Wednesday, 28 October 2015

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Network Marketing


A business model in which a distributor network is needed to build the business. Usually such businesses are also multilevel marketing in nature in that payouts occur at more than one level. The simplest explanation of network marketing is that it is a method of marketing that utilizes independent representatives to reach potential customers that a company otherwise would not reach with traditional online or offline marketing methods.

Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses.

Network marketing is based on word of mouth advertising which is the most effective form of advertising. Think about it when you go out, watch a great movie, you will go out and tell people about it. Major advertising agencies and companies count on this. This is one of the things that we do as network marketers. The major difference is that we get paid for our word of mouth advertising.

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How Does Network Marketing Work?

Today there are millions of people around the world building this unseen industry called network marketing. You do not see them but they are everywhere, some probably right in your own neighborhood. It is a business in which common people can invest a small sum of money and rise to staggering levels of financial reward and personal freedom.

In Network Marketing, we have our initial start up costs anywhere from just a few dollars to several hundred dollars. Where most network marketers fail is they feel that they don’t need a marketing budget for advertising, they don’t seek out the education required to succeed.

In Network Marketing we help and assist others in building their business. We are also leveraging their time, with each of us is gathering customers along the way.

Hence the name Network. We get paid for this because we are assisting, coaching and helping them to establish their business. Helping them to reach their goals for their financial future. So Its only right that we also get paid for our time.

This is a real business this is your business, not a get rich quick overnight program, although it has been hyped by a great many naive marketers and web sites.

Network Marketing (MLM) Compensation Plans

Compensation plans in network marketing / MLM vary from one company to the next. They are at best difficult to understand for both you and the person introducing them to you. It is up to you to ask questions when evaluating any company’s pay plan. Some are front end loaded or they maybe back end loaded.

Most compensation plans fall into binary, breakaway, matrix, stair-step or uni-level plan but there are other plans out there as well.

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Network Marketing Misconceptions


  • Networkers are not sellers but relationship builders
  • We share products and opportunity to get rich
  • You are an employer and not employee (The boss of your own business)
  • Whatever you earn is a direct proportion of the team (network) you have built
  • Commissions are paid not from your downlines' earnings but ON their earnings
  • Network marketing business is not a "Get Rich Quick Scheme" but takes time to build
  • Network Marketing is not an investment program

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