What Is Network Marketing


You'll hear many versions of what is network marketing.  Let's keep it simple.  It is no different than a company that has a sales force - which you are an independant sales representative of.

The network marketing company limits their fixed cost by paying on performance.  Their "employee" overhead (social security, health insurance, vacations, unemployment taxes, etc) by you being an independent sales representative is eliminated.  Making their "marketing" a variable cost that is only incurred when a sale is made.  Sinilar to affiliate marketing except you receive additional compensation from your team efforts.

What I like about network marketing is most of the start up issues are taken care of for you.  If you have the "right" company they provide you with a system for marketing.  They cover most of the overhead - inventory, shipping, billing, etc.

So even though others will say pyramid scheme it isn't.  The exact same marketing model is used in the insurance industry and numerous other industries.

This is a cute video that I like to use to help explain MLM or network marketing. It has a good lesson in listening to what is being said and being open minded to new ideas.


It's A Pyramid Scheme

Advantages of Network Marketing

Some of the advantages of network marketing that I enjoy are:
  • I can work from anywhere I have an internet connection.
  • I can start while still working full-time
  • I am building MY business
  • Builds a residual income
These are just a few.  I get asked what I mean by builds a residual income.  This is where you put a lot of effort up front in finding others that benefit from the product(s) your promoting.  After they see benefits they start telling others.  The combination of sharing the product(s) yourself along with those that you sponsor starts to build a commission check.

Continue to purchase and promote the product(s).   This generates a growing commission check for you and your team.   As long as you continue to promote and support those you sponsor your check should grow.   Building you a valuable business that will provide income for years.
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