If you think of network marketing or multi-level marketing, the two things that will come into your mind is perhaps, it is a pyramid scam or a salesman selling nutritional products.
Well partly you are right! But before I give you reasons why you are right. Let us first define what is network marketing.
According to Wikipedia – network marketing or multi-level marketing is a marketing strategy in which the sales force is compensated not only on sales you generate, but also for the sales of other salespeople people you recruited also called as down lines. Pretty cool! Override commissions, right?
Anyway, let’s go with the reason why you are right. Here are the two reasons:
The first reason is, the sales organization chart in network marketing is really a pyramid in shape, if you will draw it on paper. Honestly all sales organization even corporate organization are actually pyramid in shape. So bottomline the main issue if you really now the difference between a pyramid scheme and a legitimate network marketing opportunity is not really the shape of the sales organizational chart, but the business ethics of a company.
The second reason is that network marketing is certainly Sales. All businesses need to generate sales otherwise there will be no business. Did you get I mean? The main life stream of every businesses is in sale. But the good thing about network marketing is that you are not all alone when you are selling like the real brokers and agents. You generate income or an override commissions from the sales of your organization down the line sometimes up to infinity. Just what Wikipedia defined it.
What is Network Marketing? Think of its Benefits!
Working for the company will give you a decent income but not freedom. But if working for a company is a freedom for you then there’s no need for you to continue reading this article. But if you are certainly looking for time and financial freedom maybe network marketing is a good option for you.
There are huge benefits associated joining and most important is building a network marketing business.
- You choose the people you want to work with
- You can choose whatever time you want to work
- You can choose to work from home part time or even in your spare time.
- You have the chance to make yourself financially free because of the residual income you will generate by building a network marketing business.
What is Network Marketing and How to Join?
If you are thinking of joining a network marketing company first you should investigate the company’s background you are going to join and of course the cost of entry, the value of its products, and marketing and training support that your up-lines and company’s can give you because when you join, you are signing up to represent a company’s products, services and its business opportunity.
Because network marketing is business therefore it involves capital or investment, it is not a free sign-up. The investment could amount from $50 – $1000, or sometimes more than this amount. It depends on the company you are joining with and of course the position on the sales organization you want to rank.
Always remember that you are not hired by a company as an employee, so don’t expect a monthly salary. When you sign-up you are a company’s independent contractor, volunteering to represent a company, an independent dealer, or consultant. Your income is based on your effort and most of all the effort of your team or down lines.
The simplest explanation to make money is network marketing is that you train yourself to sell your stuff and you teach your team to sell their stuff and that’s how you can make commissions or income.
What is Network Marketing? A Micro Franchise!
Think of buying a McDonald franchise for an affordable amount.
McDonald’s is one of the largest fast food franchise around the world. They have more than 33,000 outlets, serving million of people daily in 118 countries.
A large portion of McDonalds restaurant are owned by franchisee (independent distributor in network marketing terms)
Now think of yourself as Ray Kroc owner of McDonalds, you are not only earning by selling burgers, fries, and drinks from the McDonalds outlet you personally owned. You also earn from the sales generated from the outlets operated by the franchisee. This means that you are earning through the effort of the people. Leverage income, passive income, or residual income right? This is what majority of people love! This concept also applies with network marketing, you earn from other people’s effort.
Just what Jean Paul Getty says, an Anglo-American industrialist and founder of Getty Oil Company.
“I’d rather have 1% of the effort of 100 men than 100% of my own effort”
If you still don’t get it, here’s another way to look at it.
Imagine, you are earning at least $300 commission by selling a particular product every day. Now you built a team of 100 people and this 100 people are also doing what you are doing, and each person is making at least $300 per day. For each sale they make you also earn a $10 as a royalty commission.
Now lets’do the Math:
YOU : $300 x 20 days of work = you get $6000
TEAM: $10 x 100 people x 20 days fo work = you get additional $20,000
The additional income from the effort of your sales team much higher than your own effort. See what I mean? That is the power of leveraging income. I believe this is the best way to explain “What Is Network Marketing”.
What is Network Marketing? The Harsh Reality!
Here’s the harsh reality of joining and building a network marketing business…
First of all network marketing is not an overnight get-rich-quick program like other network marketers are telling you. 3 months are not enough to become rich in this industry unless you master the skills need in this industry. Consider network marketing as a real and multi-million dollar business. It really takes time to build.
So no matter how good the product, compensation plan, or even the company is, the only way to create a massive residual income in this industry is to master the skills of prospecting, leadership, sales,and marketing.
And the only way to acquire the skills needed is to find a right team you can be with and of course education yourself through training systems such as Magnetic Sponsoring, Renegade Network Marketing or MyLeadSystemPro.
If you are looking for a team to work with, you can fill-up the form below. Once I received your inquiry, I will contact you immediately.
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