So just what is Network Marketing you may be asking, and is it for me?
With the tough economic climate that we are all experiencing right now, you may well be looking at ways to earn an extra income from home or online and may have come across Network Marketing, MLM (multi level marketing) or the direct sales industry. But what is the truth and just what is Network Marketing?
Essentially the Network Marketing and MLM industry is a business distribution model where independent distributors are paid not only on the sale of a product or service that they retail, but also paid a percentage of the sales from anyone in their downline (i.e people who join the business directly underneath them). There will almost always be bonuses and different levels to work towards for additional incentives and financial gain and the income generated from this sort of business model can lead to a residual income (kind of like a royalty style income normally associated with authors or song writers) i.e you put in the effort now to coach and train someone and you can be rewarded for the rest of your life.
Often mistaken for illegal Pyramid schemes which evolved around the 1950s, Network Marketing is actually a very ethical and sustainable method of marketing when done correctly, let me explain why.
What is Network marketing?
Robert Kiyosaki describes Network Marketing as “The Business of the 21st Century!”
When done correctly, Network Marketing is one of the most powerful and successful distribution models in the world today. Why? Because it is built upon personal recommendation and generating strong social and business relationships through support and training.
How does this compare to having a Job?
Let’s say you are working in the corporate sector and you are enthusiastic and work hard to gain your promotions. Eventually you will get stuck reporting to someone who is happy in their role and is happy to manage you as an enthusiastic and hard worker, but where do you go from there? You are stuck with a capped income and in a role with no further chance of promotion.
You may also suffer from being stifled from further training and development incase your boss feels his position is under threat. So what do you do? Leave and find another job? Set up your own rival business? Either way, the situation is not ideal for the company you have left behind. The better they train you, the more likely they are training their future business competition.
What is Network Marketing business model going to help with?
In the Network Marketing model if you “sponsor” someone in to your business , they still have their own business and the better you coach and train them to success, the more they will earn which means the more you will be rewarded too! Now doesn’t that sound better?
The income that you can earn from Network Marketing can turn into a residual income as your sponsored representatives then sponsor their own reps and so on. The income is also uncapped and has therefore generated more millionaires through this model of business than in any other business sector.
In tomorrow’s post I will be covering how Network Marketing compares to Direct Sales opportunities but for my full (completely free no optin required report) on “What is network Marketing?” and other options for earning an income on the internet, read the full report here:
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