money. One way is through your personal direct sales. Another is through receiving overides off your team members when they make a sale, and residual income from continuing sales from your customers made by you are your team members.

Small business back by a big business

Another big benifit is the ability to own your own business with out the worries of running a business. For an example: No payroll, product development, operations, human resources, finance etc.

In network marketing you are responsible for one area, sales and marketing. The company takes care of the rest.

Another reason is you develop positive social relationships. Some of my best friends today have come from meeting in the mlm business. The people you meet in the business are more positive in nature and you share the same common goals in helping people succeed.

How is network marketing compared to a franchise and retailing?



Franchising like MacDonald's restraunt is a business model that requires a large up front investment.

Retailing like Walmart is another business model that requires a substancial investment.

Network Marketing is another business model that many successful companies use such as YTB, Primerica, Avon, Pre-paid Legal Service,and Herbalalife.

The strategy for this business model is that the company turns over it's marketing to a group of independant distributors. The company may supply marketing tools, resources and guidelines. The distributors are paid whem they are their team members make sales by marketing the product or services.



Is this a PYRAMID SCHEME?



Pyramid Schemes are illegal with hefty fines and possible jail time. Network Marketing is a business model.

An example of a illegal pyramid would be if a company only paid you for recruiting people and not for the sale of services and products. You only get paid for recruitng people. Primerica is a good example because they make no money from recruits and only get paid from sales from insurance products. An illegal company offers no product or services for sale, just money from recruits. If you collect overide from the people you recruit when they make a sale is similar to a real estate broke or sales manager that collect overides off the sales from their team. This is how you can duplicate your efforts and develope a nice income. There is nothing illegal or immoral about this concept.

This is a business model that offers a win-win-win for everyone involved. The company only pays for results. Have you ever been paid what you or worth? That could be scary answer. Because here you are paid what you are worth. Work hard get paid alot. Don't work get paid nothing. No one is in your way to stop promotions or income.

Traditional companies pay alot in adverstising but MLM companies use your word of mouth and can show profits. The company should provide services and products that the consumer needs. wants and you can be passonate about.

The distributor can do this partime and full time and make money by leveraging the efforts of others.

This is what makes it a win-win-win situation for everyone.

Take a look at my key to Network Marketing Success in todays information age of internet marketing.

I get alot of questions on does it matter where you live you live to have suceess.

What happens if I don't recruit enough people.

What if I don't want to call my friends and family and show them the plan? Is there another way? Yes! Check out the new model network marketing. David Bach, The author of the Automatic Millionare and Start Late and Finish Rich gives his Review on Network Marketing.

Network Marketing Recruiting?

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MLM Old Model

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