Tuesday, September 24, 2013

What Is Network Marketing?

By Joe Burke


When an individual asks me, "What is network marketing?" I constantly say "it depends". Simply because to some people it is going to be a "scam" and to other people it signifies a couple of hundred dollars per month in their bank account. And to a number of, "what is network marketing" indicates a fortune.

Network marketing or multilevel marketing is basically an approach to direct sales. Whenever I encounter people who say "oh that is a scam" I often really feel rather sorry for them. They've obviously tried network marketing or know somebody who has and they've failed to do the work it requires to succeed.

What exactly is Network Marketing? - Understanding The Basics

Every single business is in business to produce a profit and thing needs to be sold. It does not matter if you are speaking about Barbie Dolls, vitamins or cell phone service. No one makes money unless a product or service is sold. Inside a normal retail atmosphere, the product is commonly produced, shipped to a warehouse, then shipped again to a retail outlet where it is sold to a consumer.

Network marketing eliminates the store and it is replaced by a distributor's home where she keeps the products until they are sold to her buyers. Network marketing gives a big advantage to firms simply because they don't have the expense of renting or purchasing retail outlets and staffing them and so forth.

The words "pyramid scheme" are often utilized when people speak poorly about network marketing. But think about it. The leader in the pyramid represents essentially the most successful people inside the business. The base of the pyramid represents all the thousands of distributors. This really is no different than any other business model. Organization structure is precisely the same. The CEO is in the leader and also the people who operate in the small white cubicles or on the shop floor are at the bottom of the pile.

In typical business most people spend their working lives working for promotions and receive raises which might come annually if you're lucky. If they keep up with inflation you are even luckier. It does not matter how hard you work for many companies, promotions will only come along infrequently, if at all.

With network marketing life can be a lot clearer. If you start out working hard and create a team it is possible to quickly move up in that "pyramid" without having to kill yourself.

You'll be able to keep in the bottom if you are happy there by just promoting enough product to give you several additional dollars a month. But the sky's the limit. If you want to move up and join the big boys, it is possible, and as rapidly as you like.

It does take a great deal of work, but you're carrying it out for the benefit of your business and your loved ones and not for somebody else!

What is Network Marketing? - Leveraged, Residual Earnings

In case you are trading time for money, there is only so much time to work so your earnings are naturally capped. Inside the network marketing model it is possible to build a team of distributors who also work hard and you'll be able to earn good commissions based on the time and effort they put in. This removes the revenue cap and, in time, you are able to begin earning of 500, 1000, even tens of thousands of dollars working only 2-10 hours per week.

So now you'll be able to see how the sky's the limit within the network marketing business if you work hard. So what is network marketing - it is an approach to escape the corporate rat race and take satisfaction in a substantial income and living a life that most people only dream about.




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